The VI Barometer of the Cosmetics and Perfumery Sector in Spain reveals the optimism of companies in 2023

Beauty Cluster held its Ordinary General Assembly last Wednesday, and as usual, during this event that brought together more than 100 members of the entity, the data obtained in the VI Barometer of the Cosmetics and Perfumery Sector in Spain were presented.This study was carried out in conjunction with Nueva Investigación with more than 140 surveys completed from 27 January 2023 to 20 March of the same year. The increase in participation by companies in the Spanish beauty industry year after year makes it an increasingly credible report that allows us to draw real conclusions about the current situation of the sector.Turnover and employeesAs reflected in the data obtained from the analysis of the results of this sixth barometer, there is a greater participation of companies with a turnover of more than €50M. The most representative range in terms of turnover is €5M-€50M, with 29.6%. In terms of number of employees, 38.7% of the surveyed companies are SMEs with less than 10 employees, again becoming the group with the highest participation in the study, followed by 26.8% of companies with 11 to 50 employees. Compared to the results of the previous years' barometers, it can be seen that companies that increase their workforce tend to do so by between 5 and 10%.Of the more than 140 companies that participated with their questionnaire, 40.8% of them are private label companies. Of this 40.8%, the main product lines are facial treatments (80%) and Body Cosmetics (62%). These two are consolidated as the main own-brand product lines since 2019. Sun protection follows body cosmetics with 46.6% and nutricosmetics with 8.6%, which did not appear in the barometer surveys carried out in 2022.Location and globalization of the businessAs in last year's edition, most of the companies participating in the study conducted by Beauty Cluster and Nueva Investigación are based in Spain, mainly in Catalonia (67%). On this occasion, 78.9% of the companies that took the surveys, although it is a lower percentage than in 2022, and thus, a greater national and international geographical dispersion of the companies participating in the Barometer can be perceived.In terms of exporting and international business development, more and more companies confess that they export their products or services. This percentage has risen this year to 86%, but the truth is that these exports account for less than 15% of the organisations' total turnover.74% of the companies in the sector surveyed believe that their turnover will grow by 2023, and 53.3% believe it will grow by more than 10%Optimism for the futureIn a scenario in which uncertainty, inflation and the lack of raw materials seem to cloud the future of the beauty sector in Spain, according to surveys, companies are moderately optimistic (60%) about the growth of the Spanish economy. This seems to be in line with the report published by the Bank of Spain, which states that the Spanish economy is starting to show incipient signs of improvement in these first months.74% of the companies in the sector surveyed believe that their turnover will grow by 2023, and 53.3% believe that it will grow by more than 10%. Likewise, 42% of the companies expect to increase the number of workers in their workforce.What are the concerns of companies in the sector?Although the companies have a positive perception of their situation with respect to their main competitors, and 44% consider that their situation is better, most of them agree on a series of facts that make them worry about the possible development and evolution of their activity. Rising supply costs (82%) and shortages of some raw materials (51%) continue to be the main risks or problems perceived by companies. There is a growing concern related to cost increases and price maintenance.COVID, which in the 2022 barometer continued to be a shadow for the sector, has fallen by more than 10 points and is no longer a concern for the cosmetics and perfumery sector in Spain.The teleworking wins weight in the industry Working was imposed in 2020 with the advent of the pandemic, and although many companies returned to face-to-face work after confinement to adapt to the restrictions, teleworking has now become an option for many of the companies in the sector.In 36.6% of the companies, their employees telework and attend 1 or 2 times a week at their face-to-face workplace. Moreover, in 26% of the companies teleworking is flexible in terms of days and hours. Only 28.1% of the organisations surveyed have not implemented teleworking.Business investment is growingSpanish industry knows that it is important not to fall behind in innovation, which is why surveys reveal an increase in the number of companies that will invest in 2023 (84%). The launch of new product lines is the area in which companies are investing most of their investments. 96.6% of own-brand companies will launch a new product in 2023. Staff training is the second dimension on which companies spend their funds.When it comes to investment, companies prioritise greater product safety and functionality, efficient production processes and quality, as well as leading the organisation towards a digital transformation, not forgetting the generation of new products and/or services.On the other hand, the barometer shows that companies' own research and development has been losing capital over the years. This year it has fallen by 1.7%.Social media: a growing advertising channelWith an increase of 12% compared to last year's report, social media and influencers are positioned as the third preferred option for companies to advertise their products and services. The first position continues to go to commercial and face-to-face visits (75.8%), followed by trade fairs and events (73.2%), which are already operating as normal in 2023.Instagram is the social network of choice for companies to disseminate their advertising campaigns, followed by LinkedIn, but which loses relevance compared to previous years and TikTok becomes the fastest growing social network.What believes the industry that wants the consumer?The trend follows the same line that the last year: natural products and sustainable packaging. Regarding the channel sales, on-line sales and retails shops will experiement the higher growing.

The VI Barometer of the Cosmetics and Perfumery Sector in Spain reveals the optimism of companies in 2023

The number of participating companies in the Barometer prepared by the Beauty Cluster grows and allows obtaining results that are more representative of the Spanish industry