Of the heavyweight markets in Eastern Europe, Russia and the Ukraine are the standout performers in terms of forecast growth, with Poland and the Czech Republic lagging behind—according to market intelligence firm Euromonitor International. The Czech Republic is the most developed Eastern Europe market, with signs of maturation in some beauty sectors. However, the country does have a blossoming premium segment, 10% growth in 2006, and is experiencing increased spending in emerging sectors—particularly sun care and men's grooming products and luxury goods such as fragrances.
Price pressure is the reason for Poland's less than standout growth forecasts, further exacerbated by a growing private label category. The mass segment dominates, even in fragrances, and local brands have a strong following, as consumers remain price conscious. In the longer term, however, consumers' attitudes to spending on beauty products will change. Not only will this mean the blossoming of the premium segment but increased spending on emerging categories such as baby care and men's grooming products and beauty non-essentials, including fragrances.
Of the remaining markets, Romania shows the most promise. Accession to the EU in 2007 has helped spur the economy (real GDP growth was 8% in 2006), and is exposing consumers to Western beauty norms. Romania is also one of the more populous Eastern Europe countries, and has become a focus for new product development and high-level advertising, making beauty brands more visible and accessible.
For further information, visit Euromonitor online.
Euromonitor Examines Eastern Europe's C&T Markets
July 19, 2007
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