Fragrances in Colombia

PRE-COVID-19 PERFORMANCE

Dynamic value growth mainly due to price rises not volume growth

In 2019, fragrances saw a dynamic current value increase, with the strongest growth rate seen in the entire review period. However, this increase was mainly due to strong price rises, as premium men’s fragrances was the only category to see retail volume growth.

The leading mass players lose share

Belstar remained the leading player in overall fragrances in value terms in 2019, thanks to its lead in mass fragrances. Its Ésika brand remained the second brand within overall fragrances in this year, and was one of the only brands to hold a double-digit value share.

Direct sellers respond to the challenges in fragrances

Thanks to Belstar, Yanbal, Avon and Natura Cosméticos, amongst others, direct sellers dominate fragrances in terms of value sales. Each company continues to invest in new product launches; however, this strategy did not help them to post share growth at the end of the review period.

2020 AND BEYOND

COVID-19 impact

Fragrances is now expected to see a 4% decline in 2020 in 2019 constant value terms in light of the impact of COVID-19. This is a stronger fall than the 1% decline forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

Despite financial concerns, premium fragrances is expected to see the best performance in 2020, with slight current value growth, whilst mass fragrances is set to see a decline. Higher-income consumers are likely to be least affected by the economic fallout from COVID-19, and will continue to purchase premium fragrances, especially as they feel they deserve a treat in difficult circumstances.

Recovery and opportunities

Although fragrances is expected to return to current value growth in 2021, the rate of increase is not expected to be as high as that seen at the end of the review period, and much stronger growth is expected in the following three years. This indicates that there could be a lingering negative impact on demand from COVID-19 in 2021 as entertainment venues and workplaces open up only gradually.

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