Valued at €96 billion at retail sales price in 2023, Europe is a global flagship market for cosmetics and personal care products.
The largest national markets for cosmetics and personal care products within Europe are Germany (€15.9 billion), France (€13.7 billion), Italy (€12.5 billion), the UK (€11.0 billion), Spain (€10.4 billion) and Poland (€5.2 billion)*.
The following product categories hold the largest share of the European market: skin care (€27.7 billion) and toiletries (€23.0 billion), followed by hair-care products (€16.8 billion), fragrances/perfumes (€15.4 billion), and decorative cosmetics (€12.7 billion) *.
Exports of cosmetic products from Europe totalled €28.2 billion (trade value) in 2023. France and Germany were Europe’s main exporters, exporting over €14.0 billion between them and accounting for nearly 50% of total global exports from Europe.
It is estimated that the cosmetics and personal care industry brings at least €29 billion in added value to the European economy annually. €11 billion is contributed directly by the manufacture of cosmetic products and €18 billion indirectly through the supply chain (Eurostat 2015).
Including direct, indirect and induced economic activity, the industry supports over 3.5 million jobs. In 2023, over 259,244 people were employed directly, and a further 2.68 million indirectly in the cosmetics value chain.
For every 10 workers employed in the European cosmetics and personal care industry, at least two further jobs are generated in the wider economy as a result of employees spending their wages on goods and services.
Moreover, by attracting investment from outside of the EU, developing intangible assets like brands, and investing in R&D, the cosmetics and personal care industry is helping to enhance the competitiveness of the European economy and contributing to future prosperity.
The vast majority of Europe’s 500 million consumers use cosmetic and personal care products every day to protect their health, enhance their well-being and boost their self-esteem. Ranging from antiperspirants, fragrances, make-up and shampoos, to soaps, sunscreens and toothpastes, cosmetics play an essential role in all stages of our life and have important functional and emotional benefits.
The cosmetics and personal care industry value chain comprises five levels:
The cosmetics and personal care industry is a science-driven and highly innovative sector which makes large investments in R&D. Large companies in our industry spend around 5% of their annual turnover (sales) on R&D (within Europe).
Assuming that all companies in the cosmetics industry spend 5% of their annual turnover on R&D, total expenditure on R&D in Europe would have totalled €2.35 billion in 2017. It should be noted that because the business model for carrying out research frequently involves a partnership (e.g. between a cosmetics manufacturer and a supplier and/or research institute), this figure is likely to be an underestimate.
There were at least 77 scientific innovation facilities in Europe in 2018 that carry out research in relation to cosmetics and personal care. Large industry players have multiple research centres that focus on product development, market research and regulatory compliance respectively.
Over 27,500 scientists are employed in the cosmetics sector in Europe, from a diverse range of disciplines including physics, microbiology, biology, toxicology, physiology, rheology, nanoscience, analytical chemistry and genetics to name a few.
By attracting and training workers with specialist skills, the cosmetics industry increases the pool of talent and skilled labour for other science-led industries - such as pharmaceuticals.
Read more about our industry’s efforts to promote science and research and innovation and future trends in the Cosmetics Industry driven by R&D.
