France continues to lead the way in cosmetics
The French cosmetics industry plays a leading role in the sector globally. The Made in France label is internationally recognised and valued. In 2006, sales in France rose for the 40th consecutive year, reaching a record level of €6.5 billion.
[ClickPress, Thu Jul 24 2008] The French cosmetics industry plays a leading role in the sector globally. The Made in France label is internationally recognised and valued. In 2006, sales in France rose for the 40th consecutive year, reaching a record level of €6.5 billion.
The worldwide cosmetics and perfume industry currently generates an estimated annual turnover of US$170 billion (according to Eurostaf – May 2007). Europe is the leading market, representing approximately €63 billion, while sales in France reached €6.5 billion in 2006, according to FIPAR (Fédération des Industries de la Parfumerie – the French federation for the perfume industry). The cosmetics industry relies on continuous innovation and R&D investment for product manufacturing and for marketing, in order to consistently meet safety requirements and satisfy consumer needs.
Among the internationally recognised French cosmetics companies are L’Oréal (the world’s leading cosmetics group, ahead of US company Procter & Gamble and Anglo-Dutch group Unilever), Chanel, LVMH, Yves Rocher, Pierre Fabre Dermo Cosmétique, Clarins and YSL-PPR. Leading pharmaceutical groups with large cosmetics divisions, such as Sanofi-Aventis and Johnson & Johnson, are also major players in the industry.
As well as the main business activity that is based in Paris, France also has two other specialised clusters in this sector – the PASS cluster (Parfum, Arômes, Senteurs et Saveurs – perfume, aromas, scents and flavours) in the Provence-Alpes-Côtes d’Azur region, and the Cosmetic Valley cluster (Sciences de la Beauté et du bien être – Science of beauty and well-being) based in the Centre and Normandy regions.
International groups in the cosmetics sector – such as Shiseido, Beiersdorf, Henkel, Coty Inc, Puig Group and Pacific Europe – have a strong presence in France and benefit from a vibrant business environment that also serves as a test market. According to a 2007 Invest in France Report, there have been several major successful international investment projects in the field. Pacific Chemicals Corp (South Korea) set up a perfume plant in Chartres in 2002, while Kobo Products Inc (Japan and USA), which specialises in raw materials for the cosmetics industry, is continuing to develop its sites in the Haute Garonne region. Natura (Brazil), a leader in the bio-cosmetics sector, has recently opened an advanced research centre in France to develop innovative technology for cosmetics.
In addition to the perfume and cosmetics industry, France also offers expertise in associated industries, such as bottle manufacturing and the production of aromas and scents. Companies in this field include Takasago (Japan), a specialist in aromas and perfumes, and Marionnaud, a specialist in distribution, which has been taken over by Hutchison Whampoa of Hong Kong.
“The French government actively supports research and has introduced the best R&D tax-credit system in Europe, which reimburses 50% of R&D costs in the first year. Its budget of over €1.4 billion in 2006 was increased to approximately €2 billion in 2008, following the reform introduced in 2007,” says Philippe Favre, President of the Invest in France Agency.
About the Invest in France Agency
The Invest in France Agency (IFA) promotes and facilitates international investment in France. The IFA network operates worldwide. IFA works in partnership with regional development agencies to offer international investors business opportunities and customized services all over France.
For more information about this press release, please contact Martin Hedges, Director of Communications at the Invest in France Agency in London: firstname.lastname@example.org
For further information, go to: www.investinfrance.org