Luxury is a decisive element of made in France and everything indicates that the trend is consolidating in the field of beauty. The world's leading exporter of cosmetic products is experiencing a boom in this sector, despite the dark clouds in the global economy. Sales are growing, companies are increasing their manufacturing capacity and are having trouble recruiting specialized staff.
Perfumery and cosmetics employ 3,200 companies in France, of which 80% are SMEs. In total they employ 250,000 people. Research and development is essential in this activity. Investments in this area exceed 650 million euros per year. The industrial fabric of cosmetics is very complex. Laboratories, universities and also growers of medicinal and aromatic plants participate.
The cosmetics market, on a global scale, is growing at a rate of 5% per year and is estimated to exceed 700,000 million dollars in 2025. The French volume – almost 16,200 million euros in 2021, equivalent to 150 aircraft Mid-size Airbus – is the second contributor to balance the trade balance. The countries that import the most French cosmetics are China and the United States.
The dynamism in the cosmetics sector was confirmed by the giant L'Oréal. In a recent interview with the channel BFM Business, the general director of products for the general public of the French multinational, Alexis Perakis-Valat, declared himself very optimistic about the prospects. "We see an accelerating market," said the senior executive.
Cosmetics manufacturers benefit, according to Perakis-Valat, from the so-called lipstick effect, a psychological phenomenon studied in the United States after the 9/11 terrorist attacks. Contrary to what might be supposed, in times of uncertainty and crisis, some consumers choose to spend on apparently unnecessary products that give them pleasure, to sublimate their anxieties.
Those responsible for L'Oréal have also confirmed that, thanks to the Internet, consumers are now much better informed than before about the characteristics of products and their level of quality. They compare the ingredients and are more demanding. Ultimately, this behavior is an engine of growth and innovation for the industry. "Beauty is a supply market," Perakis-Valat concluded. The only limit is our creativity and the ability of consumers to invent routines.”
The rise of cosmetics means that even large firms such as L'Oréal or Dior have difficulty finding certain technical profiles. According to the Cosmetic Valley association, the sector needs to hire 15,000 new professionals each year, the same number required by the aeronautical industry, also in short supply, and more than the vacancies that must be filled in the pharmaceutical sector.
It is not easy to retain young engineers after time-consuming training because they need to learn to control automated production lines with great technical precision. The French challenge in the field of personnel is to face competition from Japan, South Korea or Italy, countries with a great industrial culture, while aspiring to a level of excellence that requires permanent innovation and digitization of processes.
