The cosmetics market

A cosmetic is defined as any substance or preparation intended to be applied to the various parts of the human body (epidermis, hair system and hair, nails, lips, external genital organs) or to the teeth and mucous membranes of the mouth, for the sole purpose of cleaning, perfuming, changing their appearance and/or correcting body odors and/or protecting or maintaining them in good condition. The main types of cosmetic products available on the market include:

• Skin care products: creams, lotions, masks.
• Makeup: foundations, mascaras, lipsticks, eye shadows.
• Hair care products: shampoos, conditioners, specific treatments.
• Perfumes and fragrances: eau de toilette, eau de parfum.
• Nail care products: nail polishes, strengtheners.
• Personal hygiene products: soaps, shower gels, deodorants.

The global cosmetics market has reached a total value of 343.37 billion dollars in 2023. For the period 2024-2032 a compound annual growth rate (CAGR) of 5.4 percent under which the world market could reach at the end of the period a valueof approximately541.89 billion dollars.

This study focuses on the cosmetics market in the United Kingdom. For information on other markets in the United Kingdom, please refer to the specific studies available in the Businesscoot catalog.

To visualize the geographic distribution of demand for cosmetics in the United Kingdom, a map was created with the value of the average monthly expenditure on the purchase of cosmetics and hair care products in each member country.

The highest spending values are in England, where in 2022 households spent an average of £18.0 per month on the purchase of cosmetics and hair care products. This is followed by Northern Ireland and Scotland, where average monthly spending stands at £17.2 and £16.40 per household, respectively. Finally, households in Wales have the lowest monthly expenditure in the entire United Kingdom, averaging just £12.0 per month (66.7% of that of English households).

The value chain in the cosmetics market includes several stages from the supply of raw materials to the sale to the end consumer. Here is a general summary of the main stages:

• Raw material supply: this stage includes the production and supply of ingredients and materials used in the manufacture of cosmetic products. It includes manufacturers of oils, fragrances, dyes, preservatives, and other chemicals.
• Production and manufacturing: at this stage, raw materials are transformed into finished cosmetic products. This includes processes such as mixing, formulation, and packaging.
• Distribution and Wholesale: after production, cosmetic products are distributed to retailers through distributors or directly by the manufacturing companies.
• Retail: cosmetic products are sold to consumers through various retail channels, such as specialty stores, supermarkets, pharmacies, and e-commerce platforms.
• Marketing andAdvertising : marketing and advertising strategies are essential to increase brand awareness and influence consumers' purchasing decisions. This can include traditional advertising, digital marketing, influencer partnerships, and promotional campaigns.

Raw materials

In the cosmetics industry, functional raw materials are essential in determining the efficacy and characteristics of finished products.

• Cleansers: remove dirt from skin, hair or nails. The most common are surfactants, but exfoliants and solvents can also clean surfaces.
• Conditioners: change the feel of skin or hair to the touch and must be left on the surface to have a significant effect. Common conditioners include cationic surfactants, occlusive agents, humectants and emollients.
• Dyes: impart color to the skin or hair. Dyes are among the most regulated ingredients and must be approved for such purposes.
• Fragrances: change the smell of a product and the surface to which they are applied.
• Film formers: used to change the shape of hair to create uniform surfaces in products such as sunscreens (they are generally polymers).
• Reactives: some cosmetics involve chemical reactions, such as products to change the shape of hair, color skin or remove hair.
• Pharmaceutical actives: these are not technically cosmetics. If a product contains a pharmaceutical active, it becomes a drug. Pharmaceutical actives include sunscreens, antiperspirants, anti-dandruff, antibacterial, anti-caries, skin lighteners, anti-acne, and hair growth actives.[Chemists Corner]

Marketing and advertising

Advertising and marketing are instrumental in the cosmetics industry, driving the growth and success of brands. The marketing strategies adopted by cosmetic companies are crucial to standing out in such a competitive market.

• Building a community: the cosmetics industry consists of a large consumer audience as well as many competitors. Building a community through various channels can increase customer loyalty and grow the brand. This can include Q&A sessions on Instagram, creating engaging content on social media, and incentivizing customers to be repeat customers through discounts and point systems.
• Fluent omnichannel experience: successful brands are active on numerous distribution channels, including e-commerce sites, blogs, email newsletters, social platforms such as TikTok, Instagram, Facebook, YouTube, Pinterest, and paid advertising. Using different forms of digital marketing and promoting your brand on multiple platforms can increase brand awareness and drive traffic to it.
• User-Generated Content and Reviews: authenticuser-generated content, such as videos, images, and reviews, can be shared on the brand's social channels and website. This authentic content builds trust among consumers because it comes across as genuine and not a sales tactic.
• Collaborations with Beauty Influencers: influencer marketing is growing and has a significant impact on consumers' purchase decisions.[DAN]

In addition, the "tiktokification" of ads, where influencer content reminiscent of TikTok feeds outnumbers traditional branded ads nearly 2 to 1, underscores the importance of mobile optimization and creating authentic, platform-friendly content for social media marketing strategy.[Cosmeticsdesign]

As far as advertising is concerned, many consumers believe that we are witnessing positivity-washing, curve-washing, and diversity-washing; these hard-to-find attitudes represent an apparent sympathetic bias toward certain categories of people but are actually aimed at manipulating the most fragile or discriminated categories with the sole intent of increasing profits. According to a survey conducted by AARP (American noprofit association) about 90 percent of women of all ages do not feel represented by beauty product advertisements.

• The women who feel, on the whole, least represented are those of the boomers' generation.
• About 90% of women of different generations, would like to see a mix of ages in the advertisements and would like them to be much more realistic and representative.
• About 60% of women believe that big companies have profit as their only goal.[Mybeautik]

The following is a list of major cosmetics manufacturers in the UK:

Avon Cosmetics Limited:a leading beauty company, was founded in 1957 and is headquartered in Northampton, UK. The company is primarily engaged in the wholesale of perfumes and beauty products, and also operates in the cosmetics industry. Globally, Avon is known for being more than just a beauty company. Founded over 135 years ago, Avon has been committed to listening to women's needs and speaking for them, advocating what is important to them and helping them with their initiatives. Avon is known for creating flexible opportunities for anyone who wants to earn and learn. Their independent representatives provide millions of customers worldwide with personalized beauty advice and trusted products to help them express their individuality. The company is committed to making a positive social and environmental impact by supporting causes important to women and through the way they conduct their business.

Revolution Beauty Limited: is a UK-based beauty company founded in 2014 by Adam Minto and Tom Allsworth. The company focuses on selling makeup, skin care, and hair care products. Revolution Beauty is known for its principles of inclusivity and accessibility in the makeup world, offering a diverse range of products at affordable prices. All Revolution products are cruelty-free, with 76 percent of the range offering vegan products. In 2019, the company was recognized as the fastest growing beauty brand in the UK by the Sunday Times Fast Track 100.

Elemis Limited: founded in 1988 and located in Bristol, UK, is recognized for its expertise in the production of perfumes and toilet preparations. This British company stands out in the beauty and wellness industry because of its ability to combine scientific principles and natural elements in the creation of its products. Elemis has built a reputation for excellence, offering high-quality solutions ranging from skincare to luxury treatments, aiming to meet consumers' needs with effective and innovative products.

Clarins Uk Limited: is a subsidiary of the Clarins Group, incorporated on August 14, 1981. The company, based in London, is primarily engaged in the wholesale of perfumes and cosmetics. Clarins, recognized as a world leader in high-quality skin care and makeup, is a brand that has gained international fame for its innovative and high-quality products. The Clarins Group began more than 65 years ago, founded by Jacques Courtin-Clarins with a vision aimed at modern cosmetics and women's well-being. Today, the brand is known for its excellence in skincare and makeup products, operating in nearly 150 countries through its subsidiaries.

Royal Sanders UK Limited:founded in 2008, is a company based in Preston, Lancashire, specializing in the production of soaps and cleansers. It focuses on the development and supply of personal care products, demonstrating an unwavering commitment to innovation and quality. The company has evolved its offerings to meet the diverse needs of the market, ensuring products that meet both efficacy and environmental standards. With a customer-focused approach, Royal Sanders has established its position in the UK market as a reliable and respected manufacturer in the personal care industry.

Creightons PLC: founded in 1975 and based in Peterborough, England, is a major British company in the beauty and personal care industry. Listed on the London Stock Exchange since 1987, the company has made its mark in the consumer goods market, standing out in particular for its beauty and personal care products. Creightons' business strategy focuses on innovation and quality, aiming to respond effectively to the needs of both the consumer and professional markets. Their products range from classic skin and hair care items to more specialized products, all characterized by an ongoing commitment to research and development.

Albion Cosmetics Limited:is a major Japanese company in the luxury cosmetics industry, was founded on March 2, 1956. Headquartered in Ginza, Tokyo, the company produces and distributes a variety of cosmetic products, focusing on quality and innovation. Albion is known for creating product lines that combine tradition and modernity, and has partnered with renowned fashion brands such as "ANNA SUI" and "PAUL & JOE." Their products range from skin care lines to makeup and perfumes, which are appreciated both nationally and internationally. Albion is part of the KOSE Corporation group, further strengthening its presence in the global cosmetics market.

Professional Beauty Systems (Holding) Limited:founded in late 2006, focuses on the production of items related to beauty and personal care, such as perfumes and toilet preparations. Based in the United Kingdom, the company is committed to offering high quality beauty products while maintaining a focus on research and development to meet the evolving needs of consumers. Their product range reflects a commitment to creating innovative items that meet the demands of the contemporary beauty and wellness market.

Herrco Cosmetics Limited : is an active cosmetics manufacturing company, founded on February 17, 2009. Based in Halesworth, Suffolk, UK, the company was founded by Nigel and Sue Herrmann and is now led by their son Derek, who is qualified in cosmetic chemistry. Herrco Cosmetics is known for product innovation and technological advancement, and is committed to offering the best in cosmetics innovation, producing beloved products and seeking opportunities to reduce the impact of waste on the environment, ensuring that sustainability remains part of its DNA. The company specializes in the production of natural and organic cosmetics, certified to the Soil Association's COSMOS standard, and is proud of its production and warehouse facilities that enable it to meet the scalability needs of its customers.

Orean Personal Care Limited: founded in 2008, stands out in the personal care and beauty industry. The company, located in Cleckheaton, West Yorkshire, is committed to creating a wide range of personal care products, placing a strong emphasis on innovation and quality. Orean focuses on developing advanced formulas and unique solutions, aiming to meet the specific needs of its customers. Its commitment to excellence and sustainability has made Orean a recognized name in the beauty market, with a reputation for products that combine efficacy and care for healthy skin and hair.

As for the distribution of cosmetics in the territory, enterprises under SIC Codes 46.45 "Wholesale trade in perfumes and cosmetics" and 47.75 "Retail trade in cosmetics and toiletries" are analyzed.

Wholesale

Between 2019 and 2023, as well as production enterprises, businesses devoted to wholesale distribution of cosmetics are also found to be growing. During the period analyzed, the total number of enterprises increased from 1690 to 2080, marking a growth of 23.1%. Again, growth appears to be constant throughout the period, and the outbreak of the pandemic in 2020 does not seem to have had a negative effect on the industry.

Perfume and cosmetics wholesale enterprises (SIC Code 46.45.0)

United Kingdom, 2019-2023, in numbers

Nomisweb

In terms of retail businesses, growth is shown between 2019 and 2023. During the period analyzed, the total number of businesses grew by 30.0%, from 1,500 to 1,950. However, unlike the previous case, the growth is not constant throughout the entire period. While between 2019 and 2022 there is a growth of 37.3%, between 2022 and 2023 the total number of businesses contracts by 5.3%.

Cosmetics and toiletries retail businesses (SIC Code 47.75.0)

United Kingdom, 2019-2023, in number

Nomisweb

Major players active in the retail trade of cosmetics and toiletries include:

Consumer price index for personal care products

United Kingdom, 2016-2023, base 2015=100

ONS

(Boots)

Facial Cosmetics

(Boots)

The legislative framework inherent in the cosmetics industry aims to ensure the quality, safety and origin of products placed on the market. Some of the main legislative references adopted by the UK are:

• The Product Safety and Metrology (Amendment and Transitional Provisions) Regulations 2022: includes amendments to various existing regulations concerning product safety and metrology. These amendments were introduced to adapt UK legislation after the UK's exit from the European Union. The regulations include period extensions for some transitional provisions, adjustments to product marking regulations, and changes to some specific regulations related to product safety and product compliance.
• Schedule 34 of the Product Safety and Metrology Statutory Instrument: makes changes to Regulation (EC) No. 1223/2009 concerning cosmetic products. These changes include adjustments to definitions, responsibilities of manufacturers, importers, and distributors, and notification procedures. The aim is to adapt the regulation to the UK's exit from the European Union, ensuring that cosmetic products are safe and compliant in the post-Brexit environment.
• The Cosmetic Products Enforcement Regulations 2013: establishes the framework for the enforcement of Regulation (EC) No. 1223/2009, which covers the safety and compliance of cosmetic products. These regulations outline enforcement powers and procedures related to cosmetic products, ensuring their safety and compliance with regulatory requirements. This includes provisions on labeling, responsibilities of manufacturers and importers, and the authority of market control bodies to ensure compliance and safety of cosmetic products.
• The Cosmetic Products (Restriction of Chemical Substances) (No. 2) Regulations 2023: includes new amendments regarding the use requirements for cosmetic ingredients. These amendments mainly concern restricted ingredient lists and permitted UV filters, based on the opinions of the Scientific Advisory Group on Chemical Safety in Consumer Products (SAG-CS).
• Regulation (EC) No. 1223/2009: establishes rules that every cosmetic product placed on the market must comply with in order to ensure the proper functioning of the internal market and a high level of human health protection.