Skin Care in the Netherlands

PRE-COVID-19 PERFORMANCE

Skin care maintains its large value share in beauty and personal care, driven by face masks and hand care growth, aided by new product developments in 2019

Skin care, which accounts for the largest value share among beauty and personal care categories in the Netherlands after that of hair care, saw very positive value growth in several categories in 2019, with premium and mass face masks and hand care posting the highest growth, benefitting from new product developments. The hot summer weather also was a positive influence on the body care category 2019.

Value growth of skin care improves, but continues to be constrained by ubiquitous retail promotional and discount strategies in 2019

Unit prices in most skin care categories were still slow to develop, which constrained higher value growth in most categories in 2019. This is because promotional and conditional discount strategies continued to be so ubiquitous that it was virtually mandatory for brands to engage in discounting to remain competitive.

Closely competitive players Beiersdorf and L’Oréal swap places and are virtually tied for the leading position in skin care in 2019

Beiersdorf and L'Oréal Nederland continue to be the leading players in skin care. The two companies were closely competitive in the category throughout the review period and were virtually tied in 2019 after having switched their leading positions twice in the most recent three years.

2020 AND BEYOND

COVID-19 impact

Sales of skin care are now expected to grow by 1% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected 2% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within skin care

Premium and mass hand care is expected to see double-digit constant value growth in 2020, boosted somewhat by new value-added hand and body brand extensions such as Dove’s new Dove DermaSpa range, but clearly driven by intensified and ongoing hand washing routines brought about hygienic concerns accompanying the onset of the pandemic. Demand for hand care products resulting from frequent hand washing is not expected to diminish in 2020.

Recovery and opportunities

Skin care prospects for forecast period are positive, as the constant value CAGR is expected to be slightly higher than its review period counterpart. However, limited unit price development and mandatory price discounting will constrain higher value growth in skin care going forward towards 2024.

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