This year, taking care of yourself is costing more. As published by the Kantar agency, the hygiene and beauty sector has grown so far in 2023, but this has not been thanks to a volume of sales, but rather this increase is due to a rise in prices and a rise in the price of its products. As reflected in the report published by Kantar Worldpannel, the units purchased have decreased by almost 3% compared to the previous year.
In the context of the pandemic, when consumers were taking advantage of the quarantine savings, more than 26 units of beauty and personal care products were purchased per person. So far this year, this figure has fallen by almost 3 points to 24.4 on average per consumer. Therefore, as Kantar points out, the consumer has a greater awareness of the weight of the purchase decision and it has become a relevant and decisive moment.
Price increases are the main cause of this reduction in consumption. This price increase has reached 5% and is especially centred on the grooming categories, followed by hair care products and colour cosmetics, which in this category, on the other hand, has experienced a price reduction due to the type of product, the channel in which the purchase is made and the brands. The private label, also known as 'white label', is gaining presence in all categories and is making progress in the field of beauty, where it was less developed and has already achieved significant shares in categories such as colour cosmetics (22.4%), facial cosmetics (14.1%) and also in fragrances (6.9%).
In the offline arena, Kantar Worldpannel points out that the grooming and hygiene categories account for 45.3% of the market. This segment is led by Mercadona, with a 16.1% value share, and by specialised chains with their focus on beauty categories and luxury brands, where the merger between Druni and Arenal makes them the market leaders with a share of 8.9%. Druni and Primor are seeking to differentiate themselves from hyper/super channels such as Mercadona by diversifying their assortment into grooming categories and other brands to attract more shoppers.
CPI continues to rise in the toiletries and beauty products category
The beauty and cosmetics sector sees in the latest data updated by the National Institute of Statistics how the CPI maintains its upward trend.
This year 2023 the Consumer Price Index in the category of personal care and beauty products has not ceased its growth and presents an index of 112.83% in the last month analysed, in this case, November.
In the month of June last year, the category of beauty and grooming products experienced strong growth in the CPI due to an inflationary context which, since then, has caused an incessant increase in the CPI, and despite remaining somewhat more stable in this month of November, it represents an increase of more than 10% compared to the first month of last year 2022.
This increase from 100.8% to 112.83% in less than 24 months indicates that consumers need more money to buy the same goods and services in terms of grooming and beauty products.