Report: Romanian beauty and personal care market shows some growth, but less than hoped for

The Romanian market for beauty and personal care products shows growth in 2011, continuing the year-on-year expansion seen in the last four years. Euromonitor International's market analysts valued the beauty and care market in Romania at nearly EUR 978 million in 2008 and over EUR 952 million in 2011. They forecast a market value over EUR 1 billion in 2012. Despite the higher sales the figures are lower than predicted, Euromonitor's analysts attribute the slightly disappointing results to the continuing economic crisis, the mid-2010 VAT hike and lower household incomes.

Euromonitor’s report is optimistic about the sector’s future, suggesting there is a massive as yet untapped market in rural areas- where 45 percent of Romanians live. Retail chains are set to play an important part role, with a two-thirds market share and plans for expansion into small towns accessible to surrounding rural communities. The report predicts the chains will lead the way in cosmetics sales outside urban areas. Although local brands have made headway during the crisis by offering cheaper products, beauty and personal care in Romania is still dominated by the big multinationals- L’Oréal, Beiersdorf, Procter & Gamble- according to the report. The big brands have been able to maintain high levels of spending on marketing and have reaped the benefits in sales. The Romanian market is also seeing different trends in the types of products bought; natural, organic cosmetics becoming increasingly popular. Liam Lever, liam@romania-insider.com (photo source: Photoxpress.com)