BEAUTY AND PERSONAL CARE IN PERU - ANALYSIS

Country Report | May 2022

EXECUTIVE SUMMARY Market Sizes

Beauty and personal care in 2021: The big picture Sales of Beauty and Personal Care
Retail Value RSP - PEN million - Current - 2007-2026
Beauty and personal care witnessed heavy losses in current value terms in 2020 due to
the impact of COVID-19 on the lives and spending habits of local consumers. There was
a significant improvement in sales of beauty and personal care products in 2021 as Peru 8573 Forecast
eased its COVID-19 measures and consumers started to spend more time outside of the 14.000
home. This encouraged people to start buying products such as colour cosmetics,
deodorants, skin care and sun care. 12.000
Despite this improved performance sales growth was still limited by several factors in
2021. Firstly, Peru did not start the roll-out of its COVID-19 vaccination programme until 10.000
July 2021. Secondly, the country was hit with new variants of COVID-19 (Delta, Omicron)
that forced the government to continue with restrictive measures for social gatherings 8000
and face-to-face activities, albeit these were less strict than in 2020. Thirdly, political
instability damaged consumer confidence and this hurt spending. Finally, disposable 6000
income did not fully recover to pre-COVID-19 levels, despite Peru seeing relatively
healthy GDP growth in 2021. 4000

2021 key trends 2000

The most successful companies during 2020-2021 have been those that have shown 0
flexibility in a challenging environment. Manufacturers, retailers and direct sellers 2007 2021 2026
have faced COVID-19 restrictions, logistic delays, political instability and a drop in
consumer income. As such, these businesses have had to transform themselves,
focusing more on the online channel and creating products that meet the needs of
Sales Performance of Beauty and Personal Care
consumers living in the new normal. This has included developing products with
% Y-O-Y Retail Value RSP Growth 2007-2026
antibacterial claims, producing hygiene products such as hand sanitisers and creating
online sales platforms and digital marketing campaigns.
Aside from the impact of COVID-19, 2021 also saw a growing focus on more ethical
10.4% Forecast
15%
beauty and personal care products. For example, some companies such as Natura
Cosméticos SA looked to appeal to customers by offering vegan products and products
which are cruelty free. Meanwhile, others focused on promoting new and existing 10%
products which are environmentally friendly and/or which use natural ingredients.

Competitive landscape 5%

Unique SA and Cetco SA remain the two leading players in beauty and personal care in
Peru, with both offering a wide range of products and brands through direct selling. The 0%
competitive landscape is divided almost in two equal halves between direct selling and
retailing. Among the companies that sell through store-based retailers and e-
commerce, Colgate-Palmolive SA, Unilever Andina SA and Procter & Gamble Peru SRL -5%
are the most popular. Peruvian consumers prefer to choose well-known brands this
gives an advantage to these large multinational companies. Nevertheless, due to the
drop in purchasing power stemming from the COVID-19 crisis, some consumers have -10%
become more willing to switch to cheaper brands if they are already known in the 2007 2021 2026
market or are made by recognised companies.

Retailing developments
Direct selling is by far the largest distribution channel for beauty and personal care in
Peru, but it lost share in 2020 with sales impacted by government restrictions for many
weeks. However, in 2021, direct sellers were very active, simultaneously seeking to
expand their network of consultants while also looking to win back consumers, some of
whom had switched to buying products through store-based retailers or e-commerce in
2020. Players focused on attracting younger consultants with digital skills with the
emphasis of direct selling switching towards the use of social networks. Consultants
looked to share product catalogues through WhatsApp or Messenger for example, with
consumers able to create their orders online, with the advice or guidance of a direct
selling consultant.
Another trend that was seen in direct selling was that companies have started
recruiting male consultants. This is not only helping to expand their direct selling
networks but it is also changing the profile of the end customers. In the past it was
common for the wife or mother to buy beauty and personal care products for the men
in the family, but now companies are seeking to reach them directly. This allows them
to better understand their needs and to be able to promote a larger portfolio of
products designed for men, which includes skin care, men’s shaving, deodorants, bath

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and shower, and fragrances.
Sales of Beauty and Personal Care by Category
Retail Value RSP - PEN million - Current - 2021 Growth Performance
What next for beauty and personal care?
Beauty and personal care is projected to see healthy and stable growth over the Baby and Child-specific Products
676,2
forecast period, although performances will likely vary across the different categories.
For example, bath and shower and oral care both witnessed inflated growth in 2020 as a Bath and Shower
1063,7
result of the outbreak of COVID-19 and the increased focus on hygiene. As a result, as
fears around COVID-19 soften so too will growth within these categories, especially Colour Cosmetics
792,2
hand sanitisers.
Deodorants
482,8
Other categories which suffered losses due to the pandemic are expected to move
towards a full recovery in 2022, including baby and child-specific products, skin care and Depilatories
17,3
men's shaving, among others. For example, baby and child-specific products should
benefit from children spending more time outside the home, thus boosting demand for Fragrances
1752,8
products such as baby wipes and baby and child-specific sun care. Baby and child-
specific products should also benefit from growing awareness of the importance of Hair Care
1217,6
using products that are suitable for a child’s sensitive skin. Similarly, skin care should
also benefit from increasing education about the importance of a good skin care Men's Grooming
1219,4
routine. Meanwhile, men’s shaving should benefit from men returning to the
workplace or educational facilities, thus encouraging a clean-shaven appearance. Oral Care
923,7
Other categories such as fragrances, colour cosmetics, sun care, deodorants and Oral Care Excl Power Toothbrushe...
depilatories could take slightly longer to recover to pre-COVID-19 sales levels. This is 922,2
since face-to-face activities, including work and social gatherings, will likely take time Skin Care
to reach the frequency that existed before the pandemic. It is also important to 1251,2
mention that there are many habits that are being lost, such as the use of make-up on a Sun Care
daily basis, which could also impede the recovery process. 234,3
Premium Beauty and Personal Care
Chart 1 Beauty and Personal Care Value Sales Growth Scenarios: 2019-2026 504,4
Prestige Beauty and Personal Car...
Source: Euromonitor InternationalNote: C19 Pessimistic 1 represents a modelled 393,4
scenario with an estimated probability of 25-35% over a 1-year horizon, factoring in Mass Beauty and Personal Care
macro drivers including GDP, stock prices, business and consumer confidence rates 6929,4
alongside infection rates, supply chain and labour supply disruption rates Dermocosmetics Beauty and Person...
195,2
Chart 2 Beauty and Personal Care Impact of Soft Drivers on Value Sales: 2019-2026
-5% 35% 70%
Source: Euromonitor International Note: The above chart shows the growth BEAUTY AND PERSONAL CARE 8573,3 CURRENT % CAGR % CAGR
decomposition split by macro drivers such as GDP per capita and population alongside YEAR % 2016-2021 2021-2026
GROWTH
soft drivers listed as having a positive (+) or negative (-) impact on the total growth rate

DISCLAIMER
Competitive Landscape
Forecast and scenario closing date: 11 April 2022
Report closing date: 18 May 2022 Company Shares of Beauty and Personal Care
% Share (NBO) - Retail Value RSP - 2021
Analysis and data in this report give full consideration to consumer behaviour and
market performance in 2021 and beyond as of the dates above. For the very latest Cetco SA 12.4%
insight on this industry and consumer behaviour, at both global and national level,
Unique SA 10.9%
readers can access strategic analysis and updates on www.euromonitor.com and via the
Passport system, where new content is being added on a systematic basis. Colgate-Palmolive Perú S... 8.7%
Natura Cosméticos SA 7.0%
SOURCES Unilever Andina Perú SA 6.2%

Sources used during the research included the following: Procter & Gamble Perú SR... 6.2%
L'Oréal Perú SA 4.7%
Summary 1 Research Sources
Johnson & Johnson del Pe... 3.3%
Official Sources Conasev
Beiersdorf SAC 3.0%
Minis terio de la Producción
Productos Avon SA 2.9%
Trade Associations Cá ma ra de Comercio de Lima - Comité de Cos méticos y Cuida do Pers ona l
Intradevco Industrial SA 2.9%
Ca ma ra Perua na de Venta Directa CAPEVEDI
Ca ma ra Perua na del Reta il Puig Perú SA 2.3%
COPECOH Oriflame Perú SA 1.9%
Trade Press Agencia Andina Kimberly-Clark del Perú ... 1.8%
Dia rio Correo Mary Kay Perú SRL 1.0%
Dia rio El Comercio
Henkel Peruana SA 0.9%
Dia rio Ges tion
Perfumerías Unidas SA 0.9%
Dia rio Peru 21
GlaxoSmithKline Perú SA 0.8%
Don Bodega
La República Schick & Energizer Perú ... 0.8%

Ra dio Progra ma s Others 21.3%

Revis ta Sema na Economica
South America n Bus ines s Informa tion
The Emerging Ma rket Credit Ra ting Agency

Source: Euromonitor Interna tiona l

© Euromonitor Interna onal 2023 Page 2 of 3

 Brand Shares of Beauty and Personal Care
% Share (LBN) - Retail Value RSP - 2021

Yanbal 10.9%
Esika 7.4%
Natura 6.6%
Colgate 4.0%
Cyzone 3.4%
Protex 1.9%
Huggies 1.8%
Johnson's Baby 1.7%
Heno de Pravia 1.7%
Head & Shoulders 1.7%
Oriflame 1.6%
L'Bel 1.6%
Aval Hand 1.3%
Nivea 1.3%
La Roche-Posay 1.3%
Rexona 1.2%
Oral-B 1.1%
Sedal 1.0%
Dove 1.0%
Others 47.5%

5-Year Trend
Increasing share Decreasing share No change

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