Mass Beauty and Personal Care in Latvia

PRE-COVID-19 PERFORMANCE

Mass brands continue to dominate sales, especially in categories of basic essentials

At the end of the review period, sales across beauty and personal care remained dominated by mass brands. The general rule across the industry is that the more essential the products within the category, the more likely it is that sales will be accounted for by mass brands.

International players continue to dominate sales in mass beauty and personal care

Sales in mass beauty and personal care remain heavily dominated by international heavyweights such as L’Oréal, Henkel, Avon, Beiersdorf, Cody, Unilever, Oriflame and Procter & Gamble. Category leader L’Oréal continues to benefit from its wide and well-balanced product portfolio and strong presence across numerous beauty and personal care categories.

Direct selling continues to diminish in importance in mass beauty and personal care

Direct selling remains an important distribution channel for mass beauty and personal care products in Latvia. The leading names in beauty and personal care direct selling are Avon and Oriflame and although each of these brands has a strong following in the country, they are both struggling to maintain sales as consumers increasingly look to beauty specialist retailers, drugstores/parapharmacies and e-commerce as sources of mass beauty and personal care brands.

2020 AND BEYOND

COVID-19 impact

Sales of mass beauty and personal care are now expected to decline by 8% in 2020 in 2019 constant value terms in light of the impact of COVID-19.

Affected products within mass beauty and personal care

As can be expected, the mass beauty and personal care categories likely to have experienced the strongest declines in sales due to COVID-19 include mainly non-essential products. Mass fragrances and mass colour cosmetics are expected to have taken the biggest hits in sales as these are among the first products that consumers will reduce spending on as their incomes come under pressure.

Recovery and opportunities

With mass brands is set to continue dominating overall sales of beauty and personal care throughout forecast period, moderate growth is likely to be seen in most categories due to rising spending levels as Latvia’s economy continues to develop at a steady and sustainable pace. However, sales are not expected to recover in the categories hardest hit by COVID-19 in 2020 until 2023 at the earliest, with mass fragrances not expected to recover until at least the end of the forecast period.

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