Premium Beauty and Personal Care in Finland

PRE-COVID-19 PERFORMANCE

Premium beauty and personal care suffers from the uncertain economy and growing competition from mass formats

After marginal current value growth in 2017 and 2018, premium beauty and personal care witnessed declining sales in 2019. Finns are generally becoming more rational in their spending, looking to save money wherever possible due to the uncertain economic outlook, with some cutting back on their purchases of premium products.

Players use several strategies to support sales

Travel-sized packaging became more popular in premium beauty and personal care in 2019. This is clearly due to the hectic lifestyles of many Finns who are increasingly travelling in their spare time, as well as working longer hours.

Players active with new launches in 2019

L'Oréal Finland extended its strong lead in premium beauty and personal care in 2019, benefiting from its huge and expanding portfolio of products. The company’s Lancôme brand maintained a healthy lead in premium colour cosmetics which includes its well-known Lancôme Hypnôse range of mascara, with it constantly launching new products to sustain interest, such as its new Hypnôse Artliner.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to decline by 11% in 2020 in 2019 constant value terms in light of the impact of Coronavirus (COVID-19). Finns were already careful with their budgets in 2019 and the COVID-19 epidemic is only likely to intensify this in 2020, with even mid- and high-income consumers cutting back on their spending.

Affected products within premium beauty and personal care

Premium eye and lip products are expected to record steep constant 2019 value declines in 2020 as many women relax their eye and lip beauty routines as they work from home and avoid going out for social occasions due to the COVID-19 outbreak. In fact, few categories within premium beauty and personal care are anticipated to achieve growth in 2020, albeit for different reasons.

Recovery and opportunities

Premium beauty and personal care is expected to register good constant 2019 value growth in 2021, largely due to consumers restocking after the COVID-19 epidemic. However, many premium products were already struggling during the review period, and the rest of the forecast period is set to return to marginal declines in constant 2019 value sales.

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