Depilatories in Georgia

2021 DEVELOPMENTS

Local currency devaluation results in higher value growth, while in volume terms sales continue to decline

In 2021, local currency devaluation continued impacting the performance of depilatories as it resulted in higher unit prices. In retail volume terms, depilatories experienced declining sales, albeit slower than what was seen in 2020, while in current value terms depilatories experienced growth in 2021.

Affordable beauty salon treatments pose a competitive threat

Depilatories faced another obstacle to development in 2021. Notably, the increasing number of beauty salons in Georgia that offer affordable alternative solutions to depilatories purchased for home usage continued posing competition to the category in 2021.

Depilatories remain almost exclusively reliant on imports

Depilatories in Georgia remained heavily reliant on imports in 2021, and therefore continued to be dominated by international companies, which enjoy strong consumer loyalty and competitive prices. The category remained fairly consolidated and led by The Procter & Gamble Co due to its major brand Gillette within the larger category of women’s razors and blades, benefiting from wide availability and consumer trust, in addition to women’s pre-shave, the latter of which holds low competition and a more limited assortment of products.

PROSPECTS AND OPPORTUNITIES

Fuller recovery from 2022 as consumers spend longer periods of time outside of the home

Depilatories is set to post stronger current value growth from 2022 onwards. However, disposable incomes are still expected to face challenges from the economic fallout of the pandemic and rising inflation that followed in 2021.

Demand may continue slowing as consumers migrate towards competitively priced beauty salon treatments

In the forecast period, the growing trend of consumers going to salons for professional depilatory services will continue to present an obstacle to faster growth for depilatories. Furthermore, the increasing number of beauty salons offering these services has created strong competition in terms of pricing and therefore, they will continue becoming more affordable to a wider target audience.

Growing competition will facilitate the launch of more affordable brands

Increasing availability of depilatories through modern retail channels will help promote these products and expand awareness amongst consumers in the forecast period. Additionally, as the competition between modern grocery retailers and chemists/pharmacies increases, it will facilitate the launch of more affordable brands and widen the share structure in the forecast period.