Premium Beauty and Personal Care in Estonia

PRE-COVID-19 PERFORMANCE

Rising income levels support growth of premium segment in 2019

Increased consumer purchasing power along with rising awareness of the benefits of beauty regimens and personal hygiene routines were the driving forces behind the growth of premium beauty and personal care in Estonia in 2019. Premium fragrances continued to account for the highest proportion of value share, and premium skin care led growth as consumers showed increased interest in products which combine both beauty and health-related benefits.

Increased consumer trust in e-commerce intensifies competition between brands in 2019

The rise of e-commerce continued to support sales in premium beauty and personal care in 2019, particularly in the case of premium fragrances and premium colour cosmetics. Increased competition due to a growing number of brands led to frequent discounts and promotions throughout the year.

L'Oréal Baltic leads in 2019, followed closely by Coty

L'Oréal Baltic SIA led premium beauty and personal care in 2020, only marginally ahead of closest competitor, Coty Inc. The companies maintained their leading positions on the strength of their brands’ presence in premium fragrances (Coty) and premium colour cosmetics (L’Oréal).

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are now expected to decline by 12% in 2020 in 2019 constant value terms in light of the impact of COVID-19. Premium beauty and personal care is seeing an overall decline in 2020 due to economic uncertainty and lack of availability of several premium-positioned products.

Affected products within premium beauty and personal care

Premium fragrances, premium adult sun care and premium hair care are the worst-hit categories in 2020. With consumers spending most of their time indoors and enjoying only limited social interaction, they are less inclined to spend money on costly fragrances and hair care products.

Recovery and opportunities

All categories within premium beauty and personal care will see an initial surge in demand as life returns to normal during 2020-2021. However, for most, current value growth will slow down throughout the forecast period, hampered by declining income levels.

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