Health and Beauty Specialist Retailers in Tunisia

2021 DEVELOPMENTS

Improved performances seen in 2021 despite the ongoing economic crisis

Despite the sanitary and economic crisis, health and beauty specialist retailers enjoyed moderate growth in current value terms in 2021. The demand for consumer health products rose due to concerns around the spread of COVID-19, with people stocking up on products such as hand sanitiser, face masks and vitamins and dietary supplements, all of which benefited health and beauty specialist retailers.

Competition remains fragmented while also being challenged by the presence of a strong informal market

Health and beauty specialist retailers continued to be dominated by independent retailers in 2021 despite the presence of the leading local chain FATALES and famous international retailers such as Yves Rocher. “Others” continued to account for the vast majority of value sales during the year, with neighbourhood chemists/pharmacies and smaller beauty specialist retailers holding particular social and cultural importance for many consumers.

Need for updated prescriptions benefits optical goods stores while beauty specialist retailers benefit from easing of restrictions

Optical goods stores suffered heavy losses in 2020 as consumers faced restrictions on movement and concerns around catching COVID-19, but sales picked up again in 2021 as consumers looked to replace out-of-date prescriptions. Meanwhile, the resumption of weddings, parties and celebrations during the second half of 2021 was beneficial to beauty specialist retailers.

PROSPECTS AND OPPORTUNITIES

Rising health awareness bodes well for health and beauty specialist retailers

Chemists/pharmacies and drugstores/parapharmacies are set to register solid growth over the forecast period as consumers become better educated about the benefits of using a wider range of consumer health products. This is due in part to the spread of information via social media platforms such as Instagram and Facebook.

A significant presence of informal retailers likely to undermine growth

With the decrease in purchasing power and the absence of controls on Tunisia’s informal market, illicit trade will likely continue to flourish, at least during the early years of the forecast period. The current demand for smuggled goods remains high especially for beauty products and counterfeit glasses, with many people unable to afford these products through formal channels due to significant economic challenges.

Further devaluation of the Tunisian dinar a threat to growth

The current economic crisis is likely to lead to a further devaluation of the Tunisian dinar unless the government is able to take measures to prevent this. If the local currency sees a further fall in value then this would likely have a big impact on the market because more than 70% of health and beauty products are imported and as such prices would almost certainly rise.