The cosmetics market - United Kingdom (2024)

1.2 The global market

Cosmetics are beauty products used for skin or body care or to accentuate the appearance of the human corm. These refer to a range of products available mainly in different categories, such as skin care and hair care. The global cosmetics market reached a value of$***.** billion in **** and is expected to grow at a CAGR of *.* percent from **** to ****, to reach a value of about $***.** billion. Global cosmetics market value World, ****-****, in billions of dollars (***) Expert Market Research Globally, between **** and ****, the cosmetics market in Africa and the Middle East is expected to grow at a compound annual growth rate (***) of **%. The markets in China and Asia Pacific stand at *% and *%, respectively, and North America and Australasia at *%. Finally, the Latin American and European markets show the lowest growth values of *% and *%, respectively.

YOY growth rate of cosmetics sales in the retail channel, breakdown by geographic area World, ****-****, % McKinsey

In the European context, the Germany confirms its leadership in cosmetics consumption (***), followed by Francewith**.* billion euros. L'Italy holds the third position with over **.* billion euros of cosmetics consumption. Fourth place for the United Kingdomwhich, with **.* billion euros record the least dynamic growth among the major players due to ...

1.3 The market in the United Kingdom

In ****, the cosmetics market in the UK is estimated at $*.** billion. A compound annual growth rate (***) of *.*% is projected between **** and ****, under which the market in this context could reach a total value of more than $** billion by the end of the period.

Cosmetics market United Kingdom, ****-****, in billions of dollars Expertmarketresearch

With regard to the domestic production of cosmetics, perfumes, and toiletries, there is evidence of growth in the value of production sold between **** and ****. During the period analyzed, the value of production sold increased from *.** billion pounds to *.** billion pounds, representing a **.*% increase. However, while there is a **.*% growth between ****, there is an *.*% decrease in production sold between **** and ****.

Value of production sold of perfumes and toiletries United Kingdom, ****-****, in billions of pounds ONS

Relative to the cosmetics segment alone, between **** and **** the growth in the value of production sold is **.*%, from £***.* million to £****.* million. However, again after growth between **** and **** (***), sales contracted by *.*% between **** and ****.

Value of production sold of cosmetics (***) United Kingdom, ****-****, in millions of pounds ONS Finally, in terms of the percentage weight of each product category to the total, **.*% of the value of production sold in **** can be attributed to creams and ...

1.4 Import - Export

HS Code **** " is considered for the analysis of UK trade flows in relation to the cosmetics industry

Between **** and ****, the UK's trade position fluctuated between net importer and net exporter as evidenced by fluctuations around ***% of the export coverage ratio, determined by the ratio of exports to imports multiplied by ***. As for UK cosmetics imports, between **** and ****, the value of these decreased by *.*% , from $*.** billion to $*.** billion. There is also a contraction for imports: between **** and ****, the value of imports decreased from $*.** billion to $*.** billion, a decrease of *.*%.

Import - export of cosmetics and toiletries products United Kingdom, ****-****, in billion dollars and % Uncomtrade

In terms of trade flows out of the UK, Belgium is the main trading partner, collecting **.*% of total exports alone. It is followed by the United States (***). All other countries individually do not collect * percent of the total value and together contribute **.*% of exports. Main destination countries for cosmetics and toiletries exports United Kingdom, ****, % Uncomtrade Finally, analyzing UK imports, France is the country's main trading partner contributing **.*% of total imports. This is followed by China (***). The other countries individually do not reach *% and together contribute **.*% of imports. Main countries of origin of cosmetics and toiletries imports United ...

1.5 The consequences of the Russian-Ukrainian conflict

the outbreak of the Russian-Ukrainian conflict in February **** generated major consequences for the UK economy. The cosmetics and personal care products sector is not exempt from the effects of the conflict. Between January **** and December ****, the consumer price index for the purchase of personal care products shows an increase of **.* points, representing a **.*% increase in purchase prices in ** months. Compared with ****, the price increase stands at **.*%.

Consumer price index for the purchase of personal care products United Kingdom, ****-****, base ****=*** ONS

The increase in purchase prices is merely a reflection of the increase in production costs. Also, between January **** and December ****, the producer price index for perfume and toiletries shows an increase of *.* points, representing an increase in production costs of *.*% in ** months. Compared with ****, the increase in producer prices stands at **.*%. Producer price index for perfumes and toiletries United Kingdom, ****-****, base ****=*** ONS

2.1 Demand in the United Kingdom

Analyzing the trend of average monthly household spending on cosmetic purchases shows a **.*% decrease in spending between **** and ****. During the period analyzed, the average monthly household expenditure decreased from £**.** per month to £**.* per month. However, while there is a growth of *.*% between **** and ****, between **** and **** spending contracted by **.*%, from ** pounds per month to **.* pounds per month.

Average monthly household spending on cosmetics purchases United Kingdom, ****-****, in pounds ONS

As for the breakdown of sales value among different product categories, toiletries alone collect **.*% of the total value. This is followed by skin care products with **.*% and hair care products with **.*% . Finally, make-up products and perfumes account for *.*% and *.*% of total sales, respectively. Sales value of cosmetic products, breakdown by product type United Kingdom, ****, % CTPA

2.2 Demand drivers

For the analysis of demand drivers, the distribution of spending on the purchase of cosmetics and hair care products in different income and age groups is considered.

Regarding the different income brackets, there is a strong correlation between the increase in average weekly income and the increase in spending on cosmetics and hair care products. In fact, while in the lowest income brackets (***) the average monthly expenditure ranges between **.** pounds and **.** pounds per month.

Average monthly household spending on cosmetics and hair products, breakdown by weekly income bracket United Kingdom, ****, in pounds ONS

Regarding the average monthly expenditure in the different age groups, those aged between ** and ** have the highest expenditure values, shares at **.** pounds per month. Those under **, as well as those aged ** to **, spend an average of **.** pounds per month on the purchase of cosmetics and hair care products. Finally, among those over **, the average monthly expenditure stands at **.** pounds. Average monthly expenditure on the purchase of cosmetics and hair care products, breakdown by age group United Kingdom, ****, in pounds ONS

2.3 Geographical distribution of demand

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 **** households spent an average of £**.* 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 £**.* and £**.** per household, respectively. Finally, households in Wales have the lowest monthly expenditure in the entire United Kingdom, averaging just £**.* per month (***).

2.4 New demand trends: the "Clean Beauty"

clean beauty products are defined by their formulation free of ingredients that are potentially harmful to human health, such as parabens, petrochemicals, and synthetic fragrances. These products are made with plant-based ingredients that are responsibly sourced and humanely tested. This category of cosmetics has become popular because it offers a safer and more natural alternative to traditional beauty products that may contain toxic substances. Consumers' choice to switch to clean beauty is often motivated by health and environmental concerns. Indeed, many consumers are aware that what is applied to the skin can be absorbed into the bloodstream. As a result, there is a growing demand for products that are both effective and safe for everyday use.(***)

In ****, the global market for "Clean Beauty" products is estimated at $*.** billion. Sustained growth in the industry is expected in the near future, estimated at a CAGR of **.*%, under which the global market could reach a total value of $**.** billion by the end of the period.

"Clean Beauty" Product Market World, ****-****, in billions of dollars Researchandmarkets

3.1 The market structure

To analyze the structure of the market in the United Kingdom, enterprises under SIC Code **.**.* "Manufacture of perfume and toiletries" are considered. In particular, the number of active enterprises, the breakdown of the number of enterprises by staff size, and the legal status of enterprises are analyzed.

Number of enterprises

Between **** and ****, the total number of enterprises active in the production of perfumes and toiletries appears to be increasing. During the period analyzed, the total number of active companies increased from *** to ***, marking a **.*% increase in * years. The growth appears to be constant during the entire period, and the outbreak of the pandemic in **** does not seem to have affected the industry.

Active enterprises under SIC Code **.**.* "Manufacture of perfume and toiletries" United Kingdom, ****-****, in number Nomisweb

Staff size

Regarding the staff size of different companies, **.*% of companies have between * and * employees. This is followed by firms with *-* employees (***). Firms with **-** employees are *.*% of the total, while those with **-** employees are *.*% . Finally, large firms with between *** and *,*** employees are just *.*% of the total business. Firms under SIC Code **.**.* "Manufacture of perfumes and toiletries," breakdown by number of employees United Kingdom, ****, % Nomisweb Legal status Finally, regarding the legal ...

3.2 The value chain

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 ...

3.3 The main manufacturers

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

Avon Cosmetics Limited:a leading beauty company, was founded in **** 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 *** 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 **** 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 ...

3.4 The distribution

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

Wholesale

Between **** and ****, 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 **** to ****, marking a growth of **.*%. Again, growth appears to be constant throughout the period, and the outbreak of the pandemic in **** does not seem to have had a negative effect on the industry.

Perfume and cosmetics wholesale enterprises (***) United Kingdom, ****-****, in numbers Nomisweb

Detail

In terms of retail businesses, growth is shown between **** and ****. During the period analyzed, the total number of businesses grew by **.*%, from *,*** to *,***. However, unlike the previous case, the growth is not constant throughout the entire period. While between **** and **** there is a growth of **.*%, between **** and **** the total number of businesses contracts by *.*%. Cosmetics and toiletries retail businesses (***) United Kingdom, ****-****, in number Nomisweb Major players active in the retail trade of cosmetics and toiletries include:

Boots Uk Limited: founded in **** by John Boot, is a renowned British chain of pharmacies and health and beauty ...

4.1 Type of the offer

4.2 The prices

Between **** and ****, the consumer price index for the purchase of personal care products shows an increase of **.* points, representing a **.*% increase in consumer prices. However, while between January **** and Jan. **** there is an increase of just *.* points (***), between Jan. **** and Dec. **** the increase stands at **.* points, representing a price increase of **.*% in ** months. The increase between January **** and December **** is * times higher than that recorded during the entire ****-**** period.

Consumer price index for personal care products United Kingdom, ****-****, base ****=*** ONS

The following are price examples for some product types broken down by category and manufacturer:

Eye cosmetics

PRODUCT PRODUCER PRICE RANGE Mascara Maybelline £*.** - £**.** L'Oreal £*.** - £**.** Max Factor £*.** - £**.** Rimmel £*.** - £**.** No* £*.** - £**.** Eyeliner Rimmel £*.** - £*.** NYX Professional Makeup £*.** - £**.** Collection £*.** - £*.** L'Oreal £*.** - £**.** Revolution £*.** - £*.** Eyeshadows Revolution £*.** - £**.** XX Revolution £*.** - £**.** Huda £**.** - £**.** NYX Professional Makeup £*.** - £**.** Morphe £**.** - £**.**

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Lip cosmetics

PRODUCT MANUFACTURER PRICE RANGE Lipstick Dior £**.** - £**.** L'Oreal £*.** - £**.** M.A.C £**.** - £**.** Maybelline £*.** - £**.** Revlon £*.** - £*.** Rimmel £*.** - £**.** Lip Gloss ** £*.** - £*.** Collection £*.** - £*.** Sleek £*.** - £*.** Barry M £*.** Lip Balm FRUU £*.** - £*.** Revolution £*.** - £*.** Dior £**.** - £**.** Elizabeth Arden £**.** - £**.** Estee Lauder £**.**

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Facial Cosmetics

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4.3 New supply trends

The trend toward innovative and environmentally friendly packaging in the cosmetics industry reflects a growing interest in sustainability. Companies are adopting biodegradable, recyclable and reusable packaging solutions. This includes: Eco-friendly materials: companies are adopting biodegradable, recycled and natural materials as an alternative to traditional plastic. These include glass, bamboo, sustainable cardboard, and post-consumer recycled plastic. Refill systems: reusable packaging and refill systems are becoming increasingly popular. These systems allow consumers to purchase the container once and then purchase only refills, reducing waste generation. Minimalist design: a simple and functional design is not only visually appealing, but also reduces the use of excessive and unnecessary materials, helping to reduce environmental impact. Environmental certifications and standards: companies are seeking environmental certifications that ensure the sustainability and eco-friendliness of their packaging, such as those offered by organizations like FSC (***). Innovation and technology: the adoption of new technologies in packaging production enables the development of more efficient and sustainable solutions, such as the use of compostable materials and the reduction of packaging weight to reduce emissions during transport. (***) Globally, the sustainable packaging market has reached a value of $***.** billion in ****. Over the period ****-****, a compound annual growth rate (***) of *.*% is estimated, under which the ...

5.1 The legislation

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 (***) Regulations ****: 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 ** of the Product Safety and Metrology Statutory Instrument: makes changes to Regulation (***) No. ****/**** 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 ****: establishes the framework for the enforcement of Regulation (***) No. ****/****, 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 ...

6.1 Segmentation

• Avon Cosmetics Limited
• Revolution Beauty Limited
• Elemis Limited
• Clarins Uk Limited
• Royal Sanders UK Limited
• Boots Uk Limited
• Superdrug Store PLC
• Savers Helth and Beauty Limited