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Spanish Cosmetic Market

Spanish Cosmetic Market. Carmen Ribera Commercial Specialist US Commercial Service - US Embassy Madrid, Spain. SNAPSHOT OF SPAIN. Population : 47 million GDP: $1.4 trillion (2012 est.) US exports to Spain: $9.4 billion in 2012 12th largest econo my – 13 th largest importer.

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Spanish Cosmetic Market

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  1. Spanish Cosmetic Market Carmen Ribera Commercial Specialist US Commercial Service - US Embassy Madrid, Spain

  2. SNAPSHOT OF SPAIN • Population: 47 million • GDP: $1.4 trillion (2012 est.) • US exports to Spain: $9.4 billion in 2012 • 12th largest economy – 13th largest importer

  3. COSMETIC & TOILETRIES MARKET • Market size: 7.5 billion/year (industry data). • Fifth largest European producer. • Annual expenditure of Spaniard in cosmetics: 8 million Euros. • Business structure: 300 companies employs 32,000 people. • 60% of the sector is made up of SME’s. • Exports: 2.35 billion Euros. • Imports: 1.9 billion Euros. • US imports 144 million Euros.

  4. Market Share by Products Groups (2011)

  5. KEY SUPPLIERS • All major international brand are in Spain • L’Oreal dominates the market, followed by Grupo Puig, Procter and Gamble, Uniliver and Coty (38% share) • Other Players: LVMH, Estee Lauder, Coty Beauty and The Colomergroup.

  6. Distribution Channels for Cosmetics and Toiletries (2011)

  7. DISTRIBUTION CHANNELS • Mass Market: El Corte Ingles, Carrefour, Alcampo and Mercadona • Specialty stores referred to as “Perfumerias”: Gilgo, Juteco, Sephora, Bodybell, Duglas, Marionnaud • Cosmetic and pharmaceutical markets are closely integrated. The term “Parafarmacia” lies between cosmetic an pharmacy market.

  8. MARKET ENTRY • In order to be successful in this competitive market, any foreign companies must be ready to: Invest heavily in marketing; Offer good quality, competitive prices and develop an attractive marketing strategy. • Cosmetic products commercialized in Spain need to be authorized and registered by the Spain Drug and Health Products Agency from the Spanish Ministry of Health. • Process approval usually last 3 to 6 months.

  9. MARKET ISSUES AND OBTACLES • Spain adheres to the EU cosmetic directive (1976 EU Cosmetics Directive and its amendments). Implemented into Spanish law via the Royal Decree 1599/1977. • Cosmetic products manufactured outside the EU, the manufacturer needs to appoint an authorized importer. The importer has to be authorized by the Spanish Drugs and Health Products Agency (AEMPS). • Labeling requirements prior sending the product to Spain. • Tariffs in imports from the United States stand at zero for perfumes and cosmetics but there is a Value Added Tax (IVA) of 21%.

  10. OPPORTUNITIES • Demand for natural cosmetics is growing. Spanish consumer tend to purchase natural products for beauty and hygiene. • Opportunities exist for companies that produce chemical-free cosmetics, formulated with natural constituents that offer biodegradable packaging, no side effects to the skin and no animal testing characteristics.

  11. TRADE SHOWS • Salon Look International (International Exhibition for the Image and Integral Aesthetics) Madrid, October 4-6, 2013 email: salonlook@salonlook.ifema.es www.ifema.es/ferias/salonlook/default.html • Cosmobelleza and Wellness (Exhibition of Hairdressing, Aesthetic and Wellness) Barcelona, February 2-4, 2013 www.cosmobelleza.com Spain offer two major trade shows for the cosmetic sector.

  12. CS Spain ContactCarmen RiberaCommercial SpecialistUS Commercial Service – US Embassycarmen.ribera@trade.tovPhone: +34 91-308-1544www.export.gov/spain

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