Fragrances in Ukraine

PRE-COVID-19 PERFORMANCE

Growth in 2019 is driven by rising consumer spending power, with premium fragrances performing well due to being perceived as aspirational

In 2019, growth in fragrances was driven by rising consumer spending power, with many Ukrainians enjoying frequent use of fragrances, opting for expensive brands when their incomes allow for it. Women are core consumers of fragrances in Ukraine, in both the premium and mass market.

Scent innovations push the industry forward in 2019, as well as a growing interest in niche brands that offer unique fragrances

Innovation is a key driver of sales in fragrances, and at the end of the review period, women became more in favour of wooden, and tobacco flavours, including heavier scents such as Comme des Garcons. Similarly, men's series are beginning to be characterised by the wider use of feminine scents.

Avon Cosmetics Ukraine DP continues to lead in 2019; however, its overall shares decline due to growing competition from premium players

Avon Cosmetics Ukraine DP had an undisputed lead in Ukraine in 2019, due to its pioneering entry and wide assortment of fragrances, enriched with regular innovations and offered at attractive prices. The player, being a direct seller, enjoys a good reach to Ukrainian consumers all over the country.

2020 AND BEYOND

COVID-19 impact

Sales of fragrances are now expected to decline by 18% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected 4% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within fragrances

All areas within fragrances are expected to record a double-digit decline in 2020, due to the impact of COVID-19. Areas most impacted in 2020 are predicted to be premium fragrances, which have much steeper unit prices than mass fragrances, and are viewed as a luxury item in the country, reflecting status.

Recovery and opportunities

COVID-19 is predicted to result in a substantial double-digit decline for all areas within fragrances in 2020, as consumers stop investing in the products due to limited socialising and increased economic uncertainty. However, by 2021, fragrances will record positive growth once more, which is set to continue across the forecast period.

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