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Editor: Fabienne L’Hoost Authors: Christelle Charlier, Céline Vandermeersch, Wouter Decoster & Nicolas Preillon Graphic design and layout: OskarD COPYRIGHT © Reproduction of the text is authorised provided the source is acknowledged Date of publication: September 2016 Printed on FSC-labelled paper This publication is also available to be consulted at the website of the Belgian Foreign Trade Agency: www.abh-ace.be
BELGIAN COSMETICS TABLE OF CONTENTS INTRODUCTION 4 CHAPTER 1 PRESENTATION OF THE SECTOR 7 SECTION 1: THE COSMETICS INDUSTRY IN FIGURES 8 1 >> TURNOVER 8 2 >> COMPANIES AND JOBS 12 3 >> EXPORTS 12 SECTION 2: BELGIUM’S ADVANTAGES IN THE VALUE CHAIN 15 1 >> BELGIUM, A WORLD-CLASS CHEMICALS CLUSTER 16 2 >> BELGIUM, THE IDEAL TEST MARKET 16 3 >> BELGIUM, FOCUSED ON INNOVATION 17 4 >> BELGIUM, A STRICT REGULATORY FRAMEWORK 18 SECTION 3: STAKEHOLDERS 20 1 >> OFFICIAL ORGANISATIONS 20 2 >> COSMETICS INDUSTRY BODIES 22 CHAPTER 2 SUCCESS STORIES IN BELGIUM 25 ANHAIRCO 26 CODIBEL 28 COSMEBEL 30 ECOVER 32 EXPANSCIENCE 34 JYB COSMETICS 36 L’ORÉAL LIBRAMONT 38 MYLÈNE 40 NADINE SALEMBIER 42 OBELIS 44 PRANARÔM 46 WORLD NATURAL CARE 48 CHAPTER 3 DIRECTORY OF COMPANIES 51
INTRODUCTION INTRODUCTION THE STARTING POINT - HYGIENE AND PROTECTION COSMETICS OF Health is, in the first place, the result of personal hygiene, which is achieved by using cosmetics. Personal care and EVERY STRUCTURE hygiene products, such as soap, shampoo and shower gel, are essential to modern hygiene and good health, and con- AND FRAGRANCE tribute to longevity. In today’s society, life expectancy is con- stantly breaking new records. And since soap became (SOURCE: DETIC) available to everybody, the quality of life has only improved. Illnesses due to a lack of hygiene have disappeared from western societies. Protecting the body against external influences is an essen- In a society where we constantly hear words such as tial function of many cosmetics. Although few people really ‘growth’ and ‘profit’, we sometimes forget the magical, appreciate it, toothpaste and sun cream are also cosmetic original worth of a product: its sensuality. This introduction products. An amount of toothpaste equivalent to the size of takes us back to basics. It offers a literary puff, sniff or a pea is enough to protect teeth against decay; dentists rec- smell of the feeling that cosmetics can bring, products that ommend twice-daily brushing quite rightly. Meanwhile, sun are functional and sensual, of course, but that also have an products protect us against the sun’s rays, in which we often immaterial and often very cerebral side. spend more time than is good for us. Used correctly, these products can slow down premature skin aging and, essen- “Functional products are present everywhere in our lives. tially, sunburn, a major cause of skin cancer. You clean your house with a cleaning product and mow your lawn with a mower. Functionality is straightforward. But a cosmetic has several aspects. From embellishment to hy- giene, it is the only product that promotes its users’ PSYCHOLOGICAL EFFECTS OF well-being and, going beyond their senses, stimulates their COSMETICS imagination.” With these words, Yu-Ting Chen, technical and regulatory expert at DETIC, immediately sets the tone But the hygienic and protective value of cosmetics goes be- for this introduction. “A cosmetic is not simply the product yond their functional operation to the level of human psy- itself; it has many offshoots. When you buy a cosmetic, you chological health. Through their odours and textures, these feel a real sense of pleasure because you know you are ac- products can reawaken emotions and memories hidden quiring a product that gives you a sense of well-being. Cos- away in our deepest minds. In fact, throughout our lives we metics and everything associated with them bring a feeling sketch an image of ourselves made from scents, experi- of happiness.” And this feeling is far from trivial; it creates ences and memories. Scents are with us throughout our a real link between physical and mental health. Pleasure is development. Subconsciously or consciously, they mark good for your health! specific events – pleasant or otherwise – while reinforcing our personality and maintaining our self-image. Think, for example, of the scent of an aunt who was very strict and unloving. Not the best of memories! Subconsciously, you will not be drawn to anyone who wears the same perfume. Functionality is straightforward. Think, too, of a crying baby whose tears dry up like magic But a cosmetic has several aspects. From when he smells the odour of his “blankey”. embellishment to hygiene, it is the only product These subjective experiences of odours and textures and that promotes its users’ well-being and, going their positive effects have also been confirmed objectively beyond their senses, stimulates their imagination. 4
BELGIAN COSMETICS in various studies. In recent years, there has been analysis of the impact of cosmetics on the quality of life. Here, Data Mining International, an independent Swiss research agen- cy, has confirmed the validity and reliability of a new instru- COSMETICS, ment for measuring the quality-of-life impact of cosmetics (BeautyQol). For some people, this impact is considerable. TOUCHING A particularly good example is a video posted on YouTube in which an American teenager used camouflaging make-up PEOPLE’S LIVES to hide her acne, helping hundreds of other teenagers to feel better about themselves – a beneficial act of self-ac- ceptance delivered by a few beauty products! The effect of cosmetics is far less superficial than you might think. The vast majority of Europe’s 500 million consumers use In addition to giving a boost to self-confidence, applying cosmetic and personal care products contributing to well cosmetics can also have other ‘unexpected’ beneficial ef- being and healthy lifestyles, and positive self-esteem every fects. As an example, a small French study showed that the day. Ranging from antiperspirants, fragrances, makeup tactile experience of applying cosmetics can aid eye-to- and shampoos, to soaps, sunscreens and toothpastes, cos- hand coordination leading to improved balance, and even to metics play an essential role in all stages of our life. protecting older people against falls. Yet another good rea- son, if needed, for getting out those little jars that are lurk- EU Regulation (EC) No 1223/2009 of the European Parlia- ing at the back of your cupboards. ment and of the Council of 30 November 2009 on cosmetic products defines cosmetics as any substance that comes into contact with the epidermis, hair system, nails, lips and external genital organs or with the teeth and the mucous A THIRD DIMENSION membranes of the oral cavity with a view to: A final use of cosmetics in our environment is more strate- • cleaning them gic in nature. “For centuries, the use of cosmetics has been • protecting them part of a natural tendency of humans to impress, frighten, • keeping them in good condition seduce or manipulate. This goes from hunters who rubbed • perfuming them or correcting body odours or ochre into their skin to hide their scent to the “psychologi- • changing their appearance. cal” preparation for an important meeting to close a deal, where the “predator” mimics the appearance of the “prey” Cosmetics Europe, the European personal care and cos- as much as possible. The reassurance of a familiar scent, metics federation, identifies five main categories of cos- the recognition of a make-up item, even the same style of metic products: clothing can transform an enemy into a friend. For exam- ple, scent mimicking allows a “family-like” connection to • Toiletries be created where it does not exist – and to take advantage (soaps, shower gels, toothpastes, deodorants, etc.) of it.” stresses Frédérick Warzée, Head of Communications • Skin care and cosmetologist at DETIC. (moisturizers, sun creams, anti-aging creams, etc.) • Hair care Cosmetics have long been part of our quality of life and, con- (shampoos, hair dyes, mousses, etc.) sequently, have improved our health. They also determine • Decorative cosmetics how people perceive each other and the world around them, (make-up, foundations, powders, blushers, lipsticks, while providing a framework for our experiences and me- nail varnishes, eye shadows, etc.) mories. Cosmetics are lived, smelled and felt: their effect is • Fragrances & perfumes sensual and psychological but is hard to describe in words. (perfumes, eau de toilette, extracts, lotions, etc.). 5
PRESENTATION OF THE SECTOR SECTION 1 1 >> TURNOVER THE COSMETICS By country The cosmetics industry is biggest in Europe, where it ac- INDUSTRY counts for around one third of the global sales of cosmet- ics. Domestic turnover expressed in retail sales price (RSP) IN FIGURES was EUR 77.1 billion in 2015, compared to EUR 72.5 billion in 2014, an increase of 3.1%. The Cosmetics Europe statis- tics cover the 28 member states of the EU plus Switzerland and Norway. The second biggest market is the United States, with EUR 62 billion in sales. The third biggest consumer of cosmetics is China, at EUR 41 billion. Next come Brazil (EUR 23 bil- lion), Japan (EUR 20 billion), India (EUR 10 billion) and South Korea (EUR 9 billion). The experts expect emerging economies like Brazil, India, China and Mexico to drive in- dustry growth in the years to come. At European level, Belgium is ranked 9th, accounting for 2.7% of the European total, with turnover of EUR 2,057 bil- lion in 2015 (+ 0.7% compared to 2014). It should be noted that these figures include Luxembourg. FIGURE 1: MAIN COSMETICS MARKETS, IN EUR BILLIONS (2015) EUROPE €77bn US SOUTH KOREA €62bn €9bn JAPAN €20bn BRAZIL CHINA €23bn INDIA €41bn €10bn Source: Cosmetics Europe (2016) 8
BELGIAN COSMETICS FIGURE 2: BREAKDOWN OF TURNOVER BY PRODUCT CATEGORY IN EUROPE AND BELGIUM (2015) By product There is a fairly balanced spread of turnover over the five Cosmetics Europe product categories (see Introduction). Skin care products and toiletries make up half of all Europe- an turnover. In Belgium, skin care products have been over- taken by hair products, which make up 26.1% of turnover. 13.9% The Belgian share of European hair product sales is 3.6% 25.8% (compared to an average of 2.7% for cosmetics). 15.7% EUROPE SWEDEN 25.1% €2.0bn 19.4% NETHERLANDS €2.9bn POLAND €3.1bn UK GERMANY €12.5bn €13.4bn 11.4% 25.5% 18.0% BELGIUM 19.0% 26.1% SWITZERLAND €2.3bn SKIN CARE TOILETRIES HAIR CARE SPAIN ITALY FRAGANCE & PERFUMES €6.4bn €9.7bn FRANCE DECORATIVE COSMETICS €11.4bn BELGIUM / LUXEMBOURG €2.1bn Source: Cosmetics Europe (2016) 9
PRESENTATION OF THE SECTOR FIGURE 3 : BREAKDOWN OF TURNOVER BY DISTRIBUTION CHANNEL IN BELGIUM, IN EUR THOUSANDS (2014) By distribution channel DETIC statistics cover sales on the Belgian market by feder- ation members (80%-90% of the total). DETIC identifies four MASS MARKET distribution channels for cosmetics products: SELECTIVE DISTRIBUTION • mass retail, which also includes brands selling their PHARMACY own products through their own distribution channels PROFESSIONAL PRODUCTS (such as Yves Rocher, l’Occitane and Body Shop) as well as semi-selective retail through drug stores (such as Di and Kruidvat) 2% • selective retail, including multi-brand stores (such as Ici Paris XL and PlanetParfum) and independents 10% • pharmacies • professional products. Mass retail accounts for more than half of turnover (52% in 52% 36% 2014). However, this channel has gradually ceded market share to selective retail (36%) and pharmacies (10%). Pro- fessional products account for 2% of turnover. There are some notable differences between the product categories. While mass retail is preferred for toiletries and hair products, selective retail dominates fragrances & per- 250,000 fumes. These two channels are on an equal footing with re- gard to decorative cosmetics and skin care. Pharmacies ac- 200,000 count for a quarter of skin care sales. The professional products channel is mainly used for hair care. 150,000 100,000 50,000 0 FRAGANCE & PERFUMES DECORATIVE COSMETICS SKIN CARE HAIR CARE TOILETRIES Source: DETIC (based on members) 10
BELGIAN COSMETICS What about e-commerce in Belgium? Online sales are included in the above categories, as DETIC does not have a specific category for this. For a long time, the inability to get advice and test products held back e-commerce, but it is now experiencing growth. This distribution channel complements the physical circuit, offering consumers a “different, enriched and personalised user experience”. According to the latest figures from BeCommerce (the Belgian federation of online merchants), taken as a whole, e-commerce is continuing to grow and break records. Belgian consumers spent almost EUR 2.3 billion online in the first quarter of 2016 (+9% compared to the same period in 2015) in 21.4 million transactions (+7%). 76% of the population shopped online between January and March 2016. This channel accounted for 16% of total receipts in the Belgian retail industry. This figures show that Belgium is catching up in e-commerce. According to BeCommerce, Belgium is in the top half in Europe. The growth potential in cross-border e-commerce should also be stressed. 53.2% of the online purchases by Belgians in 2015 were made on foreign websites, especially those in neighbouring countries (Netherlands, Germany and France). According to BeCommerce, due to the size of the country, Belgian online merchants have no choice but to move into the export business. 82% of their visitors are foreign, mainly from France, the Netherlands, the United States and the United Kingdom. The growth trend in e-commerce is also discernible in cosmetics: Belgians are buying more and more online. Health and beauty products accounted for 9% of all online purchases in 2015. The most popular categories were clothing and accessories (27%), electronics (24%) and leisure activities (11%). Cosmetics actually rose to first place during the Christmas and New Year period, accounting for no less than one third of online sales in Belgium. A 2016 survey in France by CCM Benchmark Institut showed that cosmetics brands, consumer-to-consumer websites and general online retailers like Amazon and Cdiscount were the most popular destinations for online shoppers. The biggest sellers in cosmetics are face care products, make-up and body care products. Customer reviews, up-to- date stock information and a quick questionnaire to determine which products best meet the consumer’s needs are deemed to be the most useful services provided by online retailers. 11
PRESENTATION OF THE SECTOR 2 >> 3 >> COMPANIES AND JOBS EXPORTS In “Socio-economic contribution of the European cosmetics Eurostat data pegged Belgian cosmetics exports at EUR 2.6 industry”, a report published in June 2016, Cosmetics billion in 2015. The following sections were taken into ac- Europe states that the cosmetics industry is a major count: business driver throughout the value chain (see Section 2). • 3303-Perfumes and toilet waters • 3304-Beauty or make-up preparations and prepara- tions for the care of the skin Companies • 3305-Preparations for the use on the hair More than 5000 companies are involved in the manufacture • 3306-Preparations for oral or dental hygiene of cosmetics products in Europe. One of the strengths of • 3307-Pre-shave, shaving or after-shave preparations, the industry is the coexistence of companies of all sizes. personal deodorants, bath preparations, depilatories According to Euromonitor International (2015) data, there and other perfumery, cosmetic or toilet preparations are 4605 SMEs in Europe. Italy, France and the United King- • 3401-Soap. dom have the most company registrations. Cosmetics is part of the chemical, plastics and life sciences The following companies should be added to this: industry, which is the biggest exporting sector in Belgium ac- • More than a hundred cosmetics ingredients suppliers counting for one third of total export (32.6% in 2015). The and packaging companies three biggest subsectors are pharmaceuticals, organic • 20,100 wholesalers chemicals and plastics, which jointly account for more than • 45,700 retail points of sale three quarters of the sector’s total export. Cosmetics ac- • Between 400,000 and 500,000 hairdressers and beauty count for 2.2% of the chemical, plastics and life sciences sec- salons tor, or 0.7% of total Belgian exports in 2015. Belgian cosmetics exports increased by 18.7% in 2015 com- Jobs pared to the previous year. It was the third year of consecutive The industry employs 179,000 people directly (including growth after growth of 5.7% in 2013 and 10.1% in 2014. 152,000 in manufacturing) and 1.55 million indirectly. Belgium is the 7th biggest cosmetics exporter in the EU, ac- In Belgium, according to National Social Security Office counting for 6.0% of sales in 2015. France heads the ranking, statistics there were 5015 direct jobs on 30 June 2015. followed at quite a distance by Germany and the United King- dom. There are 1989 jobs in production (NACE 20.42 Manufacture of perfumes and toilet preparations). 70% of them are based in Flanders, mainly in the province of Antwerp. Almost all By continent the rest are based on Wallonia, especially in the provinces of Belgian cosmetics exports are diversified. The share of Eu- Luxembourg (home to the L’Oréal plant) and Hainaut. rope, which accounted for 79.3% of turnover worldwide in 2010, had fell to 71.1% by 2015, with Asia, America and Africa The sale of cosmetics (code NACE 46.45 Wholesale of per- all benefiting. fume and cosmetics) accounts for 3026 jobs in Belgium, of which 46% in Brussels, 37% in Flanders and 17% in Wallonia. 12
BELGIAN COSMETICS FIGURE 4: FIGURE 6: BELGIAN COSMETICS EXPORTS BREAKDOWN OF BELGIAN EXPORTS PER FROM 2010 TO 2015, IN EUR BILLIONS CONTINENT IN 2010 AND 2015 3 1.2% 2.5 8.2% 2 9.2% 1.5 2.1% 1 0.5 10.8% 2010 1.9 2.2 1.9 2.0 2.2 2.6 0 68.5% 2010 2011 2012 2013 2014 2015 Source: Eurostat 0.8% 13.7% FIGURE 5: 11.5% COSMETICS EXPORTS BY COUNTRY IN 2015 2015 2.9% 61.5% 9.5% FRANCE 11.8% GERMANY 4.5% 27.4% UNITED KINGDOM 6.0% ITALY EU-28 6.1% SPAIN OTHER EUROPEAN COUNTRIES POLAND AFRICA 6.9% 17.9% BELGIUM AMERICA 9.3% NETHERLANDS ASIA 10.1% OTHERS OCEANIA AND POLAR REGIONS Source: Eurostat Source: Eurostat 13
PRESENTATION OF THE SECTOR By country By product The Netherlands was Belgium’s principle customer in 2015, Beauty, make-up and skin care products account for the li- accounting for 21% of Belgian cosmetics exports, worth EUR on’s share at 39.1%. This section (3304) generally covers 560.6 million. ‘skin care‘ and ‘decorative cosmetics’. ‘Hair care’ products and ‘fragrances & perfumes’ place second and third, with The United States and Germany followed quite a long way 18.6% and 18.3% respectively. The remaining 24% of Belgian behind, with 9.1% and 9.0% of sales respectively. exports are made up of body care products (shaving, shower products, oral hygiene and soap), which correspond to ‘toi- France, which was Belgium’s second biggest customer in letries’ but also ‘skin care’. 2010, dropped to fourth by 2015. FIGURE 7: FIGURE 8: TOP 10 BELGIAN CUSTOMERS, IN EUR MILLIONS BREAKDOWN OF EXPORTS BY PRODUCT CATEGORY (2010, 2015) (2015) 2010 5.2% 2015 18.5% 13.4% 600 5.1% 500 18.8% 39.1% 400 300 3303 PERFUMES AND TOILET WATERS 200 3304 BEAUTY OR MAKE-UP PREPARATIONS AND PREPARATIONS FOR THE CARE OF THE SKIN 100 3305 PREPARATIONS FOR THE USE ON THE HAIR 0 3306 PREPARATIONS FOR ORAL OR DENTAL HYGIENE NETHERLANDS USA GERMANY FRANCE UNITED KINGDOM SWITZERLAND RUSSIA SPAIN ITALY POLAND 3307 PRE-SHAVE, SHAVING OR AFTER-SHAVE PREPARATIONS, PERSONAL DEODORANTS, BATH PREPARATIONS, DEPILATORIES AND OTHER PERFUMERY, COSMETIC OR TOILET PREPARATIONS 3401 SOAP Source: Eurostat Source: Eurostat 14
BELGIAN COSMETICS SECTION 2 BELGIUM’S ADVANTAGES IN THE VALUE CHAIN INPUTS TO PRODUCTION The cosmetics industry value chain can be segmented into five main stages. The first one comprises the companies that provide the raw materials required to make cosmetic products. These in- MANUFACTURING clude companies manufacturing the ingredients used in the production of cosmetics, but also companies develop- ing and manufacturing packaging components and R&D activities (e.g. market research, product formulation and industrial design). The next step of the value chain (manufacturing) is made up of manufacturers. Socio-economic benefits are created DISTRIBUTION & WHOLESALE through production, but also through supporting activities (e.g. marketing and advertising, IT, accounting and legal services and business administration). The finished cosmetic product may then pass through dis- tribution and/or wholesale. RETAIL & BEAUTY The final stage of the value chain involves the retail sale and SERVICES purchase of cosmetics. End-consumers may buy cosmetic products through a range of channels, including grocery stores, supermarkets, department stores, pharmacies, on- line stores and beauty salons. Beauty salons (e.g. nail sa- lons, hair salons, spas, etc.) also purchase, use and sell cosmetic products. CONSUMERS The cosmetics industry is particularly well developed in Belgium, where conditions are favourable throughout the value chain. As a world-class chemical cluster (2.1), Bel- gium is also an ideal test market (2.2) for cosmetics. The country is very open to innovation (2.3), while imposing a strict regulatory framework in accordance with EU require- ments (2.4). Source: Cosmetics Europe 15
PRESENTATION OF THE SECTOR 1 >> BELGIUM, A WORLD-CLASS CHEMICALS CLUSTER Belgium is global leader in the chemical industry based on EUROPEAN PIPELINE NETWORK turnover per inhabitant. Chemicals accounted for 32.6% of exports and 28.2% of imports in 2015. With the Port of Ant- ROTTERDAM werp as hub, Belgium is a world-class chemical cluster by THE NETHERLANDS MARL size but also in terms of product diversity. RHEINBERG TERNEUZEN ANTWERP OLEN GEEL Like Houston, Singapore and Jubail, Antwerp is one of the TESSENDERLO BELGIUM BERINGEN LEVERKUSEN MELSBROEK world’s most important petrochemicals complexes. Belgium LILLE GENK SITTARD-GELEEN BONN FELUY also has a huge pipeline network for the transmission of gas, JEMEPPE-SUR-SAMBRE oil and other petrochemical products. WAZIERS MAUBEUGE GERMANY FRANKFURT FRANCE Belgium is home to several cosmetics ingredients suppliers, such as BASF, Dow Corning, EOC and Tensachem. Source: Port of Antwerp 2 >> BELGIUM, THE IDEAL TEST MARKET In Belgium the cosmetics industry is relatively dense, with 6 BELGIAN SEAPORTS a huge distribution network. ZEEBRUGGE Belgium is often felt to be the ideal test market, before en- tering other bigger, European markets, but also the perfect ANTWERP springboard for export. This also goes for cosmetics for several reasons. BRUSSELS OSTEND • Belgium is a major logistical hub. A crossroads at the heart of Europe with six ports and five airports. It also GHENT LIÈGE has an extensive rail network, with 3000 km of tracks. High-speed trains connect Brussels with Amsterdam, Frankfurt, London and Paris. Source: ib.fgov.be • Belgium is an outward-facing multilingual country, whose cosmopolitan capital Brussels is home to the NATO head- 5 BELGIAN AIRPORTS quarters and many EU and European institutions. ✈ • Belgians have a lot of purchasing power. According to ANTWERP Cosmetics Europe, the average Belgian spent EUR 174 ✈ BRUSSELS on cosmetics in 2015, which is well above the EU aver- ✈ NATIONAL AIRPORT age of EUR 124. Belgium is fourth highest in this rank- OSTEND ing, behind Sweden, the United Kingdom and Denmark. ✈ BIERSET • Industry experts say that Belgian cosmetics consumers adopt “average” behaviour, getting through 18g per day. ✈ CHARLEROI They are also well informed and act in full knowledge of (Brussels South) the facts. Source: ib.fgov.be 16
BELGIAN COSMETICS For these reasons, many large brands have opened a produc- tion plant and/or a distribution centre in Belgium, including L’Oréal (France), Unilever (UK), Beiersdorf (Germany), Procter & Gamble (US), Estée Lauder (US), Henkel (Germany) and Johnson & Johnson (US). 3 >> BELGIUM, FOCUSED ON INNOVATION One major advantage of cosmetics production in Belgium is its particularly innovative nature, a real trademark of the country. ULG: MASTER SPECIALISED IN COSMETOLOGY Many Belgian companies work anonymously for house www.ulg.ac.be brands. There are innovations at product level (creativity in formulations, textures) and at manufacturing level, especial- The aim of this master’s degree is to train professionals ly in terms of sustainable development. who are able to design, manufacture and test cosmetics. Given that they are applied directly to the skin, these Several Belgian universities offer courses linked to cosmet- products must meet extremely stringent requirements. ics and cosmetology. As such, Belgium helps talented young- Ingredients are tested, the manufacturing process moni- sters get a start in the industry, creating a pool of experts for tored, finished products evaluated and their safety for employers. humans and the environment is checked. This master’s degree therefore covers the legal, technical and scientific aspects of the ever-changing cosmetics industry. ULB: MASTER’S DEGREE IN BIOMEDICAL SCIENCES Meeting evolving consumer DERMOPHARMACY AND COSMETOLOGY demands and remaining competitive www.ulb.ac.be/facs/pharma/cosmetologie in a fast-changing and globalised The European cosmetics industry is the global leader world demands constant innovation, whose highly innovative products are widely used by con- and in this respect we stand sumers. Given the increasing complexity of regulatory out. We are science-driven and constraints in the field of cosmetics ingredients and fin- our investment in R&D remains ished products, trained specialists are needed. substantial. This relentless This master’s degree is offered by the ULB’s Faculty of commitment to innovation helps Pharmacy in association with the ULB’s Faculty of Medi- ensure that product design and cine and the Faculty of Medicine and Pharmacy of the safety are in a state of constant University of Liege (ULG). It is also supported by visiting professors from research centres and the cosmetics, evolution, and consequently, that we pharmaceutical and chemical industries. continue to generate growth and jobs in the EU. John Chave, Director-General, Cosmetics Europe, Annual Report 2015 (June 2016) 17
PRESENTATION OF THE SECTOR 4 >> VUB: BELGIUM, A STRICT REGULATORY DEPARTMENT OF TOXICOLOGY, DERMATO- FRAMEWORK COSMETOLOGY AND PHARMACOGNOSY (FAFY) www.ecopa.eu Cosmetics products sold in Belgium and the European Union minf.vub.ac.be are subject to very strict regulation. They are among the most stringently regulated products, which provides consumers The Department of Toxicology, Dermato-Cosmetology with guarantees as to their safety for humans. This is a con- and Pharmacognosy (FAFY) is part of the Faculty of siderable advantage on export markets. Medicine and Pharmacy of the Vrije Universiteit Brussel (VUB). Headed by professor Vera Rogiers, the depart- Cosmetics manufactured and sold in the European Union are ment works in two main research domains: toxicologi- subject to EU Regulation (EC) 1223/2009 of the European cal research, based on experimental in vitro toxicology Parliament and of the Council of 30 November 2009 on cos- and dermo-cosmetic research, covering various as- metic products. 2016 marked the fortieth anniversary of the pects of measuring the efficacy and safety of cosmetic legislation, harmonised at EU level. It has proven to be an and dermatological products and their formulations. effective mechanism. The last health crisis in the European cosmetics industry was a long, long time ago. The FAFY team is an active member of several Belgian and European associations in domains connected with In Belgium, the EU regulation is supplemented by the Royal the department’s scientific research and knowhow. At Decree of 17 July 2012. The FPS Health, Food Chain Safety European level, Vera Rogiers is co-president of SCCP and Environment is the body responsible for ensuring the EU (Scientific Committee on Consumer Products), a mem- regulation is complied with in Belgium. Cosmetics manufac- ber of the EPAA (European Partnership for Alternative turers in Belgium must also notify the FPS of their activities Approaches to Animal Testing) mirror group, a member every two years. of ESAC (ECVAM Scientific Advisory Committee) and co- ordinator and research partner on several European Some points in this regulatory framework: projects. The department holds regular national and internation- Responsible person al scientific conferences, workshops and symposia. In A responsible person (a natural person or a legal entity) in addition, the department is a breeding ground for Ph.D. the European Union must be designated for every cosmetic and post-doc research as a large number of master’s product. This ensures the conformity of the product and com- and Ph.D. theses have been successful defended over pliance with other legal obligations. The responsible person the past decade. must register the product on the European Commission’s Cosmetic Products Notification Portal (CPNP). The responsi- Every year, the department hosts two dermo-cosmetics ble person can be the manufacturer, the importer, a distribu- courses that enjoy international recognition for their tor or another authorised person. high quality and professional knowledge: • “Safety Assessment of Cosmetics in the EU” (www.safetycourse.eu) European cosmetics file • “Intensive Course in Dermato-Cosmetic Sciences” Drawn up and submitted to the relevant authorities by the (www.dermatocosmeticcourse.eu). responsible person, the file on the cosmetic product must contain the following information: • The manufacturing method and a statement of compli- ance with Best Manufacturing Practices (compliance with the EN ISO 22716:2007 standard confers an as- sumption of conformity) 18
BELGIAN COSMETICS • The safety report on the cosmetic product drawn up by The responsible person may be contacted at the address a person with a university-level European qualification stated on the product label or at the contact points stated in as a pharmacist, toxicologist or doctor or in an analo- the European Directory of Public Access (www.european- gous discipline cosmetics.info/en/). • Proof of claimed effects, even if these are self-evident. Composition The EU regulation restricts the composition of cosmetics products and includes: European cosmetics legislation, which is now in its • A list of banned ingredients (appendix II) 40th year, is a model for the world, helping both to • A list of restricted substances (appendix III) ensure consumers are properly protected and to • The lists of authorised colouring agents, preservatives and ultraviolet filters (appendices IV-VI). facilitate trade in the EU. John Chave, Director-General, Cosmetics Europe, Annual Report 2015 (June 2016) Labelling The following statements must be included on the label of the cosmetic products: • Name and address of the responsible person • Nominal content (quantity) We continue to encourage others to use the EU • Special user precautions (stated on the label at least in Cosmetics Regulation as an inspiration for their the language or languages of the region in which the own legislation and are pleased to note that many product is sold) • Ingredients in their common EU INCI designation, as emerging markets, including ASEAN, Russia, Latin stated in the CosIng database America and China, have indeed done so. • Product function unless it is self-evident (stated on the Gerald Renner, Director Technical Regulatory Affairs, Cosmetics Europe, label at least in the language or languages of the region Annual Report 2015 (June 2016) in which the product is sold) • Manufacturing lot number • Use before date: “best before end…” for products with a shelf life of less than 30 months • Period within which the product must be used after opening, expressed in months, for products with a shelf life of less than 30 months. For more information • Directorate General for Internal Market, Industry, Entrepreneurship and SMEs: Supplementary information ec.europa.eu/growth/sectors/cosmetics Consumers can get more detailed information from the • FPS Health, Food Chain Safety and Environment: party responsible for bringing the product to market: www.health.belgium.be (French or Dutch only) • Qualitative composition of the cosmetic product • Concentration of certain ingredients • Frequency and nature of reported undesirable effects 19
PRESENTATION OF THE SECTOR SECTION 4 STAKEHOLDERS 1 >> OFFICIAL ORGANISATIONS FPS Foreign Affairs Economic diplomacy is one of the basic missions of the FPS Foreign Affairs, which – operating within the current constitutional framework and taking account of the other stakeholders in the field – strives to promote Belgian economic interests abroad. It does this in a number of ways. For example, the FPS Foreign Affairs supports Belgian businesses in their international activities, with e.g. the economic missions of HRH Princess Astrid as representative of His Majesty the King and, increasingly, visits by the King provide substantial support to Belgian economic interests abroad. We also promote Belgium internationally as a good place to do business. By actively participating in international forums such as the World Economic Forum, arranging bilateral visits and taking multilateral action in international organisations, the FPS Foreign Affairs aims to showcase the Belgian economy. diplomatie.belgium.be/en Flanders Investment & Trade, AWEX and Brussels Invest & Export each promote their own region: Flanders, Wallonia and Brussels. Their main assignments are threefold, which they are each free to achieve in their own way: • To support exporters from the region • To inform, prospect for and advise potential foreign investors • To promote the region abroad Alongside tax incentives, Belgian regions also grant companies significant financial incentives for recruitment, training, R&D, investment, consultancy and environmental protection. 20
BELGIAN COSMETICS Flanders Investment & Trade Flanders Investment & Trade (FIT) promotes international enterprise in Flanders in a sustainable way as a key factor in the social and economic development of our region. FIT does so by supporting the international activities of Flemish companies and by attracting foreign investors to Flanders. FIT assists, supports and stimulates companies in international business. FIT offers tailored advice and guidance. Companies can call on its networks of contacts both at home and abroad. And FIT gives financial support and information on a wide range of financial incentives. Flanders has many assets for ambitious Flemish enterprises and SMEs as well as for interested international companies. For Flemish companies, its region is a perfect gateway. For them, FIT tries to lower the threshold to doing business abroad. FIT promotes its services, provides information and knowledge about export and offers networking opportunities between entrepreneurs and brings them into contact with potential partners abroad. Flanders is a pole of attraction for foreign companies: thanks to its central location in Europe, its strongly developed infrastructure, its innovative clusters and numerous other strengths. FIT tries to give them worldwide publicity. FIT adopts a tailored approach to potential investors and convinces them of the opportunities for their company in Flanders. Furthermore, FIT focus on existing investors in Flanders planning to expand their businesses. Innovative clusters are of key importance to Flanders as a knowledge region. FIT helps these clusters in their internationalization process and tries to attract foreign investors capable of strengthening the cluster to grow into a major international player. www.flandersinvestmentandtrade.com I www.investinflanders.com AWEX The Wallonia Export - Investment Agency (AWEX) offers general expertise in international economic relations. This expertise ranges from promoting Walloon exports through to seeking foreign investment (helping find suitable sites, explaining support measures and tax rules, and providing information on recruitment and staff training, project funding, etc). AWEX also provides a range of services to all Walloon businesses seeking to operate at international level. However it is also the partner of choice for all buyers, importers and foreign prospects who are looking for a partner in Wallonia and wanting to find products, equipment, technologies or services in the area. Outside of Belgium, AWEX can rely on an international network of 109 financial and business attachés, covering more than 120 markets and some 20 international organisations. These representatives are the key contacts locally for any business or public body wishing to develop a business or a partnership relationship with Wallonia or simply wanting to find out about the economic potential of such a relationship. At Walloon level, AWEX’s main partners are the competitiveness and technological clusters in particular. www.awex.be I www.investinwallonia.be 21
PRESENTATION OF THE SECTOR Brussels Invest & Export Brussels Invest & Export works to promote foreign trade, assists Brussels companies, and attracts foreign investors to Brussels. It has built a database to help foreign investors with a specific project in mind find business partners in Brussels. Brussels Export has a foreign network of some 88 economic and trade attachés. Some of these are shared with FIT or AWEX. Invest in Brussels specifically offers companies the opportunity to test Brussels as a business location for three months, providing them with free office space, secretarial services, facilities and professional advice from experts on suitable locations, support facilities, sector-related issues and legislation at Brussels and federal level, etc. www.brusselsinvestexport.be I www.investinbrussels.com 2 >> COSMETICS INDUSTRY BODIES essenscia essenscia, the Belgian Federation for Chemistry and Life Sciences industries, represents the interests of over 700 companies active in the fields of chemicals and life sciences. With a turnover of EUR 64.3 billion, the chemical and pharma sector represents one fourth of the entire Belgian industry and employs 90,000 people. Chemicals, plastics and life sciences are the top export products of the country, representing a third of total Belgian exports. This industry is also the most innovative sector of Belgium with EUR 3.6 billion in R&D- expenditures in 2015, representing nearly 60% of all the R&D in the manufacturing industry. This sector is highly diversified yet homogeneous covering a large range of products such as base chemicals, agrochemicals, plastics, paints & varnishes, detergents, drugs and vaccines as well as cosmetics and soaps. Belgium is the number one chemical country in the world on a per capita basis. Belgium is also a world leader in pharmaceuticals and biotechnology which alone accounts for 10% of all Belgian exports. www.essenscia.be/en 22
BELGIAN COSMETICS DETIC DETIC is the Belgo-Luxembourg Association of producers and distributors of cosmetics, hygiene products and toiletries. As the mouthpiece for its sectors in Belgium and the Grand Duchy of Luxembourg, DETIC works to create and maintain a positive and sustainable image of its industries. Its central mission is to support, accompany and advise its members on the ‘responsible’ way to bring their products, services and solutions to market. DETIC provides expertise on regulatory and technical issues as well as in the field of communication and sustainable development. The sector consists of many companies of differing sizes, ranging from major international organisations to small and medium-sizeda enterprises. In 2015, DETIC had 56 members in the cosmetics sector who recorded a turnover of around EUR 800 million on the Belgo-Luxembourg market. DETIC publishes a code of advertising and commercial communication that maps out practices in the sector in Belgium. www.detic.be Cosmetics Europe Cosmetics Europe - The Personal Care Association has been the voice of Europe’s EUR 70 billion (excluding exports) Cosmetic, Toiletry and Perfumery Industry since 1962. Cosmetics Europe represents the interests of more than 4.500 companies, ranging from major international cosmetics manufacturers to small, family-run businesses operating in niche markets. In 2015, direct and indirect employment in the European cosmetics industry was approximately 2 million people. As the industry’s European trade association, Cosmetics Europe’s membership consists of large active and supporting international companies and active national associations. The national associations represent both the major international cosmetics manufacturers active in that country as well as national SMEs. www.cosmeticseurope.eu […] Our industry continued to adapt to meet the needs of a changing world. A combination of factors such as globalisation, digitalisation and the need for greater sustainability are reshaping consumer behaviour with regard to cosmetics and personal care products. In response to changing needs and expectations, we have to continue to deliver products of the highest quality and safety, while remaining acutely conscious of the need to protect resources. Our industry cannot stand still […] John Chave, Director-General, Cosmetics Europe, Annual Report 2015 (June 2016) 23
SUCCESS STORIES IN BELGIUM
SUCCESS STORIES IN BELGIUM INTERVIEW WITH Tom Heyblom, General Manager and Alfred Bellemans, Plant Manager COMPANY Anhairco REGION Flanders Belgian family company Founded in 1925, production capacity began in 1992 Two sites: Aartselaar (salon supplies) and Olen (production) Turnover: We can mass EUR 7 million produce, but we can just as well run off 500 pieces 40 employees of a specific product. Export: Active in the Netherlands since 1988 and subsequently other European countries Anhairco is a 100% Belgian family tion unit to combine the two sites. That business that was formed way back in ensures we are ready for the future.” Export share in turnover: 50% 1925. Originally a scissors and razor- blade business, Anhairco now imports In Olen the firm manages the whole salon supplies and manufactures cos- chain, from development to produc- Eco and organic certification metic products, distributing both in tion. “Flexibility is key at Anhairco,” (BDIH) Europe. The salon supplies depart- says Heyblom. “We are active almost ment in Aartselaar has more than five across the board in cosmetics, with Biocide certified thousand references, while cosmetics hair, skin and even pet products. The has its own production unit in Olen. only thing we don’t produce is make- up, as this requires a special tech- nique.”Anhairco can also fill just about FLEXIBILITY IS KEY anything, from small ampoules to large bottles and even bulk. “Our staff The cosmetics business was set up in is trained to convert production lines 1992 following the acquisition and ex- quickly to the customer’s orders. We pansion of a production company. An- can mass produce, but we can just as hairco made its biggest investment so well run off 500 pieces of a specific far in 2004, acquiring a company man- product,” adds plant manager Alfred ufacturing private label face and body Bellemans. This approach generates a care products. “It complemented our variety of customers, from supermar- business perfectly,” says Tom Heyb- ket chain Aldi to start-ups that find it lom, general manager. “So we imme- hard to predict how well their product diately decided to build a new produc- will sell. 26
BELGIAN COSMETICS Some customers have a good idea of of our customers to put together a market. “We have been active abroad precisely what they want, others draw product information file for every before, but this is the first time we have on Anhairco’s knowledge and experi- product they bring to market. Many of gone to work in such a targeted way,” ence. In either case, the search for a them are not active in that sphere. We says Heyblom. “The Dutch customers new product begins in the laboratory. can assist them to ensure they are are more enterprising, too, and will “We will then get to work on develop- able to market safe products that start projects sooner,” adds Alfred Bel- ing a new formula or base ourselves comply with all laws.” lemans. “They take more calculated on a formula we developed earlier and risks and think ahead a bit more.” adapt it to suit the customer. Samples Around 80% of production is destined will be produced and the test phase for private labels, but Anhairco also That said, neither man regrets the fact will begin. We will be ready for produc- has two house brands, Corona Profes- that they are located in Belgium. “We tion between six and twelve months sional and Scarlett. These are includ- are well integrated and we have built down the line,” says Bellemans. ed in the wide range of salon supplies name awareness and a good reputa- through the company’s other busi- tion. In a context that has seen a lot of ness. “Almost every wholesaler in Bel- colleagues disappear, we are proud CUSTOMER SUPPORT gium and the Netherlands has salon that we are still standing firm as a supplies from the Anhairco range. Belgian producer.” The company es- Heyblom explains that Anhairco does That means that our hair products pecially relies for support on Detic, not aim to be the cheapest, but to dif- reach a large group of consumers.” which represents the sector and gives ferentiate itself from its international advice on legislation. And if a raw ma- competitors based on the constant terial is in short supply competitors in quality of its products. “The tests take BELGIAN SUPPORT the vicinity show their solidarity. The a good three to four months. We guar- north-east of Antwerp is fertile ground antee that the formula is stable and The Netherlands is roughly as impor- for companies in the industry. “There’s will not discolour or settle, for in- tant as Belgium for the company. With a reason why our region is known as stance. We have seen customers go to that in mind, Anhairco is currently roll- Cosmetic Valley,” laughs Heyblom. foreign producers, but we have also ing out a two-year communication seen them come back. It is already dif- plan to search for opportunities in the www.anhairco.be ficult to make a product once, but the real challenge is getting the same high quality in every production run.” “Good communication and service are We have seen customers go to foreign also hugely important,” says Heyblom. producers, but we have also seen them Anhairco always enters into a dialogue with its customers to achieve the right come back. It is already difficult to make product together. But support can be a product once, but the real challenge provided even after the product has been delivered. “It is the responsibility is getting the same high quality in every production run. 27
SUCCESS STORIES IN BELGIUM INTERVIEW WITH Michel Knops, CEO COMPANY Codibel REGION Wallonia Creation: 1964 Place: Seneffe 30 employees Consolidated turnover: EUR 6 million Growth: > 10% Established in Brussels in 1964, Codi- the health and beauty sector. The mot- bel relocated to Zaventem a few years to is simple: we make what you sell. later, before settling in Seneffe, in The company is specialised in hair Wallonia. “As a matter of interest, the care, skin care and oral hygiene and first stone of our present building was the customer base includes wholesal- laid on the day Lehman Brothers went ers, hairdressers, beauticians and bust,” says Michel Knops. “Codibel fi- medical/paramedical organisations nalised the biggest investment in its such as pharmacies and hospitals. Selling abroad is written into every Belgian company’s genes. history at a time when the global Besides its ‘private label’ activity, Cod- economy had just experienced great ibel also develops a range of in-house upheaval.” brands for hair care products: Kursaal, Labo Oily, Lagrange, Intensive Hair Codibel is active in all three federal re- Care, Color Revive, Color Defence… gions and feels very much at home in Belgium. “Wallonia is particularly wel- coming. The investment aid system, EXPORTING IS IN coupled with available subsidies, is BELGIUM’S DNA very effective”. “Given the limited size of the Belgian Codibel offers a one-stop solution market it appears crucial for SMEs to from conception to market through quickly take on an international di- creative sustainable partnerships in mension in order to continue to grow. 28
BELGIAN COSMETICS Selling abroad is written into every Belgian company’s genes,” says Economic performance must be paired Michel Knops. with social and environmental progress. Sustainability is the only way forward. It is hard to quantify Codibel’s foreign presence. “We have a direct presence abroad through the export of our own brands, but also indirectly through and the EU regulation on cosmetic ble products in terms of packaging, customers we work for under con- products. “At first glance it is very re- product and manufacturing process. tract,” says Michel Knops. As well as strictive for modestly sized manufac- “Sustainability remains today more a Europe, products from our Seneffe turers like us, but, when all is said and matter of motivation than obligation. plant can be found in Canada, the done, we are able to market state-of- However, it is close to our hearts and United States, Brazil, Australia, China, the-art products that are highly per- we want to use it as a means of differ- Taiwan and Hong Kong, which is proof formant from a technical and scientif- entiating ourselves,” says Michel of their acceptance and recognition at ic point of view”. Knops. global level. Michel Knops says that it is a plus “Economic performance must be Codibel regularly joins economic Codibel can highlight when prospect- paired with social and environmental missions with AWEX and takes part in ing for new customers abroad. “In an progress. Sustainability is the only way many trade fairs and shows. Michel ultra-competitive environment char- forward. Our choice has been to privi- Knops feels that Codibel still has room acterised by outstanding French and lege inspiration over competition for a for development in terms of visibility. Italian companies in particular, we stronger community and a healthier “As one of our priorities, our strategic must be innovative and original if we way to do business. This ambitious ob- international development plan is built are to differentiate ourselves and cre- jective enables us to pursue our devel- on an ambition to switch from sporadic ate added value and jobs. Our lead opment in a responsible manner, to structured exports.” The company over the competition outside the EU in which surpasses pure financial con- will initially focus efforts on bordering terms of regulation could prove inval- siderations. At the same time our pri- countries within the European Union, uable.” ority remains fulfilling customer satis- which have the advantage of being faction by supplying products destined harmonised at regulatory and to be widely consumed without re- monetary level (no exchange risk in SUSTAINABILITY: striction, and allowing our employees the euro zone). AN ISSUE FOR THE to participate actively in a ‘responsi- FUTURE ble-citizen’ attitude, which we all hope will transcend future generations.” A HIGHLY REGULATED The Seneffe plant was built using sus- INDUSTRY tainable materials, ensuring excellent Michel Knops ends by giving his own insulation among other things. It has definition of sustainability, formulated The cosmetics industry is one of the more than 500 solar panels, which as a goal for Codibel: “Developing and most closely supervised and tightly cover 50% of its own power needs and selling cosmetic products that fulfil controlled in Belgium. It is also one of minimises its carbon emissions. It is the expectations of people today with- the most regulated. Fortunately, com- also connected to the new industrial out jeopardizing the ability of future panies are well informed and support- water collection network, with a purifi- generations to meet their own needs.” ed by both the national (DETIC) and EU cation station just a few steps away (Cosmetics Europe) federations. from the site. Rainwater is harvested, stored and recycled for sanitary use www.codibel.be In the European Union, the cosmetics and in a closed circuit for cooling pro- industry is governed by two main duction vessels. blocks of legislation: REACH (registra- tion, evaluation, authorisation and re- Codibel now wants to take the next striction of chemicals) for ingredients step and develop a range of sustaina- 29
SUCCESS STORIES IN BELGIUM INTERVIEW WITH Maurice Bertrand, founder and consultant COMPANY Cosmebel A FAMILY SAFE, HIGH-QUALITY ADVENTURE AND EFFECTIVE REGION For almost 30 years, Cosmebel, a All Cosmebel products contain an in- Brussels family business, has been active in a gredient developed in-house by the niche cosmetics market: care for dark company: an active vegetable extract skinned people. This segment only that comes from Asian plants. “It is Formation: 1989 makes up about 2% of the global mar- essential that we only use ingredients ket. Cosmebel is involved in bringing that do no harm to the skin.” many different skincare products to Place: Brussels market, both its own product range The company is very keen to protect and third-party brands custom-pro- the reputation of its skincare brand. 8 employees duced at its specialised plants. “Our When poor-quality copies have threat- company is a real family,” explains ened one of its products, Cosmebel Maurice Bertrand. “I formed the com- has withdrawn it and launched a new Export share: 85% pany in 1989, based on my extensive range. The company also rules out experience of the pharmaceuticals in- working with partners that are not too Turnover in 2015: dustry and trade with Africa. My goal is particular about efficacy. EUR 2.5 million to meet the growing demand for trust- worthy products to treat pigment “This commitment does not affect spots, and lighten and unify the com- pricing: we remain competitive,” says plexion. The first care product won a Maurice Bertrand. Cosmebel develops prize at the Salon des Inventeurs in and markets skincare products for all 1991 and the range has been improved budgets: Nutriclair-branded products and added to ever since.” Cosmebel for the mass market, Clear Sensation, now has eight employees and practi- a mid-price series, and Klaris, a more cally the whole family is involved. luxurious range of no fewer than ten skincare products that is coming onto The company is very keen to protect the reputation of its skincare brand. 30
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