Fragrances in Algeria

PROSPECTS

Healthy growth expected for fragrances over the forecast period

Over the forecast period, fragrances is expected to continue witnessing healthy growth. Use of fragrances will continue to be an integral part of beauty and personal care in the country.

Fragrances is expected to face serious threats to growth

Constant value sales of fragrances are expected to grow over the forecast period at a slower CAGR than was seen over the review period. This growth slowdown can be attributed to a number of factors, such as increasing maturity of the category, which will experience increasing stabilisation, and the ongoing worsening in the economic environment in Algeria over the forecast period.

Mass men’s fragrances is expected to see the fastest growth

As in other beauty and personal care categories, women are the primary consumers, with women’s fragrances accounting for almost two thirds of total sales. However, the men’s segment saw a surge in demand during the review period, the result of changing male grooming patterns; the average man now spends a larger proportion of his income on toiletries, including fragrances.

COMPETITIVE LANDSCAPE

Moët Hennessy Louis Vuitton leads fragrances

Fragrances remained largely fragmented in 2017, with Moët Hennessy Louis Vuitton leading overall sales due mainly to its performance in premium women’s fragrances with its successful Givenchy and Guerlain brands. These brands continued to enjoy high levels of popularity amongst Algerian consumers at the end of the review period.

International imported brands dominate premium fragrances

The overwhelming majority of premium fragrances consist of imported foreign brands, whilst local manufacturers are more present in mass fragrances. Domestic players have wide product portfolios and manage to tailor their production to local tastes and demand more easily than international brands.

Ban on imports is reviving the informal market

Due to the import restrictions, the informal market for fragrances is increasingly representing a real threat to authentic perfumeries. Informal players can easily launch newly developed products in the marketplace before formal players can, as the legal import procedures are becoming more complicated in Algeria due to the tighter restrictions on imports and it therefore takes longer to get new products through customs.

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