The cosmetics market - France

In France, cosmetic products are defined by article L.5131-1 of the French Public Health Code as "any product intended to be placed in contact with the superficial parts of the human body, with a view to cleaning, perfuming, modifying the appearance of, protecting, maintaining in good condition or correcting body odors ". This category therefore includes skincare products (moisturizers, anti-wrinkle creams, body moisturizers, etc.) and make-up products (foundations, powders, varnishes, mascaras, etc.). France enjoys a significant competitive advantage in this market, with representative companies in the sector such as L'Oréal and Yves-Rocher exporting and benefiting from very dynamic demand in emerging countries such as India. However, the market is highly competitive and concentrated in the hands of a few cosmetics giants, who must constantly innovate and reinvent themselves to keep pace with changing consumer needs, and hinder the entry of a growing number of small, specialized players. Growing interest in issues such as the environment and transparency, with greater attention being paid to product origin, is enabling new entrants to position themselves on the market. As a result, many manufacturers are now offering organic products in response to strong demand in recent years. With the Covid-19 crisis and pandemic-related restrictions (teleworking, wearing masks, etc.), sales of beauty products fell by around 17% over the first six months of 2020, with a different impact depending on the different market segments. [LCI] Hygiene-related products are up on 2019, while the lipstick market has suffered a 75% drop in sales over the first six months and 26% over the whole period. [LCI] However, the market now seems to be showing good momentum, with the global market set to grow by over 4% annually in the years ahead, and the French market enjoying a substantial trade surplus.