Premium Beauty and Personal Care in Hungary

PROSPECTS

Aspirational consumers

Premiumisation became a real game-changer in Hungary in 2017. When consumers consider buying premium products, they are looking for brand authenticity and heritage, followed by the embodiment of a luxurious life, and finally the element of experimentation.

Making products and experiences distinct and as individual

As premium beauty and personal care becomes deeply embedded in customers’ mindsets, the competitive challenge lies not only in product quality any longer, but in making products and related experiences as distinct and as individual as possible. Moreover, as consumers are seeking “experiences” over “possessions”, they are also consuming less, and reallocating income to premium products, believing that these will better fulfil their needs and priorities.

Future growth drivers

High-tech and combined effect beauty and personal care products were common trends in Hungary in 2017. Another broad trend is that besides efficacy, consumers are choosing products based on pleasant sensory experiences.

COMPETITIVE LANDSCAPE

The leaders in fragrances and skin care

Premium fragrances recorded the highest value sales within premium beauty and personal care in 2017, led by Puig, L'Oréal Magyarország and Coty Hungary. Since fragrances are non-essential beauty products and are often given as a gift, consumers tend to purchase premium products instead of cheaper mass alternatives.

Other categories

Premium hair care lines, which can be found within salon professional hair care, and premium colour cosmetics are ultimately led by the premium and super-premium brands of L'Oréal Magyarország, whilst Estée Hungary Kozmetikai also has a significant role in colour cosmetics. Although premium categories focus mainly on women, during the forecast period premium men's products are expected to gain more share due to the more sophisticated beauty routines of male consumers.

Innovation will remain important

Innovation will remain very important in premium beauty and personal care over the forecast period, as Hungarian consumers will continue to look for the latest, most developed product experiences they can afford. Players are planning to speed up their rates of innovation, as they are competing to capitalise on consumers’ rising purchasing power and the decline in product loyalty.

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