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Spanish Cosmetic Market Carmen Ribera Commercial Specialist US Commercial Service - US Embassy Madrid, Spain
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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 economy – 13th largest importer
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.
Market Share by Products Groups (2011)
22%
26%22%
8%
21% Fragrance
Skin Care
Toiletries
Decorative Cosmetics
Haircare
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 Colomer group.
Distribution Channels for Cosmetics and Toiletries (2011)
Beauty Salons
Direct Selling
Hairdressers
Pharmacy
Selective Vendors
Mass Market
1.35%
3.53%
6.70%
10.19%
25.50%
52.73%
% Market Share
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.
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.
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%.
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.
TRADE SHOWS
Salon Look International (International Exhibition for the Image and Integral Aesthetics)
Madrid, October 4-6, 2013
email: [email protected]
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.
CS Spain Contact
Carmen RiberaCommercial SpecialistUS Commercial Service – US [email protected]
Phone: +34 91-308-1544www.export.gov/spain
