Premium Beauty and Personal Care in Switzerland

PRE-COVID-19 PERFORMANCE

Premium colour cosmetics continues to offer good prospects for growth

With Swiss GDP being relatively high, especially in per capita terms and especially compared to neighbouring countries, and disposable income and the employment rate also high, local consumers are willing to pay more for high-quality products that offer good levels of added value. Premium products therefore continue to see increasing demand, particularly those offering superior quality, higher levels of convenience – eg faster absorption in skin care, multifunctional products like BB/CC creams, various skin care products – or just more exclusive designs and individual styles.

Natural beauty will remain a key theme in premium beauty and personal care

Over the forecast period, the natural beauty trend is forecast to be a key driver of sales in premium beauty and personal care in Switzerland. This trend will be further strengthened by rising media attention surrounding the potential toxicity of some of the ingredients used in beauty and personal care products.

L’Oréal leads a premium environment that is becoming more fragmented and competitive

L'Oréal Suisse remained the leading player in premium beauty and personal care in value terms in 2019, maintaining its strong leading position with its large selection of popular, trusted and highly innovative premium brands such as Lancôme, Yves Saint Laurent, Biotherm, Vichy and La Roche-Posay – with the latter two being dermocosmetic brands that are gradually growing significance. Innovation, a large media presence, including presentations and representations by celebrities, models and brand ambassadors, support its brands and raise product awareness.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to decline by 2% in 2020 at constant 2019 prices in light of the impact of COVID-19. With the economic uncertainty coming with the measures implemented to slow the spread of COVID-19, 2020 will see something of a one-off switch from premium to mass products as consumers watch their spending.

Affected products within premium beauty and personal care

Premium colour cosmetics and premium fragrances will see much worse performances in value terms in 2020 at constant 2019 prices due to the stay-at-home mandate during the COVID-19 outbreak. Consumers will have felt less need to wear or use these products if they were not going out to work or had no social outings.

Recovery and opportunities

Premium colour cosmetics and premium fragrances, after their sharp sales declines in 2020, will both see positive growth in 2021 at constant 2019 prices, and continue to post positive growth over the rest of the forecast period. Bath and shower sales, on the other hand, will decline in 2021, after the strong growth a year earlier, before then posting modest positive growth from 2022.

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