Fragrances in Hungary

PRE-COVID-19 PERFORMANCE

Premium outperforms mass fragrances as discounting drives volume sales across the year in 2019

Fragrances recorded current value growth at slightly below the average rate for beauty and personal care in 2019, with premium fragrances posting stronger growth than mass in both value and volume terms. Premium fragrance sets/kits saw the highest value growth in 2019, while premium unisex fragrances recorded the lowest.

Drugstores/parapharmacies and e-commerce help to grow fragrances sales in 2019

Premium fragrances were increasingly available in drugstores/parapharmacies in 2019, as evidenced by double-digit growth in the value share of fragrances for this channel in 2019. This wider availability of premium-priced fragrances through a different channel made it more difficult for consumers to distinguish between mass and premium fragrances.

Avon retains lead in mass fragrances as Giorgio Armani leads premium in 2019

Avon Cosmetics Hungary maintained its lead in fragrances in value terms in 2019. Representing the mass segment, Avon maintained its strong position due to its well-known brands and affordable prices.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to decline by 17% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected 2% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

All product areas across fragrances are expected to see double-digit declines in both retail volume and value at constant 2019 prices in 2020 due to the COVID-19 pandemic. Premium unisex fragrances and premium fragrance sets/kits are set for the sharpest value declines at constant 2019 prices, with men’s mass fragrances seeing a slightly lower impact.

Recovery and opportunities

Fragrances is expected to return to both value and volume growth in 2021 as consumers return to spending. However, all areas are expected to see a value decline over the duration of the forecast period, with premium fragrances performing slightly better than mass fragrances overall.

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