Cosmetics Market? There is a strong trend related to organic and natural. In 2019, sales in this segment exploded by 66%. But it is still a niche market. It accounts for less than 10% of beauty sales in France.
Almost all companies, especially in supermarkets, have organic or natural ranges, such as L’Oréal with Provençale, Henkel with N.A.E or, in other channels, Nuxe Bio and Melvita. Since adopting an international standard on organic cosmetics in 2018, everyone has spoken the same language. This helps to clarify the market.
Do you see it as a Fashion Phenomenon or a Fundamental movement?
This craze will continue because there is a demand, not only from the youngest. The other trend is personalization.
Brands know how to make products adapted to everyone, according to their skin, season, or state of fatigue. The dream of tomorrow is to have a machine at home capable of making your cream daily. This phenomenon also exists in perfumery.
Cosmetics Market – Consumer Products
It is more accurate to speak of a transformation of consumption. There is a contraction in purchases, in medium and supermarkets, as for other consumer products. Internet sales represent 7% of the market and are growing slowly.
Customers prefer the in-store experience because they want to test the products from Cosmetics Market. There is a strong trend related to organic and natural. In 2019, sales in this segment exploded by 66%… In November 2019, the French market was down 1.2%, compared to a decline of 3% in 2018. The ageing of the population is one of the causes, as it reduces impulse purchases.
The tendency to consume less but better, as in food, explains the success of high-end makeup. Finally, we feel that consumers are increasingly sensitive to more organic and natural products and a more reasoned use. We are in a transition phase. And our companies can adapt to this demand and innovate.
Our ecosystem is vibrant in terms of R&D, laboratories and formulations. These developments are, therefore, not a threat but an opportunity. The sector also records very few insolvencies, while more than 150 companies remain created yearly.
Is Export also a powerful Lever for the Sector?
Cosmetics has become the second largest export sector behind aeronautics. Over the past ten years, our exports have grown by an average of 10% annually, with a new record in 2019, at 15.7 billion in sales, up 9% year-on-year.
On average, French companies export more than 50% of their production, with Germany, the United States and Singapore as their primary markets. And in France, out of 5 cosmetic products purchased, a foreigner buys one. We are not yet seeing severe consequences of the coronavirus outbreak.
Exports usually continue, and our products are not perishable, so they can be stored for some time without a problem, if necessary.