Mass Beauty and Personal Care in Norway

PROSPECTS

Mass pharmacy brands add value

While the pharmacy channel is predominantly associated with premium-positioned brands, a wide range of mass pharmacy brands, such as Cosmica, Eucerin, Cliniderm and Dermica, have registered a strong value sales development for most of the review period. A strong focus on product diversification, products that are free from potentially harmful ingredients and are suitable for sensitive skin have appealed to Norwegian consumers.

Low-cost store concepts undermine value sales

Low-cost or discount store concepts have boomed in popularity towards the end of the review period and registered growth even more dynamic than that of online sales. Low-cost store concepts predominantly focus on well-known mass beauty and personal care brands, such as L’Oréal, Define and Maybelline.

The premiumisation trend remains strong

While the premiumisation trend has added value to the mass beauty and personal care segment, mainly in the form of mass pharmacy brands and a rising focus on natural alternatives, the trend has mainly increased competition and undermined value sales. Norwegians are comparatively price insensitive, have high disposable incomes and put a high degree of focus on their appearance.

COMPETITIVE LANDSCAPE

L’Oréal Norge and Orkla Care lead value sales

Despite losing value share to mass pharmacy brands and to the premium segment in 2018, L’Oréal Norge and Orkla Care continued to lead sales of mass beauty and personal care, accounting for more than one third of overall value sales. Both players have added a great deal of value through product diversification and a rising focus on offering more value-added alternatives.

Pharmacy brands continue to gain value share

While the pharmacy channel has been driven primarily by the premium segment, mass pharmacy brands have also performed well and benefited from the rising popularity of the channel. The majority of mass pharmacy brands, such as Cosmica, Eucerin and Cliniderm, have registered positive value sales development in 2018 and gained in value share.

Private label expansion remains limited

Aside from Dermica, a private label pharmacy brand from the leading pharmacy chain Apotek 1, private label brands have struggled to augment their position for most of the review period. Premium private label ranges sold through the grocery channel have registered booming growth in most other industries, but they have struggled within beauty and personal care, with almost all private label brands sold through the grocery channel declining in value share in 2018.

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