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Cosmetics market appraised at 745 euros in 2008

The market of cosmetics and care products is appraised at 745 million euros in 2008, up by some 5% as against the previous year, when it reached 720 million euros, according to Euromonitor survey, cited on September 15 by daily Ziarul Financiar.
Therefore, after growth yields of 15%, the sales of cosmetics and personal care products (soap, shower gel, creams, shampoo, health conditioner, hairstyle products, shave products) might report the first rise lower than 10% this year, shows the figures of the survey.
„Daily spending for basic products, but also for electricity and fuel grew a lot and this may be felt in the family budget, especially in the case of families with low and medium-income families”, said Andreea Sas, marketing manager of local cosmetics producer Gerocossen.
Companies that hold the highest market share in the cosmetic industry do not give up, however, the optimistic forecast which include two-digit prices, but support them with investments in marketing and advertising. More than that, the entry into ever more niches, some of them unexploited until now, significantly contributed to the rise in sales and a better positioning on the market.
The biggest rises, of up to 20%, are expected for premium and luxury products and the skin care products.

The Romanians’ attraction to the products traded under a famous brand also triggers the gradual disappearance of no-name products, traded mainly in markets, in district shops or in rural areas.
The market of selective perfumes, for instance, is expected to go up to 70 million euros, which will account for 8% of the overall market.
A significant rise was reported as regards the bath products (shower gel, soap, shampoo, hair conditioner) which last year contributed 12% to the market of personal care products.
Therefore, the value of these products reached some 93 million euros. Even if the segment of child care products continues to be low, standing at only 7 million euros in 2007, it has an annual pronounced dynamic, exceeding the threshold of 5.6 million euros reached one year ago.
Over the past years, the market of cosmetics and of the products of personal care grew significantly, reaching this year to a double value as against five years ago, placing Romania on the fourth place in the ranking of countries of Eastern Europe, after Russia, Poland and Ukraine.
Although the market is on the rise year on year, annual spending per capita for personal care products will not exceed 45 euros. Last year, a Romanian national spend about 137 lei (41 euros) for cosmetics and bath products, whereas a Hungarian national spend 62 euros.
The Czech nationals spend most money, up to 76 euros, which is almost twice than a Romanian for personal care products.
In Eastern Europe, only Bulgaria and Ukraine have a lower consumption per capita, Bulgarians spend annually 26.6 euros for cosmetics and other toilet items and Ukrainians 31.4 euros.
Among the companies that hold the biggest market shares as regards the cosmetics and personal care products are Beiersdorf, Procter&Gamble, Unilever, L’Oreal, Colgate-Palmolive or Henkel.

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