Last Thursday the Beauty Cluster held a new day of its Beauty International Updates. On this occasion, the United States was the country chosen to learn about its regulatory situation and discover the market data of this important region for the beauty sector.
Adrià Martínez, Project Manager of Beauty Cluster, shared with the more than 70 attendees some relevant data of the Beauty & Personal Care market of Euromonitor in the United States. Regarding the market size of the sector, the latest available data referring to 2022 was 110,915 million dollars, which indicates a positive growth derived from the demand for high-end dermo-cosmetic products and the popularity of mass brands. Skin care is the fastest growing major market segment, particularly facial care. Euromonitor data forecast that Hair Care will evolve and follow the exponential growth trend of Skincare derived from hairskinification. L'Oréal is the leading group in all categories: skin care, colour cosmetics, hair care and fragrances. In the latter category, premium fragrances generate the highest sales volume in this segment. In skincare, L'Oréal, thanks to its CeraVe brand, has a market share of 9.4%. In colour cosmetics, it leads the segment with Maybelline NewYork, with a market share of 7.2%, and L'Oréal Paris with 5.6%. In hair care, Paul Mitchell is the best-selling hair brand with almost 6% market share. And in fragrances, Chanel is the brand most consumed by users with an 8.6% share. In terms of channel, the offline channel continues to lead the consumer and consumer share. Offline has a 70.5% market share, although retail e-commerce is growing and has a 27.8% share. Hypermarkets and department stores are the main channel for grocery retailers, and in non-grocery retailers, consumers prefer to go to a shop specialising in beauty and cosmetics. The most used claims in the US are moisturising, natural, paraben-free, cruelty free and vegan, according to Euromonitor.
After discovering the main facts about the US market, Daniel Redón, Director of Iberia Operations at Ecomundo, explained the current regulatory situation for exporting to the United States. Redón first explained the federal laws and the state laws that apply in each of the states independently. He began with a brief introduction on the differences for the FDA between cosmetic products and drugs and explained the basics of labelling and the additional requirements needed depending on the product. Redón shared with the attendees the latest update of MoCRA, which according to the FDA, governs the use of Good Manufacturing Practices and explains that they must be consistent, feasible and adequate for public health. Ecomundo's Iberia Operations Director also explained that the FDA also requires a registration of facilities for cosmetic establishments, which must be renewed every two years. Some of the new requirements included in the latest update are the justification of the safety of cosmetic products. Should the FDA have reasonable grounds to believe that a cosmetic product has been adulterated, it will be able to access all necessary documents. As for labelling, now, with this modification that came into force at the end of last year, allergens will be included in the list of ingredients, and the US regulatory body will be able to establish quantity thresholds. Redón ended by sharing the key dates to keep in mind for the distribution of cosmetic products in the United States that may be affected by the MoCra update. From its entry into force on 29 December 2023, existing products and facilities are required to register and primarily must have tests that demonstrate the safety of the products. From 29 June 2024, a proposed list of allergens will be submitted, although the final list may be published up to 180 days later. On 29 December 2024, labelling requirements and the FDA's proposal on good practice for cosmetics will come into force. On 29 December 2025, the final rule on Good Cosmetic Practices will be published.
Rubén Márquez from Dascher shared the more technical aspects related to logistics and marketing and discussed the efficiency of the logistics chain, the regulatory framework and specific market requirements in the United States, and communication and coordination. He spoke about the need to have an efficient logistics chain through specialisation and consultancy for feasibility planning. Rubén Márquez also pointed out the importance of choosing a logistics partner that is specialised in the specific market and product. Other important points to be taken into account are the optimisation with time and financial margins, as well as storage and subsequent distribution. Márquez also pointed out the different transit times between Spain and the United States, with the plane being the fastest, taking between 2 and 5 days, although he explained that there are also other variables that can influence these terms. When choosing a partner to help in this distribution, it is recommended to understand the protocols, tools and accessibility to information.
Finally, Ricard Armengol, CEO of Provital, explained the process of setting up a company in the United States, as the cosmetics ingredients and active ingredients company has recently opened a subsidiary in the United States. Armengol offered attendees some tips or best practices for creating a company and establishing itself in a market. In the case of Provital, they have subsidiaries and sales offices in China, France, Germany and Brazil, which allows them to sell directly to their customers. In the United States, until the summer of last year, they had been selling through a distributor since 1983, but a stagnation in growth, a change in strategy for Provital and a change in the ownership of the distributor led to the creation of the subsidiary. Armengol explained that in order to promote the brand globally, it is important not to leave it in the hands of distributors, and the United States, in particular, offers relevant visibility.
Finally, Adrià invited the attendees to the next session of the Beauty International Updates where they will learn about the latest developments in the cosmetics market. It will take place on 30 May and this time it will be Global Regions with the latest Euromonitor data update.