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I N D I A - M E X I C O - S O U T H K O R E A - U A E - U S A
GCC.euMarketsWatch
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Voice of theIndustry
To offer consumers ever safer, more innovative and
sustainable products,
To develop the economy and employment in Europe in the
cosmetics sector,
For Europe to consolidate its position as a leader and
global benchmark,
Dear colleagues, dear friends,
As you probably know, Europe is the leading consumer
market for the cosmetics industry with €79.8 billion in 2019,
out of a worldwide turnover of €500 billion.
More than a market, cosmetics is a major industrial asset for
Europe. It generates nearly 2 million direct jobs. It invests in
research and innovation. It benefits from an exceptional
pool of talents and skills. It promotes international
expertise that places Europe at the forefront of the world.
Through the “Global Cosmetics Cluster - Europe” (GCC.eu),
Cosmetic Valley and its partners wanted to unite European
players in an increasingly competitive context, in a
changing world. Sharing best practices, pooling resources,
collaborating on innovation, jointly addressing major export
markets, are all wishes shared by the members of this great
network. A network fostering the development of your
business with the support of the European Commission.
GCC.eu is offering in 2021 a support program dedicated to
the internationalization of your business.
The GCC.eu teams are at your disposal to go international
and help you in the recovery of your activity.
CHRISTOPHE MASSONGENERAL DIRECTOR
COSMETIC VALLEY
2
G C C . E U M A R K E T S W A T C H J A N U A R Y 2 0 2 1
SpecialFocus
LatestNews
GoInternational
MarketData
P. 04
BEAUTY & PERSONAL CAREMARKET UPDATE
P. 13
TARGET MARKETS NEWS ONBUSINESS, INNOVATION,
TRENDS, REGULATORY & RETAIL
P. 17
BEAUTY & PERSONALCARE MARKET DATA ON
TARGET COUNTRIES
P. 24
FIND SERVICES & ACTIVITIESTO ENHANCE YOUR
INTERNATIONALISATION
Beauty & Personal CareMarket Update
Last months of 2020 reveals a general downgrade
in beauty for the year 2020, as the global economy
slips into recession and the overall industry
landscape remains unpredictable. The 2021
recovery is slated to be rosier than originally
expected, due to initial signs of successful mass
COVID-19 vaccination in a few countries, as well as
various business initiatives to stimulate demand
and the return to consumption.
The latest 2020 downgrade is further driven by the
new wave of lockdowns seen in several countries,
which continues to impact brick-and-mortar sales
as people are confined to their homes.
On the positive side, resilience is being seen in
categories aligned with enhanced self care
routines, wellness and preventative health
principles.
SOURCE: EUROMONITORBEAUTY & PERSONAL CARE: QUARTERLY STATEMENT Q4 2020
S P E C I A L F O C U S J A N U A R Y 2 0 2 1
5
Despite a number of operational challenges and
transformational consumer shifts, industry
sentiment remains upbeat and various
opportunities remain.
Skin care continues to be a bright spot, set to
grow twice as fast as colour cosmetics in all
scenarios due to its alignment with self care and
health. Though premium beauty has seen a
significant slump it is still projected to grow 3-6
times faster than mass beauty over the next five
years in all scenarios, led by Asia.
Digital acceleration continues, with a number of
players reporting double-digit growth rates for
their online sales for their last quarter.
All forecast scenarios anticipate the recovery of
the industry by 2022; however, further
downgrades to global economic forecasts could
potentially slow the pace.
While some positive signs of growth are starting
to emerge across isolated geographical and
category pockets, the industry will need to brace
itself for a continued battle to capture and
engage with more channel and brand agnostic
consumers as a “new normal” socioeconomic
reality unfolds.
S P E C I A L F O C U S J A N U A R Y 2 0 2 1
Under Euromonitor’s C19 pessimistic scenarios 1, 2, and 3, BPC is expected to decline by 3% globally in
2020, 25-57 basis points lower than our base case scenario. Global recovery is anticipated in 2021 under
scenario 1 (25-35% probability over a one year horizon), but under the other two scenarios a much slower
recovery is predicted, due to the potential for a third and possible fourth wave in 2021 and the later mass
roll-out of COVID-19 vaccines or treatments in 2022-2023.
Source: Euromonitor Beauty and Personal Care Industry Forecast Dashboard, Updated November 2020
6
Hygiene-related categories have remained
resilient during the pandemic, and newly
established preventative health awareness and
habits are set to sustain growth moving forward.
Further opportunities exist in upscaling hand
hygiene offerings with a number of added
attributes, such as natural fragrances, skin
conditioning, moisturising and sustainable
packaging. Oral care, on the other hand, could
benefit from a more beauty-aligned positioning,
professional strength formulas and endorsing its
necessity as part of well-rounded self-care
routines.
Unsurprisingly, companies such as Unilever and
P&G are riding the wave of pandemic-related
consumption. Unilever reported 20% growth in its
cleansing portfolio in the Jul-Sep quarter and has
launched hand sanitisers in 65 new markets since
March. The company’s flagship brand Lifebuoy
became its latest EUR1 billion brand, and was
reported to have grown by 67% year to date.
P&G launched Safeguard hand soap and hand
sanitisers in North America and reported growth
of 30% in personal cleansing for its latest quarter,
with double-digit growth in every region.
S P E C I A L F O C U S J A N U A R Y 2 0 2 1
F R O M T H E E U R O M O N I T O R I N D U S T R Y F O R E C A S T M O D E LSoft demand drivers
C L E A N S I N G P R O D U C T S T OF L O U R I S H O N T H E B A C K O FI M P R O V E D H Y G I E N E P R A C T I C E S
I N V E S T M E N T I N D I G I T A L C O N T I N U E S T O P R O L I F E R A T E
S U S T A I N A B I L I T Y E F F O R T S S U P P O R T N A R R A T I V E S O FP U R P O S E A N D C O N S C I O U S B E A U T Y
Source: Euromonitor International’s Voice of the IndustrySustainability Survey, conducted in June 2020
7
USA saw a slight upgrade, as a result of a rise in overall retail spend (up by 7% in November
according to the US Census Bureau), stronger consumer demand and booming online activity
reported for the last quarter by major market players. A flat five-year forecast CAGR is expected,
as growth in skin care, bath and shower, and baby products is set to offset continued declines in
colour cosmetics and fragrances.
Conversely, Japan saw the largest downgrade in Q4 2020 versus Q3, with total beauty sales now
expected to dip by 7.9% in 2020 versus growth of 1.6% expected pre-COVID-19, due to weaker
than expected consumer sentiment with restrictions on movement and other measures being
strengthened on the back of rising cases. Softer in-store traffic, sharp declines in prestige sales
and a significant dip in inbound tourism have been largely to blame.
China continues its positive rebound trajectory, forecast to witness a CAGR of 8% over 2019-
2024, owing to burgeoning online sales (including new points of sale on social media and
livestreaming) and strong domestic spending, particularly in the area of prestige skin care and
make-up.
S P E C I A L F O C U S J A N U A R Y 2 0 2 1
I N D I A - M E X I C O - S O U T H K O R E A - U A E - U S A
About our target markets
M I X E D G E O G R A P H I C A L R E S P O N S E S I N Q 4 2 0 2 0
IndiaUSA
8
Most beauty categories saw a downgrade in
India, as the country continues to be plagued
by rising COVID-19 cases. Lack of stringent
safety advice and poor contact tracing
implementation from the government makes
home seclusion still a factor, which is heavily
impacting store-based retailers.
The pandemic has kickstarted the digital
shift, with beauty e-commerce expected to
grow by 35% in 2020. Online sales are not,
however, sufficient to fully mitigate the loss
of revenue from physical channels, as BPC
ecommerce is still in its infancy in India and
accounted for only 4% of value sales in 2019.
E-commerce sales have been supported by
the industry’s response to some of the
digital and delivery omnichannel initiatives
quickly dopted in other parts of the world,
such as kerbside pickup, livestreaming and
AR/VR, partly offsetting declines in offline
retail.
Euromonitor International’s Digital
Consumer survey 2020 indicates that 43% of
Indian consumers had used virtual reality in
the past year, versus a global average of
22%, giving ample opportunities for brands
to ramp up their digitalisation efforts.
S P E C I A L F O C U S J A N U A R Y 2 0 2 1
I N D I A - M E X I C O - S O U T H K O R E A - U A E - U S A
About our target markets
B I G U N C E R T A I N T Y S U R R O U N D I N G I N D I A ’ S R E C O V E R Y
India
F U R T H E R D O W N G R A D E I N I N D I A ’ S G D P T O P U S H B P C R E C O V E R Y T O 2 0 2 2
Pure play beauty e-tailers, such as Nykaa, are leading the digital shift with exclusive online tie-ups
with several foreign brands, as well as transparent genuine product guarantees to gain consumers’
trust. US-based Fidelity Investments has recently invested an undisclosed sum in Nykaa to ride on
the fast-growing beauty ecommerce market in India.
9
The need for clinical backing is no stronger than in results-driven categories such as acne
treatments, with a quarter of global respondents citing “efficacy” as the most desired product
feature.
At a time when people are wearing masks to protect others from COVID-19, many are exposing their
faces to more irritation than usual, which creates various skin issues, such as acne, rashes,
breakouts, blemishes and itchiness. Google trends show a sharp jump in searches for the term
“maskne” since May 2020, with a significant proportion coming from Singapore, Philippines and
Malaysia, given the tropical climate.
Asia presents the largest revenue potential for the category, followed by Western Europe, with
innovation activity and “maskne” product repositioning still mostly coming from Asia. The South
Korean retailer Peach & Lily has responded by creating a Maskne Essentials category on its e-
commerce platform, primarily for acne treatments. While the 15-29 age group is the key target,
there is ample scope for adult-positioned products which offer other attributes, such as radiance,
hydration and firming properties.
With skin sensitivity being a core concern and a key underlying factor in breakouts, several
ingredient manufacturers, as well as cosmetics ODM players, are investing in this space. Evonik is
targeting Asia Pacific with its natural skin sensitive active ingredient Rovisome Sensitive NG, while
Cosmax announced a new formulation free from fragrances, essential oils or surfactants, which can
be irritating to the skin.
S P E C I A L F O C U S J A N U A R Y 2 0 2 1
I N D I A - M E X I C O - S O U T H K O R E A - U A E - U S A
About our target markets
“ M A S K N E ” S O L U T I O N S I N C R E A S E G R O W T HP O T E N T I A L F O R A C N E T R E A T M E N T S
S. Korea
10
Fragrances have been one of the worst
causalities of the pandemic, with five year
forecasts across all regions bar Asia
remaining in negative territory. Our latest
quarterly update, however, indicates a
modest recovery in 2021 for countries
including the US, Russia, Germany and
Australia.
While the olfactory nature of fragrances and
their high dependence on trial makes it
difficult to succeed online, leveraging
subscription boxes could play a role in the
category’s recovery through sampling and
experience. 2020 has seen the rise in
adoption of beauty subscription services,
and a number of players, such as Lush and
Feelunique, have made a foray into this
space.
Digital sampling programme initiatives are
also underway. L'Oréal Luxe, for example
teamed up with Pinterest in November on
the Luxury Fragrance Finder, featuring a
custom landing page quiz that seeks to
match Pinterest users with their perfect
fragrances, which can then be purchased via
the L’Oréal Luxe e-commerce site.
As retail stores reopen, fragrance brands will
look to upgrade hygiene standards and
incorporate contactless testers at the point
of sale, with Natura’s latest partnership with
Noar tech start-up in Brazil being a case in
point.
S P E C I A L F O C U S J A N U A R Y 2 0 2 1
I N D I A - M E X I C O - S O U T H K O R E A - U A E - U S A
About our target markets
D I G I T A L T E S T I N G A N D S U B S C R I P T I O NM O D E L S T O R E V I V E F R A G R A N C E S
UAE Mexico USA
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LatestNews
TARGET MARKETS NEWS ONBUSINESS, INNOVATION,TRENDS, REGULATORY & RETAIL
I N D I A - U S A - M E X I C OS O U T H K O R E A - U A E
B U S I N E S S - I N N O V A T I O NT R E N D S - L E G A L - R E T A I L
M A R K E T S T O P I C S
Latest News TARGET MARKETS NEWS ON BUSINESS,INNOVATION, TRENDS, LEGAL & RETAIL
L A T E S T N E W S J A N U A R Y 2 0 2 1
B U S I N E S S
UAE is a key economic partner of South Korea, and the value of their trade exchange exceeded
$12.5 billion in 2019, and over 200 Korean companies are currently operating in the UAE,
according to Kim Young-ju, Chairman of the Korea International Trade Association (Kita).
U A E A K E Y E C O N O M I C P A R T N E R O F S O U T H K O R E A ( I N T E R V I E W )
Source & more information
The startup founded by Falguni Nayar, a former investment banker, is working with advisers to
prepare for the share sale in Mumbai.
B E A U T Y S T A R T U P N Y K A A P L A N S $ 3 B I L L I O N I P O T H I S Y E A R
Source & more information
13
Social distancing and remote work have lessened demand for make-up and led to store
closures. Travel restrictions have also cut off the flow of big-spending Chinese tourists and
individual merchants who buy tax-free goods
C O R O N A V I R U S H A S S L O W E D K - B E A U T Y ’ S B I L L I O N A I R E B O O M
Source & more information
L A T E S T N E W S J A N U A R Y 2 0 2 1
I N D I A - U S A - M E X I C OS O U T H K O R E A - U A E
B U S I N E S S - I N N O V A T I O NT R E N D S - L E G A L - R E T A I L
M A R K E T S
L E G A L - R E G U L A T O R Y
T O P I C S
Resilient beauty is a new trend set to emerge from the COVID-19 pandemic, according to
ingredient manufacturer DSM.
C O V I D - 1 9 C R E A T E S R E S I L I E N T B E A U T Y T R E N D A N D A C C E L E R A T E C L E A NB E A U T Y M O V E M E N T I N A P A C - D S M
Source & more information
Cosmetics manufactured in India, Middle East and US are the most susceptible to contamination
by aerobic mesophilic bacteria, yeast and moulds, according to new research.
C O S M E T I C S C O N T A M I N A T I O N : P R O D U C T S M A N U F A C T U R E D I N I N D I A ,M I D D L E E A S T A N D U S H A V E H I G H E S T L E V E L S O F M I C R O B I A LC O N T A M I N A T I O N
Source & more information
T R E N D S
The Indian government has decided to set up the first Central Cosmetics Laboratory and appoint
inspectors across states.
F U L L D E C L A R A T I O N O F I N G R E D I E N T S , N O T C O S M E T I C , M A D E M A N D A T O R Y
Source & more information
COVID-19 has wreaked havoc across all industries. Some saw its effects in the first months and
even weeks of the crisis. In other cases, the effects are just beginning to show. A latter example is
the beauty industry, which has noticed that the use of masks is not encouraging the purchase of
makeup.
S K I N C A R E , E - C O M M E R C E : B E A U T Y I N D U S T R Y L I F E L I N E S
Source & more information
14
It’s go-time for innovative beauty trends and beauty beyond boundaries to grow like never
before in India. With the global beauty industry being valued in the billions, India has begun to
take its place at the beauty table.
T O P T R E N D S R E F O R M I N G T H E I N D I A N B E A U T Y I N D U S T R Y
Source & more information
L A T E S T N E W S J A N U A R Y 2 0 2 1
I N D I A - U S A - M E X I C OS O U T H K O R E A - U A E
B U S I N E S S - I N N O V A T I O NT R E N D S - L E G A L - R E T A I L
M A R K E T S T O P I C S
R E T A I L
I N N O V A T I O N
Social distancing and remote work have lessened demand for make-up and led to store
closures. Travel restrictions have also cut off the flow of big-spending Chinese tourists and
individual merchants who buy tax-free goods
C O R O N A V I R U S H A S S L O W E D K - B E A U T Y ’ S B I L L I O N A I R E B O O M
Source & more information
The price of a lipstick can vary - sometimes even double - whether it’s purchased in Turkey, in
France or in Thailand. The British cosmetics comparison website Cosmetify has compared the
cost of five iconic beauty products in different countries worldwide.
G L O B A L C O S M E T I C B R A N D S A R E L E S S E X P E N S I V E I N C A N A D A A N D T H E U S AT H A N I N C H I N A
Source & more information
Unlike apparel, which will face a longer recovery, beauty could be back to 2019 levels by the first
half of 2021, according to McKinsey.
W I T H A N E N D T O P A N D E M I C S T R U G G L E S I N S I G H T , B E A U T Y L O O K S T O W A R DA P R E T T I E R F U T U R E
Source & more information
Customized beauty and AR try-on were hot topics at CES this year as beauty continues to make its
mark on the annual event.
C E S R E P O R T : B E A U T Y - T E C H T R E N D S T O W A T C H I N 2 0 2 1
Source & more information
The Middle East is defined as one of the world’s fastest-growing beauty markets, buoyed by
strong purchasing power and high international brand engagement, but what names are ahead of
the pack?
T O P B E A U T Y B R A N D S I N T H E M I D D L E E A S T
Source & more information
15
Market DataSPECIFIC CATEGORIES OF BEAUTY & PERSONAL CAREANALYSED AND COMPARED IN OUR TARGET COUNTRIES
Market Data
Retail Value
Sales Performance
Sales by Categories
SPECIFIC CATEGORIES OF BEAUTY & PERSONAL CAREANALYSED AND COMPARED IN OUR TARGET COUNTRIES
Claims most used
Distribution Chanels
Brands Shares
M A R K E T D A T A J A N U A R Y 2 0 2 1
CategoryAbstract
ConsumerObserver
SKIN CAREIN THIS EDITION
UAE Mexico India
S. Korea USA
In this section of the newsletter a quantitative analysis of each of our target markets for a specificcategory can be found.
Each edition of the newsletter will focus on a different category and will analyse the performance ofthese markets from two different perspectives.
On the one hand we will focus on the category itself with the "Category Abstract" in which you will beable to analyse the size of the market, the sales performance both overall and by subcategories.
On the other hand, we will have the "Consumer Observer" where we will have a point of view closer toretail with data such as the most used Claims, the distribution channels and their evolution and thedistribution of the market by brands.
17
SKIN CARE
India
M A R K E T D A T A J A N U A R Y 2 0 2 1
CategoryAbstract
ConsumerObserver
CLAIMS MOST USED IN THIS MARKET2019 - TOTAL SKUS: 157.876
IN THIS EDITION
Retail Value RSP 2020 - EUR million
1885,5
18
Mexico
SKIN CARE
M A R K E T D A T A J A N U A R Y 2 0 2 1
CategoryAbstract
ConsumerObserver
CLAIMS MOST USED IN THIS MARKET2019 - TOTAL SKUS: 110.080
IN THIS EDITION
Retail Value RSP 2020 - EUR million
1862,4
19
S. Korea
SKIN CARE
M A R K E T D A T A J A N U A R Y 2 0 2 1
CategoryAbstract
ConsumerObserver
CLAIMS MOST USED IN THIS MARKET2019 - TOTAL SKUS: 1.386.343
IN THIS EDITION
Retail Value RSP 2020 - EUR million
5636
20
UAE
SKIN CARE
M A R K E T D A T A J A N U A R Y 2 0 2 1
CategoryAbstract
ConsumerObserver
CLAIMS MOST USED IN THIS MARKET2019 - TOTAL SKUS: 115.006
IN THIS EDITION
Retail Value RSP 2020 - EUR million
287
21
USA
SKIN CARE
M A R K E T D A T A J A N U A R Y 2 0 2 1
CategoryAbstract
ConsumerObserver
CLAIMS MOST USED IN THIS MARKET2019 - TOTAL SKUS: 329.039
IN THIS EDITION
Retail Value RSP 2020 - EUR million
18.815
22
In the framework of the Global Cosmetics Cluster - Europe, SME will have available an AccelerationProgramme that integrates several sets of supporting activities that allows promising companies
not to only access but also boost and maximize this access to international markets and
development.
Targeting in priority the 5 selected countries, South Korea, Mexico, Emirates, USA and India, the
project will offer 4 areas of supporting activities:
Go International FIND SERVICES & ACTIVITIES TO ENHANCEYOUR INTERNATIONALISATION
G O I N T E R N A T I O N A L J A N U A R Y 2 0 2 1
Acceleration Programfor SMEs internationalisation
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