Economy & Innovation

The beauty and personal care value chain

Behind each product on a cosmetics shelf is a team of specialists that encompasses scientists, ingredient makers and manufacturers, packagers and shippers, retail stores and beauty specialists.

Value is created at each stage of the supply chain, fuelling growth and wealth creation for participants, big and small. The businesses in the cosmetics and personal care sector range from salons and small and medium enterprises (SMEs) to multinational corporations. Some 8,540 companies in the European beauty and personal care sector are SMEs, typically based in local areas, creating vital employment in local regions⁵.

Economic impact
of the industry

The beauty and personal care industry is a cornerstone of European excellence and is recognised as a world leader both as a flagship market and a major exporter of cosmetics around the world. It is a driver of innovation and a champion of regional artisanal production throughout the value chain.

Its impact is significant and far reaching, contributing over €29 billion to the economy each year³  and employing over 3 million people¹ across a diverse range of professions.

EU-27 MARKET VALUE

The EU-27 cosmetics market was worth €74.1 billion at retail sales prices in 2022⁶.

VALUE OF EXPORTS

Exports of cosmetic products from the EU-27 countries, based on trade values, totalled €23.7 billion last year⁷.

ADDED ECONOMIC VALUE

The beauty and personal care industry brings an estimated €29 billion in added value to the European economy annually³.

INNOVATION AT ITS CORE

Over 30,040 scientists are employed in the sector, across multiple specialisms in fields of chemistry, biology, physics and genetics⁸.

In Europe, large companies in the beauty and personal care industry typically reinvest 5% of their annual sales in R&D – a figure conservatively estimated to be worth €2.35 billion⁴.

SUPPORTING THE LIVELIHOODS OF MILLIONS OF EUROPEANS

For every 10 workers employed in the industry, at least 2 more jobs are created in the wider economy¹⁰.

STRONG FEMALE REPRESENTATION

Women are strongly represented in the sector – 61.2% of those employed in the industry are female¹¹.

EU-27 MARKET VALUE

The EU-27 cosmetics market was worth €74.1 billion at retail sales prices in 2022⁶.

VALUE OF EXPORTS

Exports of cosmetic products from the EU-27 countries, based on trade values, totalled €23.7 billion last year⁷.

ADDED ECONOMIC VALUE

The beauty and personal care industry brings an estimated €29 billion in added value to the European economy annually³.

INNOVATION AT ITS CORE

Over 30,040 scientists are employed in the sector, across multiple specialisms in fields of chemistry, biology, physics and genetics⁸.

In Europe, large companies in the beauty and personal care industry typically reinvest 5% of their annual sales in R&D – a figure conservatively estimated to be worth €2.35 billion⁴.

SUPPORTING THE LIVELIHOODS OF MILLIONS OF EUROPEANS

For every 10 workers employed in the industry, at least 2 more jobs are created in the wider economy¹⁰.

STRONG FEMALE REPRESENTATION

Women are strongly represented in the sector – 61.2% of those employed in the industry are female¹¹.

Driven by innovation

Innovation is the heartbeat of the European beauty and personal care industry. New product development is continuous, fuelled by consumer preferences, ever-changing beauty trends and sustainability. Every year, a quarter of cosmetic products on the market are improved or are completely new¹².

Over 30,040 scientists are employed in the sector, across multiple specialisms in fields of chemistry, biology, physics and genetics while it is estimated that €2.35 billion is invested in R&D by the industry every year⁴.

Committed to people and planet

The sector has a long and strong sustainability track record from raw material souring to product development, production, transport, and consumption.

Five out of just 13 companies globally that achieved a ‘Triple A’ rating for sustainability in 2022 from CDP, operate in the beauty and personal care industry. The recognition given by CDP is an acknowledgment of the value of embedded innovation and sustainability – for businesses, stakeholders, the supply chain, and ultimately the consumer.

SUSTAINABLE PACKAGING

The sector increasingly uses packaging made for the circular economy such as refillable face cream jars or recyclable glass perfume dispensers.

TRANSPARENT LABELLING

Transparent labelling, backed up by industry certifications, informs consumers what ingredients are used and allows them to make planet-friendly choices.