Premium Beauty and Personal Care in Latvia

PROSPECTS

Natural products set to remain prominent in new product development

With the focus in premium beauty and personal care very much on quality, the core consumer base for these products often need a specific reason or value proposition before being tempted to part with their cash. Recent years have seen the efforts of companies to attract the attention of consumers focus on natural and organic products.

Rising income levels set to continue supporting sales growth

The premiumisation trend that was evident in beauty and personal care throughout the review period accelerated in 2018 as rising disposable income levels made a wider range of consumers more willing to splash out on higher quality products. With the economy of Latvia likely to continue improving over the forecast period, the prospects for premium beauty and personal care are likely to remain positive.

Consumers become more demanding, to the benefit of premium brands

In line with rising income levels, Latvian people are also generally becoming more discerning and more demanding , including when it comes to beauty and personal care products. Thus, companies and brands present in the category will need to continue ensuring that they offer genuine added value and also that they are able to communicate this to consumers in order to cash in on the rising demand that is likely to underpin growth in the category over the forecast period.

COMPETITIVE LANDSCAPE

Rising demand results in more intense competition

As demand for premium beauty and personal care products has risen in recent years, competition in the category has also increased as a wider range of companies and brands have begun vying for a slice of the pie. These include some of the leading international names in premium cosmetics as well as strong local names that have been able to trade on their reputations for offering high-quality natural cosmetics and toiletries.

Domestic players increasing their presence in premium beauty and personal care

Domestic producers are prominent among the leading names in premium beauty and personal care in Latvia. Indeed, the leading premium player Madara Cosmetics AS and the third leading premium player Stenders SIA are both domestic companies.

Expanding consumer base sharpens the attention of leading premium brands

During the forecast period, the leading multinational manufacturers of beauty and personal care are expected to pay more attention to their premium cosmetics brands in order to benefit from the expansion of the core consumer segment for these products and, in turn, rising demand. This situation is also likely to inspire new players to enter the category in search of success, raising the possibility of more intense competition.

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