However, the findings were revealed at the annual Cosmetics Europe week event, held before the Brexit vote that confirmed Great Britain will leave the EU, a decision that is likely to lead to some economic uncertainty for both the country and the rest of Europe.
Most of Europe has been suffering from stunted economic growth in the light of pronounced economic downtown that has hit southern Europe particularly bad in recent years.
Brexit may impact the positive outlook
This has affected growth of the industry within the European Union significantly, with most countries reporting stale or very slight growth during the course of the last few years.
One of the few exceptions to the challenging conditions has been in the UK, where the cosmetics and personal care industry has been notching up above average industry growth rates, though that track record could now come to a halt following the country’s referendum vote to leave the European Union, last week.
“Our industry remains strong and shows signs of growth despite trying economic circumstances. Valued at 77 billion Euros, Europe remains the largest market for cosmetic products in the world,” said Loic Armand, president of Cosmetics Europe, who was speaking at the event, which was held June 13 - 17.
Somewhat prophetically, Armand added his belief that the momentum the industry had started to gather could only be maintained through a Europe that could combine its resources on science and innovation.
“But we should not be complacent. Business is global and to remain competitive in the global market place, we need a Europe that facilitates science and innovation,” he added.
The report findings:
The evidence for Cosmetic Europe’s belief that the European market is returning to a greater pace of growth comes from a report compiled by Risk & Policy Analysts, titled “Socio-economic contribution of the European cosmetics industry” highlights a number of positives, including:
- The vast majority of Europe’s 500 million consumers use cosmetics and personal care products contributing to well being and healthy lifestyles, and positive self-esteem every day
- The European export market totalled 17.2 billion Euros in 2015, with France and Germany accounting for around 53% of total global exports from Europe
- The strength of the entrepreneurial cosmetics industry lies in its mix of both big and small companies: there are 4,605 SMEs in Europe and this number is growing
- At least 2 million jobs are supported across the European value chain, with 56% women and 44% men being employed in the cosmetics industry
- The sector is science driven with more than 26,000 scientists in the industry, covering a diverse range of scientific disciplines