Premium Beauty and Personal Care in Germany

PRE-COVID-19 PERFORMANCE

Premium beauty and personal care continues to grow, but blurring line between premium and mass could be a challenge

In 2019, premium beauty and personal care was affected by the increasing number of promotional activities and price reductions at beauty specialist retailers. Compared with previous years in the review period these activities were even stronger, resulting from the intensifying competition in this distribution channel.

Solid performance of pharma brands

Pharma brands continued to register strong value growth in premium beauty and personal care products in 2019. Premium pharma companies successfully managed to engage a wide consumer group by focusing on natural high-quality skin care, personalised service and educated staff, building loyalty through product diversification and development.

Leader L’Oréal continues to increase its premium beauty and personal care sales share

L’Oréal Deutschland was the leading player in premium beauty and personal care in 2019. The company has a wide product range across a number of categories, including skin care, fragrances, colour cosmetics and hair care.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to decline by 6% in 2020 at constant 2019 value prices in light of the impact of COVID-19. In 2020, discretionary beauty products (fragrances, colour cosmetics, high-end skin care) will suffer the most from the measures implemented to slow the spread of COVID-19, as lower consumer confidence and spending will pose challenges.

Affected products within premium beauty and personal care

Essential categories such as personal care and toiletries, together with mass channel (drugstores, discounters) distribution, discounted items and promotions, will likely perform best in 2020. Premium brands across the board will suffer due to the combination of the temporary closure of outlets selling these brands and more time spent at home.

Recovery and opportunities

The forecast period will see normalisation for the vast majority of categories in premium beauty and personal care, with increased demand for indulgence helping to drive sales of these products. However, if the economic consequences of the measures taken to combat the COVID-19 outbreak turn out to be worse than currently expected, then premium products could struggle over the next few years.

Files are delivered directly into your account within a few minutes of purchase.