Premium Beauty and Personal Care in Israel

PRE-COVID-19 PERFORMANCE

Premium fragrances drive the most value sales in 2019, as their quality and availability means they are preferred over mass options

Within fragrances, the great majority of offerings are premium brands, benefiting from consumers in Israel preferring premium fragrances due to their quality. Therefore, premium fragrances drove the highest amount of value sales in premium beauty and personal care in 2019.

E-commerce is on the rise in 2019; however, consumers feel less comfortable purchasing premium goods online; a challenge for brand owners

Due to the high price-points, consumers prefer to buy super-premium and selective cosmetics within a special and unique shopping environment, where they have the option of receiving personal customer support. E-commerce does not really allow for this experience, and as such, consumers are much more reluctant to buy super premium goods online.

In 2019, S Schestowitz takes the leading position alongside Lilit Cosmetics, after acquiring some of Lilit Cosmetics portfolio

Lilit Cosmetics Ltd was the leading premium player in 2019, although it shared the position with S Schestowitz Ltd. S Schestowitz moved to a joint-lead position as it purchased several brands from Lilit Cosmetics Ltd.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to slightly decline in 2020 in 2019 constant value terms in light of the impact of COVID-19. Despite premium beauty and personal care being on par with growth levels of mass beauty and personal care in 2019, the outbreak of COVID-19 will impact growth for premium beauty and personal care much more significantly than it will impact mass products.

Affected products within premium beauty and personal care

Sales of premium beauty and personal care products in Israel are expected to be negatively impacted by the COVID-19 pandemic in 2020, with a lockdown seeing consumers spending more time at home and less time socialising, having a reduced need for certain premium beauty and personal care goods. This fact was partnered with growing economic concerns, leading many in the country to trade down to mass goods, reduce their grooming and care routines to save costs, or stop purchasing products.

Recovery and opportunities

With the growth of premium beauty and personal care products predicted to record a decline in 2020 as a result of the COVID-19 pandemic, growth is set to recover well in 2021, recording a positive uplift as consumers start to feel confident to invest in premium beauty and personal care goods once more. This will lead to an initial boost in growth for 2021, with growth across the forecast period being slightly lower.

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