Premium Beauty and Personal Care in Spain

PRE-COVID-19 PERFORMANCE

Economic conditions and consumers’ desire for experiences shape sales

Premium beauty and personal care is still the smaller category compared to mass beauty and personal care in Spain. It saw steady current value growth in 2019 and continued to advance its share of overall beauty and personal care.

Premium brands focus on target consumers and specific demand

Tailoring beauty and personal care products to specific consumer groups, with personalisation and anticipation of their needs, is becoming more frequent among premium ranges in Spain. This has seen consumers being able to choose the active ingredient to be added to their Clinique basic moisturiser base, and the use of technology by brands such as Dior and Shiseido to “scan” the skin to analyse its condition.

Top players remain active in acquisitions and marketing while smaller companies focus on local production and sustainability

L'Oréal España SA remained the leading player in premium beauty and personal care in Spain in 2019 focusing on new product developments, acquisitions and marketing that is regularly via brand ambassadors. The company acquired the Thierry Mugler and Azzaro brands from Clarins in 2019 which is set to support the performance of the company in premium fragrances.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to decline by 2% in 2020 in 2019 constant value terms in light of the impact of COVID-19. The pandemic and the strict lockdown imposed in Spain have halted the positive value growth seen in premium ranges during the review period as department stores and beauty specialist retailers have been closed and consumers have downgraded to mass items available in supermarkets and chemists/pharmacies.

Affected products within premium beauty and personal care

The various categories within premium beauty and personal care have been impacted in different ways by the COVID-19 pandemic. Worst affected among the main beauty and personal care categories is premium colour cosmetics which will see the biggest decline in value sales at constant 2019 prices in 2020.

Recovery and opportunities

Premium beauty and personal care in Spain is expected to normalise slowly after 2020 with positive growth in value sales at constant 2019 prices likely to return in 2022 at rates that will result in positive growth for the forecast period as a whole, albeit lower than in the review period. Premium baby and child-specific products is expected to see the strongest value growth over the forecast period due to a significant shift away from mass products in 2024.

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