French C&T expects no more than 1.5% value growth
The French cosmetics market is expected to expand by only 1.5% in value terms through 2009 with recovery coming only in 2010 with forecast growth of about 4%, according to a new study from the Precepta consultancy. Sales of perfumes and cosmetics were worth €6.5bn at the end of 2008, of which 60% were beauty care products, 9% make-up items and 31% perfumes.
The French cosmetics market is expected to expand by only 1.5% in value terms through 2009 with recovery coming only in 2010 with forecast growth of about 4%, according to a new study from the Precepta consultancy. Sales of perfumes and cosmetics were worth €6.5bn at the end of 2008, of which 60% were beauty care products, 9% make-up items and 31% perfumes.
The study shows that growth of sales in value terms has been declining since 2006 in this market and that with the advent of the current economic crisis consumer sensitivity to prices has intensified. Precepta suggests that the perfumes segment is more likely to be able to resist on this front than top-of-the-range creams or make-up products. There is meanwhile much more consumer volatility around in relation to brands.
The consultancy argues that distributors need to focus efforts on pricing policy and does not expect that lower demand can be offset by the introduction of price increases.