Central European cosmetics market forecasts 2.6% growth foreseen in 2013
In 2012, the Central European (CE) cosmetics retail market experienced 2% growth (based on constant exchange rates), thus resulting in the market value of almost €8.6bn. It was a 0.3 p.p. decrease in growth rate and a result of the decrease in net household income as well as in consumption in many CE countries. However, the market is expected to grow in 2013 at a faster rate and it will increase by 2.6%, as indicated in the latest PMR’s report „Cosmetics retail market in Central Europe 2013. Market analysis and development forecasts for 2013-2015”.
INTRODUCTION – MARKET VALUE
Economic performance in Central Europe (CE) (Note 1) remained unfavourable in 2012, as the GDP grew slower in all the countries compared to 2011, and countries such as Hungary and the Czech Republic faced recession. The difficult and uncertain situation in the CE labour markets, as well as fiscal austerity measures, constrained the income of households as well as their propensity to consume. However, the cosmetics market did not experience any dramatic changes. Although consumers in these countries became even more price-sensitive than in the previous years, the cosmetics market in general could be considered a stable one. Even during the times of recession, consumers continued to spend money on cosmetics and did not cut spending in