Mass Beauty and Personal Care in Georgia

PRE-COVID-19 PERFORMANCE

Ongoing strong performance for mass beauty and personal care in 2019, as consumers with increasing disposable incomes invest in more specific products

Mass products continued to dominate beauty and personal in 2019 due to the high proportion of lower-income consumers in Georgia, particularly those residing in rural areas of the country. Current value sales continued to recorded increasing growth at the end of the review period in part due to ongoing price fluctuations linked to the high share of imported brands and local currency devaluation; however, unlike premium beauty and personal care, which recorded slowing value sales compared to the previous year, the mass segment experienced an improvement, indicating that an increasing number of consumers with increasing disposable incomes are gradually trading up to mass products that offer higher specific value through more advanced formulations and natural active ingredients, while still offering greater affordability compared to premium options.

Direct selling continues to gain ground as important distribution channel of mass beauty and personal care in 2019

The distribution channel of direct selling continued to increase its importance within the mass beauty and personal care environment in Georgia at the end of the review period, due to the affordability of its prices, and the fact that its direct selling representatives have a wider reach to more rural areas of the country compared with modern grocery retailers. Therefore, direct selling brands Avon, Oriflame, and Faberlic retained their overall leadership of mass beauty and personal care in 2019, with the leader gaining further value share due to its reasonable price/quality ratio and strong advertising.

Intense competition between leading multinationals in 2019

While direct selling products led mass beauty and personal care in brand terms in 2019, multinationals The Procter & Gamble Co (leader of mass hair care) and L'Oréal Groupe (leader of mass colour cosmetics, mass facial care) continued to compete closely, with both gaining value share from smaller players. These players benefit from consumer trust in their quality due to their global reputations and wide availability through both traditional and modern grocery retailers and health and beauty specialist retailers for their well-known brands Pantene Pro-V, Head & Shoulders, L'Oréal Paris, Maybelline, and Garnier, respectively.

2020 AND BEYOND

COVID-19 impact

Value sales of mass beauty and personal care are expected to decline by 6% in 2020 at constant 2019 prices in light of the impact of COVID-19.

Affected products within mass beauty and personal care

Actual demand for many essential and non-essential mass beauty and personal care products is set to decline in 2019 due to the response to COVID-19 in Georgia, resulting in the home seclusion trend during lockdown, and financial instability. While products such as deodorants, oral care, bath and shower, hair care, and baby and child-specific products will still see some declines in volume terms due to reduced usage as price-sensitive consumers attempt to lengthen the replacement cycle of these essential items, they will still maintain a certain level of basic hygiene and mass products remain more affordable to the main target audience.

Recovery and opportunities

Mass beauty and personal care is predicted to rebound in terms of demand, with 2021 set to see normalisation in terms of purchasing behaviour for many products, as consumers return to their workplaces and socialising outside of the home environment, but they are likely to remain more cautious in their expenditure for the early part depending on their employment prospects. Value sales growth at constant 2019 prices however, is predicted to gain momentum over the course of the forecast period, as local consumers gain greater confidence in purchasing products that offer higher specific value through more advanced formulations, while still being attracted to price promotions which is habitual amongst lower- to mid-income Georgians.

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