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2.3 European Cosmetics Markets

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Cosmetic Creams: Development, Manufacture and Marketing of Effective Skin ... By Wilfried
Rähse
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The 500 million consumers in Europe mainly use cosmetics to cleanse and care for the
body, which contribute to hygiene and well-being and healthy lifestyles. The strength of
the European cosmetics industry lies in its mix of both big and small companies. There
are more than 4600 small and medium-sized companies, and this number is growing
(5). In the cosmetic industry, real innovations are not short-term feasible. It can take
over five years of research, formulation, and testing to bring a new product to the
market. That is why the total expenditure on R&D in Europe is estimated to be €1.27 bn,
which is 1.65% of the sales. In 2015, the European market amounted to be €76.4 bn [2],
approximately €77 bn [6]. Of the world's 50 leading cosmetic brands, more than half
(26) are based in Europe. The cosmetics industry in Europe employs directly 179 000
people and indirectly a multiple (6). The European countries, in particular France (€5.8),
Germany (€2.9 bn), United Kingdom (€1.4), Italy (€1.4), and Spain (€1.3 bn), export
products for €17.2 bn outside the EU 28 [5]. The share of exports from France and
Germany is over 50%. Including the export, the European cosmetic industry produces
goods for approximately €93 bn (estimated at retail prices European Union (EU) are
comparatively low because companies such as Procter & Gamble (P&G) and others are
present in Europe for the European market. Anyway, the cosmetic industry thus
represents an important economic factor. According to a rough estimate, the cosmetics
companies pay several billion in corporate taxes, which benefits individual countries.
The five largest markets (2) are in Germany, secondly in the United Kingdom and at the
same level in France, and moreover in Italy and Spain (Figure 2.4).
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