Premium Beauty and Personal Care in Georgia

PRE-COVID-19 PERFORMANCE

Niche affluent consumer group continues to drive increasing demand for premium beauty and personal care in 2019, although fragrances attracts aspirational mid-income segment

Premium beauty and personal care remains a small segment of the overall market in Georgia, catering to more affluent consumers, who usually reside in urban areas of the country. While current value sales continued to record healthy growth in 2019, price fluctuations relating to ongoing local currency devaluation resulted in some categories performing more strongly than others, leading to value share gain for premium products overall including men’s toiletries, colour cosmetics, bath and shower and adult sun care.

Impressive volume growth for premium sets/kits in 2019 supported by greater affordability and attractive promotions

The most impressive volume growth rates were recorded by sets/kits with premium skin care sets/kits, and premium fragrances sets/kits outperforming the mass segments. Many local consumers not only view these products as an expensive gift for a loved one, but also as a way to save on costs as the overall price of the fragrances or skin care products included in the sets tend to offer greater value for money compared to purchasing them separately; they therefore, also offer greater affordability to mid-income consumers who would like to trade up or purchase as a one-off indulgence for themselves.

Puig Rus strengthens leadership of premium beauty and personal care in 2019 due to wide product portfolio of premium fragrances

Puig Rus strengthened its leadership of premium beauty and personal care in 2019, after gaining this position from LVMH Moët Hennessy Louis Vuitton the previous year. L'Oréal Groupe and The Procter & Gamble Co followed the leaders and were the only other players to hold double-digit value share in 2019.

2020 AND BEYOND

COVID-19 impact

Value sales of premium beauty and personal care are expected to decline by 10% in 2020 at constant 2019 prices in light of the impact of COVID-19.

Affected products within premium beauty and personal care

With the exception of premium skin care sets/kits, which is set to record positive but low volume growth in 2020, most areas of premium beauty and personal care are predicted to record strong declines in demand in response to COVID-19.

Recovery and opportunities

Value growth at constant 2019 prices is expected to return to normalisation from 2021, as lockdown measures ease and affluent consumers resume their working and socialising routines as they venture outside of the home environment.

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