France dominates the global beauty market, but it needs to adapt
The French cosmetic industry, occupying 23% of the world market, dominating its competitors. This superiority is based on product quality and constant innovation. However, the French position is fragile and is threatened by the impact of new consumer trends and new competitors.
Two recent studies, commissioned by the French Federation of beauty companies (FEBEA), emphasize the influence of the French cosmetic industry to the world market. At the next meeting of FEBEA presented the results of macroeconomic studies conducted by the company Asterès. This study was completed by the analysis conducted by the consulting company CH2 Conseil, which emphasizes the global reach of French industry and its major assets, as well as information about the risks that it faces.
With a share of 23% in the global cosmetic industry in France is dominated by the global cosmetics market. Moreover, this dominance has increased in recent years, as French exports to grow by 5% per year 2010-2018. While the world market grew on average by 4% per year over the same period.
The superiority of the French cosmetic industry based on substantial investment in innovation. Every year, the French cosmetic industry spends about 2% of the sector’s turnover on research and development. However, the main industry players allocate on finding innovative solutions for products from 3% to 3.5% of their turnover.
However, like many other industries, cosmetic companies are faced with several destabilizing factors such as unstable economy, environmental concerns, changing consumer behavior. In addition to these General for the global market changes, the French cosmetic industry also needs to adapt to more specific events: the emergence of brands from countries with strong cosmetic traditions (Japan, South Korea ), growth of Italian industry, French-inspired recipes, and activity Chinese competitors, strongly support their national authorities, as well as a dynamic promotion of independent brands focused on the youth. To address these new challenges, according to representatives of FEBEA, the French authorities should better support this sector, particularly in international markets.
