Value of Beauty Alliance report showcases the importance of Europe’s beauty value chain

Brussels, January 31, 2024 – Renowned beauty, scent, and personal care companies - L’Oréal Groupe, Beiersdorf, Givaudan, IFF, KIKO Milano, Ancorotti Cosmetics - are gathering for the first time to highlight the beauty and personal care industry’s impact through the Value of Beauty Alliance that they are launching today.

The Alliance members are in Brussels to present a new report titled ‘What is the Value of Beauty’, offering key figures and insights into the industry’s diverse value chain and its major economic and societal contributions, to key stakeholders from the European Union institutions.

The report encapsulates the crucial role of the beauty value chain for the EU economy and society, as well as for health and well-being. The beauty industry, a market boasting €74.1 billion in Europe, resonates deeply with 80% of EU consumers who see beauty products as integral to their daily lives.

“With six founding members, the alliance represents different facets of our sector. I would like to welcome all members of our extensive value chain, industry and associations, to join hands with the Value of Beauty Alliance. Together we will amplify our voices and demonstrate the socio-economic significance of our industry for Europe.,” said Nicolas Hieronimus, CEO of L’Oréal Groupe.

“Fueled by the relentless pursuit of innovation with a strong focus on sustainability, this vast and diverse ecosystem stretches across Europe, contributing to our economy, supporting our health and well-being, and shaping our society and culture,” said Vincent Warnery, CEO of Beiersdorf.

The Value of Beauty Alliance is open to all actors contributing to the cosmetics value chain in Europe, keen to help providing a better understanding of the economic and social contributions of the ecosystem. Albéa and PUIG already have committed to join this collective effort.

The Value of Beauty report offers data and case studies which illustrate the full footprint of the beauty value chain in Europe, focusing on three pillars:

1/ Economy and Innovation

• The European cosmetics and personal care industry is a vibrant ecosystem of innovation and employment, directly supporting over 3 million people employed within the entire value chain across the EU, evaluated at €74.1 billion total sales and forecasted to surpass €100 billion in annual value by 2027.
• The sector is a cradle of scientific advancement, investing €2.35 billion in R&D and nurturing over 30,040 scientists in diverse fields. By fostering this industry, the EU ensures it remains at the forefront of EU competitiveness, marrying economic prosperity with scientific ingenuity. Technology and product innovation is continuous, driven by consumer preferences, ever-changing beauty trends and sustainability.
• Sustainability is a key priority at all points of the value chain from green energy usage and ethical testing to eco-friendly packaging, using recyclable materials in innovative ways to reduce waste, with continuous efforts to continue to improve its environment and social footprint.
• In 2022 five out of the thirteen companies that globally achieved a ‘Triple A’ CDP Rating for their sustainability efforts were in the beauty and personal care sector.

2/ Health and wellbeing

• The sector is not just a powerhouse of economic activity; it’s also a central actor in helping to prevent some skin diseases. For example, using adapted sunscreen when needed can contribute to the prevention of skin cancers.
• A vast majority of Europe’s 448 million consumers use a variety of beauty and personal care products to enhance their wellbeing, reflecting the region’s deep appreciation for high quality and innovative beauty and personal care products.
• In Europe, nearly seven out of ten women (68%) see perfumes as ‘important’ or ‘very important’, making them feel good in their daily lives.

3/ Society and culture

• The beauty industry is also an integral part of European culture and society, safeguarding, and nurturing skills like those related to perfume in the Pays de Grasse region of France, which have been inscribed in UNESCO’s Representative List of the Intangible Cultural Heritage of Humanity.
• Beyond its social and cultural role, the sector is constantly reinventing itself and incorporates the ideal of an inclusive beauty, which describes products and practices that cater to everyone in society.

The full report is available to download at www.ValueofBeauty.com

Media contact: Value of Beauty Alliance - info@valueofbeauty.com