Premium Beauty and Personal Care in Estonia

PROSPECTS

Increase in disposable income is the core factor behind premiumisation trend

Increasing disposable income was the core driving force that benefitted sales of premium cosmetics in 2018. Whilst there is a prestige factor in such categories as premium fragrances, consumers choose most other premium beauty and personal care products for their high quality.

Colour cosmetics witnesses the highest price competition

Colour cosmetics witnessed very active development of premium products over recent years. However, this category also witnessed one of the most significant increases in competition, resulting in a value sales decline in premium colour cosmetics.

Forecast period is very promising for premium products

Positive development of premium products is expected over the forecast period. However, competition is expected to intensify, which will moderate average unit price growth in upcoming years.

COMPETITIVE LANDSCAPE

L'Oréal continues to lead sales in colour cosmetics

Coty and L'Oréal maintained their leading positions in 2018 on the strength of their leading positions in premium fragrances and colour cosmetics, respectively. Coty lost value share, whilst second-ranked L'Oréal was able to sustain its sales share in 2018, despite increasing competition and a growing number of players in premium beauty and personal care.

Noticeable developments derive from both international and domestic producers

Over the last two years of the review period, previously unavailable, world-famous beauty and personal care brands entered the Estonian market, and saw rapid development in the country. Amongst the most noticeable brands were Benefit, Urban Decay, MAC and Bobbi Brown.

Sales through internet retailers will become more important

Because of the rising importance of internet retailers, more producers and distributors will focus on this channel in order to achieve sustainable growth. During the review period, Estonians were rather concerned about the quality of premium products sold online as there was a great possibility of buying falsified products.

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