Premium Beauty and Personal Care in Latvia

PROSPECTS

Premium beauty and personal care driven by rising unit prices

Rising unit prices will be the main driver of value sales in premium beauty and personal care over the forecast period. With a steadily shrinking population – Latvia is anticipated to see its population fall by 4% over 2017-2022 – there will be little opportunity to increase volume sales.

Intensifying shift from mass to premium products

The shift from mass to premium beauty and personal care products in Latvia is expected to continue over the forecast period, with consumers attracted by new products offering multiple benefits. While many will remain loyal to well-established brands and products, others will be attracted to new ones.

Fragrances, skin care and hair care to drive future sales

Fragrances is set to account for the largest share of additional sales in the premium segment over the forecast period thanks to the category’s higher prices, consumers’ strong awareness of international brands and frequent advertising. In addition, many locals will start to look for more sophisticated niche brands to express their individuality and stand out from the crowd.

COMPETITIVE LANDSCAPE

Global manufacturers continue to dominate the premium segment

Premium beauty and personal care continued to be dominated by global manufacturers in 2017, including L'Oréal, Coty, LVMH Moët Hennessy Louis Vuitton, Procter & Gamble, Chanel and Puig. Local manufacturers generally struggled to compete with these multinationals due to their much greater resources.

New product developments focus mostly on anti-ageing

Products with anti-ageing properties will likely remain some of the most popular in the premium segment over the forecast period. Demanding consumers will expect rapid results and so it therefore remains questionable whether any natural/organic brands will gain a significant share of sales, primarily due to being perceived as taking longer to achieve any noticeable effect.

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