Sun Care in the Netherlands

PRE-COVID-19 PERFORMANCE

Declining unit prices combined with artificially high value growth registered in 2018 due to tax changes affecting sun care results in lower growth percentages in 2019

In 2019 there was lower current value growth for sun care compared to the previous year as in 2018 the VAT returned to 21% after it had been reduced to 6% in the year before, causing a loss to the country’s treasury as well as legal uncertainty. Sun care and toothpaste are the among the product categories that subsequently lost their recently acquired lower tax benefits when the government tightened its definition of what products qualified as “medicines” that could be marketed as such and thus be exempt from the higher tax.

Rising consumer interest in more targeted sun care products exerts positive influence on the category’s development in 2019

Besides the extremely hot summer weather, growing interest in more targeted sun care products was also a positive influence on the category’s development. Notably, higher awareness of the health and other risks of unprotected exposure to sun among Dutch parents resulted in baby- and child-specific sun care posting the highest value growth in 2019.

Beiersdorf maintains its considerable lead sun care on the strength of Nivea brand, while L’Oréal follows at a distance, as both players excel in all categories in 2019

Beiersdorf is the largest player in sun care, as the company owns a wide variety of products under the Nivea brand. Even though the company has been the leading player for many decades, Beiersdorf lost value share in sun protection and self-tanning to other players in 2018 and 2019.

2020 AND BEYOND

COVID-19 impact

Sales of sun care are now expected to decline by 2% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected 4% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19.

Affected products within sun care

All sun care categories are posting volume and value declines in 2020, with premium aftersun and mass self-tanning expected to see higher declines, as they are considered less essential than sun protection for adults and children even during normal times.

Recovery and opportunities

Insofar as how travel limitations will impact sun care going forward, the category is expected to slowly recover as travel restrictions within the EU and international flight restrictions to other countries are lifted. Even when travel begins to normalise, value and volume growth may be negatively impacted by recession over the forecast period.

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