1. The Natural Ingredients for Cosmetics market in Europe

2. European market for natural ingredients for cosmetics
What’s new on the European market
Consumption
Segments
Imports and exports
Where is the market?
European market for natural ingredients for cosmetics
CBI - Ministry of Foreign Affairs

3. CBI - Ministry of Foreign Affairs
European Consumption
Most consumer products are produced in Europe Strong natural cosmetics industry Large and increasing demand for natural ingredients
So what does this all lead to? Increasing demand for ingredients! New Ingredients! Exotic Ingredients!
But difficult to register new ones as will explain this afternoon.
CBI - Ministry of Foreign Affairs

4. Cosmetics Major cosmetics markets in 2013 € 29 bn. € 72 bn. € 18 bn.
US remains very important, but growth markets especially in Brazil, Asia and Africa
Extra-EU exports of € 16 bn.
Source: Cosmetics Europe, 2014, ABIHPEC 2013
CBI - Ministry of Foreign Affairs

5. CBI - Ministry of Foreign Affairs
Extra-European exports of cosmetics and toiletries, share of total (€ 16 billion)
Source: Cosmetics Europe, 2014
CBI - Ministry of Foreign Affairs

6. CBI - Ministry of Foreign Affairs
European market for cosmetic products, share of total € 72 billion in 2013
Source: Cosmetics Europe, 2014
CBI - Ministry of Foreign Affairs

7. Growth markets for cosmetics in Europe, 2012/2013
4%+
2% - 4%
1% - 2%
0% - 1%
-2% - 0%
> -2%
Source: Cosmetics Europe, 2014
CBI - Ministry of Foreign Affairs

8. European market for cosmetic products, Per capita consumption in €
European average increased from € 124 in 2011 to € 128 in 2013.
Source: Cosmetics Europe, 2014
CBI - Ministry of Foreign Affairs

9. CBI - Ministry of Foreign Affairs
Natural Cosmetics
High growth market
Asia (13%), Europe (9%), and USA (8%)
Also during crisis!
2014: sales € 4.5 bn. in Western Europe, € 4.1 bn. in USA, € bn. in Asia
2017: expected market share 4%. Up to 10% in USA, Germany and Switzerland
Cosmeceuticals – Cross-over sector worth € 3.6 billion
The key worldwide markets include Western Europe, the USA, the Asia-Pacific Region, Brazil and Russia.
Natural skin care products have the highest market share of all product categories, whilst colour cosmetics and deodorants have the lowest share. 
Hair and skin care are particularly fast-growing markets for natural ingredients.
CBI - Ministry of Foreign Affairs

10. Segments within the European cosmetics market
Most important segments for:
Essential oils  fragrances & perfumes
Vegetable oils  hair care and skin care
Botanicals  skin care
Source: Cosmetics Europe, 2014
CBI - Ministry of Foreign Affairs

11. CBI - Ministry of Foreign Affairs
Top 5 markets in Europe
Toiletries
Skin care
Hair care
Fragrances & perfumes
Decorative cosmetics
These markets are the top 5 for all categories!
The segments are categorised in order of importance in respective country
Source: Cosmetics Europe, 2014
CBI - Ministry of Foreign Affairs

12. Translation into ingredients
Examples of natural ingredients used
Functional Ingredients
Emollients
Vegetable oils, fats and butters
Thickeners
Gums, waxes, resins, hydrocolloids
Humectants
Honey
Exfoliants
Seed powders, nut shell powders, powdered seaweed
Fragrance
Essential oils, aromatic plant (extracts)
Colours
Only permitted (natural) colorants (Cosmetics Directive)
Surfactants
Soapnut, quillaia bark, vegetable oils etc.
Active Ingredients
Very broad range of properties
Plant extracts with traditionally reported properties such as anti-micobiol, anti-oxidant, anti-inflammatory, astringency, cooling, conditioning, toning, deodorising etc.
CBI - Ministry of Foreign Affairs

13. EU imports of essential oils, in € million
Top 3
France
€ 283 million
Germany
€ 226 million
United Kingdom
€ 201 million 1 2 2 1 1
8.8
South Africa
Peru
Colombia 3
7.8 3
South Africa: € 8.8 million; top 3 account for 80%
Peru: € 7.8 million; top 3 account for 99%
Colombia: € 15 thousand; top 3 account for 98%
0.02
Source: Eurostat, 2015
CBI - Ministry of Foreign Affairs

14. EU imports of specialty vegetable oils, in € million
Top 3
France
€ 138 million
Netherlands
€ 89 million
Belgium
€ 82 million 3 1 2 3
4.1
South Africa
Peru
Colombia 1 1 2
6.8 2
South Africa: € 4.1 million; top 3 account for 90%
Peru: € 6.8 million; top 3 account for 94%
Colombia: € 14 thousand; top 2 account for 89%
0.01
Source: Eurostat, 2015
CBI - Ministry of Foreign Affairs

15. EU imports of extracts, in € million
Top 3
Germany
€ 124 million
France
€ 98 million
Italy
€ 57 million 3 1 3
1.7
South Africa
Peru
Colombia 2 2
0.4 1
South Africa: € 1.7 million; top 3 account for 94%
Peru: € 420 thousand; top 3 account for 67%
Colombia: € 9 thousand; top 2 account for 97%
0.01 2 1
Source: Eurostat, 2015
CBI - Ministry of Foreign Affairs

16. CBI - Ministry of Foreign Affairs
EU imports of MAPs
EU28
€ 659 million
Top 3
Germany
€ 201 million
France
€ 78 million
Italy
€ 62 million 1 1 2 2
3.8
South Africa
Peru
Colombia 2
4.8
South Africa: € 3.8 million; top 3 account for 87%
Peru: € 4.8 million; top 3 account for 80%
Colombia: € 2.1 million; top 2 account for 99% 3 1
2.1 3
Source: Eurostat, 2015
CBI - Ministry of Foreign Affairs

17. Where is the market in Europe? Who buys you NIs?
Leading cosmetics manufacturers in Europe?
Unilever
Beiersdorf
L’Oréal
L’oreal: 40 production plants worldwide
15% outcoursed to contract manufacturers
Where are purchasing decisions taken?
Direct contact with suppliers?
Chanel
CBI - Ministry of Foreign Affairs

18. Cosmetic SMEs in Europe?
Top 10 countries:
Italy
673
France
588
Spain
403
Germany
401
Poland
349
United Kingdom
310
Sweden
180
Switzerland
150
Czech Republic
124
Hungary
Total number of SMEs in Europe: 4,077
Do these buy direct?
Source: Cosmetics Europe, 2014
CBI - Ministry of Foreign Affairs

19. Leading cosmetics manufacturers and traders in Europe?
Or more specialised players?
Regional focus?
Natural?
Certification?
Ingredient categories?
For all:
Where?
Who?
What?
How?
IMCD
Symrise
CRODA
BASF
Solvay
Worlee
Sederma
Martin Bauer
Naturex
Lonza
Gattefossé
Indena
CBI - Ministry of Foreign Affairs

20. European organic markets
Northern Europe
Developed & stable market
Sustainability: requirement from industry & consumers
Large organic market share:
High consumer purchasing power
Eastern Europe
Promising market
High growth rates
Low consumer purchasing power and awareness
Southern Europe
Developed organic production
Developing market
High growth rates
CBI - Ministry of Foreign Affairs

21. European Fairtrade markets
Northern Europe
High growth rates
Sustainability: requirements from industry and consumers
High consumer purchasing power
UK and Switzerland largest markets for Fairtrade in Europe
Southern and Eastern Europe
Low development and awareness
Promising markets?
CBI - Ministry of Foreign Affairs