Premium Beauty and Personal Care in Turkey

PRE-COVID-19 PERFORMANCE

Premium fragrances become the locomotive of premium beauty and personal care in 2019, as men’s, women’s and unisex fragrances continue to make strong gains

While a decrease in sales of premium beauty and personal care products to domestic customers was observed in 2019, sales to tourist customers increased. In line with the preferences of foreign customers, perfume sales became the locomotive of premium beauty and personal care.

Turkish players make efforts to reduce the impact of depreciated Turkish lira on premium sales to domestic tourists while tourist spending is undeterred in 2019

The depreciation of the Turkish lira boosted spending on premium products by Turkish tourists in 2019 by 2-3 times their normal spending patterns, but at the same time it caused prices to increase by 20-25% on average, which dampened some demand from domestic shoppers. However, the fluctuation in foreign exchange mobilised premium beauty and personal care players in Turkey, the majority of which chose not to fully pass on cost increases to consumers and instead worked harder to satisfy their customers, offer some discounts and expand their consumer base.

L’Oréal and Estée Lauder are the leading premium brands in Turkey in 2019, with primary strength in premium colour cosmetics and premium skin care

L’Oréal and Estée Lauder held the leading value shares in premium beauty and personal care in 2019, primarily on the strength of their leadership in premium colour cosmetics and premium skin care. Both companies held strong positions in premium fragrances, where Puig was the leading player in 2019, and were among the top players in premium adult sun care, where Laboratoire Bioderma held the highest value share by far.

2020 AND BEYOND

COVID-19 impact

Sales of premium beauty and personal care are expected to decline by 3% in 2020 in 2019 constant value terms in light of the impact of COVID-19. The onset of the pandemic only exacerbated value growth declines that were being seen in some categories during 2019, when higher unit prices resulting from the currency devaluation prompted more than usual discounts and special offers on premium goods and because extra tariffs that Turkey had imposed on US imports, including those in some beauty and personal care categories such as premium fragrances and colour cosmetics were not halved until mid-2019.

Affected products within premium beauty and personal care

While both premium and mass fragrances have seen sales decline during the pandemic, premium fragrances is seeing a steeper decline – the deepest one among all the others – as many consumers that were still purchasing fragrances during the lockdown and home seclusion opted for mass fragrances, which cost less and are increasingly innovative. Likewise, premium hair care sales are declining slightly while mass hair care is posting moderate growth.

Recovery and opportunities

Over the forecast period, premium beauty and personal care products is expected to see slightly positive constant value growth overall, despite expectation that the four categories that are showing sales declines in 2020 will be slower to recover than others in 2021, and then start to recover. Premium fragrances is expected to see the worst performance and premium adult sun care is expected to enjoy the strongest comeback post-COVID-19.

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