According to Lucintel, the global cosmetics industry is expected to reach $630Bn (€487Bn) by 2017, with a CAGR of 3.4% over the next five years (1). Europe is traditionally the leading market in cosmetics, representing nearly half of the global market. In 2010, its value was worth €66.6bn, and it has been growing constantly since the industry’s full post-recession recovery in 2011 (2). Europe is also the world’s largest cosmetics exporter, with 62% of its cosmetic products being marketed outside of Europe.
Today's European cosmetic market is driven by innovation with new color pallets, skin-specific treatments and unique formulas. A typical product’s life cycle lasts less than 5 years, therefore cosmetics manufacturers have to reformulate 25% of their products every year to keep up to the industry’s pace of this highly competitive market. Consumer requirements are continually increasing, where more choice and even greater efficacy are expected (3).
In this blog we will have a look at trends influencing the European cosmetics market, including trends in the cosmetics major segment – skincare, increasing demand for natural cosmetics and sustainable products.
Skincare is the largest cosmetics segment that has very good growth prospects. The biggest drive will be an upcoming demand for multi-feature products, such as moisturizers with sun protection or anti-ageing properties. (1)
A study by Nielsen also suggests that consumers are increasingly socially responsible, discussing product sustainability on social networks and seeking sustainable and environment-friendly products. These consumers are mostly under 40 years of age, and are willing to pay a premium for such products. This implies that sustainability trends are bound to continue and further increase in the future (4).
Even though the Asia Pacific region has the largest market share in natural cosmetics, the European market - and especially the Western European market - is not lagging behind at all. On the contrary, Germany, France and Italy are the leaders in trend-setting within the natural and organic cosmetics market. The German natural cosmetics market itself is valued at €2.5 bn, while the French market has increased by 30% in the past few years. France is traditionally recognized for its leading role in herbal cosmetics, which is a major source of natural cosmetics. Furthermore, these products are today marketed outside of its traditional places - such as pharmacies and specialist stores - and have their place also in high-street shops and cosmetic chains (5).
Lucintel also suggests that increasing demand for cosmetics in Europe will be driven in the following years by an overall industry growth due to rising GDP, greater product awareness and rise in organized retail. On the other hand, the greatest growth challenges will originate in the rise in packaging costs, good quality maintenance and increasing costs of raw materials (1).
The best way how to understand the latest cosmetics trends is by participating at leading European trade shows. Why not attend the Cosmoprof Worldwide show in Bologna in March 2013, the Beauty International in Duesseldorf in March 2013, or the in-cosmetics show in Pairs in April 2013!
Read our Cosmetics industry - No growth wrinkles? blog to find out more about the changing dynamics of the cosmetics market!
Data sources:
(1) Report estimates global personal care industry to rach 487 billion by 2017. Online at: http://www.cosmeticsdesign-europe.com/Market-Trends/Report-estimates-global-personal-care-industry-to-reach-487-billion-by-2017
(2) http://ec.europa.eu/consumers/sectors/cosmetics/
(3) Eurostat
(4) As socially responsible consumer emerge so must socially responsible companies. Online at: http://www.cosmeticsdesign-europe.com/Market-Trends/As-socially-responsible-consumers-emerge-so-must-socially-responsible-companies
(5) Western Europe continues to set the trends for natural cosmetics http://www.cosmeticsdesign-europe.com/Market-Trends/Western-Europe-continues-to-set-the-trends-for-natural-cosmetics