Premium Beauty and Personal Care in Denmark

PRE-COVID-19 PERFORMANCE

Premium beauty and personal care continues to grow in 2019

The strong Danish economy and resultant rising disposable incomes fuelled the ongoing premiumisation trend in 2019 and drove value sales growth of premium beauty and personal care, albeit at a slightly slower rate than seen during the year prior. Nearly all areas of premium products, including facial care, BB/CC creams, hair care and fragrances, saw increases as consumers actively sought and were willing to pay more for brands that promised high quality and innovation as well as natural, eco-friendly ingredients.

Consumers turning to e-commerce to secure premium beauty products at lower prices

The growing e-commerce channel promises consumers convenience and lower prices, and in recent years this has led to a strong shift from in-store shopping to online shopping in many categories, including beauty products. In particular, devotees of premium beauty products have increasingly turned to e-commerce to secure their desired, high-quality products at lower prices than those offered in brick-and-mortar stores.

L'Oréal Danmark continues to lead premium beauty and personal care in 2019

Despite a slight drop in value share, L'Oréal Danmark nevertheless relied on its wide range of well-known and trusted premium brands and its ongoing programme of innovative new product launches to keep its solid hold on the leadership position in premium beauty and personal care products in 2019, a position the company has held throughout the review period. L'Oréal Danmark was followed closely by E Sæther A/S, the local distributor of numerous popular premium brands, including Max Factor, Chanel, Hugo Boss and Calvin Klein, which was followed a bit further down the value share line by third-ranked Estée Lauder Cosmetics A/S.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to decline by 9% in 2020 in 2019 constant value terms in light of the impact of COVID-19. As the pandemic exploded on to the scene in the early months of 2020 and as it has gone forward, the anticipated steady value sales growth that had been projected to continue on from the review period stalled and it continues to be sluggish.

Affected products within premium beauty and personal care

As a result of the lockdown and the general avoidance of interacting with others, Danes are spending more time at home and steering clear of even small gatherings. As a consequence, in 2020 consumers are, for the most part, not feeling obliged to use premium beauty and personal care products, resulting in sales declines in many product areas.

Recovery and opportunities

While a marked pandemic-related value decline at constant 2019 prices is projected for 2020, a significant rebound is expected in 2021, followed by a quick return to more moderate growth throughout the remainder of the forecast period. This is anticipated to result in a slightly positive overall growth rate for the forecast period.

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