Competition of active ingredients

Zsófia Gózon-Karajz
trade marketing manager
L’Oréal Magyarország

Zsófia Gózon-Karajz, L’Oréal Magyarország Kft.’s trade marketing manager told our magazine that facial skincare product sales grew by 23.5% this year. “There are many reasons behind this good performance. One of these is the aging of the society, because of which half of the women in Hungary will be older than 50 years by 2030” – the trade marketing manager explained. Another reason she mentioned is valorisation, which involves the recent price increases and a shift in demand for more expensive products.

Marietta Varga
junior brand & shopper
activation manager
Johnson & Johnson

Marietta Varga, Johnson & Johnson’s junior brand and shopper activation manager reckons that the facial skincare category is booming at the moment. “In the last two years anti-wrinkle products became even more important than before, taking up more shelf space in drugstores. Consumers have become much more conscious, it really matters to them what they put on their face and what ingredients match their skin type the best” – she told.

Nóra Fehér
assortment manager
dm

Nóra Fehér, dm Kft.’s assortment manager pointed it out that sales in the women’s facial skincare category increased in both value and volume in Hungary. “Data from NielsenIQ shows that independent shops and drugstores became more important in sales. Sales by dm grew above the average of the drugstore channel, by 55-60%, depending on the given category” – the assortment manager said.

The category is currently very active, manufacturers roll out many product and brand novelties that customers like trying

Growing consumer consciousness

Orsolya Tokaji
category manager
Rossmann
Magyarország

Orsolya Tokaji, Rossmann Magyarország Kft.’s category manager: “In Rossmann drugstores customers can choose from a large selection of facial skincare products. Brands have realised that it is essential to differentiate themselves from competitors, and to help shoppers decide which product to choose. Consequently, now more products have age recommendation on the packaging. Shoppers are increasingly conscious in this category too, so manufacturers focus on sustainable packaging and natural product ingredients.”

Nóra Fehér explained that consumers always wish to satisfy some kind of need with the help of a facial skincare product. This is why the No.1 product choice factor is function, followed by product ingredients, brand and price. Consumer consciousness also extends to areas such as sustainability. Dm developed the dm Clean Beauty product line with this in mind. Shoppers are now turning to products free from fragrances and harmful materials, which are clean and have high active ingredient content. There is great competition in the field of active ingredients. New, trendy active ingredients keep turning up in the market, one after the other.

Marietta Varga revealed that this year’s biggest hit in functional facial skincare is retinol. Pure retinol – also called vitamin A – is an antioxidant and cell regulator, contributing to the functioning and renewal of cells, and to their collagen production. This spring Johnson & Johnson launched the latest Neutrogena product range, called Retinol Boost, which contains pure retinol and fits perfectly into one’s skincare routine – together with the pure hyaluronic acid containing Hydro Boost range.

Popular formulas, exciting innovations

Only independent stores and drugstores could increase the strengths among channels

In Rossmann stores +65 and +55 category anti-wrinkle creams are very popular facial skincare products. Nóra Fehér told that dm will continue to focus on conscious facial skincare with its Clean Beauty products, with formulas being in the centre of attention. Korean and Japanese products remain in the spotlight, together with sun protection. //

Facial skincare sales up 20% in value

Guest writer:
Katalin Séra
senior analyst
NielsenIQ

Shoppers spent more than HUF 20bn on these products. Anti-wrinkle cream sales grew by 27% in value and soared 36% in volume, and represented a value of more than HUF 12.5bn. More than 90% of value sales came from drugstores.

The second biggest facial skincare category was face cleanser, with sales exceeding HUF 4bn between July 2021 and June 2022. Value sales climbed 13% and volume sales edged up 1%. Drugstores had a more than 80% share from sales. Face masks constitute the third biggest category, with value sales above HUF 2bn – the value sales growth was 8%, but volume sales plummeted 7%. No less than 95% of the money spent on face masks went to drugstores. It was only in the face scrub category that the sales performance was negative: sales dropped 4% in value and 11% in volume. In the examined period drugstores generated 90% of value sales. //