Un business de aproape 2 miliarde euro in 2019

Source: Financiarul.ro.

Growth of the Cosmetic Industry in Romania

Between 2013 and 2017, the Romanian cosmetics sector experienced remarkable growth, with revenues doubling to exceed 100 million euros. Preliminary data from 2018 suggests that this figure surpassed 120 million euros. The expansion of product lines and robust marketing strategies have aligned perfectly with the economic growth trend and the evolving consumer habits.

Local Business Performance

In 2017, local cosmetic manufacturers reported a revenue increase of 11% compared to 2016, marking a staggering 108.5% rise since 2013, reaching 104.8 million euros. The retail sector for cosmetics (CAEN codes 4645 & 4775) also showed a steady growth, climbing over 4% from 2016 and 35.4% from 2013, totaling nearly 1.5 billion euros in 2017. According to KeysFin analysis, the overall business landscape is projected to approach 2 billion euros by 2019, encompassing both production and sales of cosmetics.

Impact of Imports on Market Dynamics

The significant evolution of the market is closely linked to the rise in cosmetic imports, which increased by 9.7% from 2017 and were 102% higher than in 2010, amounting to 525.5 million euros in 2018. Notably, beauty and makeup products constituted 35% of total imports in 2018, followed by perfumes, personal hygiene items, and hair care products.

Export Trends and Sector Performance

On the export front, the Romanian cosmetics sector has shown impressive growth compared to seven years ago. Financial data indicates that cosmetic exports surged by 276% since 2010, reaching 327.5 million euros in 2018. However, there was a slight decline of 1.3% in exports compared to 2017. Hair care products dominated the export market, accounting for 70% of total cosmetic exports in 2018, followed by personal hygiene items, beauty products, and perfumes.

Trade Deficit and Employment Statistics

Despite the growth in imports, the trade deficit in the cosmetics market rose by 34.5% in 2018 compared to 2017, reaching 198 million euros, which is 14.6% higher than in 2010. In 2017, the cosmetics sector employed nearly 14,000 individuals, primarily in retail. Manufacturers reported 1,654 employees, a 6.4% increase from 2016 and nearly 50% from 2013, while cosmetic retailers employed 12,100 people, reflecting a 44.5% rise since 2013.

Labor Costs and Productivity Insights

KeysFin’s analysis also highlights that in the production sector, labor costs rose by 6% to 14,300 euros per employee, while productivity increased by 5% to 63,000 euros in 2017. In contrast, the retail sector exhibited the lowest cost-to-productivity ratio at just 7.8%, whereas production had a cost per employee that constituted 22.6% of the average productivity.

Source: wall-street.ro