The hygiene and beauty industry has become 5% more expensive by October 2023, compared to the same period last year. As for growth, The sector has grown at a rate of 2% but at lower volumes, as units purchased fell 2.8%. This data was collected in the report “The New Leaders in Beauty Sales,” by Kantar Worldpanel.
According to Kantar, we are in a market context and an increasingly inflationary and spending-depressing environment where purchase frequency continues to decline, which has a significant impact on the average purchase per person. In 2020, 26.1 units were purchased per buyer and in 2023 it will only be 24.4. As a result of these changing habits, every purchasing act becomes increasingly relevant and crucial.
The price increase is one of the keys that explains consumers' purchasing behavior and the use of their budget.
The average price increase in perfumery and hygiene is 5%with particular emphasis on Care categories (+5.4%)followed by hair care products (+3.3%), against color cosmeticsThe has experienced a significant price drop (-4.5%)due to the mix between the type of product purchased, the channel and the brands.
Given the situation of cost containment and the search for savings, the distributor's brand is gaining presence in all categories and is making progress in beauty, where it was less developed and where it is already achieving significant market shares in categories such as color cosmetics (22). 4%), facial cosmetics (14.1%) or fragrances (6.9%)
The particular case of fragrances should also be highlighted, as they are the only category that is increasing in market penetration (buyers), already reaching 40.4% (+0.8% pp compared to the same period last year). In the luxury segment(impacted by cost containment and loss of 0.8% of penetration and average purchase), This category is becoming a protective value and already accounts for 85.6% of total spending that goes to select brands, up almost seven points from a year ago, compared to the other categories in which luxury brands are represented, such as skin care and makeup.
Mercadona leads the share, but Druni, Arenal and Primor attract customers
Excluding the fashion segment, e-commerce peaked in 2022 and lost share over the year as consumers returned to physical stores.
In this more offline environmentThere are two very different models, the one from Food Channel (Hyper/Super)with a big focus on the categories of care and hygiene and so on concentrates 45.3% of the market, led by Mercadona, which achieves a value share of 16.1%; and that from specialized chains with a focus on beauty categories and luxury brands, where The merger of Druni/Arenal makes them the market leader with a share of 8.9%.
But given the market shares, acquiring customers is essential in order to continue to grow in the medium term, and only specialized chains can achieve this, especially Druni and Primor. These chains diversify their assortment into care categories and other brands and manage to attract more buyers. In contrast to this strategy are the chains that promote their own brand and lose buyers despite the possible savings for the consumer.