Premium Beauty and Personal Care in Hungary

PRE-COVID-19 PERFORMANCE

Premium facial make-up leads growing preference for premium products in 2019

Premium beauty and personal care recorded current value growth in line with the average rate for beauty and personal care overall in 2019. Premium fragrances and premium skin care remained the largest categories.

Deluxe products and tailored premium beauty establish new trends in 2019

In an extension of the trend towards more premium and premium-priced products, 2019 also saw a rise in the number of consumers turning to deluxe or prestige products. These very high-end products are characterised by their extremely high price and exclusivity.

Blurring of the line between premium and mass in 2019

The competitive landscape within premium beauty and personal care remained relatively stable overall in 2019, with many of the leading players recording value growth around the average for the category. L’Oréal Magyarország maintained its lead and was the dominant player in value terms across numerous product areas, including premium skin care, hair care, colour cosmetics and bath and shower.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to decline by 12% in 2020 in 2019 constant value terms in light of the impact of COVID-19. The COVID-19 pandemic impacted heavily on sales in most areas of premium beauty and personal care in Hungary during the earlier part of 2020, as mid- and high-income consumers cut back on spending on many premium products.

Affected products within premium beauty and personal care

The majority of product areas with premium beauty and personal care are expected to see double-digit falls in 2019 constant value terms during 2020. Premium adult sun care, fragrances, colour cosmetics and hair care are expected to be the hardest hit as consumers go out less, have fewer opportunities for socialising away from home and also work from home more.

Recovery and opportunities

The majority of product areas within premium beauty and personal care are expected to see a return to value growth at constant 2019 prices in 2021. However, this is likely to be muted in many areas during the remainder of the forecast period, with only a marginal rise in retail value at constant 2019 prices for the category overall.

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