Weight Management and Wellbeing in Azerbaijan

2021 DEVELOPMENTS

Category less affected by pandemic, immaturity supports growth

Weight management saw limited impact from pandemic related issues in 2020 than other consumer health categories, despite the well-publicised links between obesity and negative COVID-19 outcomes. Sales in 2021 are set to see broadly similar growth rates in 2021 compared to 2020, with solid growth accelerated by emergence form a low base.

Global beauty standards start to shape Azerbaijan

Social media and influencers are playing an increasingly important role in developing sales of these products in Azerbaijan. Beauty standards and aesthetics are becoming increasingly globalised, and the need for young Azerbaijani women to conform to the ideal of slimness is strengthening.

Tea remains dominant reflecting lack of development

Slimming teas remain the largest part of the category in 2020, again reflecting the comparative lack of category development and absence of choice. The affordability of these products is a key part of their attraction, as is their widespread availability, and the concept of losing weight without a huge effort is also welcome.

PROSPECTS AND OPPORTUNITIES

Public shift may weaken demand

Despite solid forecast growth for weight management and wellbeing, demand is set to be affected by shifting consumer habits. Azerbaijanis are increasingly adopting more holistic approaches to weight management and wellbeing, and are becoming increasingly aware that a combination of a healthy diet and regular exercise regime is a more effective way of achieving long-term weight loss and weight management goals.

Static competitive environment

As more consumers begin to question the benefits of weight management and wellbeing products, the saturated competitive landscape is expected to see little movement over the forecast period, a result of the lack of product development in this category. The competitive landscape will see smaller companies try to build share with cheaper products, the sales performance of individual brands will be limited, and fewer companies will be attracted to the category as a whole.

Less impact of direct sellers

Direct selling has dipped in popularity over the review period, and is expected to continue to lose share over the forecast period. The high average unit prices that this channel proposes is a strong disincentive, and as the convenience and attractive prices of drugstores/parapharmacies will see the channel continue to dominate sales of these products.