Premium Beauty and Personal Care in Croatia

PRE-COVID-19 PERFORMANCE

Demand for premium products boosted by consumers’ increased spending power

Although traditionally price sensitive, Croatian consumers demonstrated continuously increasing interest in more premium products in 2019. Wage increases boosted disposable household income levels, which consumers were using to buy higher quality brands.

L’Oréal Adria doo leads with strong presence throughout the category

In premium beauty and personal care, L’Oréal Adria doo held a strong lead in 2019, offering a pool of premium brands that overshadowed all others. At the end of the review period the company was dominant in premium deodorants, fragrance sets/kits, body care and hand care, with additional strong showings in other categories.

Pharmacists’ advice valued by purchasers of premium beauty and personal care

One of the strongest contributors to growth in premium beauty and personal care at the end of the review period was the pharmacies channel. Buyers of premium products feel better about their purchases if they receive advice from a professional.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are now expected to grow by a negative 8% in 2019 constant value terms in 2020 overall in light of the impact of COVID-19. Retail store closures and social distancing measures will result in consumers downgrading from premium products to items at lower prices.

Affected products within premium beauty and personal care

Non-essentials are set to be particularly affected by COVID-19, with consumers trading down from premium products to cheaper mass alternatives. This will be particularly evident in categories such as fragrances, deodorants and sun care.

Recovery and opportunities

With the wearing of face masks commonplace in the post-COVID-19 environment, there is expected to be increased demand for products that allow personal expression when wearing such items, for example through use of eye make-up and nail products. Products that address irritation arising from periods of extended wear, for example in skin care, may also benefit.

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