The cosmetic industry in Spain is a mature and developed market. Spain is currently the fifth largest European producer in the sector, with a turnover of 4.92 billion € in 2008. Skincare, hair care and perfumes and fragrance continue to dominate the market. Although it is a highly competitive market, there is potential for growth in natural innovative or unique products.
The cosmetics industry, according to the National Cosmetic Industry Association (STANPA), can be divided into the five principle subsectors of skincare, hair care, perfumes and fragrances, decorative cosmetics, and various toiletries. Skincare products lead this market at 26% of total sales, followed by perfumes/fragrances (22%), toiletries (22%), hair care (21%), and decorative cosmetics (9%) respectively.
Overall demand growth has shown impressive strides during the past several years. Spanish men and women spend millions of dollars on cosmetic items in the pursuit of personal enhancement. Consumers of cosmetic products are focused on products that have the ability to stop or slow the effects of aging, protect from UV rays, pollution and prevention and treatment for cellulites.
The anti-aging/UV protection/anti-pollution products are driven by all age groups and include men and women in the quest to appear younger and healthier. However, sales of these products are sensitive to the economy, and have a tendency to experience lower demand during economic downturns.
Spain's natural cosmetics market is experiencing growth at a time when the overall Spanish cosmetics market is stagnating. Substances from plants and high-quality ingredients in particular are in high demand with the increasingly health-oriented Spanish consumers. Natural cosmetics are also purchased to enhance wellness.