Mass Beauty and Personal Care in Georgia

PROSPECTS

Affordable pricing continues to boost mass beauty and personal care

Mass beauty and personal care grew in Georgia in both current value and volume terms in 2018, driven by the increasing prices of imported goods and a preference amongst the majority of local consumers for mass products, in light of the limited spending power in rural areas of the country. Given the currency volatility, international brands (there is a lack of major local production) faced price fluctuations during the year.

Growth is expected to continue in the forecast period

Over the forecast period, mass beauty and personal care is expected to see steady current value and volume growth in Georgia, driven by a growing number of purchasers, increased product and brand variety, and the development of modern retailing. Volume growth in mass beauty and personal care will be aided by the stabilising currency, and steadier prices because of stronger competition amongst manufacturers and the rapid growth of modern retailing, where products are often offered at discounted promotional prices.

The growth in tourism will aid steady future growth

The ever-growing influx of tourists to Georgia is expected to contribute to the growth in mass beauty and personal care in the forecast period. Many visiting tourists purchase daily need products (sun care products, shampoos and shower gel, amongst others) whilst on their trip, as they often travel with just hand luggage.

COMPETITIVE LANDSCAPE

The Procter & Gamble Co maintains its lead in mass beauty and personal care

Although The Procter & Gamble Co is facing some difficulties at a global level in beauty and personal care, with its brand divestment to Coty in 2016 and its struggle to deliver the expected growth, the company’s performance in Georgia is stable. The availability of the company’s products through both traditional and modern grocery retailers and health and beauty specialist retailers supports the leading position of its brands in the country.

Pricing strategies keeps direct selling popular in mass beauty and personal care

Direct sellers remain very flexible players within mass beauty and personal care. They easily adapt to new conditions, whether it is the devaluation of the local currency, consumers looking for new products, or prospering GDP.

Growth is expected in emerging categories

With a relatively small population, the strong development of direct selling, the continuous expansion of modern grocery retailers and the maturity of chained chemists/pharmacies, many areas of mass beauty and personal are now close to maturity for the current level of economic development. Consumers are accustomed to mass products, as these boast a long presence in the Georgian market, with high awareness of most category offerings.

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