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Iranian Skin Care Market on Growth Spurt
Posted: August 28, 2012
Iran's skin care market has been growing from its small base, thanks to significant marketing and advertising efforts as well as the rise in oil prices, which has boosted the average national income for consumers.
According to Irina Barbalova, head of beauty and personal care research at Euromonitor International, Iran's market grew by 24% in 2010 to reach IRR3.2 billion, or $3 million. Both international and domestic skin care players have expanded their footprints in Iran by targeting pharmacologists and dermatologists, encouraging awareness in consumers who were invariably not accustomed to specific skin care routines.
Strongest Growth in Nourishing/Anti-aging Products
Nourishers/anti-agers achieved the strongest growth, expanding by 26% in 2010 to reach a total of IRR195 million, a rate that is expected to be sustained over the forecast period. Barbalova says this growth is being driven by women who are becoming increasingly aware of facial care thanks to greater familiarity with product offerings.
Mass Products Dominate Skin Care Market
The Iranian skin care market remains dominated by mass products, which account for 62% of total sales, although premium products are gaining ground, particularly in the facial care category where women are more inclined to opt for better quality products if they are affordable. Currently, the market is dominated by domestic player Shekofa Kish, which held an 18% share in 2010, while Nivea remains the single most popular brand. Other significant domestic players include ACT Cosmetics and Poober, which both gained in 2010 to reach an 8% share each.
Looking ahead, Barbalova predicts that a growing youth population and changes in consumer patterns in Iran are likely to fuel further growth in this market over the forecast period, prompting a 7% compound annual growth rate, which should give the skin care category a value of IRR4.6 billion by 2015.