In the last year, two in every 10 euros spent by Spanish consumers on the beauty sector - which includes personal care, cosmetics and fragrance categories – was on luxury products. This latest data is from Kantar’s beauty consumer panel, which has been analysing the habits and routines of consumers purchasing fragrances, facial cosmetics and colour cosmetics since 2016.
In total, more than 8 million shoppers purchased a luxury brand in the 12 months to April 2019. Despite this, luxury products have a long-term downward trend: just three years ago they represented 41.3% of the market, the latest figures show a drop to 34%. This decline is not the result of fewer buyers, but rather a change in purchasing behaviour: the luxury brand consumer is purchasing fewer units and spending less (€96 vs €118.70 three years ago).
The evolution of the cosmetics/beauty segment is highly influenced by tourism, which contributes a significant share of business to these types of brands, but for which consumer behaviour can’t always be predicted.
By category, fragrances make up the core of the luxury segment, representing three-quarters of spend, with more than 7.4 million buyers. One in every four consumers of luxury fragrance brands only purchase these types of brands, whereas in the other categories, consumers alternate with others (FMCG, pharma, etc.).
In recent years, the profile of Spaniards who purchase luxury beauty products has changed. According to Kantar’s data, luxury is becoming more popular among younger males, although the majority of spend comes from female and adult targets. The best opportunity for growth is targeting women. Despite having a much lower loyalty level than their male counterparts when it comes to purchasing these products, women from 35 onwards spend 27% more on high-end products with facial cosmetics and make up the key categories.
When it comes to purchasing these products, the luxury consumer focuses on price. They prefer to shop at perfume chains, which account for almost half the distribution value (49.9%). Primor, Druni and Arenal are among the most dynamic retailers, gaining market share thanks to the addition of new customers and aggressive discount policies.
Despite the changes this segment is experiencing, there are loyal “luxury” shoppers who are characterised by their brand fidelity, sophistication and being up-to-date on the latest trends. They look after themselves and are concerned about their image. The toiletry bag of the luxury brand consumer does of course also have room for distributor and low-cost brands.
Notes from the editor
Luxury: facial cosmetics, colour cosmetics, cologne, perfume and suncare.
Study sample: 20,000 individuals representative of the Spanish population.
Data period: luxury product buyers: year ending April 2016 vs. the same period in 2019.