French cosmetics sector hails “record year” for exports, exceeding €19B

08 Feb 2023 --- Cosmetics players under the French federation of cosmetics industries (FEBEA) celebrated “record” international growth of 18.8% in one year. Newly released annual results reveal the sector managed to hit total exports of €19.2 billion (US$20.6 billion) in 2022.

This uptick was driven particularly by the “Perfumery” and “Makeup and Face Care” categories.

The EU remains the leading destination for exports of French cosmetic products, followed by the US and China, highlights FEBEA. Exports to the Middle East are, for their part, experiencing strong growth.

“[The 2022 results] demonstrate that, despite the current economic and geopolitical uncertainties, despite the supply difficulties and the cost increases with which companies are confronted, French cosmetics retains a strong power of attractiveness in the world,” remarks Emmanuel Guichard, general delegate of the FEBEA.

“It has been able to reinvent itself to meet the new expectations of consumers, in particular by offering ever more sustainable and environmentally-friendly products.”

This uptick was driven particularly by the “Perfumery” and “Makeup and Face Care” categories.The French cosmetics sector, worth €15.6 billion (US$16.7 billion), ranks third among the nation’s industries contributing to a positive foreign trade balance, behind the €23 billion aeronautics (US$24.7 billion) and wines’ and spirits sectors (€16 billion / US$17.2 billion).

“In total, nearly two thirds of production is exported and the export activity of cosmetics alone employs 130,000 men and women throughout France,” highlights FEBEA. “‘Made in France remains an essential asset for the sector and for our economy as a whole.”

Top exported beauty products
In 2022, the “Perfumery” category achieved notable growth of 30.2% and the “Makeup and facial care” category recorded an increase of 11.6%.

These two categories of products together represent more than 85% of French exports of cosmetic products – more than €16.5 billion (US$17.7 billion) in 2022.

Overall, all of the other categories also recorded “good results,” according to FEBEA. “Personal hygiene and care” products achieved growth of 36.7%, even though they only represent 3.3% of French exports.

“This ability to anticipate changes, to constantly innovate, explains why the sector continues to improve its performance,” remarks Emmanuel Guichard.

“It is a source of great pride for our federation, just as it should be for France where, paradoxically, our cosmetic companies, in particular our SMEs and ETIs, have to face many difficulties, especially in the mass distribution circuit.”

Review of export markets
Valued at €2.3 billion (US$2.46 billion), the US climbed this year to first place on the podium of countries importing French cosmetics, ahead of China. In 2022, this market recorded a year-on-year increase of 28%.

Between the period of 2019 to 2022, the US saw an overall increase of 48.2%.

These performances can be explained by the “very strong appeal” of the French “Perfumery” and “Makeup and face care” categories, outlines FEBEA. Together, they represent 95.2% of France’s cosmetic product exports to the US market.

Following the US, French perfume particularly appeals to Germany, Spain, the UK and the UAE.

French lipstick is the main product imported by China, followed by Singapore, the US, Germany and South Korea.

Valued at €2.3 billion (US$2.46 billion), the US climbed this year to first place on the podium of countries importing French cosmetics, ahead of China.For their part, sales to the EU achieved a good performance with growth of 24.2% compared to 2021. This increase is explained in particular by the “explosion” in sales of the “Perfumery” category, which was 33% compared to 2021.

In total, the EU attracts nearly 37% of French exports of cosmetic products. In this geographical region, Germany remains the main market. It imports €1.9 billion (US$2 billion) of French cosmetics, a figure up 21% compared to 2021.

FEBEA also underscores “very strong growth” in the Middle East of 33.8%, compared to 2021. This performance is explained in particular by the increase in exports to the UAE (+41.8%) and Saudi Arabia (20.4%).

Conversely, China, which totals €1.954 billion (US$2.098 billion) in imports of French cosmetic products, is experiencing a slowdown and recording a low growth rate of +3.1%, due in particular to new health restrictions, impacting Asia.

The latter recorded a growth rate of 8.8% between 2021 and 2022 and represents €5.179 billion (US$5.561 billion) in imports of French cosmetic products. However, the Asia zone recorded a performance of 32% over the 2019/2022 period.

French beauty players tackle rising costs
While French beauty players indeed have a cause for celebrating buoyant exports, the sector has seen its fair share of local setbacks to do with soaring costs and mounting pressure from distributors.

A rise in energy costs across France is biting cosmetic companies, underscoring a need to cut back and streamline efficiencies. Last October, LVMH Moët Hennessy Louis Vuitton linked up with Hang Lung Properties – its first partnership as part of its policy to reduce energy consumption.

FEBEA recently voiced its members’ support for Frédéric Descrozaille, a member of the National Assembly, who is proposing a law to limit “super-promotions” that are often applied to personal care products and other non-food items.

The bill aims at “securing the supply of French people with consumer products.” FEBEA is also supporting the amendment of extending the limitation of 34% of promotions – which exists for food – to non-food products.

It flags that hygiene and beauty manufacturers are “caught in the trap of an impossible economic equation” – facing a historic rise in costs paired with the pressure on distributor prices.

By Benjamin Ferrer

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