Beauty and Personal Care: Quarterly Statement Q4 2017

POSITIVE GROWTH MOMENTUM CONTINUES IN BEAUTY AND PERSONAL CARE

The most significant upgrades continue to stem from Brazil and Japan, joined by a range of key Western European markets, most notably Spain and Germany, indicating more positive state of affairs in the long-stagnating region.

ALMOST CLEAN SWEEP OF POSITIVE CATEGORY UPGRADES

Skin care contributed most to the Q4 upgrade compared to baseline forecasts at USD 539 million, due to a strong positive impact from two main drivers, GDP and product pricing, in the above geographies.

SURGING WESTERN EUROPEAN ECONOMIC PERFORMANCE FUELS UPGRADES

Signalling the importance of the largest Western European markets, some 40% of the global upgrade stems from the combination of Spain, Germany, Italy and France, reflecting the region’s steady economic stabilization.

TACKING CHALLENGES ON THE HORIZON

Major challenges industry players are facing include the rapid rise of local competition in the most attractive growth markets and the increasing number of disruptors with alternative business models.

Internal challenges lie with the complexities of integrating large-scale new assets and finding the right balance between brand repositioning along major trends versus launching brand new labels.