The Spanish Cosmetics and Perfumery market exceeds 9.3 billion € with an internal consumption of 7 billion € in retail sales prices. Export numbers were 12% higher this year than the previous; that is 2.7 billion exports made for a positive trade balance in 2014.
According to the Euromonitor International , studies show a steady climb out of the economic recession that affected beauty and personal care market sales as well. Spain’s beauty and personal care market provides consumers with the cream of the crop products while generating employment, both directly and indirectly, to a total of 39,650 people as stated by the us.spain.business.com research article, Fashion from Spain. This goes to show that Spain’s economy is very vulnerable to beauty market sales gains or losses, and business competitiveness is essential to the overall market sustainability.
There are 300 companies categorized in the country’s beauty market. Of which 60% are Small-Medium Sized Enterprises (SMEs). Spain’s beauty businesses typically have a familial structure, mostly producing for private labels. These types of privatized labels are growing in the market, as the Euromonitor International explains, “French company L’Oreal currently leads the Spanish beauty and personal care market; however in 2013 it was private label recording the best results. As Spanish consumers are ranking price as the deciding factor when making a purchase decision, private label ranges have been gaining weight over the review period.”
Spain’s 300 companies hold the esteem of being known for their quality and range of products. Over time, the Spanish market has gained strong recognition for this abroad. Key markets such as the European Union, Russia, Mexico, and the USA have positioned Spain to become one of the most prime beauty markets in the world. The U.S. Commercial Service – U.S. Embassy Madrid, Spain show studies of Spain’s significance in the EU27 ranked at a high fifth place, not too far behind Germany, France, the United Kingdom, and Italy.
Spain has gained more visibility since 2008, which is represented in their export percentage and turn over. Other data that supports Spain’s beauty market increase in terms of exports to the USA specifically comes from the Spanish Foreign Trade Institute (ICEX), showing the total Spanish beauty product exports for 2013 increased by 12% from the previous year. As a whole in 2010, beauty market exports of perfumery accounted for an estimated 37% while personal grooming reached an estimated 25%, while cosmetics hit 21%, and hair care products (hair salons) made up the remaining 17%. The top three major export countries for Spanish beauty products in order from first to third are: France, Portugal, and Germany. The success of the Spanish beauty market stems from consumer’s appreciation of Spain’s selection of high quality, raw materials, and expertise of beauty ingredients. Success is also proven on a commercial level due to great products sold at an even greater value.
Spanish brands leading the country’s beauty market have taken on the trend of innovation and naturally clean products, such as Natura Bisse, Montibello, and The Perfumes y Diseno group. Natura Bisse, founded in late 1970s, is a brand of products popular within the skin care category. Nature Bisse has a range of spa products and creams sold by major international retailers such as Barneys New York, Neiman Marcus, Lane Crawford Hong Kong, and Palacio de Hierro in Mexico. Montibello is a power brand in the professional cosmetics market, recently going global, and currently having an extensive list of professional hair care and cosmetics use products. The Perfumes y Diseno is a big in the Spanish perfumery sector. They create and sell fragrances to the Tous brand and their fragrances are sold in over 120 stores internationally.
Spanish culture indulges in moments spent with family and friends around the best fod and wine. Spain’s demographic includes a higher population of individuals over the age of 65. This demographic continues to grow while the number of youth (15 to 25 years of age) has declined since 2013. With the country’s demographic having a higher number of people of an older demographic, Spain’s beauty and personal care market has been impacted in a positive way. A demand for natural cosmetics is growing, as consumers are making natural products for beauty and hygiene a focus point in their purchase. Germaine de Capuccini is a brand that represents this trend. As they are known for their in depth works in R&D and the significance to their brand in working closely with aesthetic physicians.
A whopping 90% of the Spanish manufacturing business is represented by the Spanish Cosmetic, Perfumery and Toiletry Association, STANPA. This organization founded was founded in 1951, and is made up of hundreds of Spanish beauty companies, who market their own products while motivating the beauty market to be better in its entirety. STANPA is the gateway for beauty businesses looking to permeate Spain’s market, or for existing Spanish beauty businesses looking to excel to higher levels. The organization provides a giant platform for businesses to grow and strengthen themselves in order to successfully compete against others in their same category. According to STANPA’s who exhibited with a pavilion themed “Beauty traditionally plays a key role in the wellness and quality of life, as well as in Spanish habits, culture and way of life.” A statement that symbolizes Spain’s consumer idea of continuing to make beauty a part of Spanish culture.