1.1 Presentation of the organic cosmetics market

The organic cosmetics market is a sub-segment of the larger cosmetics market. A cosmetic product includes any substance used to clean, moisturize or alter a person's skin, hair, nails or teeth.

Cosmetics can be divided into two categories:

Beauty products: make-up, perfume, skin cream
Care products: shampoo, soap, deodorant.

The global organic cosmetics market is booming, and despite the fall caused by the COVID-19 crisis this year, predictions are that this market will resume a stable growth from next year until at least 2023, including in Spain. The European leader today in terms of organic cosmetics is Germany, followed by the UK and France, which are far ahead of Italy and Spain (14^thworld market).

In Spain, the market is promising and shows good prospects. The country seems to be today between two levels: more advanced than most of the other European countries, and in particular its Portuguese neighbour, but still a step behind the 4 continental leaders on the market. The organic cosmetics segment being the one with the highest level of growth among the other possible sub-segments, it is through this one that Spain is developing on its domestic and export markets.

The craze is also affecting large groups, who see organic as a way to renew their product line and to regain consumer confidence. Confidence is indeed a key element in gaining market share, hence, for example, the multiplication of different labels or the marketing of independent brands in specific distribution channels. Finally, we must take into account the success of the online sale. This is a real growth driver for small and large players alike.

1.2 A growing global market

The entire cosmetics market

The global cosmetics market is estimated at *** billion in **** (***), i.e. *% growth for the year [***].

Growth in the cosmetics market World, ****-****, % Source: ****

Asia-Pacific alone accounts for **% of the global market value, followed by North America (***).

Breakdown of the cosmetics market by geographical area World, ****, % Source: ****

The ...

1.3 Spain, an emerging and promising market

Today, Spain is still lagging behind the other European giants (***). Spain is nevertheless showing promise in this sector and particularly in the segment studied, that of organic cosmetics.

Size of the cosmetics market Europe, ****, billion euros Source: ****

Organic, the new Spanish trend

Spanish consumers are increasingly demanding environmentally friendly and healthy ...

1.4 Foreign trade

In the absence of data on Spain's foreign trade in the organic cosmetics sub-segment, we have focused on the broader cosmetics segment in order to understand the country's main customers and suppliers.

Spain is a slightly larger exporter of cosmetic products than importer for the category "cosmetic and toilet preparations; beauty, ...

2.1 A favourable consumer climate

In order to understand the national demand for organic cosmetics it is first necessary to analyse the demand for the more general cosmetics market.

Spain is a country that is receptive to cosmetic products, in fact the average annual budget for a consumer in the country in cosmetics was *** euros in ...

2.2 Consumer Behaviour

What they buy

Consumption of cosmetics in Spain is quite homogeneous among the different product categories. Skin care remains the most consumed product category, encompassing **% of purchases. Among skin care products, more than half are intended for facials (***). [***]

Cosmetics consumption by category Spain, ****, % Source: ****

Main criteria for buying organic cosmetics

Spaniards ...

3.1 Spain, leader in organic farming

The association STANPA lists over *** member companies. These companies represent **% of the national cosmetics market, **% are SMEs. These companies have more than **,*** direct employees in the sector and ***,*** indirect employees. Despite this large proportion of SMEs, the Spanish market is not very homogeneous. The indisputable leader remains L'Oréal with all ...

3.2 Various distribution channels

Organic cosmetics are distributed to consumers through five distribution channels:

Mass distribution (***) Selective distribution (***) Hairdressers and home hairdressers Direct sales (***) Pharmaceutical advice (***)

The distribution channels for organic cosmetics do not have the same weight as in the more general cosmetics market. Indeed, if for cosmetics the privileged channel remains the supermarkets, ...

4.1 Specific ingredients

According to COSMOS - the international non-profit organization producing organic standards - organic cosmetics contain five categories of ingredients:

Water Mineral elements Physically processed agri-ingredients Chemically processed agri-ingredients Other ingredients

Agro ingredient (***) the use of a substance of plant, animal or microbial origin that is derived from agriculture, aquaculture or ...

4.2 The different supply trends

A green product throughout the value chain

Given the interchangeable terminology (***), it is difficult to get a comprehensive overview of all products labelled as organic.

Not all certified entities consider the entire product supply chain. This last aspect could potentially be a determining factor in a world of changing supply.

Not ...

4.3 Generally higher prices

Organic cosmetics generally tend to be sold at higher prices than non-organic cosmetics. Among the reasons that can be given for these prices, in addition to a higher willingness to pay to acquire this type of product, we also find the need to use more natural resources which have a higher ...

5.1 Terminology can be confusing

Terminology can be confusing

There is confusion about the definition and identification of "organic" products. A first step towards a better understanding of the product is to differentiate the following categories [***]:

The natural cosmetics : they contain ingredients of natural and/or organic origin (***) The organic cosmetics : they contain natural raw ingredients ...