Premium Beauty and Personal Care in Serbia

PRE-COVID-19 PERFORMANCE

Premium beauty and personal care boosted by increased spending power, purchases demonstrate some seasonality

In 2019, premium beauty and personal care saw healthy retail value growth. This was mainly due to positive real GDP growth in the country that year.

2019 sees discounts and new launches as players aim to take advantage of premium beauty and personal care growth

During 2019, many well-known premium beauty and personal care producers frequently offered their products at discounted prices. This was mainly through large specialist chains such as dm and Lilly, but also via grocery retailing chains and other channels.

Direct sellers expand premium ranges

Two of the largest direct sellers in the country, Avon and Oriflame, continued to include an increasing number of premium products in their portfolios in 2019. This did not indicate a complete switch to premium offerings, but was evidence of the growing importance given to such products.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are now expected to see negative growth of 11% in 2019 constant value terms in 2020 overall in light of the impact of COVID-19.

Affected products within premium beauty and personal care

As with mass beauty and personal care, the categories likely to see the greatest impact in 2020 are non-essential products. Fragrances are set to be particularly badly hit, with double-digit negative growth across the board.

Recovery and opportunities

In the short- to medium-term, the premium beauty and personal care category is expected to suffer as a result of consumers’ interest in cheaper mass, masstige and private label products. This will be due to consumers’ reduced spending power, and may be longer lasting if consumers perceive cheaper offerings that they might not otherwise have purchased, as being of similar quality to the premium products they use to buy.

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