bulletin gcc.eu - july-august 2021

G C C . E U M A R K E T S W A T C H J U L Y - A U G U S T 2 0 2 1

L A T E S T N E W S A N D M A R K E T I N T E L L I G E N C E O N T H ET A R G E T C O U N T R I E S F O R T H E G C C . E U N E T W O R K

I N D I A - M E X I C O - S O U T H K O R E A - U A E - U S A

GCC.euMarketsWatch

4

Dear colleagues,

Those engaged in the field of cosmetic industry are continuously challenged to

innovate towards the development of new products. These shall meet the

needs, the believes and lifestyle of a demanding consumer. The process is

based on a unique industrial ecossystem that includes the ingredient, the

concept of the product, the formulation, packaging, production methods,

laboratory testing and regulatory processes.

It would not be possible to fullfill the high standards and requirements

outlined, without recognizing that science is one of the most important drivers

for the sector. This is why cosmetic industry has been increasingly recognized

for its technical and scientific value. Other contributions are equally relevant

such as marketing and product communication, supply chain, sustainability

and social commitment.

The challenges faced by the cosmetic industry are so wide that individual

efforts are frequently insuficient to meet the established goals. Having the

opportunity to network with other companies, to share knowledge and ideas

and to learn about other markets and strategies obviously enlarges all

probabilities of success.

Through GCC we move even further and have the opportunity to look beyond

the national reality that we know best. New markets, different consumers and

a world of opportunities to learn, to share and to be inspired by other realities.

Together we are stonger and for sure good business will then arise.

ANA PALMEIRAPRESIDENT OF AEBB

ASSOCIAÇÃO EMPRESARIALDA BEIRA BAIXA - PORTUGAL

2

Voice of theIndustry


SpecialFocus

LatestNews

GoInternational

MarketData

P. 04

WORLD MARKET FORBEAUTY AND PERSONAL

CARE (PART 2)

P. 10

TARGET MARKETS NEWS ONBUSINESS, INNOVATION,

TRENDS, REGULATORY & RETAIL

P. 14

COLOUR COSMETICSMARKET DATA ON

TARGET COUNTRIES

P. 21

FIND SERVICES & ACTIVITIESTO ENHANCE YOUR

INTERNATIONALISATION

Special FocusWORLD MARKET FOR BEAUTY AND PERSONAL CARE (PART 2)

World Market for Beauty and Personal Care (Part 2)

In the second part of this abstract about the World Market for Beauty and Personal Care we will include some

analysis about the leading companies & brands and the most relevant trends that are shaping the industry.


5

SOURCE: EUROMONITOR INTERNATIONAL

The top f ive beauty and personal care players global ly saw their combined share drop from 34% to

32% between 2015 and 2020.

2020 saw beauty’s competit ive environment shaken up. While major companies continued to face

share erosion from smaller indie players, COVID-19 brought new chal lenges, with the severity of

the impact of COVID-19 rest ing on portfol io and geographic exposure.

Asia Pacif ic remains the most fragmented region, but fragmentation is r is ing rapidly in Western

Europe, North America and Australasia, as the top f ive players come under threat f rom other

brands. Fragmentation dropped in Lat in America in 2020, as Natura & Co became the regions

leading beauty company through the acquisit ion of Avon.

MARKET FRAGMENTATION CONTINUES TO RISE IN MOST REGIONS

6


Leading companies & brands

GEOGRAPHIC EXPOSURE A KEY FACTOR IN ONGOING PERFORMANCE

Going into 2021, i t wi l l continue be a test ing

ground as to how to maintain or boost brand

loyalty through consumer engagement

regardless of lower sales, due to less

demand, downgrading and substitut ions.

Moreover, with international brand imports

and tourist spending st i l l down compared to

pre-COVID-19 levels , the r ise in credibi l i ty of

local players is l ikely to come to the fore.

While 2020 was a struggle for many of the

leading industry players, the severity of the

impact var ied, based on exposure to

part icular categories and virus-affected

markets, notably in Western Europe and

North America. Those with a strong presence

in China – the epicentre of the rebounding

beauty market – have fared better , with

L'Oréal and Estée Lauder report ing double-

digit growth in China in 2020, conf irming a

strong appetite for beauty products.

7

LOCAL CHINESE BRANDS ARE SOME OF THE FASTEST GROWING GLOBALLY

Of the fastest growing

company over 2015-2020,

many are local Chinese

players. Pechoin (Shanghai

Pehchaolin Daily Chemical)

and Chando (Jala Co)

continue to cement their

positions as two of China’s

leading beauty brands,

owing to their wide

availability through local

digital platforms like Tmall

and JD.com.


PRIVATE LABEL FUELLED BY STORE CLOSURES AND REDUCED CONSUMER CONFIDENCE

Private label sales grew by 3% in 2020 – the

highest growth experienced over the review

period – largely owing to the closure of non-

essential stores in many countries during

lockdown, with many consumers turning to

supermarkets and pharmacies for their beauty

and personal care needs, providing

opportunities for private label players to step

up. At the same time, lower economic activity

and high unemployment rates weakened

consumer spending power, leading many to

trade down to cheaper alternatives, a trend that

may continue into the forecast period under

COVID-19’s ongoing recessionary impact.

8

2020 THEMES REMAIN RELEVANT, BUT WILLTRANSITION TOWARDS NEWER TRENDS


Trends Shaping the Industry

9

EXAMINING FIVE TRENDS SHAPING THEBEAUTY AND PERSONAL CARE INDUSTRY


LatestNews

TARGET MARKETS NEWS ONBUSINESS, INNOVATION,TRENDS, REGULATORY & RETAIL

I N D I A - U A E - M E X I C OS O U T H K O R E A - U S A

B U S I N E S S - I N N O V A T I O NT R E N D S - L E G A L - R E T A I L

M A R K E T S T O P I C S

Latest NewsTARGET MARKETS NEWS ON BUSINESS,

INNOVATION, TRENDS, LEGAL & RETAIL

I N D I A

India’s beauty and personal care startups, especially those in the D2C space, have grown

rapidly in the past few years, raised about $700 Mn in funding since 2014 and enjoyed a huge

online shopping boost amid the Covid-19 pandemic.

HOW CONTENT IS GIVING A FLAWLESS MAKEOVER TO INDIA’S $26 BN

BEAUTY AND PERSONAL CARE MARKET

Source & more information

Nykaa, India's leading beauty and fashion e-commerce platform has recently launched The

Global Store that aims to bring international beauty brands to Indian consumers through a

cross-border e-commerce platform. The Global Store can be easily and exclusively accessed

through the Nykaa mobile application.

NYKAA LAUNCHES THE GLOBAL STORE TO OFFER INTERNATIONAL BEAUTY,

SKINCARE BRANDS IN INDIA


11

An India-based firm specialising in hemp and CBD health and wellness products is working to

expand its skin care range as interest in hemp oils and CBD beauty products soars.

‘ G O I N G T O B E A G A M E C H A N G E R ’ : B O M B A Y H E M P C O M P A N Y E X P A N D I N G

S K I N C A R E L I N E A S I T A I M S T O T A K E C A T E G O R Y M A I N S T R E A M



I N D I A - U S A - M E X I C O

S O U T H K O R E A - U A E

B U S I N E S S - I N N O V A T I O N

T R E N D S - L E G A L - R E T A I L


This amount also includes exports of beauty, makeup and skin care preparations, except

medicines, including sunscreen and tanning preparations; manicure or pedicure preparations.

M E X I C O ' S C O S M E T I C S E X P O R T S A M O U N T T O U S $ 3 3 8 M I L L I O N


A cute white rabbit named Ralph was featured as the lead in an animated short film last April.

His story told as a mockumentary was a call for help to end the use of laboratory test animals

for cosmetic production purposes. Since its premiere "Save Ralph" (Save Ralph 2021) went

viral on the networks, which caused many people to begin to question the reality behind these

practices.

I N M E X I C O , D I D T H E Y S A V E R A L P H ?


Inclusion is a purchase factor in at least 27% of the people Another Company surveyed in

August 2020.

T H E C O S M E T I C I N D U S T R Y G R O W S B E T W E E N D I V E R S I T Y A N D E -

C O M M E R C E


S O U T H K O R E A

Mesohemp, is a skin care range that contain a native Korean species of hemp called green

hemp – a hybrid of imported cannabis from the Netherlands and Korean hemp. the ingredient

contains 460 natural substances including Omega 3, 6, 9, and at least 20% cannabidiol (CBD)

H A R N E S S I N G H E M P : K O R U P H A R M A C E U T I C A L S D E V E L O P S K - B E A U T Y S K I N

C A R E M A D E W I T H H Y B R I D K O R E A N V A R I A N T


M E X I C O

12

South Korean cosmetics maker Cosmax Inc. recently joined hands with Dankook University to

open the Microbiome Platform Research Institute. The center rounded up 1,000 applicants to

participate in a skin gene analysis, sorting data by age, gender, and region to build an artificial

intelligence (AI) platform for data analysis.

C O S M E T I C S F I R M S I N V E S T I N G I N M I C R O B I O M E R E S E A R C H


The brand’s product line is designed not to persuade customers to purchase based on gender

stereotypes, but on values.

INCLUSIVE K-BEAUTY BRAND MAUVE FANTASTICEVER LAUNCHES ON AMAZON



I N D I A - U S A - M E X I C O

S O U T H K O R E A - U A E

B U S I N E S S - I N N O V A T I O N

T R E N D S - L E G A L - R E T A I L


The Campaign for Safe Cosmetics, a project of Breast Cancer Prevention Partners, is leading the

charge on four new bills set to be introduced in Congress this summer to make beauty and

personal care products safer for everyone.

N E W F E D E R A L B I L L P A C K A G E W I L L M A K E S A F E R B E A U T Y A V A I L A B L E T O A L L


A study revealing the presence of per- and polyfluoroalkylated substances (PFAS) in certain

makeup products sold in North America resulted in the introduction of a Senate bill to ban PFAS

from makeup and personal care products sold in the USA.

S T U D Y P R O M P T S S E N A T E B I L L T O B A N P F A S I N C O S M E T I C P R O D U C T S


U S A

Residents across the UAE are increasingly making it their mission to shift towards using more

'green beauty' products that are 100 per cent natural, cruelty free, and sourced ethically, experts

have said.

G R E E N B E A U T Y M O V E M E N T T A K E S U A E B Y S T O R M


The first 100 "Ulta Beauty at Target" locations will open in August at select Target stores.

T I M E T O ' F E E L P R E T T Y A G A I N ' : P E O P L E B U Y M O R E L I P S T I C K A N D M A K E U P

A S M A S K S C O M E O F F


U A E

13

The new study looked at the most expensive countries to buy the five most iconic beauty

products

THE UAE IS ONE OF THE MOST EXPENSIVE COUNTRIES FOR BEAUTY, NEW REPORT SAYS


Huda and Mona Kattan have expanded their HB Investments portfolio by funding online booking

platform Fresha

H U D A B E A U T Y S I S T E R S B E T O N P R O F E S S I O N A L B E A U T Y W I T H L A T E S T

I N V E S T M E N T



Market DataSPECIFIC CATEGORIES OF BEAUTY & PERSONAL CARE

ANALYSED AND COMPARED IN OUR TARGET COUNTRIES

Market Data

Retail Value

Sales Performance

Sales by Categories

SPECIFIC CATEGORIES OF BEAUTY & PERSONAL CARE

ANALYSED AND COMPARED IN OUR TARGET COUNTRIES

Claims most used

Distribution Chanels

Brands Shares

CategoryAbstract

ConsumerObserver

HAIR CARE

IN THIS EDITION

UAE Mexico India

S. Korea USA

In this section of the newsletter a quantitative analysis of each of our target markets for a specific

category can be found.

Each edition of the newsletter will focus on a different category and will analyse the performance of

these markets from two different perspectives.

On the one hand we will focus on the category itself with the "Category Abstract" in which you will be

able to analyse the size of the market, the sales performance both overall and by subcategories.

On the other hand, we will have the "Consumer Observer" where we will have a point of view closer to

retail with data such as the most used Claims, the distribution channels and their evolution and the

distribution of the market by brands.

15


India

CategoryAbstract

ConsumerObserver

CLAIMS MOST USED IN THIS MARKET

2020 - TOTAL SKUS: 69.496

IN THIS EDITION

16


HAIR CARE

Mexico

CategoryAbstract

ConsumerObserver


2020 - TOTAL SKUS: 70.618

IN THIS EDITION

17


HAIR CARE

S. Korea

CategoryAbstract

ConsumerObserver


2020 - TOTAL SKUS: 683.026

IN THIS EDITION

18


HAIR CARE

UAE

CategoryAbstract

ConsumerObserver


2020 - TOTAL SKUS: 89.386

IN THIS EDITION

19


HAIR CARE

USA

CategoryAbstract

ConsumerObserver


2020 - TOTAL SKUS: 209.615

IN THIS EDITION

20


HAIR CARE

Go InternationalFIND SERVICES & ACTIVITIES TO ENHANCE

YOUR INTERNATIONALISATION


In the framework of the Global Cosmetics Cluster - Europe, SME will have available an Acceleration

Programme that integrates several sets of supporting activities that allows promising companies

not to only access but also boost and maximize this access to international markets and

development.

Targeting in priority the 5 selected countries, South Korea, Mexico, Emirates, USA and India, the

project will offer 4 areas of supporting activities:

Go InternationalFIND SERVICES & ACTIVITIES TO ENHANCE

YOUR INTERNATIONALISATION

Acceleration Programfor SMEs internationalisation

22


T A K E P A R T O F T H E M I S S I O N

C O N T A C T Y O U R C L U S T E R

S T A Y T U N E D A N D F O L L O W U S O N S O C I A L N E T W O R K S

N E X T A C T I O N

B 2 B M I S S I O N T O U A E ( D U B A I )

O C T O B E R 2 0 2 1

W W W . G L O B A L C O S M E T I C S C L U S T E R . E U

23


L A T E S T N E W S A N D M A R K E T I N T E L L I G E N C E O N T H E

T A R G E T C O U N T R I E S F O R T H E G C C . E U N E T W O R K

I N D I A - M E X I C O - S O U T H K O R E A - U A E - U S A

GCC.euMarketsWatch

G C C . E U M A R K E T S W A T C H1

W W W . G L O B A L C O S M E T I C S C L U S T E R . E U

YOUR PARTNERS

bulletin gcc.eu - july-august 2021

Documents