Our industry
Economic value of the cosmetics
and personal care industry
Europe is a flagship market for cosmetics and personal care products, with retail sales valued at €96 billion in 2023.
The biggest European markets for cosmetics and personal care products are Germany (€15.9 billion) and France (€13.7 billion). These are followed by Italy (€12.5 billion), the UK (€11 billion), Spain (€10.4 billion) and Poland (€5.2 billion).*
Skin care is the biggest product category, valued at €27.7 billion, followed by toiletries (€23 billion), hair-care products (€16.8 billion), fragrances and perfumes (€15.4 billion) and decorative cosmetics (€12.7 billion).*
Cosmetic products are an extremely valuable European export, with a export value of €28.2 billion in 2023. France and Germany were the leading exporters, accounting for over 50% of total global exports from Europe at over €14 billion.
*Based on Market Performance 2023, European Cosmetic, Toiletry & Perfumery Data.
Supporting Europe’s wider economy
The European economy benefits from €29 billion of added value annually from the cosmetics and personal care industry. €11 billion is generated directly from the manufacture of cosmetic products, with a further €18 billion contributed indirectly by the supply chain (Eurostat 2015).
The industry supports over 3.5 million jobs through a mixture of direct, indirect and induced economic activity. In 2023, nearly 260,000 people were directly employed in the sector, with a further close to 2.7 million working in the cosmetics value chain.
On top of this, for every 10 workers employed in Europe’s cosmetics and personal care industry, at least two further jobs are generated in the wider economy. This is due to the impact of employees spending their wages on goods and services.
As well as supporting millions of jobs, the cosmetics and personal care industry contributes to Europe’s economy in many other ways. These include attracting investment from outside the EU; developing assets like brands; and expenditure on R&D. This helps to enhance the competitiveness of the European economy and contributes to future prosperity.
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. Some of the most widely used products include antiperspirants, fragrances, make-up and shampoos, along with soaps, sunscreens and toothpastes. Cosmetics play an essential role in all stages of our life and have important practical and emotional benefits.
Industry value-chain
The cosmetics and personal care industry value chain is made up of five levels:
Consumers. Individuals who purchase cosmetics and personal care products represent the final link in the value chain.
Production inputs. Companies that provide the raw materials needed to manufacture cosmetic and personal care products. In 2024, there were over 140 companies manufacturing cosmetic ingredients in Europe.
Manufacturing. Product manufacturers and suppliers of supporting services such as marketing and IT. In 2023, nearly 9,000 SMEs were involved in the manufacture of cosmetics in Europe.
Distribution and wholesale. In 2020, there were over 23,600 enterprises involved in the wholesale of cosmetics in the European Union, the majority of which were located in Italy (19%), Spain (18%) and France (10%) (Eurostat, 2020).
Retail and beauty services. These include product vendors like salons, department stores, online stores and pharmacies. In 2020, there were approximately 42,400 specialised stores in the EU (Eurostat 2020).
Research and science
The cosmetics and personal care industry is a science-driven sector which invests heavily in research and development. Large companies spend around 5% of their annual turnover on R&D, and if this figure was extrapolated across the whole sector, total expenditure on R&D in Europe would have totalled €2.35 billion in 2017. However, because the business model for research often involves a partnership (e.g. between a cosmetics manufacturer and a supplier or research institute), this figure is likely to be an underestimate.
In 2018, there were at least 77 scientific innovation facilities in Europe doing research relating to cosmetics and personal care. Large industry players have multiple research centres focusing on product development, market research and regulatory compliance.
Over 27,500 scientists are employed in the cosmetics sector in Europe. They represent a diverse range of disciplines including physics, microbiology, biology, toxicology, physiology, rheology, nanoscience, analytical chemistry and genetics.
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.