The European cosmetics market slowly picks up again

The European cosmetics industry closed 2020 amid signs of distress. The repercussions of the pandemic were felt in many of the 27 member states, which reported significant declines in turnover.

The industry recorded a 3.5% year-on-year contraction in 2020 to US $118.8 billion compared to the US $123 billion of 2019. The Euromonitor International forecasts released by WeCosmoprof International suggest that the sector will see a slow recovery in 2021 to reach a year-end turnover of just over USD 119 billion (up 0.1% on 2020, down 3.3% on 2019), while for 2022 the analysts are forecasting a turnover of USD 120.2 billion, 2.3% less than in 2019. Despite the upward trend, it will take a little longer to return to pre-Covid levels.

Performance of the various segments

The mass beauty sector is driving consumption in the European continent and is forecast to reach US $69.7 billion in 2021, up 0.3% on 2020. The segment suffered a moderate decline after the outbreak of the pandemic, falling by 0.5% compared to 2019. The impact on the premium segment is likely to be more significant, with an expected 12.2% decline from €34 billion in 2019 to €30.4 billion at the end of 2021. Among the most dynamic sectors in Europe, the skincare product segment is reacting most positively to the post-Covid transformations and is expected to surpass €27.5 billion in 2022, returning to 2019 levels.

Germany leads among member states

Western Europe is driving the recovery of the entire continent and accounts for about 80% of total annual turnover. Germany is the largest market with sales of US $19.3 billion in 2020, followed by the United Kingdom despite a post-Brexit contraction. France reported sales of just over $14.4 billion, while Italy, the fourth largest market in Europe, generated sales of $11.3 billion, down 12.8% on 2019. Italian sales were impacted above all by the decline in exports (-16.5%), although the sector is showing strong signs of recovery. Cosmetica Italia, the national association of cosmetics companies, is forecasting 6.1% growth between 2020 and 2021 and a 5% increase in exports.