In January-June, sales of sunscreen cosmetics in pharmacies grew by 10.2% year-on-year
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The turnover of sunscreens, which has almost halved during the pandemic, has recovered to a comparable level to pre-crisis levels. According to the results of January-June, sales of such cosmetics in pharmacies increased by 10.2%, to 985 million rubles, due to rising prices and tourist activity. At the same time, retail chains note the switching of consumers to cheaper brands, and analysts admit a slowdown in sales of the category due to the “difficult season” in Crimea.
In the first 27 weeks of the year ended July 9, sales of sunscreen cosmetics in pharmacies grew by 10.2% year-on-year to RUB 985 million, according to DSM Group. Turnover has almost reached pre-pandemic levels. According to analysts, then sales of sunscreen cosmetics grew at a double-digit pace, and the peak occurred in 2019, when, due to abnormally warm April and hot summer, 1.04 billion rubles worth of sunscreen products were sold in pharmacies in the first 27 weeks. Already in 2020, due to the pandemic, sales for the same period decreased by 1.7 times, to 606 million rubles. and have since slowly recovered.
Over the past three years, sales of sunscreen products in rubles have doubled at the Zdravcity online pharmacy, General Director Boris Popov said. At 36.6, according to a network representative, the negative effect of the pandemic was leveled in 2021, and according to the results of 27 weeks in 2023, category sales are growing by 2% year-on-year.
Perfume chains also note the growth in demand. In Letual, from January 1 to July 9, sales of sunscreen cosmetics increased by 39% compared to the same period in 2020 in money terms. In the Golden Apple, compared to the same period last year, turnover increased by 117% and more than doubled the level of the pandemic (excluding network expansion). Magnit Cosmetic reports a 10% year-on-year growth in sales of sunscreen cosmetics.
Executive Director of the Association of Producers of Perfumes, Cosmetics, Household Chemicals and Hygiene Products Petr Bobrovsky believes that the growth in sales of sunscreens in money terms can be primarily associated with an increase in average prices. Boris Popov clarifies that the average cost of a sunscreen package in 2022 increased by 45% year-on-year. Golden Apple analysts acknowledge a 27% increase in prices in 2022, “especially early in the season due to supply issues.” However, in 2023, according to the network, the average cost of sunscreens returned to the level of 2021 – 1.2 thousand rubles. for packing. Mr. Popov confirms that prices for some lines have continued to grow in 2023: individual items of Nivea, Avene and Librederm have risen in price by 97%.
Under such conditions, the chains note, the demand is growing mainly for inexpensive brand lines, products of Russian manufacturers and private labels (PL). Russian sunscreens have become leaders in the shopping basket in the season of the year, they say in Magnit Cosmetic. They added that due to local products, the range is also expanding. Raduga Smile notes that the bulk of sales remained in the middle price segment, and demand is growing for Weis and Defance private labels. Letual noted the growth in sales of the inexpensive Sun Focus line. In pharmacies, according to DSM Group, L’Oreal remains the leader in the category, occupying 58% of cash sales against 52% a year earlier. The shares of Pierre Fabre, Floresan, Zeldis and Avanta decreased by 1-2 percentage points, analysts calculated.
Sales of sunscreens may be stimulated by the growing tourist activity of Russians compared to the low base of last year, notes Petr Bobrovsky. According to the FSB border service, Russians made 4.9 million trips in the first quarter, up 26.2% year-on-year. Due to the increase in the supply of transportation and the removal of sanitary restrictions, popular Asian destinations – Thailand, India, Sri Lanka – show multiple growth.
At the same time, Mikhail Burmistrov, head of Infoline-Analytics, believes that sales of sunscreens may slow down due to “the disruption of the tourist season in Crimea.” According to market participants (see Kommersant dated July 17), the flow of tourists to the peninsula may fall by 1.5–2 million people.
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