Health and Beauty Specialist Retailers in Malaysia

2021 DEVELOPMENTS

Rising health consciousness due to COVID-19 supports sales growth

Health and beauty specialist retailers recorded positive growth during 2021, although this only represented a partial recovery from the double-digit sales declines recorded in the category at the peak of the COVID-19 pandemic during 2020. One of the key factors underpinning growth in the category during the year was the increased demand for vitamins and dietary supplements, among a wide range of other consumer health and health and wellness products.

Optical goods stores rebounds in 2021 after a difficult year in 2020

2021 saw optical goods stores register positive sales growth again after the category registered declining sales at the peak of the COVID-19 pandemic in 2020. The main factor behind the negative sales performance recorded in the category in 2020 was the adverse and uncertain economic environment that unfolded over the course of the year, the result of the interruptions caused to commercial activity in key sectors of the Malaysian economy by the COVID-19 pandemic.

Drugstores and pharmacies benefit from their status as essential retailers

After a difficult year marked by falling sales during 2020, drugstores/parapharmacies and chemists/pharmacies returned to positive sales growth over the course of 2021. One of the factors that supported the recovery of each of these categories during the year was that were both classified as essential retail stores.

PROSPECTS AND OPPORTUNITIES

Alpro and Watsons set to continue expanding due to growing demand

The focus. Is expected to see positive growth for health and beauty specialist retailers, with the category’s leading chained players set to be among the big winners as demand for a wide range of consumer health, beauty and personal care and health and wellness products expands significantly.

Rising demand for South Korean beauty products to underpin sales growth

After a strong recovery in sales over the course of 2021, beauty specialist retailers is slated for further positive growth over the forecast period. Rising demand for a wide variety of cosmetics and beauty products imported from South Korea is expected to underpin sales growth in the category to a large extent, with the relatively high unit prices of these products and very high profile of the leading South Korean beauty and personal care brands expected to be major reasons for positive sales growth.

E-commerce set to continue presenting stiff competition to store-based retailers

With consumer interest in e-commerce having increased dramatically since the onset of the COVID-19 pandemic, the forecast period is expected to see further growth in online sales of a wide range of beauty and personal care, consumer health and health and wellness products. While this is likely to undermine growth rates in health and beauty specialist retailers as many consumers who would previously have visited did a store to purchase such items are now increasingly likely to purchase them online instead, the category’s leading players are expected to focus more on their online operations in an effort to capture rising demand and compensate for any potential slowdown in growth in their in-store sales.