Fragrances in Costa Rica

PRE-COVID-19 PERFORMANCE

Economic slowdown and resultant price-consciousness hamper growth

Fragrances saw a further slowdown in the current value growth rate in 2019. In fact the category struggled to achieve growth, seeing only a negligible increase.

Global and regional players remain ahead in fragrances

Despite the constant emergence of new value proposals over the last five years, the leading international direct selling players, Corporación Belcorp de Costa Rica and Avon de Costa Rica, managed to maintain their leading positions and their combined strength in fragrances in 2019. These also remained the leading companies in mass fragrances in 2019, holding a combined dominant value share.

New value proposals and recognised premium brands anticipated to set the pace

The good performance of 2019 launches should be highlighted, such as the new brand extensions by well-known brands Carolina Herrera Good Girl and Lancôme Idôle. In both these fragrances, the packaging and bottle format play key roles.

2020 AND BEYOND

COVID-19 impact

Fragrances is now expected to see an 11% decline in 2020 in 2019 constant value terms in light of the impact of COVID-19. This is significantly lower than the negligible growth forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

In 2020, mass fragrances and premium fragrances are expected to see different rates of decline. Premium fragrances is expected to see a much worse performance, with a significant double-digit current value decline, whilst mass fragrances is still expected to see falling sales, but at a slower rate.

Recovery and opportunities

Fragrances is expected to be the beauty and personal care category hardest-hit by COVID-19. Although the negative impact is expected to be at its greatest in 2020, retail volume and current value sales are expected to continue to decline strongly in 2021, with a return to just marginal current value growth in 2022, with faster growth rates in the last two years of the forecast period.

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