Awareness around safety and transparency of products and their ingredients is high in the country, and consumers display concern about the negative effects of potentially harmful ingredients (as skin irritants, endocrine disrupters and carcinogenic).
“While natural beauty may be growing, there is still strong demand for high-performance beauty products, especially within anti-agers as consumers seek scientifically-proven products,” explains Euromonitor.
“Ironically, in an age of green-mania, many consumers disregard natural ingredients as they seek visible results that can only be reached through technological advances and active ingredients.”
Anti-ageing: top segment
The skin care market in Switzerland continues to be driven by demand for products which claim to reduce or prevent signs of aging, says Euromintor.
“Growth is clearly driven by demographic trends and the large numbers of baby boomers, as well as by the progress made in skin care technology,” the firm explains.
Two top players in the country are Beiersdorf (Switzerland) and L’Oréal Suisse.
The two major players boasted similar retail value shares in 2017, says Euromonitor, with Beiersdorf owing its success to its Nivea brand.
In 2017, Beiersdorf launched its Nivea Urban Skin line, offering increased protection to skin stressed by daily issues such as fine particles and exhaust gases.
L’Oréal, on the other hand, relies on the strength of its L'Oréal Dermo-Expertise, Lancôme and Vichy brands, among many others.
Focus on indie brands and acquisitions to stay ahead
Moving forward, it looks like it will be those companies that are able to invest savvily in independent (indie) beauty players who will stay ahead of the curve in Switzerland.
“In order to offer more in-depth beauty solutions, leading manufacturers continue to streamline their focus through divestments of non-core areas and purchasing new brands specialising in niche segments,” confirms Euromonitor.
“In general, most players are convinced that acquiring an existing brand is a safer strategy than launching a new one.”