Premium Beauty and Personal Care in Belgium

PROSPECTS

Fragile support from premium fragrances

As in 2017, one of the main contributors to the ongoing positive value growth of premium beauty and personal care over the forecast period should come from premium fragrances. However, despite a glamorous image, frequent new product launches and prestigious advertising campaigns, this category could be increasingly considered a giant with feet of clay.

Elusive new consumer base

Another threat for premium brands lies in the fragile loyalty of young consumers, mainly the millennials. Although this consumer base is logically becoming more important in terms of their spending power, highly sensitive to social media, online make-up tutorials and YouTubers, young Belgian women do not have the same behaviour and perceptions as the previous generation.

“Less is more” expected to be a key trend in premium beauty and personal care

Belgian consumers are likely to increasingly consider the prolonged health effects that their complex beauty routines may be having on their skin. Growing demand for premium brands is set to result from the “less is more” trend, which involves consuming fewer products but of better quality.

COMPETITIVE LANDSCAPE

French luxury players lead the way

In a fragmented competitive environment, three players amongst the top five in 2017 were French multinationals with luxury and premium brands, namely L'Oréal Belgilux, Christian Dior and Chanel. L'Oréal Belgilux was the leader by a slight margin, but it nonetheless faced fragile loyalty to mainstream premium brands such as Lancôme and Helena Rubinstein.

Interesting acquisitions benefit some players

Due to increasing fragmentation, players mainly benefited from the effects of interesting acquisitions during the last couple of years leading up to 2018. After Coty Inc’s acquisition of the Hugo Boss and Lacoste fragrance brands, the entrance of Jean Paul Gaultier fragrances within the portfolio of Paco Rabanne - Groupe Puig from 2016 proved to be good investment in 2017 thanks to the success of Jean Paul Gaultier Le Mâle and the recently launched Scandal for women.

Premium pharma brands do well

With the growing concerns about the composition of many skin care products, Belgian consumers increasingly turn towards the derma-cosmetic brands sold in chemists/pharmacies, products in which they are prepared to place more trust because of the “medical guarantees” associated with them. In addition, these products are perceived as offering better value for money compared with the luxury products sold in perfumeries, which paid off for premium pharma players such as Laboratoire Nuxe and Laboratoires Pierre Fabre in 2017.

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