Premium Beauty and Personal Care in Israel

PROSPECTS

Consumers shift to mass brands, slowing the growth of the premium segment

Premium brands face growing competition from mass brands. Innovations introduced by premium brands are being taken up by mass brands within a shorter period of time, so consumers do not have to wait long for a low-cost alternative to become available in the market.

Growth is set to continue, although lower than in the mass segment

Although efforts to differentiate premium brands are likely to maintain the growth of premium beauty and personal care, during the forecast period current value growth is expected to be slower than that seen by mass beauty and personal care. Categories such as colour cosmetics and skin care are increasingly considered by consumers as basic, with extensive skin care routines and well-applied make-up no longer reserved only for women who can afford it; younger girls are also interested in using a wider variety of products.

Premium brands are present in more channels

Premium brands are entering more channels in order to gain exposure. Monobrand stores are still being opened, as these provide an extensive brand experience for consumers and encourage brand loyalty.

COMPETITIVE LANDSCAPE

Lilit Cosmetics maintains its lead

Lilit Cosmetics led premium beauty and personal care in value terms in 2018, with a wide-ranging product portfolio which covers categories such as colour cosmetics (Pupa, Essence, Shiseido, Catrice and Bourjois), deodorants (Tabac Man and Paco Rabanne), fragrances (Paco Rabanne, Carolina Herrera, Nina Ricci and many more), skin care and sun care (Shiseido). The company’s products can be found in all health and beauty specialist retailers.

Lilit Cosmetics hands over the Coty portfolio

In 2017, Lilit Cosmetics’s overall share of premium beauty and personal care declined slightly, due to the drop in the fragrances category. In 2018, the company’s share fell even further, as it stopped its import of Coty brands, including Gucci, Roberto Cavalli, Hugo Boss and more, relinquishing the full portfolio to its competitor S Schestowitz.

Premium brands extend their distribution

Terminal X, launched by Fox Group at the end of 2017, added several premium beauty brands to its range of apparel brands, including Estée Lauder, Smashbox and Mac. Moreover, more premium brands have entered the drugstores/parapharmacies channel.

Files are delivered directly into your account within a few minutes of purchase.