Fragrances in Croatia

PRE-COVID-19 PERFORMANCE

Fragrances’ increasing maturity stifles growth, strong preference for gender-specific products

Seeing the favourable conditions set for consumption growth, fragrances were underperforming at the end of the review period, with growth rates slowing. While previously a very promising category with strong growth in previous years, fragrances seemed increasingly mature as the review period progressed.

A fragmented environment that rewards players with extensive brand portfolio

The competitive landscape remained very fragmented in 2019, and is expected to continue. The number of products offered on shelves was increasing, as retailers seem to have concluded that variety sells better than focus.

Direct selling players suffer as consumers shift to premium fragrances

Direct selling was on a downward path regarding fragrances in 2019. Avon, the leader in mass fragrances, demonstrated a slow but steady decline over the review period.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to see negative growth of 17% in 2019 constant value terms in 2020 overall in light of the impact of COVID-19. This compares to the 2% rise forecast in 2019 constant value terms in our 2020 edition published in February 2020 (pre-COVID-19).

Affected products within fragrances

Limited social occasions, travel restrictions and store closures may see fragrances become the worst casualty of this pandemic, with Q1 sales almost completely cancelled out. Fragrances will be hit hard in the current crisis due to lack of socialising in bars, clubs, cafés, and going to work.

Recovery and opportunities

Overall, the fragrances category is expected to see limited growth potential over the forecast period due to high prices in a climate of constrained spending power and economic uncertainty. With consumers’ reduced spending power, the fragrances category is expected to see a continued shift towards mass products from premium offerings, and to body sprays and lower concentration formats at lower prices.

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