Spanish cosmetics lose market share in Greece
Spanish cosmetics and perfumes are losing market share in Greece. According to a new study from the Institute of Foreign Trade, imports of Spanish products to Greece have declined by 22.9% last year.
With sales of €804 million, the cosmetics and perfumery industry in Greece is the 17th largest European market according to the European Cosmetics Association.
Despite the market being mostly dominated by international brands such as L’Oreal, Procter & Gamble, Unilever, Estée Lauder, Colgate-Palmolive, Johnson & Johnson and Beiersdorf, Spanish brands are well placed.
In fact, Spain is the eighth largest exporter of cosmetics to Greece, behind Germany, France and Ireland. But while Greece’s imports of German products totalled €114.1 million in 2015, imports of Spanish cosmetics to Greece declined to €16.7 million.
The struggling Greek economy is partly to blame for the decline, as well as falling consumer demand for beauty products, says the report.
The Greek consumer is currently favouring skin care, hair and personal hygiene products, over make up. Indeed, these items account for 80% of the total revenue of the Greek cosmetics industry, while make-up and perfumes each generate 10% of all sales, according to data from Cosmetics Europe.
Despite this, Greece holds a big potential for Spanish brands. According to the report, the local fragrance industry offers great opportunities for expansion, while essential oils are also performing well. And Spain is particularly strong in the export of essential oils, with global exports growing 70% this year.
Euromonitor expects cosmetics sales to grow by 6% in Greece between 2017- 2020 and average cosmetic spending per capita to increase by €95 over the next three years.
And while Spanish imports to Greece declined last year, they have increased by 42% in the year to August 2016, suggesting that the market is ripe for expansion.
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