Premium Beauty and Personal Care in Algeria

PROSPECTS

Healthy growth expected for premium beauty and personal care over the forecast period

Premium beauty and personal care is expected to continue seeing positive interest and demand from consumers over the forecast period benefitting from several positive trends. Lifestyle changes and increasing urbanisation will contribute to the growth of premium beauty and personal care in Algeria during the coming years.

Several threats to premium beauty and personal care growth

Value growth of premium beauty and personal care is expected to slow down over the forecast period at constant 2017 prices. This growth slowdown can be attributed to the increasing maturity of premium categories, which will experience growing stabilisation, and to the anticipated worsening in the economic environment in Algeria.

Premium beauty and personal care will continue to be shaped by fragrances and colour cosmetics

Premium fragrances and premium colour cosmetics will continue to account for the majority of overall premium beauty and personal care value sales over the forecast period. This is chiefly because, when it comes to these two categories, Algerian consumers are very demanding in terms of quality and are willing to spend more on them than on any other type of premium product, thus buying big brand names.

COMPETITIVE LANDSCAPE

Moët Hennessy Louis Vuitton maintains its lead in premium beauty and personal care

Moët Hennessy Louis Vuitton continued leading the fragmented premium beauty and personal care in 2017. Its revenue is derived primarily from fragrances, where it thrives on the equity of its iconic brands such as Givenchy and Guerlain for women and Kenzo for Men.

International imported brands dominate premium fragrances

Imported foreign brands tend to hold the bulk of premium beauty and personal care share, whilst domestic manufacturers have a greater presence in mass beauty and personal care. International players such as Moët Hennessy Louis Vuitton, Puig, Procter & Gamble, L'Oréal Groupe and Clarins are very popular and well established in Algeria, thus dominating the premium segment.

Informal market in premium beauty and personal care is flourishing

Imports of beauty and personal care products are restricted in Algeria and were at least temporarily totally banned in May 2017 in order to relieve pressure on the balance of payments impacted by the fall in international oil prices. Therefore, to encourage domestic industries and protect local producers from unfair foreign competition and reduce local consumption of imported luxury goods, Algerian regulators decided to block imports.

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