Premium Beauty and Personal Care in Algeria

PRE-COVID-19 PERFORMANCE

Worsening macroeconomic climate tempers demand for premium products in 2019

While premium beauty and personal care showed an improved performance in terms of total current value sales growth in 2019, this was mainly due to unit price increases driven by rising inflation, higher import tariffs and the depreciation of the Algerian dinar. Together with the impact of the wider economic crisis in Algeria, price hikes continued to erode consumer confidence and purchasing power.

Premium baby and child-specific products expands fastest in value terms in 2019

Among the main premium beauty and personal care categories, premium baby and child-specific products recorded the fastest growth in current value sales in 2019. Because parents inevitably sacrifice their own needs for those of their children, this category continued to weather Algeria’s economic crisis better than most.

Puig leads multinational-dominated field in 2019 as illicit trade continues to grow

Puig remained the top company in premium beauty and personal care in value terms in 2019 by virtue of its leading position in premium fragrances. Zohara Parfums, which competes in premium fragrances and premium skin care, finished second, while LVMH Moët Hennessy Louis Vuitton – also focused on premium fragrances – rounded out the top three.

2020 AND BEYOND

COVID-19 impact

Premium beauty and personal care value sales at constant 2019 prices are expected to decline marginally in 2020 in light of the impact of COVID-19.

Affected products within premium beauty and personal care

Premium bath and shower looks set to be worst affected by COVID-19 in 2020, with a double-digit decline in value sales at constant 2019 prices projected. This is because it is the category likely to suffer most as the economic impact of the pandemic leads more consumers to trade down to the mass segment.

Recovery and opportunities

Premium beauty and personal care is expected to develop positively over the forecast period as a whole, with most categories projected to see value sales at constant 2019 prices rebound in 2021 and then increase steadily thereafter. Overall expansion will continue to be underpinned by urbanisation, growth in employment among women, rising image-consciousness and consumer exposure to international beauty and personal care trends.

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