Turkey’s beauty and personal care market has long stood as a cornerstone of the nation’s consumer business landscape. Over the past five years, this sector has exhibited impressive growth, boasting a Compound Annual Growth Rate (CAGR) of 10.9%, ultimately reaching TRY8.0 billion by 2018, according to Deloitte estimates.
However, in recent times, the industry has encountered significant downturns in places due to the country’s economic instability as well as currency fluctuations and a dip in consumer interest at the height of the pandemic. These factors have cast a shadow over the purchasing power of consumers and have increased the costs of raw materials. The net effect has been a surge in price-sensitivity among shoppers. Despite the economic challenges, an interesting trend has emerged: the promotion of local alternatives. As Turkish consumers seek cost-effective solutions, it’s the homegrown brands and products that have found their time to assume market dominance and enjoy rapid growth. This environment has carved out substantial opportunities for a variety of product categories, both in domestic and export markets.
The Turkish manufacturing landscape within the beauty and personal care sector is characterized by diversity. Approximately 700 manufacturers are engaged across the value chain. It's noteworthy that small-sized manufacturers constitute over 85% of the total producers in line with the prevailing manufacturing profile across the country.
One of the primary challenges faced by manufacturers, particularly small to medium-sized firms, is establishing a robust brand presence. This is an area where further investment and development are needed to unlock the full potential of the Turkish beauty and personal care market. As the youth population continues to expand and urbanization gains momentum, Turkey remains a fertile ground for both local and international beauty brands looking to thrive. Interest is already there thanks to the beauty guru culture cultivated by social media.