Global Cosmetics Cluster Europe
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1 GCC.EU MARKETS WATCH JANUARY 2021
GCC.eu LATEST NEWS AND MARKET INTELLIGENCE ON THE
Markets TARGET COUNTRIES FOR THE GCC.EU NETWORK
INDIA - MEXICO - SOUTH KOREA - UAE - USA
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Voice of the
Industry
Dear colleagues, dear friends,
As you probably know, Europe is the leading consumer
market for the cosmetics industry with €79.8 billion in 2019,
out of a worldwide turnover of €500 billion.
More than a market, cosmetics is a major industrial asset for
Europe. It generates nearly 2 million direct jobs. It invests in
research and innovation. It benefits from an exceptional
pool of talents and skills. It promotes international
expertise that places Europe at the forefront of the world.
Through the “Global Cosmetics Cluster - Europe” (GCC.eu),
Cosmetic Valley and its partners wanted to unite European
players in an increasingly competitive context, in a
changing world. Sharing best practices, pooling resources,
collaborating on innovation, jointly addressing major export
markets, are all wishes shared by the members of this great
network. A network fostering the development of your
business with the support of the European Commission.
To offer consumers ever safer, more innovative and
sustainable products,
To develop the economy and employment in Europe in the
cosmetics sector,
For Europe to consolidate its position as a leader and
global benchmark,
GCC.eu is offering in 2021 a support program dedicated to
the internationalization of your business.
The GCC.eu teams are at your disposal to go international
and help you in the recovery of your activity.
CHRISTOPHE MASSON
GENERAL DIRECTOR
COSMETIC VALLEY
2
GCC.EU MARKETS WATCH JANUARY 2021
Special Latest
Focus News
TARGET MARKETS NEWS ON
BEAUTY & PERSONAL CARE
BUSINESS, INNOVATION,
MARKET UPDATE
TRENDS, REGULATORY & RETAIL
P. 04 P. 13
Market Go
Data International
BEAUTY & PERSONAL FIND SERVICES & ACTIVITIES
CARE MARKET DATA ON TO ENHANCE YOUR
TARGET COUNTRIES INTERNATIONALISATION
P. 17 P. 24
Special Focus
BEAUTY & PERSONAL CARE
MARKET UPDATE
SPECIAL FOCUS JANUARY 2021
Beauty & Personal Care
Market Update
SOURCE: EUROMONITOR
BEAUTY & PERSONAL CARE: QUARTERLY STATEMENT Q4 2020
Last months of 2020 reveals a general downgrade
in beauty for the year 2020, as the global economy
slips into recession and the overall industry
landscape remains unpredictable. The 2021
recovery is slated to be rosier than originally
expected, due to initial signs of successful mass
COVID-19 vaccination in a few countries, as well as
various business initiatives to stimulate demand
and the return to consumption.
The latest 2020 downgrade is further driven by the
new wave of lockdowns seen in several countries,
which continues to impact brick-and-mortar sales
as people are confined to their homes.
On the positive side, resilience is being seen in
categories aligned with enhanced self care
routines, wellness and preventative health
principles.
5SPECIAL FOCUS JANUARY 2021
Despite a number of operational challenges and All forecast scenarios anticipate the recovery of
transformational consumer shifts, industry the industry by 2022; however, further
sentiment remains upbeat and various downgrades to global economic forecasts could
opportunities remain. potentially slow the pace.
Skin care continues to be a bright spot, set to
grow twice as fast as colour cosmetics in all While some positive signs of growth are starting
scenarios due to its alignment with self care and to emerge across isolated geographical and
health. Though premium beauty has seen a category pockets, the industry will need to brace
significant slump it is still projected to grow 3-6 itself for a continued battle to capture and
times faster than mass beauty over the next five engage with more channel and brand agnostic
years in all scenarios, led by Asia. consumers as a “new normal” socioeconomic
Digital acceleration continues, with a number of reality unfolds.
players reporting double-digit growth rates for
their online sales for their last quarter.
Under Euromonitor’s C19 pessimistic scenarios 1, 2, and 3, BPC is expected to decline by 3% globally in
2020, 25-57 basis points lower than our base case scenario. Global recovery is anticipated in 2021 under
scenario 1 (25-35% probability over a one year horizon), but under the other two scenarios a much slower
recovery is predicted, due to the potential for a third and possible fourth wave in 2021 and the later mass
roll-out of COVID-19 vaccines or treatments in 2022-2023.
Source: Euromonitor Beauty and Personal Care Industry Forecast Dashboard, Updated November 2020
6SPECIAL FOCUS JANUARY 2021
Soft demand drivers
FROM THE EUROMONITOR INDUSTRY FORECAST MODEL
CLEANSING PRODUCTS TO INVESTMENT IN DIGITAL CONTINUES TO PROLIFERATE
FLOURISH ON THE BACK OF
IMPROVED HYGIENE PRACTICES
Hygiene-related categories have remained
resilient during the pandemic, and newly
established preventative health awareness and
habits are set to sustain growth moving forward.
Further opportunities exist in upscaling hand
hygiene offerings with a number of added
attributes, such as natural fragrances, skin
conditioning, moisturising and sustainable
packaging. Oral care, on the other hand, could
benefit from a more beauty-aligned positioning,
professional strength formulas and endorsing its
necessity as part of well-rounded self-care
routines. SUSTAINABILITY EFFORTS SUPPORT NARRATIVES OF
Unsurprisingly, companies such as Unilever and PURPOSE AND CONSCIOUS BEAUTY
P&G are riding the wave of pandemic-related
consumption. Unilever reported 20% growth in its
cleansing portfolio in the Jul-Sep quarter and has
launched hand sanitisers in 65 new markets since
March. The company’s flagship brand Lifebuoy
became its latest EUR1 billion brand, and was
reported to have grown by 67% year to date.
P&G launched Safeguard hand soap and hand
sanitisers in North America and reported growth
of 30% in personal cleansing for its latest quarter,
with double-digit growth in every region.
Source: Euromonitor International’s Voice of the Industry
Sustainability Survey, conducted in June 2020
7SPECIAL FOCUS JANUARY 2021
About our target markets
USA India INDIA - MEXICO - SOUTH KOREA - UAE - USA
MIXED GEOGRAPHICAL RESPONSES IN Q4 2020
USA saw a slight upgrade, as a result of a rise in overall retail spend (up by 7% in November
according to the US Census Bureau), stronger consumer demand and booming online activity
reported for the last quarter by major market players. A flat five-year forecast CAGR is expected,
as growth in skin care, bath and shower, and baby products is set to offset continued declines in
colour cosmetics and fragrances.
Conversely, Japan saw the largest downgrade in Q4 2020 versus Q3, with total beauty sales now
expected to dip by 7.9% in 2020 versus growth of 1.6% expected pre-COVID-19, due to weaker
than expected consumer sentiment with restrictions on movement and other measures being
strengthened on the back of rising cases. Softer in-store traffic, sharp declines in prestige sales
and a significant dip in inbound tourism have been largely to blame.
China continues its positive rebound trajectory, forecast to witness a CAGR of 8% over 2019-
2024, owing to burgeoning online sales (including new points of sale on social media and
livestreaming) and strong domestic spending, particularly in the area of prestige skin care and
make-up.
8SPECIAL FOCUS JANUARY 2021
About our target markets
India INDIA - MEXICO - SOUTH KOREA - UAE - USA
BIG UNCERTAINTY SURROUNDING INDIA’S RECOVERY
Most beauty categories saw a downgrade in E-commerce sales have been supported by
India, as the country continues to be plagued the industry’s response to some of the
by rising COVID-19 cases. Lack of stringent digital and delivery omnichannel initiatives
safety advice and poor contact tracing quickly dopted in other parts of the world,
implementation from the government makes such as kerbside pickup, livestreaming and
home seclusion still a factor, which is heavily AR/VR, partly offsetting declines in offline
impacting store-based retailers. retail.
The pandemic has kickstarted the digital Euromonitor International’s Digital
shift, with beauty e-commerce expected to Consumer survey 2020 indicates that 43% of
grow by 35% in 2020. Online sales are not, Indian consumers had used virtual reality in
however, sufficient to fully mitigate the loss the past year, versus a global average of
of revenue from physical channels, as BPC 22%, giving ample opportunities for brands
ecommerce is still in its infancy in India and to ramp up their digitalisation efforts.
accounted for only 4% of value sales in 2019.
Pure play beauty e-tailers, such as Nykaa, are leading the digital shift with exclusive online tie-ups
with several foreign brands, as well as transparent genuine product guarantees to gain consumers’
trust. US-based Fidelity Investments has recently invested an undisclosed sum in Nykaa to ride on
the fast-growing beauty ecommerce market in India.
FURTHER DOWNGRADE IN INDIA’S GDP TO PUSH BPC RECOVERY TO 2022
9SPECIAL FOCUS JANUARY 2021
About our target markets
S. Korea INDIA - MEXICO - SOUTH KOREA - UAE - USA
“MASKNE” SOLUTIONS INCREASE GROWTH
POTENTIAL FOR ACNE TREATMENTS
The need for clinical backing is no stronger than in results-driven categories such as acne
treatments, with a quarter of global respondents citing “efficacy” as the most desired product
feature.
At a time when people are wearing masks to protect others from COVID-19, many are exposing their
faces to more irritation than usual, which creates various skin issues, such as acne, rashes,
breakouts, blemishes and itchiness. Google trends show a sharp jump in searches for the term
“maskne” since May 2020, with a significant proportion coming from Singapore, Philippines and
Malaysia, given the tropical climate.
Asia presents the largest revenue potential for the category, followed by Western Europe, with
innovation activity and “maskne” product repositioning still mostly coming from Asia. The South
Korean retailer Peach & Lily has responded by creating a Maskne Essentials category on its e-
commerce platform, primarily for acne treatments. While the 15-29 age group is the key target,
there is ample scope for adult-positioned products which offer other attributes, such as radiance,
hydration and firming properties.
With skin sensitivity being a core concern and a key underlying factor in breakouts, several
ingredient manufacturers, as well as cosmetics ODM players, are investing in this space. Evonik is
targeting Asia Pacific with its natural skin sensitive active ingredient Rovisome Sensitive NG, while
Cosmax announced a new formulation free from fragrances, essential oils or surfactants, which can
be irritating to the skin.
10SPECIAL FOCUS JANUARY 2021
About our target markets
UAE Mexico USA INDIA - MEXICO - SOUTH KOREA - UAE - USA
DIGITAL TESTING AND SUBSCRIPTION
MODELS TO REVIVE FRAGRANCES
Fragrances have been one of the worst
causalities of the pandemic, with five year
forecasts across all regions bar Asia
remaining in negative territory. Our latest
quarterly update, however, indicates a
modest recovery in 2021 for countries
including the US, Russia, Germany and
Australia.
While the olfactory nature of fragrances and
their high dependence on trial makes it
difficult to succeed online, leveraging
subscription boxes could play a role in the
category’s recovery through sampling and
experience. 2020 has seen the rise in
adoption of beauty subscription services,
and a number of players, such as Lush and
Feelunique, have made a foray into this
space.
Digital sampling programme initiatives are
also underway. L'Oréal Luxe, for example
teamed up with Pinterest in November on
the Luxury Fragrance Finder, featuring a
custom landing page quiz that seeks to
match Pinterest users with their perfect
fragrances, which can then be purchased via
the L’Oréal Luxe e-commerce site.
As retail stores reopen, fragrance brands will
look to upgrade hygiene standards and
incorporate contactless testers at the point
of sale, with Natura’s latest partnership with
Noar tech start-up in Brazil being a case in
point.
11Latest TARGET MARKETS NEWS ON
News
BUSINESS, INNOVATION,
TRENDS, REGULATORY & RETAIL
MARKETS TOPICS
INDIA - USA - MEXICO BUSINESS - INNOVATION
SOUTH KOREA - UAE TRENDS - LEGAL - RETAILLATEST NEWS JANUARY 2021
Latest News
TARGET MARKETS NEWS ON BUSINESS,
INNOVATION, TRENDS, LEGAL & RETAIL
BUSINESS
UAE A KEY ECONOMIC PARTNER OF SOUTH KOREA (INTERVIEW)
UAE is a key economic partner of South Korea, and the value of their trade exchange exceeded
$12.5 billion in 2019, and over 200 Korean companies are currently operating in the UAE,
according to Kim Young-ju, Chairman of the Korea International Trade Association (Kita).
Source & more information
BEAUTY STARTUP NYKAA PLANS $3 BILLION IPO THIS YEAR
The startup founded by Falguni Nayar, a former investment banker, is working with advisers to
prepare for the share sale in Mumbai. Source & more information
CORONAVIRUS HAS SLOWED K-BEAUTY’S BILLIONAIRE BOOM
Social distancing and remote work have lessened demand for make-up and led to store
closures. Travel restrictions have also cut off the flow of big-spending Chinese tourists and
individual merchants who buy tax-free goods Source & more information
13LATEST NEWS JANUARY 2021
MARKETS TOPICS
INDIA - USA - MEXICO BUSINESS - INNOVATION
SOUTH KOREA - UAE TRENDS - LEGAL - RETAIL
LEGAL - REGULATORY
COSMETICS CONTAMINATION: PRODUCTS MANUFACTURED IN INDIA,
MIDDLE EAST AND US HAVE HIGHEST LEVELS OF MICROBIAL
CONTAMINATION
Cosmetics manufactured in India, Middle East and US are the most susceptible to contamination
by aerobic mesophilic bacteria, yeast and moulds, according to new research.
Source & more information
FULL DECLARATION OF INGREDIENTS, NOT COSMETIC, MADE MANDATORY
The Indian government has decided to set up the first Central Cosmetics Laboratory and appoint
inspectors across states. Source & more information
TRENDS
COVID-19 CREATES RESILIENT BEAUTY TREND AND ACCELERATE CLEAN
BEAUTY MOVEMENT IN APAC - DSM
Resilient beauty is a new trend set to emerge from the COVID-19 pandemic, according to
ingredient manufacturer DSM. Source & more information
SKINCARE, E-COMMERCE: BEAUTY INDUSTRY LIFELINES
COVID-19 has wreaked havoc across all industries. Some saw its effects in the first months and
even weeks of the crisis. In other cases, the effects are just beginning to show. A latter example is
the beauty industry, which has noticed that the use of masks is not encouraging the purchase of
makeup. Source & more information
TOP TRENDS REFORMING THE INDIAN BEAUTY INDUSTRY
It’s go-time for innovative beauty trends and beauty beyond boundaries to grow like never
before in India. With the global beauty industry being valued in the billions, India has begun to
take its place at the beauty table.
Source & more information
14LATEST NEWS JANUARY 2021
MARKETS TOPICS
INDIA - USA - MEXICO BUSINESS - INNOVATION
SOUTH KOREA - UAE TRENDS - LEGAL - RETAIL
CORONAVIRUS HAS SLOWED K-BEAUTY’S BILLIONAIRE BOOM
Social distancing and remote work have lessened demand for make-up and led to store
closures. Travel restrictions have also cut off the flow of big-spending Chinese tourists and
individual merchants who buy tax-free goods Source & more information
INNOVATION
CES REPORT: BEAUTY-TECH TRENDS TO WATCH IN 2021
Customized beauty and AR try-on were hot topics at CES this year as beauty continues to make its
mark on the annual event. Source & more information
RETAIL
GLOBAL COSMETIC BRANDS ARE LESS EXPENSIVE IN CANADA AND THE USA
THAN IN CHINA
The price of a lipstick can vary - sometimes even double - whether it’s purchased in Turkey, in
France or in Thailand. The British cosmetics comparison website Cosmetify has compared the
cost of five iconic beauty products in different countries worldwide. Source & more information
TOP BEAUTY BRANDS IN THE MIDDLE EAST
The Middle East is defined as one of the world’s fastest-growing beauty markets, buoyed by
strong purchasing power and high international brand engagement, but what names are ahead of
the pack? Source & more information
WITH AN END TO PANDEMIC STRUGGLES IN SIGHT, BEAUTY LOOKS TOWARD
A PRETTIER FUTURE
Unlike apparel, which will face a longer recovery, beauty could be back to 2019 levels by the first
half of 2021, according to McKinsey. Source & more information
15Market Data SPECIFIC CATEGORIES OF BEAUTY & PERSONAL CARE ANALYSED AND COMPARED IN OUR TARGET COUNTRIES
MARKET DATA JANUARY 2021
Market Data
SPECIFIC CATEGORIES OF BEAUTY & PERSONAL CARE
ANALYSED AND COMPARED IN OUR TARGET COUNTRIES
IN THIS EDITION
Category SKIN CARE Consumer
Abstract Observer
UAE Mexico India Claims most used
Retail Value
Sales Performance Distribution Chanels
Sales by Categories S. Korea USA Brands Shares
In this section of the newsletter a quantitative analysis of each of our target markets for a specific
category can be found.
Each edition of the newsletter will focus on a different category and will analyse the performance of
these markets from two different perspectives.
On the one hand we will focus on the category itself with the "Category Abstract" in which you will be
able to analyse the size of the market, the sales performance both overall and by subcategories.
On the other hand, we will have the "Consumer Observer" where we will have a point of view closer to
retail with data such as the most used Claims, the distribution channels and their evolution and the
distribution of the market by brands.
17MARKET DATA JANUARY 2021
IN THIS EDITION
Category Consumer
SKIN CARE
Abstract Observer
Retail Value RSP 2020 - EUR million
1885,5 India
CLAIMS MOST USED IN THIS MARKET
2019 - TOTAL SKUS: 157.876
18MARKET DATA JANUARY 2021
IN THIS EDITION
Category Consumer
SKIN CARE
Abstract Observer
Retail Value RSP 2020 - EUR million
1862,4 Mexico
CLAIMS MOST USED IN THIS MARKET
2019 - TOTAL SKUS: 110.080
19MARKET DATA JANUARY 2021
IN THIS EDITION
Category Consumer
SKIN CARE
Abstract Observer
Retail Value RSP 2020 - EUR million
5636 S. Korea
CLAIMS MOST USED IN THIS MARKET
2019 - TOTAL SKUS: 1.386.343
20MARKET DATA JANUARY 2021
IN THIS EDITION
Category Consumer
SKIN CARE
Abstract Observer
Retail Value RSP 2020 - EUR million
287 UAE CLAIMS MOST USED IN THIS MARKET
2019 - TOTAL SKUS: 115.006
21MARKET DATA JANUARY 2021
IN THIS EDITION
Category Consumer
SKIN CARE
Abstract Observer
Retail Value RSP 2020 - EUR million
CLAIMS MOST USED IN THIS MARKET
18.815 USA 2019 - TOTAL SKUS: 329.039
22Go International FIND SERVICES & ACTIVITIES TO ENHANCE YOUR INTERNATIONALISATION
GO INTERNATIONAL JANUARY 2021
Go International YOURINTERNATIONALISATION
FIND SERVICES & ACTIVITIES TO ENHANCE
In the framework of the Global Cosmetics Cluster - Europe, SME will have available an Acceleration
Programme that integrates several sets of supporting activities that allows promising companies
not to only access but also boost and maximize this access to international markets and
development.
Targeting in priority the 5 selected countries, South Korea, Mexico, Emirates, USA and India, the
project will offer 4 areas of supporting activities:
Acceleration Program
for SMEs internationalisation
24EUROPE.COSMETICSCLUSTERS.COM
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