Europe’s cosmetics and personal care sector is constrained by regulatory complexities and limited support for innovation and SME growth.

The industry says policymakers must prioritise simplifying regulations, improving access to financing, and fostering innovation to secure the sector’s role as a driver of economic resilience and competitiveness. 

The cosmetics and personal care sector stands as a flagship European industry—valued at €96 billion, supporting over 3.5 million jobs, and reaching 500 million consumers daily. It is a model of European competitiveness, driving innovation, exporting high-quality products globally, and creating jobs across the continent.

As Franckie Béchereau, Europe & International Director for Cosmetic Valley, told Euractiv, “Cosmetics is an industrial sector characterised by its complete autonomy, as its entire value chain is located in Europe.”

“The laboratories and production sites of its companies, primarily SMEs, create numerous job opportunities and offer diverse and rewarding career paths, often with a strong international dimension.” This reflects the sector’s integral role in Europe’s economy, leveraging its innovation, production, and export capacity to drive growth.

SMEs – driving innovation and local economies 

Nearly 9,000 SMEs, many family-owned and community-based, form the backbone of this thriving industry. These businesses are key innovators, introducing new ingredients and formulations yearly, contributing to sustainability and improving the range of products available to consumers.

Béchereau observed: “SMEs in the industry introduce new ingredients yearly, which are used to develop new formulations to offer consumers a broader range of product options, improve product efficiency, as well as reducing CO₂ emissions.”

However, these SMEs often face challenges navigating fragmented regulations and accessing necessary resources for innovation. To ensure that these companies can thrive within the Single Market, policymakers must act to simplify the regulatory framework and provide more support for financing and innovation.

Harnessing the Single Market 

The European Single Market has played a critical role in the success of the beauty and personal care sector, enabling the free movement of goods and fostering synergies across member states.

Béchereau explained that “The European Single Market has been a critical driver of growth and global competitiveness for the beauty and personal care industry,” facilitating the sector’s €29 billion annual added value to the EU economy.

Yet, despite these benefits, regulatory complexities still impede the growth of SMEs within the sector. Fragmented regulations, lack of clear guidance, and insufficient support for innovation must be addressed. Streamlining these frameworks will allow businesses to flourish and help maintain the sector’s position as a vital pillar of European competitiveness.

Jobs and skills: building a future-ready workforce 

The impact of the beauty and personal care industry extends far beyond product development. With over 3.5 million direct and indirect jobs across Europe, the sector supports vital employment in manufacturing, research and development, retail, marketing, and supply chain operations.

As Béchereau noted, “The beauty and personal care industry supports nearly 3 million jobs (direct and indirect) across Europe,” creating a diverse and highly skilled workforce.

By continuing to invest in research, innovation, and cross-border collaboration, the industry generates demand for specialised skills in science, technology, and craftsmanship. This emphasis on skills development ensures that Europe remains a global leader in both the beauty sector and broader technological advancements.

A global export leader 

The cosmetics and personal care industry is a major export success story for Europe, with €26 billion worth of products exported in 2023 alone.

European cosmetics are renowned worldwide for their quality, safety, and innovation. However, the sector faces increasing competition from global markets. Béchereau warned, “Our industry operates in an increasingly competitive global environment, where regulatory barriers and trade policies can significantly impact our ability to compete.”

For the EU to retain its leadership position, it is essential that policymakers reduce trade barriers, align international standards, and increase support for research and innovation. This will ensure that European-made products continue to be sought after on the global stage, sustaining their dominance in international markets.

Securing the sector’s future 

Valued at €96 billion, the cosmetics and personal care sector plays a central role in Europe’s economy. With its impact felt through 3.5 million jobs and essential products used by millions every day, the sector deserves greater recognition.

“The cosmetics and personal care industry should benefit from more recognition due to its role as a major contributor to the European economy,” said Béchereau

To secure the future of this vibrant sector, policymakers must address existing regulatory challenges, foster SME growth, and prioritise innovation. By doing so, the industry believes it will ensure that the European beauty and personal care industry remains a competitive force, contributing to the continent’s economic growth and global influence.

[Edited By Brian Maguire | Euractiv’s Advocacy Lab ]