Global Market Information Databases (GMID) by Euromonitor has just published the report “Sun Care in Spain,” which provides an overview of the sun care industry in Spain including major trends, competitive landscape, prospects and category data.
During 2010 Spain continued to suffer from the deep economic crisis and the excessive level of public deficit, which resulted in the Spanish Government taking tough and unpopular economic measures to stimulate the Spanish economy. These measures included increasing taxes and freezing public pensions. As a consequence the average disposable income dropped, dragging down expenditure on leisure activities and thus holidays.
The result of this has been a change in holiday destinations, with Spaniards opting for national beaches. Sales of sun care products benefited from the change, with sales growing 1 percent in current value terms in 2010. The category faces the challenge of wide seasonal variability, as the bulk of sales are concentrated during the summer. The industry is investing money and effort in explaining to Spanish consumers the importance of using these products throughout the year, although the benefits of such efforts have yet to become apparent.
Moreover, the category faces increasing competition from skin care products, which are adding sun protection functionality in order to offer added value. It is estimated that 95 percent of sales value occurs between April and September.
The full-text of the report is available on the web to members of the IESE community.