The European market for cosmetics is expected to be worth $ 133.5 billion in 2015, and is expected to grow at a CAGR of 5.45% over the forecast period, to $ 174.1 billion by 2020. Western Europe represents about 21.8% of the global cosmetics market, while Eastern Europe market represents about 7.3% of the global share. It is characterized by relatively high purchasing power, inclination to spend on appearance, and a high rate of penetration, leading to a saturated market. While the market suffered and registered a decrease in revenues and sales during the Eurozone crisis, the market has shown signs of recovery recently. The predominant trends for cosmetics include sustainability (driven by Western Europe), lasting power and new colour palettes, increasing market share for ethnic (African, or Asian skin tone specific) products, and an increased preference for vegan, organic and natural beauty products to mitigate harmful effects of pollution, sun, dust, and harmful ingredients typically a part of cosmetic products. Germany is the largest market for cosmetics in Europe, worth US$ 14 billion as of 2013, followed by France, UK, Italy, Spain, Poland and Netherlands respectively.
Cosmetics can be subdivided by the areas of application. Cosmetics used on the face (and other parts of the body like foundation, glitter, etc.) include products like primer, foundation, concealer, face powder, bronzer/blusher, face contour creams, highlighter, and setting spray to help makeup stay put longer. Cosmetics used on the lips include lipsticks in matte or non-matte and other varieties, lipstains, colored lip balms, and lip glosses. Furthermore, the eye-area makeup items include kohl, eye liners, eye brow pencils (and recently, fake eye brows), fake eye lashes, mascara, and more. Another extension of cosmetics are nail colours. Aside from these products, there are ancillary industries for cosmetics supportive products like make up brushes, beauty blenders, etc. The most popular trend is the blending of multiple benefits under one beautifying product. The result of this trend, originating in South Korea, is the BB (followed by CC, DD and EE) creams, which have the colour correction properties of foundation, SPF benefits of sunscreen and a multitude of other medical and natural benefits.
High disposable income in Europe represents a high market share of luxury brands like Dior, Guerlain, Clarins, Clinique, LancÃ´me, Estee Lauder, Shiseido, etc. Distribution is pervasive through exclusive stores of luxury products in malls or standalone, while ecommerce is emerging as a competitor to direct sales for all mass and premium brands. Direct sales for Avon continue to hold and grow market value. Customers are increasingly looking for value for money products which are natural and beneficial for the skin, provide benefits of high priced premium products, at a lower than premium cost. This product class has been dubbed â€œmasstigeâ€. Moreover, a market for of vegan/halal products for Islamic consumers has been proliferating in Europe, although at a smaller scale.
Some important players in the mass/masstige makeup/cosmetics field include P&G, Beiersdorf, Unilever, MAC, Revlon, Lâ€™Oreal, Olay, Avon, etc. among others.
High disposable incomes, an inclination to spend on appearance, a large section of the worldâ€™s teens growing older, younger, a union of for skin-benefiting and beautifying aspects in new makeup products through research into use of natural products, continuing breakthrough research on products, large swathes unpenetrated potential market regions are some of the drivers of this market.
New medical technologies for beauty enhancements are making it harder for cosmetic products to reach out customers. Also volatile raw material prices make it harder for companies to maintain stable prices for the products. All these factors are challenging the growth of this industry.
This Report Offers:
Market Definition for the specified topic along with identification of key drivers and restraints for the market
Market analysis for the Europe Cosmetics Market, with region specific assessments and competition analysis on a Europe and regional scale
Identification of factors instrumental in changing the market scenarios, rising prospective opportunities and identification of key companies which can influence the market on a Europe and regional scale
Extensively researched competitive landscape section with profiles of major companies along with their strategic initiatives and market shares
Identification and analysis of the Macro and Micro factors that affect the Europe Cosmetics Market on both Europe and regional scale
A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information
1.1 Study Deliverables
1.2 Study Assumptions
2. Research Methodology
3. Executive Summary
4. Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat from new entrants
4.3.4 Threat from substitute Products
4.3.5 Competitive rivalry within the industry
4.4 Industry Policies
5. Market Dynamics
5.1.1 Innovation in Packaging and Design
5.1.2 Aging population
5.1.3 Growth of E-Commerce
5.1.4 Increasing access to Middle-bottom segment of pyramid consumers
5.2.1 New medical technologies for beauty enhancements
5.2.2 Volatile Raw Material Prices
5.3.1 Growth in Emerging markets
5.3.2 Growing Demand for Organic Products
6. Europe Cosmetics Market Segmentation
6.1 By Product Types
6.1.1 Hair care products
6.1.2 Skin care products
6.1.3 Oral care products
6.1.4 Make up & Color Cosmetics products
6.1.5 Fragrances & Deodorants
6.1.6 Soaps and shower gels
6.1.7 Sun care products
6.2 by Distribution Channel
6.2.1 Direct selling
6.2.2 Hypermarkets/ Retail Chains
6.2.4 Specialty stores
6.3 Segmented by Region
7. Vendor Market Share Analysis
8. COMPANY PROFILES
8.1 L'Oreal Group
8.2 Procter & Gamble
8.3 Beiersdorf AG
8.4 Avon Products, Inc.
8.6 The EstÃ©e Lauder Companies Inc.
8.8 Kao Corp.
8.9 Revlon Inc.
8.10 Mary Kay
8.11 Yves Rocher
8.12 Oriflame Cosmetics S.A
9. Investment Analysis
9.1 Recent Mergers & Acqisitions
9.2 Strategic Alliances
9.3 Investment Scenario
10. Future Of Europe Cosmetic Products Market