BEAUTY AND PERSONAL CARE IN PERU - ANALYSIS

Country Report | Apr 2024

EXECUTIVE SUMMARY Market Sizes

Beauty and personal care in 2023: The big picture Sales of Beauty and Personal Care
Retail Value RSP - PEN million - Current - 2009-2028
Beauty and personal care in Peru continued to be affected by economic pressures in
2023. While value growth was supported by persistent price hikes caused by
inflationary pressures, volume was showing overall flat growth due to the price- 10,052 Forecast
sensitivity of consumers in the current landscape. Added to which, although Peru has a 14,000
number of strong local brands, many products continue to be imported, making the
country susceptible to international influences. As such, factors such as increased 12,000
international transport costs, supply shortages, disruptions caused by global
environment, and the constant instability in political climates have all contributed to 10,000
price hikes.
Although the worst of the COVID-19 pandemic is definitely over, its lingering effects 8,000
continue to impact Peruvian consumers. The pandemic exacerbated employment
instability and the government's financial aid programmes, such as credits, bonuses, 6,000
and pensions, are winding down, leaving many people with debts and reduced income
levels. 4,000

Given this uncertain economic and political landscape, consumer spending has
2,000
contracted, as people are cautious about the future. Consequently, retailers are
resorting to frequent promotions and expanding their private label offerings to entice
budget-conscious consumers. 0
2009 2023 2028

However, even in this context, the beauty and personal care industry has shown
resilience maintaining decent growth rates. Indeed, some categories, such as sun care,
premium beauty and personal care, and skin care, are seeing particularly robust growth. Sales Performance of Beauty and Personal Care
% Y-O-Y Retail Value RSP Growth 2009-2028
2023 key trends
Consumers are becoming increasingly well informed and discerning about the beauty
8.5% Forecast
and personal care products they purchase, from researching ingredients to seeking 15%
specialist advice during the purchasing experience. This benefits sales through
pharmacies and beauty specialists, for example, which have specialist salespeople to
attend to these consumer needs. Similarly, e-commerce platforms have started to offer 10%
online advice from experts, enhancing and personalising the online shopping
experience – along with the channel enhancing its logistics and shipping capacity.
5%
In spite of the complex economic scenario, consumers are continuing to display a level
of brand loyalty, more notably so in categories such as skin care, within which they are
less likely to trade down. However, this is not the case in more basic, frequent use 0%
categories such as deodorants or bath and shower, whereby we note a stronger trading
down effect – such as seen with the rise of private label. In this cost-conscious context,
players have also been offering wider ranges of format sizes, thus, to suit different -5%
budgets and needs. For example, smaller presentations are aimed towards low-income
consumers who purchase small volumes of products as and when needed, and larger
packs come at a higher price tag but offer cost-savings in relation to overall format -10%
2009 2023 2028
volume. Players are also active in offering discounts and promotions, which are
welcomed by consumers. Indeed, it is noted that consumers sometimes wait for these
promotions to stock up on the products on offer.

Competitive landscape
Beauty and personal care is fragmented in Peru, with strong domestic players and a
number of international names. Local player Cetco SA leads the category overall, being
the only name holding an overall double-digit company share. However, in brand
terms, Cetco’s Esika brand is pipped to the post by Yanbal from second-placed company
Unique SA.
Cetco SA also leads mass beauty and personal care, colour cosmetics, fragrances, and
men’s grooming. Meanwhile, L’Oréal Perú SA leads premium beauty and personal care
and skin care; Colgate-Palmolive Perú SA leads bath and shower and oral care;
Kimberly-Clark del Perú SA leads baby and child-specific products; Unilever Andina
Perú SA leads deodorants; Procter & Gamble Perú SRL leads depilatories and hair care;
and Unique SA leads sun care.
Brands are also being influenced by the rise of dermocosmetics, from mass and well-
known names to niche artisanal brands, while direct sellers are noted to be placing
more focus on their omnichannel strategies. Added to which, this has been a year of
strong investment in marketing activities and promotions, including points-of-sale,

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street billboards, online advertisements and, especially, influencers via social media –
with the latter becoming key to reach consumers and launch new products.
Sales of Beauty and Personal Care by Category
Retail Value RSP - PEN million - Current - 2023 Growth Performance
Retailing developments Baby and Child-specific Products
829.9
Specialist stores and pharmacies benefit from being able to offer specialist in-store
advice to discerning consumers, who appreciate such outlets for their customer service Bath and Shower
1,158.4
and in-store experiences. Added to which, specialist stores often offer niche products
which are not widely available – including offering exclusive lines. For example, this Colour Cosmetics
1,040.8
can be seen with Aruna, which offers a portfolio of brands which it imports and
distributes exclusively. This enables Aruna to attract and retail consumers who are Deodorants
575.7
otherwise unable to find the brands elsewhere. One such brand example comes with
American make-up label, theBalm, which is inspired by the fashions of the 1960s and Depilatories
21.2
1970s and offers colour cosmetics including lipsticks, foundations, mascara,
eyeshadows, and more. TheBalm products are also 100% cruelty free (not tested on Fragrances
2,043.3
animals) and contain no toxic ingredients. It is understood that the range will be
available in over 20 Aruma outlets in Peru. Hair Care
1,284.2
Men's Grooming
What next for beauty and personal care? 1,440.0

Sales in beauty and personal care are expected to pick up in volume and stabilise in Oral Care
1,023.5
value over the forecast period. Sales will, however, be fairly moderate as consumers
are expected to maintain a budget-conscious outlook due to ongoing economic Oral Care Excl Power Toothbrushe...
1,021.6
uncertainties. In this context, companies will invest in innovation and advertising,
especially via social media, to engage and retail existing customers and capture new Skin Care
1,578.7
ones.
Sun Care
315.5
Sustainability is expected to be a growing trend over the forecast period, as this niche
is still in its early stages in Peru, with a relatively limited selection of such products. Premium Beauty and Personal Care
787.5
Therefore, manufacturers can seize opportunities to create natural formulations and
environmentally-friendly products, with recyclable packaging. However, it will be Prestige Beauty and Personal Car...
571.2
important to maintain competitive pricing in this sense.
Mass Beauty and Personal Care
Both physical stores and e-commerce will continue to appeal to consumers. Many 7,989.0
consumers continue to prefer physical stores, where they can see and test products Dermocosmetics Beauty and Person...
before making their purchases, in addition to seeking specialist in-store advice. On the 424.7
other hand, e-commerce appeals for its convenience and wide ranges of products, 0% 20% 35%
enabling consumers to make quick and easy purchases which can be delivered to their
homes. Overall, however, the omnichannel approach will become increasingly BEAUTY AND PERSONAL CARE 10,052.1 CURRENT % CAGR % CAGR
YEAR % 2018-2023 2023-2028
relevant, as retailers expand their offers to cater to consumer demands across both GROWTH
online and physical channels.
Despite economic and political uncertainties, new brands are expected to enter Peru
over the forecast period. These could include manufacturers producing products for
third parties, including private labels, as well as brands offering premium products. The
Competitive Landscape
influx of new competitors is anticipated to inject dynamism into various categories,
even those which are considered mature. Company Shares of Beauty and Personal Care
% Share (NBO) - Retail Value RSP - 2023
DISCLAIMER Cetco SA 13.1%

Forecast and scenario closing date: 8 April 2024 Unique SA 9.2%

Colgate-Palmolive Perú S... 8.2%
Report closing date: 18 April 2024
Natura Cosméticos SA 6.2%
Analysis and data in this report give full consideration to consumer behaviour and
market performance in 2023 and beyond as of the dates above. For the very latest Procter & Gamble Perú SR... 6.1%
insight on this industry and consumer behaviour, at both global and national level, Unilever Andina Perú SA 6.0%
readers can access strategic analysis and updates on www.euromonitor.com and via the
L'Oréal Perú SA 5.8%
Passport system, where new content is being added on a systematic basis.
Beiersdorf SAC 3.7%

SOURCES Johnson & Johnson del Pe... 3.0%

Intradevco Industrial SA 2.4%
Sources used during the research included the following:
Kimberly-Clark del Perú ... 2.4%
Summary 1 Research Sources Puig Perú SA 2.2%
Official Sources Conasev Productos Avon SA 2.1%
Minis terio de la Producción Oriflame Perú SA 1.3%
Trade Associations Cá ma ra de Comercio de Lima - Comité de Cos méticos y Cuida do Pers ona l Perfumerías Unidas SA 1.0%
Ca ma ra Perua na de Venta Directa CAPEVEDI
GlaxoSmithKline Perú SA 0.8%
Ca ma ra Perua na del Reta il
Schick & Energizer Perú ... 0.8%
COPECOH
Softys Peru SAC 0.7%
Trade Press Agencia Andina
Dia rio Correo Química Suiza SA 0.6%
Dia rio El Comercio Others 24.6%
Dia rio Ges tion
Dia rio Peru 21
Don Bodega
La República

© Euromonitor Interna onal 2024 Page 2 of 3

 Official Sources Conasev Brand Shares of Beauty and Personal Care
Ra dio Progra ma s % Share (LBN) - Retail Value RSP - 2023
Sema na Economica Yanbal 9.2%
South America n Bus ines s Informa tion
Esika 7.6%
The Emerging Ma rket Credit Ra ting Agency
Natura 5.9%
Source: Euromonitor Interna tiona l Cyzone 3.7%
Colgate 3.6%
Huggies 2.4%
La Roche-Posay 2.0%
L'Bel 1.9%
Protex 1.8%
Head & Shoulders 1.5%
Johnson's Baby 1.5%
Heno de Pravia 1.4%
Nivea 1.3%
Rexona 1.2%
Oral-B 1.1%
Oriflame 1.1%
Dove 1.0%
Sedal 1.0%
Aval Hand 1.0%
Others 49.7%

5-Year Trend
Increasing share Decreasing share No change

© Euromonitor Interna onal 2024 Page 3 of 3