Euromonitor has presented the results of a study of the Beauty & Personal Care market in Turkey. In 2014, beauty and personal care saw strong current value growth, in line with the unabated CAGR seen over the review period. Long-term trends such as increased urbanisation and the growth of a professional workforce that takes increasing care over its physical image, coupled with a high number of new product launches fuelled growth. Although the Turkish economy showed signs of slowing down on the back of domestic political turbulence, the downturn in morale led consumers to “pick themselves up” through small gestures, such as buying sprees in beauty products, resulting in continued strong growth for the beauty and personal care industry.
Beauty specialist retailers leads distribution
In 2014, beauty specialist retailers held the highest share in terms of distribution. Whilst the expansion of chained beauty retailers has prolonged their dominance, modern grocery retailers, such as discounters and convenience stores, also made advances in 2014. The channel that lost out most in terms of share was direct selling. This was a result of the falling share of direct seller Avon Kozmetik Urunleri San ve Tic AS on the back of the trend of an increasing number of store-based outlets offering attractive product promotions.
Multinational companies hold dominant position
The beauty and personal care industry continued to be dominated by multinational companies, with the likes of Procter & Gamble Tuketim Mallari Sanayi Ltd Skt, L’Oréal Turkiye Kozmetik San ve Tic AS, Unilever Türk San ve Tic AS, Avon Kozmetik Urunleri San ve Tic AS and Nivea Beiersdorf Turkey Kozmetik San Ve Tic AS leading the way. In fact, the largest local company, Evyap Sabun Yag Gliserin San ve Tic AS, ranked eighth in 2014. This was because of the larger budgets international companies have to invest in advertising and promotional activities, not to mention the trust consumers have for international players’ brands due to their well-established brand presence. Local companies, on the other hand, are able to compete with multinationals on a price platform, where they have the upper hand.
New product developments focus on sophistication and segmentation
In 2014, a high number of new product developments were made that were supported by well-designed advertising campaigns, increasing the consumer awareness and demand for these products. Innovations in new product developments that resulted in a growing number of sophisticated products drove segmentation in a range of beauty and personal care categories, with products increasingly offering more specialist and tailored solutions. New products and ingredients used in such products in one category also increasingly emulated claims made by other categories, such as hair care and skin care.
Strong potential growth over the forecast period
Over the forecast period, beauty and personal care is expected to register strong value growth at constant 2014 prices, comparable with the levels seen over the review period. The dynamism and youth of the Turkish population, coupled with rising urbanisation and a growth in both male and female consumers in professional working environments, will be the main drivers of demand. Companies will continue to invest in new product launches, advertising and promotions. Although saturation levels are rising, the industry remains relatively small compared with the rest of Western Europe. Thus, there is still significant room for growth, particularly outside urban areas where the penetration of beauty and personal care products remains low.
