Premium Beauty and Personal Care in Peru

PRE-COVID-19 PERFORMANCE

Evidence of premiumisation despite sluggish economic performance in 2019

There is evidence of premiumisation in many categories of beauty and personal care in Peru, even though economic growth in 2018 and 2019 did not reach the previously expected levels and the majority of consumers have not witnessed stronger purchasing power. However, advertising campaigns by department stores, increasing credit card penetration and growing awareness helped premium brands to gain share in 2019, especially in eye liner/pencil, mascara and BB/CC creams.

Department stores venture into e-commerce

Although e-commerce is underdeveloped in beauty and personal care in Peru, in 2019 department stores such as Saga Falabella and Ripley developed their e-commerce operations, which is helping to increase demand for premium products such as fragrances, skin care and colour cosmetics. These products tend to be highly standardised, making it easy for customers who already know the brands to order online, whilst consumers generally trust these retailers to provide a good service and safeguard their data.

New brands and players support growth of premium beauty and personal care in 2019

Premium colour cosmetics was supported by the launch of new brands in Peru in 2019. Bobby Brown, for example, opened its own store in Jockey Plaza, one of Lima’s main shopping centres.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to decline by 7% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This is a significant change from the 3% constant 2019 value growth witnessed in 2019.

Affected products within premium beauty and personal care

Premium facial cleansing wipes recorded a steep constant 2019 value decline in 2019 after strong growth in 2018. The category, however, remained insignificant as women who seek premium beauty and facial care products tend to opt for products which offer greater added value, such as premium liquid/cream/gel/bar cleansers for use when at home.

Recovery and opportunities

Premium beauty and personal care is expected to return to moderate constant 2019 value growth as early as 2021, with growth rates accelerating throughout the forecast period. Middle- to upper-income groups are likely to return to their favourite brands after the easing of the lockdown restrictions, in particular premium beauty products such as colour cosmetics, men’s hair care and anti-agers, turning their attention once again to their appearance as they begin to return to work and attend social occasions after the focus on cleanliness and hygiene during the COVID-19 epidemic.

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