Fragrances in Kazakhstan

PRE-COVID-19 PERFORMANCE

Growth rate of fragrances moderates in 2019 as price-conscious consumers drive big swing from premium to mass fragrances

Wearing a pleasant fragrance is considered by most Kazakhs to be an important feature of good personal grooming, and as a result, fragrances remained amongst the biggest categories within beauty and personal care in Kazakhstan in 2019, exceeded in current value sales terms only by colour cosmetics. Indeed, wear fragrances is de rigueur amongst Kazakhs regardless of income level.

Consumers increasingly seeking unique fragrances

Consumers had a wide range of scents to choose from in 2019, and most were able to find the right fragrance to celebrate their distinctiveness and convey their inner self. While Kazakhs are still, on the whole, conservative consumers, there have nevertheless been a growing number of smaller brands launched in recent years in response to the rising demand for unique and distinctive scents.

Direct sellers continue to lead fragrances in 2019

Perhaps unusually, in Kazakhstan direct sellers—Avon Cosmetics Kazakhstan, Mary Kay (Kazakhstan) and Oriflame Kazakhstan—were the leaders in fragrances in 2019, with all offering wide ranges of popular mass fragrances that appealed to the large number of the country’s price-conscious consumers. Immediately following the three leaders—combined, they held just more than a third of total value share in 2019—were numerous companies all with much smaller value shares.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to decline by 20% 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 areas of fragrances will see significant double-digit declines in retail volume sales and value sales at constant 2019 prices in 2020 as a result of the COVID-19 pandemic. Sales of both premium products and mass products will be hard hit.

Recovery and opportunities

After significant declines in 2020, value sales at constant 2019 prices in all areas of fragrances are expected to bounce back in 2021 before moderating over the remainder of the forecast period. Premium fragrances are expected to see slightly stronger returning growth rates than mass products.

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