Hair Care in Uzbekistan

PRE-COVID-19 PERFORMANCE

Long-established category shows signs of reaching saturation in 2019

Hair care volume sales were negatively impacted by two major trends in 2019: first, the category essentially reached saturation point due to a long tradition of usage, particularly of standard shampoos, and the presence of a wide product offering across various price points in order to satisfy demand from consumers; second, unit price growth slowed to a standstill in constant 2019 value terms, despite rapid growth in current value sales due to high inflation.

Low income levels and illegal trade add pressure on sales in 2019

Although the economy demonstrated some growth in Uzbekistan in 2019, the vast majority of consumers remained price sensitive due to low income levels. They thus continued to overwhelmingly buy mass hair care in 2019, although sales continued to fall in constant 2019 value terms.

Clear, distributed by Ayven Trade OOO, remains the leading brand of hair care in 2019

In 2019, the category was again led by companies distributing brands owned by international players, such as Unilever and Procter & Gamble, as well as by Henkel AG & Co KGaA. The first two companies, Ayven Trade OOO and Synergy Distribution OOO, have well-balanced product portfolios and focus on advertising on local and Russian TV, which hampered new competition.

2020 AND BEYOND

COVID-19 impact

Value sales of hair care are now expected to decline by 3% 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 hair care

There were short spikes in value sales in the first half of 2020 as consumers stockpiled necessities such as shampoo as COVID-19 spread, but they did not stock up on styling agents or conditioners and treatments as unemployment was seen and disposable incomes fell. Although sales of conditioners and treatments, 2-in-1 products and styling agents are all expected to be further negatively impacted by general economic uncertainty in 2020, the leading categories within hair care, shampoos and colourants, which are both considered largely essential items, will see fewer damaging effects as a result of COVID-19, although volume sales will still fall during the year as a whole.

Recovery and opportunities

Over the forecast period as a whole, mass hair care brands that offer consumers good quality at competitive prices, but also thicken and repair damaged hair, prevent dandruff, etc, will perform well and continue to dominate overall sales. Such features will remain key in terms of innovation in the mass segment.

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