The cosmetics sector in Spain has been growing steadily in recent years. Interest in skin and hair care, as well as perfumery and make-up, is growing worldwide, and this reality is not lost on Spain, where the cosmetics sector is beginning to accumulate years of sustained growth.
The global cosmetics market was estimated at €461.6 billion in 2017 and according to OrbisResearch.com, in a study published in the first quarter of 2018, it is estimated that the cosmetics sector will grow by 7.14% year-on-year until 2023. This would bring the cosmetics sector to €710.5 billion.
Astronomical profits in which the cosmetics sector in Spain would participate as one of the world’s top 10 exporters of perfumes and cosmetics.
It would not be an exaggeration to consider that for the cosmetics sector in Spain, the crisis has already been more than overcome. After the significant drop in 2008, the sector began to recover.
In 2017, growth was 2.2% compared to 2016, with a market value of €4,271 million. According to the Spanish beauty division, growth by 2018 would be an additional 2 to 3%. Although there is a slowdown in the growth rate, the upward trend continues.
Skin care products represent the most important segment of the cosmetics sector in the Iberian Peninsula, with 28.1% of sales. This is followed by toiletries (25.3%), perfumes (18.8%), hair products (18.3%) and decorative cosmetics (9.5%).
The cosmetics sector in Spain coincides with international projections and trends. The desire of men and women to take better care of their appearance, to preserve a younger appearance, is an important factor.
For Spain, the sector is also an important source of employment with more than 35,000 direct jobs and about 200,000 indirect jobs.
Exports on the rise
As for Spain’s exports to the international market, which is our main interest, the outlook for the cosmetics sector is very positive. Cases such as the acceleration of export growth to the Chinese market are proof of this.
At the end of 2018, exports to the Asian giant would have increased by 267% in one year. Although Spain’s market share is still low compared to France, South Korea and Japan, growth is significantly higher than that of these countries.
As for the latest available figures, exports increased by 11.5% in 2017 to €3,508 million. More than 50% of these exports are within the European Union, with Portugal, France and Germany being the main markets. The main destinations outside the EU are the United States, the United Arab Emirates, Hong Kong, Mexico, Russia, Chile and Morocco.
Our recently published analysis of Spain’s trade balance ranks the cosmetics sector 12th in terms of exports and 18th in terms of imports, which tilts the volume of business in favour of Spanish industry.