PARIS: Exports keep boosting the growth of the French cosmetics industry. With a 4.4% rise in 2015, they reached a new record of 11.8 billion euros, according to the statistics released by the FEBEA, the French Federation of Beauty Companies. Makeup sales are those that show the most significant growth, and the Middle East and Asia remain the most dynamic areas.
Despite the international slowdown in growth, the French cosmetics industry (perfumes, skincare, makeup, hair care, toiletries, etc.) is still developing worldwide: export sales of cosmetics companies operating in France rose again in 2015, with a 4.4% increase. The cosmetics sector’s balance of trade – third positive segment of the French balance of trade, behind aeronautics and wine & spirits – has exceeded 9 billion euro for the first time.
“It is the image of French products associated with quality and know-how that help France remain the global leader in this sector,” the FEBEA explains. The sector has also taken advantage of a highly favourable euro-dollar parity.
Skincare products and perfumes are still the main drivers for French cosmetics exports, as these two categories represent 75.5% of the total French export sales, respectively 42.5% and 33%. If its weight does remain much lower, the makeup category proved very dynamic, with exports rising by 17% for lip makeup, 10% for eye makeup, and 12% for powders.
The European Union remains by far the first Made in France perfume and cosmetics buyer in the world. In value, almost half of French exports in this sector (48.9%) is sold in European countries.
On this market, the French industry kept gaining market shares, compared to its immediate neighbours, as its exports show a 5.8% rise, and its balance of trade with the European Union is also on the rise (+5.1%).
Germany remains the first French perfume and cosmetics buyer, followed by the United Kingdom, Spain, and Italy.
Among the first five customers of the French industry, only the United States, ranked second, is not part the European Union. The relative dynamism of the American economy and the fact that the euro is weaker than the dollar have actually much benefitted the French cosmetics industry, whose sales to this country boomed by 15% in value, reaching 1.1 billion euros.
Russia’s economic difficulties and the collapse of its national currency had the reverse effect though, with a very significant drop of the balance of trade with this destination (-44%).
In Asia, the situation is contrasted. Exports to China kept rising in 2015, with an 8% increase compared to 2014. But the slowdown is quite strong, as the rise had reached 16.5% in 2014, compared to 2013, and 17.5% in 2013, compared to 2012.
As for sales to Hong Kong and Taiwan, they fell by 11.5% and 14.5%, respectively, compared to the previous year. Similarly, sales to South Korea and Japan declined by 8.2% and 6.8%, respectively.
By contrast, French cosmetics imports from China, Japan, or South Korea increased a lot, even if the balance of trade with these countries remains much positive for France.
Driven by the United Arab Emirates (+14%) and Saudi Arabia (+11%), the area of the Near East and Middle East showed a 12% growth in a year.
Exports to the African continent rose by almost 3%, compared to 2014.
Ultimately, Latin America took everyone by surprise. It returned to growth with a 3.7% increase for exports, for the whole 2015 year. As an example, despite the strong devaluation of the Brazilian currency and an economy in recession, French perfume and cosmetics exports to this country rose by 1.30%. Other countries in the area did even better, like Mexico (+12%) or Peru (+14.3%).
