Cosmetic Valley is moving to Shanghai. The competitiveness cluster, which defends the interests of the cosmetics, care and perfumes sector manufactured in France, announced the opening of a “embassy” this year to support French companies exporting to China. Because the country is a major outlet for the French cosmetics industry. In 2021, sales of French beauty products represented 2 billion euros in turnover. One in four French lipsticks is exported there, recalls today the Federation of Beauty Companies (Febea).
But, in this country whose cosmetic products market could reach 90 billion euros in 2027, compared to 55 billion today, according to projections from the consulting firm McKinsey, foreign manufacturers face formidable barriers to entry. . The legislation is binding; in particular, it requires them to carry out tests of certain of their products on animals, in laboratories approved by the Chinese administration, a process banned in the European Union (EU) for twenty years.
In addition, the economic situation in China is more gloomy. And the competition that French manufacturers endure is more muscular, particularly since the offensive of Korean brands to conquer young Chinese. So, in this juicy market, foreign brands are no longer in as comfortable a situation as before. As a result, in 2023, the export of production to China only increased by 1approximately .7%, well below the +5% for 2022. After a jump of 56% between 2019 and 2021, the country had nevertheless become the leading outlet for exports of eyeshadows, mascaras and other creams manufactured in France. It now represents only 9.4% of French exports.
A breath of oxygen
In 2023, thanks to a jump of 20.8%, the EU retained its place as the leading export market for French cosmetic products (around 40%), ahead of the United States, the world’s leading cosmetics market. . One in five perfumes produced in France is shipped across the Atlantic, observes Febea. However, French industry sales there increased by only 2.8% in 2023, after a jump of 26.7% in 2022. Finally, the Middle East also shows signs of weakening. Sales of French cosmetics manufacturers are down by around 2.4%, taking into account the sharp drop in exports to Saudi Arabia.
But, despite the stagnation of export growth in China and these strong regional “disparities”, French industry is delighted to “excellent growth” of its exports, up 11.2% in one year, after + 18.8% between 2021 and 2022, assures Febea. “Growth has returned to the level it reached before Covid”, assures Emmanuel Guichard, its general delegate.
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