The make-up market - France

1.2 A dynamic global market

In ****, the global make-up market is estimated at $**.** billion. This market is expected to grow with a CAGR of *.**% over the period ****-****.

Evolution of make-up sales World, ****-****, in billions of dollars Source: ****

The world's leading make-up companies include : Unilever, L'Oréal, Avon products, Revlon, The Esthée Lauder Companies, Shiseido Company, ...

Until ****, the global cosmetics market, which includes make-up, was growing at over *% a year. It was valued at *** billion euros in ****. However, **** saw a sharp downturn in the market, followed by a strong recovery in **** to a level similar to that of ****. In ****, the global cosmetics market is estimated at *** billion euros. [***]

Cosmetics market growth World, ****-****, annual growth rate Source: ****

Globally, market growth is driven by the ever-growing influence of social networks, the rise of the organic segment and the ever-increasing sensitivity to so-called "natural" products, the premiumization of the market, the success of e-commerce, as well as the emergence of new demand (***).

The sector is dominated by North Asia and North America, which account for **% of sales.

Geographical breakdown of cosmetics sales World, ****, % (***) Source: ****

Make-up accounts for **% of cosmetics market share.

Cosmetics market breakdown by product type World, ****, % Source: L'Oréal Financial Report ****, % Source: L'Oréal ...

1.3 The French make-up market

Estimated at ** billion euros in ****, the European cosmetics and personal care retail market is the third largest in the world. (***)

The largest national cosmetics and personal care retail markets in Europe are Germany (***). [***]

Cosmetics market share by country Europe, ****, in billions of euros Source: ****

Looking at the French cosmetics market as a whole (***)

Breakdown of cosmetics sales France, ****, % of sales Source: ****

1.4 Export agreements for made-in-France cosmetics

France is the world leader in the cosmetics industry, thanks to high levels of exports. In ****, nearly **% of French cosmetics production was exported, representing **.* billion euros (***), a record for this market. This makes the cosmetics market the third-largest contributor to France's foreign trade balance, behind aeronautics and wines & spirits. [***] Make-up is a very dynamic export segment, with rising export levels particularly for beauty and make-up products and preparations for skin care. However, we note that both imports and exports fell in ****, with a more significant decrease in imports and a clear increase in the coverage rate.

Balance of trade in make-up products France, ****-****, millions of dollars Source: ****

The chart above represents French imports and exports of cosmetics and toiletries (***), but we have excluded manicure and pedicure products corresponding to code ******.

Exports and imports of cosmetics and toiletries have been rising slightly since ****, and the balance of trade remains largely in surplus: exports will account for almost $** billion in ****, while imports will account for only around $*.* billion.

Breakdown of cosmetics imports and exports France, ****, % Source: ****

This chart shows the breakdown of imports and exports by product type (***):

******: lip make-up ******: eye make-up ******: powders ******: other cosmetics and skin care (***) The types of ...

1.5 The impact of the Coronavirus

The make-up market has fallen back in the wake of the health crisis that has engulfed France and the world. According to Iri, in the first four weeks of the containment, make-up sales were down **% in value compared to the same period last year. [***] Containment has accelerated the no-make-up trend. According to a survey conducted by Ifop after the first containment, in May ****, **% of women wear make-up on a daily basis, compared with twice that number in ****.

trend in the number of women who wear make-up on a daily basis France, ****/****, in % Source: ****

Some products have been more affected than others: lipstick has been the most impacted by this crisis, while mascara has benefited. In April ****, online sales of high-end lipsticks fell by **%, while mascara sales grew by ***%. [***]

trend in online sales of selected make-up products France, April ****, in Source: ****

2.1 Typology of demand

Demand for make-up products is driven by a number of structural factors, including an ageing population, attention to appearance, and growing interest in dermocosmetics.in France, as elsewhere in the world, women (***) account for the bulk of this demand for make-up.

Number of working women on the rise in France

According to Insee, the number of working women in France (***) rose from **.** million in **** à **.* million in ****. This is an indirect factor, but one that could positively stimulate demand for make-up in France. Demand for make-up is logically linked to the number of women able to afford it.

Number of active people by gender France, ****-****, in thousands Source: ****

Millennials, an ever-increasing and demanding demand

According to a study by CSA, **% of women start wearing make-up between the ages of ** and **, and **% between ** and **. This reflects an important dynamic in the precociousness of make-up use in France, with a demand that is destined to be ever younger.

Brand image and communication are key issues for manufacturers, most of whom are turning to storytelling and the use of muses to win over demanding consumers in the face of a plethora of products on offer. [***]

Thus, celebrities and new inputs have cornered this market ...

2.2 Demand weakened by the covid19 crisis but set to rebound in 2022

As make-up products have a relatively long shelf life, the frequency with which they are purchased is already relatively low.

What's more, in recent years, the French are increasingly favoring quality over quantity: according to LSA Conso, one million French people stopped buying makeup between **** and ****. As a result, **.* million people bought make-up in France in ****. More generally, the beauty hygiene market will record a *.*% fall in volume in ****, compared with a *.*% fall in value.

Furthermore, natural makeup or "no makeup " has become very popular in recent years: French women are wearing less makeup, and consequently buying less.

Finally, women are increasingly turning to skincare products such as masks and serums. To meet this demand, brands are offering hybrid products such as tinted moisturizers, halfway between the skincare and make-up categories. [***]

In ****, make-up sales fluctuated as a result of confinements and government measures concerning the wearing of masks. Indeed, while mass-market sales of make-up had already fallen by **% from May **** to May ****, the easing of mask-wearing measures failed to completely reverse this trend. However, the figures for make-up are more encouraging than those for the hygiene and beauty sector as a whole. Lip care products are the hardest hit by this ...

2.3 The importance of influencers

By ****, the #Beauty hashtag on Instagram will account for over *** million posts. Young people are the most present on social networks and therefore the most subject to influencers. In the United States, **% of Generation Z search on TikTok before buying a product, even before going through Google [***]. Influencers' opinions carry a lot of weight.

According to a Hivency study in ****, **% of beauty product consumers have already made a purchase after viewing an influencer's content on a social network. According to TikTok For Business, **% of users of the TikTok platform feel the urge to buy after viewing content. The Hashtag #TikTokMadeMeBuyIt even accumulates *.* billion views by ****.

According to Harris Interactive, **% of French people follow beauty influencers on social networks not only conduct live product tests on their Instagram and Snapchat stories, but also promote products through regular posts on their networks.

Share of French people who follow influencers on the Internet, by domain France, ****, in % Source: ****

A more recent study from **** shows that while one in four Internet users claim to follow an influencer on social networks, these followers admit to following purchase recommendations three times out of five. [***]

2.4 The popularity of organic food

According to a study conducted in **** by Cosmébio, half the French population buys organic cosmetics. That's **% more French than four years earlier. What's more, the average organic cosmetics shopping basket has risen from an average of ** euros in **** to over ** euros in ****.

In ****, the most popular places for French people to buy organic cosmetics are supermarkets (***).

Top three places to buy organic cosmetics France, ****, in Source: ****

The preferred places to buy organic cosmetics differ according to profile: for women, purchases will be made more on the internet, for CSP+, purchases will be made more in organic stores, and for those aged ** and over, GMS will be preferred.

In ****, *.*% of make-up products purchased in volume were organic and *.*% were ecological or natural. [***].

In supermarkets, make-up's share of organic product sales increased by **% between **** and ****.

Sales of organic make-up in supermarkets France, ****/****, in thousands of euros Source: ****

3.1 The cosmetics industry

The cosmetics market is a major sector of the French economy. The following diagram illustrates the sector's value chain.

Sales generated by the manufacture, domestic distribution and export of cosmetics will amount to ** billion euros in **** in France. Exports represent ** billion euros, or **% of production. [***]

Total sales for the entire specialized industry were €** billion in ****. In detail, that of raw material suppliers was €*.* billion, that of cosmetics manufacturers €** billion (***). [***]

Cosmetic Valley, an ecosystem where French know-how flourishes

Cosmetic Valley is located around Chartres, Orléans and Tours, and currently supports the production of some fifteen brands: Dior, Guerlain, Shiseido, as well as Paco Rabanne and Nina Ricci (***), Sisley and Caudalie. In all, *** companies out of a total of *,*** in France, **% of them very small businesses, contribute to the reputation and international success of "made in France" beauty. This represents **,*** jobs out of a French total of ***,***. [***] Cosmetic Valley generates sales of *.* billion euros, out of a total French sector of ** billion euros.

3.2 Distribution dominated by specialized and mass-market channels

The most important distribution channel for cosmetics is supermarkets, ahead of selective distribution and parapharmacies. By ****, supermarkets will account for **% of cosmetics sales.

Breakdown of cosmetics sales by location France, ****, in Source: ****

In the case of make-up, perfumeries are the most important channel, with sales of *** million euros in ****, ahead of *** million euros for supermarkets and hypermarkets.

Make-up sales by channel France, ****, in millions of euros Source: ****

Distribution channels are varied, but supermarkets dominate the cosmetics market. In fact, **% of women made their last make-up purchase in hypermarkets and supermarkets, and **% of women surveyed made their last make-up purchase in specialized retailers such as Kiko Milano, Sephora or Nocibé. This trend is even more pronounced in the **-** age group: **% of women in this age category made their last purchase in a major retailer. [***]

In the mass retail sector, competition is fierce, and is driven by the traditional players who operate brands with strong public recognition (***). New new players such as Kiko Milano, offering innovative concepts are increasing the market's competitive intensity.

Nevertheless, by ****, L'Oréal (***) is the second market leader with **% share.

Make-up market share in supermarkets France, ****, in Source: ****

Selective distribution

Selective perfumery refers to the system by which ...

3.3 The weight of different product categories

Large-scale distribution

Make-up sales in supermarkets represent ***.* million euros in ****, up *.*% on ****, and a volume of **.* million units sold (***).

Sales of different categories of make-up products in supermarkets France, ****, millions of euros Source: ****

In ****, eye products generated significantly more sales in supermarkets than other product types, with a *.*% increase on ****. Facial make-up saw the highest sales growth in ****: +*.*% versus ****.

The selective channel

In ****, sales of selective beauty products grew by *% compared to **** in France, reaching nearly *.* billion euros. [***]

The skincare and make-up category accounted for *% growth, while unit sales rose by **%. This shows that products purchased via this channel are becoming more affordable.

In ****, the lipstick category took first place in terms of units sold. In fact, **% of all make-up products purchased were lipsticks. In terms of value, lipsticks rank behind foundation, with total annual sales of **.* million euros. [***] While consumers had a preference for liquid lipsticks in recent years, they are once again turning to lipsticks in stick form, with sales up **%.

The foundation segment represents an annual market of *** million euros (***). The format most popular with consumers remains liquid foundation, which saw sales growth of *%, but new textures or formats are appearing, such as gels, mousses and sticks, which ...

4.1 Very uneven price levels by segment

In general, consumer prices consumer prices for make-up products have remained broadly stable in recent years between **** and ****. In ****, the consumer price index for make-up and skincare products will show its strongest rise in the last decade, reaching ***.**.

evolution of the price index for make-up products France, ****-****, base *** in **** Source: ****

Low-cost and high-end

We are witnessing the entry of new players offering very low prices for make-up products [***]: these players, such as Kiko and NYX, are waging a price war to compete with the traditional players. In particular, these companies offer lipsticks for between * and ** euros.

Luxury giants are also positioning themselves in this sector. Hermès, in particular, launched a high-end lipstick collection at ** euros in early ****. This price is considerably higher than the average for luxury make-up, with competitor lipsticks from Dior or Chanel priced at around ** euros.

4.2 Supply trends

Development of make-up for men

Makeup for men is also booming. In ****, on TikTok, the hashtag #boysinmakeup accumulated *** million views. [***] Chanel dedicates a range to "Boy". Marc Jacob, Tom Ford and Gucci Beauty also have dedicated ranges. However, men's cosmetics are not limited to luxury brands, as the e-commerce site Zalando offers dedicated references. Although pioneers such as Jean Paul Gaultier and Tom Ford introduced men's or unisex make-up ranges in the early ****s, surfing on the "metrosexual" trend, the market only seems to have taken off recently. Euromonitor forecast global market growth, driven mainly by the South Korean market. at present, in France, it would appear that we're only at the educational stage. For its Boy range, for example, Chanel has chosen to distribute only a few products initially, with a view to gradually expanding the range once use of its products has become more widespread. Other specialist brands such as M.A.C and Nars offer unisex make-up ranges.

4.3 A growing organic and responsible offer

The global market for natural and organic cosmetics is growing: from *.* billion euros in **** [***]

In ****, the French organic cosmetics market represented *** million euros, double its size in ****. [***]

It should be noted that make-up products account for a very small share of organic store sales, while skincare and hygiene products dominate organic store sales.

Organic store sales   Source: ****

As we saw in section *.*, organic cosmetics are mainly sold in supermarkets. For example, L'Oréal (***) is expanding its range of organic and natural-based products in ****, with the launch of the Green Edition line by Maybelline New-York and the Volume Millions de Cils Baume Brun mascara with **% natural ingredients by L'Oréal Paris. [***]

Also in supermarkets, the essence brand has been offering more natural make-up since ****, with vegan compositions, no palm oil or micro-plastic, while offering a reduced average price of *.** euros in **** compared with an average of * euros in supermarkets. [***]

Brands are also turning to eco-design for beauty products. One example is the launch of an Iconic Woodacity lipstick by Aptar and Quadpack in ****. Woodacity packaging replaces plastic and offers the advantage of being reusable: the next shade of lipstick can be inserted into the same container. [***]

5.1 Pre-marketing regulations

The regulations are detailed by :

Agence nationale de sécurité du médicament(***) and health products; Regulation (***) n°****/**** of the European Parliament and Council of November **, **** on cosmetic products since July **, ****; The French Public Health Code (***).

Before a cosmetic product can be marketed, it must be able to meet certain specific requirements. Even if prior authorization is not a prerequisite for marketing, you must declare your manufacturing activity to the Inspection Department of the French National Agency for the Safety of Medicines and Health Products (***).

The ANSM provides a list of some of the elements that govern the manufacture of a cosmetic product:

The composition of cosmetic products, Cosmetic product information file (***), Labeling rules for containers and packaging, Notification to the European Commission Declaration of establishment to ANSM Manufacturing.

5.2 Post-marketing regulations

As theANSM states: " Each cosmetic product placed on the market has an associated responsible person (***). This person may be a natural person or a legal entity. This person has many obligations and responsibilities, in particular :

That of ensuring that the cosmetic product placed on the market, and with which it is associated, is safe for human health when used under normal or reasonably foreseeable conditions of use. That of guaranteeing compliance with the obligations of the cosmetics regulation, for each cosmetic product placed on the market."

For example, " Serious undesirable effects (***)

6.1 Player segmentation

• Sephora
• Kiko Milano France
• Nocibé (Douglas Groupe)
• Marionnaud France
• L'Occitane Groupe
• Chanel
• Bourjois (Groupe Coty)
• Estée Lauder
• Coty (JAB Holdind)
• Revlon
• Shiseido
• Rimmel London (Groupe Coty)
• Cosnova
• Groupe Rocher (Yves Rocher)
• Mac Cosmetics (Estée Lauder)
• Yves Saint Laurent Parfums (Groupe L'Oréal)
• Groupe NOVI
• Avril Beauté
• Make up for ever (Groupe LVMH)
• Adopt Parfums
• Clarins Groupe
• The Body Shop
• Givenchy
• Lancôme (L'Oréal)
• Sisley
• Dolce & Gabbana
• Beiersdorf
• Sanoflore
• Nuxe
• Eau Thermale d'Avène (Pierre Fabre Groupe)
• Galeries Lafayette
• Mademoiselle bio
• Amorepacific
• Avon Products
• Kose
• Mary Kay
• Maybelline (L'Oreal)
• Guerlain
• Benefit
• Nyx Professional make Up (L'Oreal)
• Urban Decay (L’Oréal)
• E.L.F
• De Blangy (INK AND OUT)
• La Bouche Rouge Paris
• Pardi
• Absolution
• Bioeven
• Antipodes Nature
• April Beauty Bogart groupe
• Ayanature
• Baïja (Bain & Nature)
• Beauté Privée
• Biotyfull Box
• BoHo Green
• Cosmelab
• Couleur Caramel
• Mes Cosmétiques Français
• Mycosmetik
• Panier des Sens
• Yumi Beauty
• SRP group (Showroomprivé)
• Silgan Dispensing France
• Cosmogen
• Ciaté London
• Pink Gellac
• Flormar