Sun Care in Argentina

2021 DEVELOPMENTS

Rebound in volume sales mostly benefits cheaper brands as consumers continue struggling under reduced purchasing power

In the first year of the pandemic, sales of sun care registered a contraction as the poor economic conditions led to consumers focusing their spending power on items considered to be more essential. Home seclusion also led to less time spent outdoors, though the impact of this was mitigated in part by the fact that the pandemic hit at the end of summer in the southern hemisphere.

Import restrictions lead to value declines and the exit of Pierre Fabre

As in other beauty and personal care categories, imported sun care products were seriously affected by restrictions in 2020 and 2021. In consequence, Hawaiian Tropic, a brand imported from Brazil, registered a strong decrease in value share.

Leader adapts offer to prevailing demand trends

Laboratorios Andrómaco remained the largest player in sun care in Argentina in 2021 with over a third of the total category share. Towards the end of the review period, the company launched new products as it looked to adapt its offer to the difficult economic conditions.

PROSPECTS AND OPPORTUNITIES

Relaxation of restrictions and reopening of borders to support volume sales

Whilst the reduction in consumer purchasing power will continue to undermine manufacturers’ efforts to boost sun care for daily use, the relaxation of pandemic restrictions and reopening of borders will lead to sustained growth in the forecast period. Volume sales are expected to make a full recovery by 2023 as consumers normalise the amount of time spent outside.

Innovations expected to focus on added value in line with health and skin care trends

Over the forecast period is it expected that new sun care products with added value will emerge in the category as producers strive to find ways to encourage consumers to purchase and use their products. Such benefits may include vitamins or moisturising, skin care properties.

Rise of e-commerce to continue after significant investment in digital channels

E-commerce will continue gaining ground over the forecast period thanks to consumers becoming accustomed to buying via this channel and appreciating the convenience it offers. This expansion will be led by drugstores/parapharmacies chains like Central Oeste, Farmacity, and Del Pueblo which strongly investing in developing their digital platforms during the pandemic.