Value growth will be hard to achieve for Spain’s skin care sector, thanks to unfavorable economic conditions, according to market research firm Canadean. Most categories across the sector will see little volume growth with no or negative value growth.
Canadean notes, the Spanish skin care sector is forecast to witness an unimpressive CAGR of 0.6% in terms of volume. In terms of value, a minimal decline of -0.1% is projected up to 2017. A deep recession, unemployment levels above 25% and the impact of the Eurozone crisis mean that achieving value growth remains extremely difficult. As a result, all categories in the sector are expected to witness decline in value share, or at best, stagnation. Skin care will remain the largest sector in the health and beauty industry in Spain, but ranks only sixth place out of the nine health and beauty sectors for growth during 2012–2017.
Body care, with a forecast value CAGR of 0%, and volume growth at just 0.7%, is expected to be the strongest-performing category sector. These low figures highlight the problems faced by the Spanish skin care sector in the current climate. Hand care and makeup remover are also projected to perform above the line, with identical value and volume CAGRs of 0% and 0.6%, respectively. In slight contrast, the largest and smallest categories in the sector, facial care and depilatories, each recorded a volume CAGR of 0.5% and a negative value CAGR of -0.2%.
In regard to skin care's distribution, all three measured channels have gained share over the past few years. The top two distribution channels, hypermarkets and supermarkets and health and beauty stores, together accounted for just below 75% of the Spanish skin care sector. These channels, as well as drug stores and pharmacies, all recorded a slight growth in share in recent years. In contrast, department stores witnessed stagnation, while convenience stores and dollar stores, variety stores and general merchandise retailers saw their share fall.