After posting a decline in 2020, premium beauty and personal care witnessed a strong return to growth in current value terms in 2021, to the extent that by the end of the year total sales had surpassed pre-pandemic levels. While current value growth was bolstered by rising inflation, several categories also showed markedly improved performances in volume terms as the easing of the pandemic and the accompanying economic recovery strengthened confidence among consumers and encouraged “revenge spending” (spending money to make up for lost time during the pandemic).
As was the case with the mass segment, brands from South Korea enjoyed strong success in premium beauty and personal care in Hungary in 2021, particularly in skin care and colour cosmetics categories. During the year, drugstores/parapharmacies chain dm-Drogerie Markt created a new section on its e-commerce platform for BB/CC creams, face masks, anti-agers, facial cleansers, moisturisers and other product types from K-Beauty brands like COSRX, Pyunkang Yul, Benton, Cell Happy Co, Purito and Missha.
Hungarian consumers – primarily women – have shown a growing preference for premium skin care products positioned as offering faster results in recent years. This shift has gained momentum since the outbreak of COVID-19, initially because increased participation in video calls during home seclusion meant people spent more time looking at their own faces on screens, and therefore became more inclined to compare their skin to that of co-workers, friends and family members.
Like much of the world, Hungary has recently experienced a spike in inflation due to the combined effects of the global recovery from the pandemic and the fallout of Russia’s invasion of Ukraine. By early 2022, the country’s inflation rate was above the EU average, with raw material shortages, rising energy costs and supply chain bottlenecks driving up prices for all kinds of goods and services.
While the outlook for the Hungarian economy over the forecast period is broadly favourable, high inflation, ongoing uncertainty and the fact that many households have seen their incomes shrink during the pandemic mean consumers will remain quite cautious in their discretionary spending habits for some time. Together with a growing challenge from higher-end mass brands, this is likely to result in the intensification of price-based competition within premium beauty and personal care.
COVID-19 has accelerated the development of e-commerce in Hungary, in that many consumers have recently become more appreciative of the convenience, extensive array of choices and potential for better price deals online shopping affords, while manufacturers and store-based retailers have been compelled to invest in creating online sales facilities or improving their existing portals. Accordingly, following impressive increases over 2020-2021, the value share held by this channel in terms of premium beauty and personal care distribution should continue to rise during the forecast period.
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Understand the latest market trends and future growth opportunities for the Premium Beauty and Personal Care industry in Hungary with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Premium Beauty and Personal Care
This is the aggregation of premium colour cosmetics, fragrances, deodorants, skin care, sun care, baby and child-specific products, bath and shower and hair care.See All of Our Definitions
This report originates from Passport, our Premium Beauty and Personal Care research and analysis database.
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