The cosmetics sector in Spain
The cosmetics sector in Spain has been growing steadily for some years now. The interest in skin and hair care, in addition to perfumery and make-up continues to grow around the world, and Spain is no exception to this reality, where the cosmetics sector is beginning to accumulate years of sustained growth.
The global cosmetics market was valued at 461.6 billion euros in 2017 and according to OrbisResearch.com, in a study published during the first quarter of 2018, the sector is estimated to grow by 7.14% year-on-year until 2023. That would put the cosmetics sector at €710.5 billion.
Astronomical profits of which the cosmetics sector in Spain would be a participant as one of the top 10 world exporters of perfumes and cosmetics.
In constant growth
It would not be an exaggeration to consider that for the cosmetics sector in Spain, the crisis is more than over. After the major downturn it experienced in 2008, the sector has started to recover.
In the financial year 2017 there was a growth of 2.2% compared to 2016, with a market value of 4,271 million euros. According to the Spanish Beauty cluster, growth for 2018 would be a further 2-3%. Although there is a slowdown in the growth rate, the upward trend continues.
Skin care products represent the most important segment of the sector in the Iberian Peninsula, with 28.1% of sales. It is followed by toiletries (25.3%), perfumes and fragrances (18.8%), hair care products (18.3%) and decorative cosmetics (9.5%).
The health of the cosmetics sector in Spain is in line with international projections and trends. The desire of men and women to take better care of their appearance, preserving a more youthful appearance, is an important factor.
For Spain, the sector is also an important source of employment with more than 35,000 direct jobs and an estimated 200,000 indirect jobs.
Exports of the cosmetics sector in Spain on the rise
In terms of exports from Spain to the international market, which is our main focus, the outlook for the cosmetics sector in Spain is very positive. Cases such as the accelerated growth of exports to the Chinese market are proof of this.
At the end of 2018 it was reported that exports to the Asian giant had grown by 267% in one year. Although Spain’s market share is still small compared to France, South Korea and Japan, growth is well above that of these countries.
As for the latest figures available, exports grew by 11.5% in 2017, to stand at €3,508 million. More than 50% of these exports are within the European Union with Portugal, France and Germany as the main markets. The main non-EU destinations are the United States, United Arab Emirates, Hong Kong, Mexico, Russia, Chile and Morocco.
The analysis of Spain’s trade balance that we recently published ranks the sector 12th in exports and 18th in imports, with the volume of business tilted in favour of the Spanish industry.
The future of the cosmetics sector in Spain
The future of the cosmetics sector in Spain looks very dynamic and full of opportunities. The beauty industry is constantly evolving, driven by trends such as sustainability, personalisation and the use of advanced technology.
One of the highlights is the growing interest in natural and organic products. Consumers are increasingly aware of the ingredients they use, which has led many brands to reformulate their products and adopt more sustainable practices. This not only benefits the environment, but also responds to the demand for healthier and more ethical products.
In addition, digitalisation is transforming the way brands connect with consumers. E-commerce platforms and social media play a crucial role in promoting and selling products, allowing brands to reach a wider and more diverse audience. Personalisation, through technologies such as artificial intelligence, is also gaining ground, allowing companies to offer experiences and products tailored to individual customer needs.
Finally, innovation in formulations and new product development will remain key. Research in areas such as biotechnology and dermatology is opening up new possibilities to create more effective and safer products.
In summary, the cosmetics sector in Spain has a bright future, marked by sustainability, innovation and a closer connection with consumers. It is an exciting time for the industry!
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