Premium Beauty and Personal Care in Romania

PRE-COVID-19 PERFORMANCE

Rising incomes boost consumer interest in premium products, including premium dermocosmetics

With average income continuing to grow in 2019, this had a positive impact on Romanian consumers’ expenditure on premium beauty and personal care. Romanian consumers were becoming more interested in buying products from well-known international premium brands, which they usually see advertised in TV campaigns or on the internet.

L’Oréal leads premium beauty and personal care; premium brands outperform their mass counterparts

Premium beauty and personal care in Romania is highly diverse and fragmented, populated mostly by international players. The clear leader is L’Oréal Romania, which accounts for more than a quarter of value sales.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to decline by 10% in 2020 in 2019 constant value terms. With the absence of social occasions and consumers being urged to stay at home to stop the spread of the COVID-19 virus, the usage of these products was also declining.

Affected products within premium beauty and personal care

Premium adult sun care will see a sharp decline in value sales at constant 2019 prices in 2020. With people unable to travel and generally restricted to spending most of their time at home, the demand for sun care collapsed.

Recovery and opportunities

After the value decline at constant 2019 prices in 2020, premium beauty and personal care will return to recording strong positive growth in 2021, with positive performances expected over the rest of the forecast period. While any medium- or longer-term economic problems resulting from the measures to try and slow the spread of COVID-19 could negatively affect premium beauty and personal care sales in the coming years, with price-sensitive consumers prioritising essential purchases and seeking the lowest available prices, for now, strong rebounds in categories areas such as premium colour cosmetics and premium fragrances will be driving overall growth of premium products again from 2021.

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