CBI Product Factsheet: Soap in Europe
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CBI Product Factsheet: Soap in Europe CBI | Market Intelligence Product Factsheet Cloves in Germany | 1
Introduction
Exporters from developing countries can profit from the growing soap supplies from developing countries to Europe. In
mature European markets, they may be able to supply the mid-to-high-end market by promoting their unique identity and
story. Emerging European markets have witnessed a growing interest in wellness and spa products. This is expected to
generate further market growth for soaps.
Product Description
Product Theme HS codes PRODCOM codes
Soap Pampering / 3401 11: Soap & organic 20.41.31.20: Soap and organic
wellness / surface-active products in bars surface-active products in bars, etc.,
spa or cakes, etc., for toilet use n.e.c.(not elsewhere classified)
3401 19: Soap & organic 20.41.31.50: Soap in the form of
surface-active products in bars flakes, wafers, granules or powders
or cakes, etc., not for toilet use
20.41.31.80: Soaps in forms
3401 20: Soap in other forms excluding bars, cakes or moulded
shapes, paper, wadding, felt and
non-wovens impregnated or coated
with soap/detergent, flakes, granules
or powders
Soap as a Soap started off in the form of a simple bar of soap for washing the hands and clothes. It
consumer performed an antibacterial function and as such became a mere commodity. This type of
product in Home soap still exists and finds its place in the lower end of the body care/hygiene market. This
application is not discussed in this product factsheet.
Soap then became part of the growing body care market, resulting in the luxury segment
of wellness and spa treatment, also increasingly at home. In so doing, soap increasingly
became a suitable gift, and the product features and its packaging were adapted to this
new need.
Finally, soap is moving into the home: as consumers are creating a much more personal
ambience in the home (scent and look of soap can create atmosphere of calm and
relaxation), soaps became part of the market that may be labelled ‘the fragrance market’.
In the course of this transformation from a basic, functional commodity to an emotionally-
charged body and home-care product and gift, soap developed a premium side.
In emerging markets, soap is used in all applications described here. With a few
exceptions, however, a premium side has yet to appear in these markets. Soaps in
emerging markets should be attractively priced and not overly exclusive in their
marketing. Distribution takes place primarily through supermarkets, hypermarkets and
chemists. Online, soap is starting to be offered with perfumes, home fragrances and in gift
settings. If the economic development of emerging markets continues, opportunities for
more premium marketing of soap will also appear in these markets.
Quality Quality is first and foremost related to the fact that it comes in contact with the skin, and
as such, needs to comply with health regulations (refer to ‘Legal requirements’); the
product must also be non-allergic and generally safe to use. Obviously, as soap, a basic
quality requirement is that it cleans the skin, textiles or the dishes. For extra convenience,
soap now comes in solid or liquid forms.
Having developed into a body and home care item and a gift, with possibilities for
premium marketing, soap needs to offer additional attributes that contribute to consumer
needs involving ‘giving’, ‘wellness/pampering’ and ‘ambience at home’. The smell and
colour of soap are the most important determinants of quality. Extra features include:
Natural (vegetable as opposed to chemical) ingredients (e.g. Aloe Vera, Shea Butter,
Jojoba…), providing fragrances that can relax or invigorate or just create an atmosphere
in the home and any of the rooms
Biodegradable and environment-friendly ingredients and packaging
‘Origin’ or ‘Provenance’ (e.g. soap from Aleppo, Syria, or the French Provence)
Hand-made (as opposed to industrial), and as such rough and uneven in shape or form
Contributing to the atmosphere at home (which is often achieved by embossing or
stamping texts on the soap itself): e.g. nostalgic, exotic, rustic, romantic, pure
Part of a Spa or gift offer
CBI | Market Intelligence Product Factsheet Soap in Europe | 2There is a marked tendency for more natural and authentic in the higher segment.
Interestingly, ‘green’ values are very much part and parcel of the soaps fulfilling the needs
to give and pamper. In this, the fragrance market is a forerunner in the Home market.
Labelling Your label on the outer box should include information concerning the product such as
fragrance, the ingredients, quantity, size, volume, producer (logo), consignee, country of
origin and caution signs. Information on the carton should correspond to the packing list
sent to the importer.
On the product label, EAN/Barcodes are widely used within Europe. With the widespread
practice of e-marketing of soaps and fragrances, individual packing and labelling is a firm
requirement.
Please note, your buyer will specify what information they need on product labels or on
the item itself (logos, 'made in…'). This forms part of the order specs. All labelling must be
in English.
Packing and Soap should be packed in agreement with the
packaging of importer’s instructions. Every importer will have their
product own specific requirements related to the use of
packaging materials, the filling of cartons,
palletisation, and the stowing of containers. Always
ask for the importer’s specifications as part of the
order specifications. The balance is between using maximum protection and avoiding
shipping ‘air’ or excess materials (waste removal is a cost to buyers).
Proper packing of soap can minimise the risk of damage as a result of fluctuations in
temperature, humidity and shocks. Soap packaging therefore usually consists of inner and
outer cardboard boxes, with appropriate materials to protect the products inside the inner
boxes (this may involve materials such as bubble wrap or paper, depending on the
preferences of the buyer). Packaging needs to be of easy-to-handle dimensions and
weight. Standards here are often related to labour regulations at the point of destination
and will have to be specified by the buyer. Cartons are usually palletised for air or sea
transport and exporters are requested to maximise pallet space.
At retail level, soap sold as a gift or luxury body or home care will carry information about
the ingredients, the process or about any additional features that are underpinning the
premium marketing. Online, the message is conveyed with the help of succinct texts, but
in brick-and-mortar outlets1, small labels or forms of packaging will express the exclusivity
of the product. However, there is a strong tendency to reduce the amount of packaging,
both to allow the consumer a better sense of the natural qualities of the soap and to
reduce the environmental footprint. In the case of liquid soaps, retailers may offer
refillable packaging to their customer and may, therefore, order in bulk or temporary
packaging.
The exporter is not always responsible for attractive consumer packaging as it is usually
designed by the importer to reflect the brand identity. As a further selling point in the
fragrance industry, gift packs or complete spa packs are offered (see illustration under
‘mid-market’). The exporter may or may not be asked to supply the packaging for this,
again depending on the importers’ preferences and the exporters’ options.
Illustration Low end Mid end High end
Source:
Poundland
Online-cosmetics
Maison du Savon
Fiorira un Giardino
L’Occitane
Lush
1
Brick and Mortar businesses are companies that have a physical presence and offer face-to-face customer experiences.
CBI | Market Intelligence Product Factsheet Soap in Europe | 3What is the demand for soap in Europe?
After a dip in 2012, the European market’s current recovery is being driven by product innovation and new stories. As the
leading importer of soap from developing countries, the United Kingdom is an especially interesting focus market, as are
Europe’s other leading importers (France and Germany). There might be opportunities for partnerships in Europe’s leading
producers (Italy, Spain and Germany).
Figure 1: European imports of soap, by main origin, in € millions
1.400
1.200
1.000
800
600
400
200
0
2010 2011 2012 2013 2014
Intra EU Developing Countries Rest of the world
Source: Trademap
Figure 2: Leading European importers of soap, by main origin (2014), in € millions
200
180
160
140
120
100
80
60
40
20
0
Intra EU Developing Countries Rest of the world
Source: Trademap
CBI | Market Intelligence Product Factsheet Soap in Europe | 4Figure 3: Absolute growth in imports from developing countries (2010-2014), in € millions (countries in order of import volume)
14
12
10
8
6
4
2
0
-2
-4
-6
Source: Trademap
Decline in intra-European trade and growth in imports from developing countries
European imports declined from € 1.5 billion in 2010 to € 1.4 billion in 2014. After a dip in 2012, European imports of soap
are now recovering, with a growth rate of 3.9% in 2014. This recovery is expected to continue.
Tip:
France, Germany and the United Kingdom are by far the largest importers of soap in Europe. With its strong
presence of suppliers from developing countries, the United Kingdom is an especially interesting focus market.
While total European imports of soap declined between 2010 and 2014, imports from developing countries performed
strongly, increasing from € 182 million to € 222 million, with an average annual growth rate of 5.1%. With a growing
demand for unique products backed by stories, this trend is expected to continue, as developing countries are particularly
well suited to supplying these niches.
Tip:
Benchmark your products against the competition from Turkey, China and Malaysia. Factors to consider include
the market segments served; perceived price and quality; and countries served. One source that can be used to
find exporters by country is ITC Trademap.
With imports amounting to € 206 million, France is Europe’s leading importer of soap, followed by Germany (€ 199 million)
and the United Kingdom (€ 184 million). With regard to imports from developing countries, however, the United Kingdom
is by far the largest importer at € 61 million, which accounts for 1/3 of its total imports of soap.
Tips:
The growth trend in imports of soap from developing countries is driven by the market’s need for product
innovation and new stories. Suppliers from developing countries offering new directions (esp. new ingredients)
may well find rewarding new market niches.
In an industry that places high demands on quality (see ‘Product Specification’), suppliers from developing
countries need to develop a high level of service (in order to become an option for European importers).
The strong performance of soap suppliers from developing countries in the United Kingdom is further evidenced by its
increase of € 13 million between 2010 and 2014. Imports from developing countries are not performing as well in the
other leading importing countries (France and Germany). Imports remained steady in France, while decreasing by € 3.6
million in Germany.
Tip:
Invest in long-term relationships with your buyers, giving them less incentive to switch to a competitor.
CBI | Market Intelligence Product Factsheet Soap in Europe | 5The leading supplier from developing countries is Turkey (€ 88 million), followed by China (€ 50 million) and Malaysia (€
32 million).
France does not import much from Turkey, but Indonesia is performing strongly there. The United Kingdom does not
import much from Malaysia, instead favouring Thailand and India
Figure 4: European exports of soap, by main destination, in € millions
1.400
1.200
1.000
800
600
400
200
0
2010 2011 2012 2013 2014
Intra EU Developing Countries Rest of the world
Source: Trademap
Figure 5: Leading European exporters of soap, by main destination (2014), in € millions
350
300
250
200
150
100
50
0
Intra EU Developing Countries Rest of the world
Source: Trademap
Exports are recovering from a dip in 2012
European exports of soap have followed a pattern similar to that of imports. After a dip in 2012, European exports of soap
are now recovering, with a growth rate of 4.2% in 2014. Due to this recovery, 2014 European exports achieved the 2010
level with € 1.7 billion.
CBI | Market Intelligence Product Factsheet Soap in Europe | 6Tip:
Be aware of your European buyers’ markets and their requirements. This will allow you to develop new ideas for
the buyers’ other European markets as well.
European exports of soap are dominated by trade within Europe.
Europe’s leading exporter of soap is Germany (€ 427 million), followed at some distance by Italy (€ 261 million) and the
United Kingdom (€ 242 million).
Figure 6: European production of soap (2009-2013), in € millions
1.600
1.400
1.200
1.000
800
600
400
200
0
2009 2010 2011 2012 2013
Source: Prodcom
Figure 7: Apparent European consumption of soap (2009-2013), in € millions
1.600
1.400
1.200
1.000
800
600
400
200
0
2009 2010 2011 2012 2013
Source: Prodcom
The market is relatively stable
European production of soap has remained relatively stable around € 1.4 billion, peaking in 2011. Similarly, European
consumption of soap has remained relatively stable around € 1.3 billion, such that the European demand for soap is
slightly lower than its production.
CBI | Market Intelligence Product Factsheet Soap in Europe | 7Tip:
The high production output in Italy, Spain and Germany suggests that manufacturers may be looking for suppliers
of new ingredients and ‘stories’. This may open up new opportunities for partnerships based on raw or semi-
finished materials.
With production amounting to € 436 million, Italy is responsible for 32% of Europe’s soap production, followed by Spain (€
231 million) and Germany (€ 211 million).
Tip:
Trade fairs in these countries may be more useful than others (especially Maison et Objet and Ambiente trade
fair).
Europe’s largest soap producers – Italy, Spain and Germany – are also its largest soap consumers with consumption
amounting to € 272 million, € 214 million and € 172 million, respectively.
Figure 8: Real GDP (2014-2016), % change from previous year
5,0
2014 2015 2016
4,0
3,0
2,0
1,0
0,0
-1,0
Source: Eurostat (2015)
Figure 9: Real private consumption expenditures (2014-2016), % change from previous year
5,0
2014 2015 2016
4,0
3,0
2,0
1,0
0,0
-1,0
Source: Eurostat (2015)
Economic indicators are promising
Predictions of GDP and private consumption expenditures are important indicators for the European soap market. The
sector is closely linked to economic conditions. When they have sufficient disposable income, consumers increase their
spending on soap and other luxury products.
CBI | Market Intelligence Product Factsheet Soap in Europe | 8Tip:
Monitor GDP and private consumption expenditures, because when these are positive, expenditure on soap
products is expected to increase.
Between 2014 and 2016, European GDP and private consumption expenditures are expected to increase. This implies that
the consumption of luxury and decorative products is likely to rise as well. Increases in GDP create room for this type of
spending, especially in emerging markets. Due to saturation, growth in consumption will be moderate for mature markets.
Which trends offer opportunities on the European market for soap?
Soap benefits from the ‘slow bathing trend’
Soap no longer only functions as an ‘antiseptic bar and physical cleaner’, it fits in with the ‘slow bathing’ trend (refer to CBI
Trendmapping for Home Decoration and Textiles) and the greater attention that is paid to body care and physical/mental
well-being. Soap brings physical and mental freshness: it is able to create atmosphere, a feeling of wellness both in the
body and in areas of the home.
Tips:
Consider investing in product development or a partnership with a European producer. Co-creations by producers,
retailers and marketers can increase your opportunities on the market.
Follow the trends on product design for soap and offer your product in different shapes, colours and exotic
fragrances.
This means that soap needs to look and smell attractive. A result is that soap is no longer just a bar, but it can come in
different shapes (chunks, blocks, balls) colours and exotic fragrances: it has to be attractive to the eye, including the
colour.
Tip:
Know your market: the main distributors and brands, trade fairs, consumer needs, and apply your knowledge to
drive innovation in production, market development, pricing strategies, investment in packaging and
communication etc.
Soap has become more of a way of showing one’s identity (‘I have travelled far’, or ‘I am green’) as well as being able to
create or cater for a particular mood that can help the consumer relax, feel invigorated or ‘wander off’ to imaginary
destinations. Based on the decorations (patterns or statements can be stamped on soaps to suggest an origin) or
fragrances, soaps can bring exotic touches to the home, especially if it tells a story or illustrates a specific identity (e.g.
natural, organic, handmade).
Tips:
Much differentiation in the soap industry is related to ‘origin’: ingredients that are new to the consumer and which
have a specific appeal. Try to distinguish your product and promotion strategy by offering this type of new ‘story’
(a local ingredient, a traditional production method or packaging ideas). If you work your own context into your
soap product and marketing, you can offer relevant benefits to the European buyer looking for differentiation.
The big trend in soap is the higher segments is ‘natural over chemical ingredients’. Source and use natural
ingredients, such as oils, spices or minerals and communicate this to the buyer.
Because of their contribution to one’s wellbeing in the body or home, soaps have become perfect gifts, able to express a
number of values (from an appeal to the senses to environmental and physical health).
CBI | Market Intelligence Product Factsheet Soap in Europe | 9Tips:
Green values are important in the fragrance business. Certification (fair trade, organic) can also be used to
further enhance your product. But sustainable materials and production, more effective packing and transport,
and biodegradable end products can be aspects for you to work on, to become greener too.
Look around for extending your offer. A first step for emerging European markets could be to develop gift packs,
with nice local materials (woven baskets, soap-related accessories etc.). Gift packs with soaps have a wider basis
in the market than just personal body care and are often somewhat less price sensitive than purely functional
soaps.
Please refer to CBI Trend mapping for Home Decoration & Textiles for more information on general trends in home
decoration, and the pampering/wellness/spa theme specifically.
With which requirements should soap comply in order to be allowed on the European
market?
Musts
Product safety and Liability
The General Product Safety Directive (GPSD), which applies to all consumer products, states that all products
marketed in Europe should be safe. The purpose of the legislation is to ensure consumer safety.
Tip:
Consider implementing a management system or code of conduct in order to demonstrate to your buyer that you
have taken appropriate safety measures.
The Liability Directive states that the European importer is liable for the products introduced into the European market.
In principle, however, the importer can pass on a claim to the producer/exporter.
Tip:
Make sure your products are safe to avoid product liability claims for defective products.
Packaging
Packaging and packaging waste: European legislation includes restrictions on the use of certain heavy metals.
Tips:
Reduce the amount and diversity of your packing materials by:
o partitioning inside the cartons with the help of folded cardboard,
o matching inner boxes and outer cartons better and standardising the sizes of each,
o considering packing and logistical requirements at the design stage of the products,
o asking your buyer for alternatives.
Consider using biodegradable materials which may form a market opportunity or even a demand from your buyer.
Chemical substances
The Cosmetics Regulation specifies requirements (physic-chemical, microbiological & toxicological) for
substances/ingredients to be included in each Cosmetic Product Safety report.
Tip:
Be aware of the European legislation on cosmetic products. Products that do not meet this legislation are not
allowed on the European market.
CBI | Market Intelligence Product Factsheet Soap in Europe | 10Additional requirements
Sustainability Consumers are increasingly aware of social and environmental circumstances during production. As a
consequence, requirements regarding sustainability and certification are increasingly important to buyers.
Tip:
Think about sustainable production methods and consider certification because it adds value to your products.
This is useful when targeting the higher market segments.
Implementing a management system (or using sustainably produced materials) may be a competitive advantage.
Codes of conduct European buyers may expect you to comply with their supplier codes of conduct. This can be the
importer’s own code of conduct or a code of conduct as a part of an initiative in which the importer is participating (e.g.
BSCI).
The following are examples of initiatives regarding sustainability, possibly relevant if you want to export to Europe:
The Business Social Compliance Initiative (BSCI) has been developed by European retailers to improve social conditions in
sourcing countries. Suppliers of BSCI participants are expected to comply with the BSCI Code of conduct. To prove
compliance, your production process can be audited at the request of the importer. Once a company is audited, it will be
included in a database which can be used by all BSCI participants.
Tip:
As more and more European importers participate in BSCI, you can expect that complying with the BSCI code of
conduct will be seen as a basic requirement. Because it can harm your position on the market if you are far from
complying with this initiative, you are advised to anticipate by performing a self-assessment, which is available on
the BSCI website.
ISO 14001 Certification scheme which provides generic requirements for an organisation's environmental policy.
Tip:
This standard can be used to reduce the cost of waste management, distribution costs and improve corporate
image. Therefore, consider ISO 14001 certification which may form a market opportunity or even a demand from
your buyer.
SA 8000 Certification standard by Social Accountability International (SAI) for the improvement of working conditions.
Tip:
Consider SAI certification which may form a market opportunity or even a demand from your buyer.
Besides social and environmental aspects of production, Fairtrade certification also covers a fair wage to labourers
involved in the production of soap.
CBI | Market Intelligence Product Factsheet Cloves in Germany | 11Tip:
Acquire Fairtrade certification to enter the fairtrade segment. Compliance with fairtrade norms will also make it
easier to acquire other social and environmental norms, as it is the most integrated system for sustainability.
The Cosmos Standard has been developed at the European level by BDIH (Germany), BIOFORUM (Belgium), COSMEBIO
& ECOCERT (France), ICEA (Italy) and SOIL ASSOCIATION (United Kingdom) in order to define minimum requirements
and common definitions for organic and/or natural cosmetics.
Tip:
Consider acquiring these standards to distinguish yourself from your competitors. Ask your buyer which of these
two standards he prefers
The NaTrue standards are applied by an association of large organic and natural cosmetic producers.
What competition do I face on the European soap market?
Please refer to CBI Competition for Home Decoration & Home Textiles and CBI Top 10 Tips for Doing Business with
European Buyers, because soap competitiveness does not differ significantly from this general overview.
What do the trade channels and interesting market segments for soap look like in
Europe?
Please refer to CBI Market Channels and Segments for Home Decoration, because soap channels and segments do not
differ significantly from this general overview. The following considerations for action should be taken into account for the
soap market:
Tip:
Look around for opportunities to extend your offer. This can be done by developing gift packs, with nice local
materials (woven baskets, soap-related accessories etc.) and/or by offering related product groups such as
scented candles, home fragrances or diffusers. Options could be to outsource to or form collaborations with
companies that are specialised in these product groups. A complete offer like this, could offer competitive
advantages in the market.
In Europe, soap has become a true lifestyle product, and has crossed the boundaries of several traditional categories. Soap
combines elements from the health and body care markets, from the gift market, and from the home fragrance market. In
these different segments, soap has developed lower, middle and higher segments (see ‘Product Specifications, soaps as a
consumer product in Home’). In other words: the market for soaps in Europe has become broader and deeper.
As a functional mass product, soap is part of the hygiene market, and is found in chemists, supermarkets and other
convenience stores.
CBI | Market Intelligence Product Factsheet Rocking Chairs in Europe | 12Tip:
Consider mass marketing of inexpensive soaps into the hygiene and lower ends of the gift markets. This requires
a business model based on low costs and high outputs, with aggressive marketing against big competitors.
Soap has entered the up-market fragrances market, where specialists such as Yves Rocher (France), Lush (United
Kingdom), and Sabon (Israel) offering ‘fresh, hand-made cosmetics’ are found. This market also features more general
distributors, marketing home and living concepts (lifestyle concepts), with a wide array of product categories, such as:
home care, potpourri, soaps, scented candles, home fragrances, bathroom textiles, recycled products (e.g. Amélie et
Mélanie, France).
Tip:
For the mid and higher ends of the gift and home fragrance market, consider marketing of soap with added value
(gift, origin, hand-made, sustainable). This requires differentiation on the basis of ingredients and presentation,
as well as strong skills in product development, supported by targeted marketing (importers that are positioned in
relation to any of the values mentioned). As the home fragrance market is yet to really establish itself in
emerging markets, marketing into this segment will require finding a distribution partner that is willing to invest
in active promotion of this new product category.
In the traditional home decoration market, players now also offer decoration and fragrances, including soap.
The traditional gift market has also discovered soap as an ideal personal or corporate gift.
Quite contrary to what is observed in the home decoration market as a whole, e-commerce has a strong presence in the
fragrance market; a great deal of soap is sold on-line, in both emerging and mature markets.
Tip:
Consider targeting online retailers, in order to reach a broader range of customers. This means, however,
supplying small batches and fast delivery.
Useful Sources
Trade fairs are still the most important way to meet new clients within the home accessory sector. Therefore, your best
options for meeting potential buyers are:
Maison et Objet - http://www.maison-objet.com/
Ambiente - http://ambiente.messefrankfurt.com
Tendence - http://tendence-lifestyle.messefrankfurt.com
CBI | Market Intelligence Product Factsheet Rocking Chairs in Europe | 13CBI Market Intelligence P.O. Box 93144 2509 AC The Hague The Netherlands www.cbi.eu/market-information marketintel@cbi.eu This survey was compiled for CBI by Globally Cool: Creative solutions for sustainable business in collaboration with CBI sector expert Kees Bronk Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer September 2015
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