Premium Beauty and Personal Care in Greece

PRE-COVID-19 PERFORMANCE

The economic recovery supports a return to positive growth for premium brands

After a long period of recession-led sales declines, premium beauty and personal care returned to a positive sales performance towards the end of the review period, with healthy growth recorded in 2019. This return to positive growth is very much in line with the stabilisation of the Greek economy and rising levels of consumer confidence, as well as the strong momentum being seen in inbound tourism.

L’Oréal leads a category in turmoil due to the difficulties faced by Folli Follie Group

2019 saw L’Oréal Hellas maintain its leading position in premium beauty and personal care. The France-based multinational beauty and personal care giant has a strong position via its leading skin care brand Vichy, the position of which is improving due to its strong focus on innovation and regular new product launches.

Rising interest in dermocosmetics sees sales shift towards chemists/pharmacies

Chemists/pharmacies recorded a strong performance in the distribution of premium beauty and personal care in 2019. One of the main reasons for this trend was the strong increase seen in demand for premium dermocosmetic brands, which are more likely than other types of premium beauty and personal care products to be sold via chemists/pharmacies.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to grow by 1% in 2020 in 2019 constant value terms in light of the impact of COVID-19. Sales of premium beauty and personal care have come under considerable pressure as a result of COVID-19 during the first half of 2020.

Affected products within premium beauty and personal care

Social distancing led to falling demand in premium hair care, premium fragrances and premium skin care throughout the first half of 2020. Consumers had little reason to pay attention to their appearance while the Greek population was subject to a strict lockdown, although sales of many premium beauty and personal care products were supported by the unavailability of hairdressing salons and beauty salons throughout the lockdown period.

Recovery and opportunities

Although sales of premium beauty and personal care products are not believed to have been seriously negatively affected by the COVID-19 pandemic during 2020, there remains potential for premium sales to come under severe pressure during 2021 and possibly later in the forecast period a well. The economic uncertainty that has surrounded COVID-19 and the official response to it raises the possibility of a global economic recession, which would likely hit Greece hard at a crucial stage of the reconstruction of the country’s economy in the wake of the sovereign debt crisis which struck the country around ten years ago.

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