Fragrances in Algeria

PROSPECTS

Fragrances is set to continue to post healthy growth over the forecast period

Fragrances is expected to continue to see interest and demand from consumers over the forecast period, benefiting from several positive trends. Indeed, favourable demographic trends, lifestyle changes and increasing urbanisation will all contribute to the growth of fragrances in Algeria during the coming years.

Volume growth is predicted to slow

Fragrances is expected to see a slower volume CAGR over the forecast period than was seen in the review period. This slowdown in growth can be attributed to a number of factors, such as the increasing maturity of the category, which will lead to growing stabilisation, and the anticipated worsening of the economic environment in Algeria over the forecast period.

Mass men’s fragrances is set to continue to see the most dynamic growth

Mass men’s fragrances is expected to see the fastest current value growth in fragrances in the forecast period, as a consequence of economic hardship. Indeed, the faster growth of mass brands over the forecast period is expected to be driven mainly by men’s fragrances, which reflects a trading down to cheaper brands due to the predicted decline in consumers’ purchasing power.

COMPETITIVE LANDSCAPE

Puig continues to lead fragrances, followed by LVMH Moët Hennessy Louis Vuitton

Puig continued to lead the fragmented fragrances category in Algeria in value terms in 2018, followed by LVMH Moët Hennessy Louis Vuitton. Puig’s leadership is mainly driven by its Carolina Herrera brand in premium women’s fragrances.

Fragrances is dominated by imported international brands

Imported international brands account for the bulk of share in premium fragrances, whilst domestic manufacturers have a greater presence in mass fragrances. Local manufacturers have wide product portfolios and tailor their production to local tastes and demands, matching the needs and budgets of low- and middle-income consumers.

Growth in fragrances is hampered by the rise of illicit trade

Due to growing import restrictions in Algeria, illicit trade increasingly represents a real threat to growth in fragrances. Informal players can easily and quickly launch newly released brands to the market before the formal players.

Files are delivered directly into your account within a few minutes of purchase.