Mass Beauty and Personal Care in Latvia

PROSPECTS

Low per capita spending on cosmetics leaves plenty of room for growth

The average amount spent on cosmetics per resident of Latvia annually is as low as EUR81, among the lowest in Europe, according to the Association of Latvian Cosmetic Producers. Latvian residents' cosmetics spending is also the absolute lowest in the Baltic states.

Natural and organic products remain popular

Among the most obvious developments in the Latvian beauty and personal care industry in recent years has been the significant proliferation of natural and organic products. While these products were previously seen almost exclusively in the premium segment, 2018 saw an increasing number of mass brands begin to offer natural and/or organic products and this trend is likely to continue building during the forecast period.

Premium brands set to pose greater competition

Mass beauty and personal care is slated for strong growth over the forecast period due to rising demand at a time of rising income levels and greater consumer confidence. However, the improved economic conditions and increased consumer spending are set to be more favourable for premium brands and for this reason, premium beauty and personal care products are expected to pose stiffer competition to mass brands over the forecast period.

COMPETITIVE LANDSCAPE

Mass brands continue to lead beauty and personal care overall

Mass brands remained prominent among the leading names in beauty and personal care in 2018, with Avon, Syoss, Faberlic and Nivea holding the four leading positions at industry level. The main reason for the primacy of these brands and their parent companies is that the vast majority of Latvian people remain highly price-sensitive.

Price promotions remain more common for mass brands

Price promotions are still the most common form of marketing for mass beauty and personal care brands. Although demand is slowly shifting towards more expensive products, including premium brands, price competition remains intense among mass brands.

Mass beauty and personal care brands increasingly target younger consumers

Young people are already the core target consumer group for mass beauty and personal care brands and the forecast period is expected to see them become even more important. Older consumers tend to have higher purchasing power and are thus more likely to favour premium brands, meaning that mass brands must explicitly and consciously target young people to encourage them to purchase their products and spur demand.

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