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ICAP: Cosmetics sector’s value up 7.7% in 2021-2023

A further increase in the value of the domestic cosmetics market is expected in 2024-2025

The cosmetics industry is seeing an increase in sales and extroversion, according to ICAP/CRIF data.

More specifically, a further increase in the value of the domestic cosmetics market is expected in 2024-2025, but at a lower rate (3%-4%), compared to the previous period.

According to the analysts, the main factors that determine the demand for cosmetics are the selling prices of the products in combination with the disposable income of consumers, the structure of the population by gender and age group, seasonality, their advertising exposure, etc.

The period 2022-2023 was a difficult one due to major challenges such as the energy crisis, rising raw material prices, higher transport costs, geopolitical tensions and particularly strong inflationary pressures. These developments have led companies in the sector to raise the prices of their products, due to the compression of their profit margins, while consumers continue to be under particular pressure as their purchasing power shrinks.

In these circumstances, the domestic production of cosmetics (in value, at wholesale prices) showed a remarkable increase of 7.7% in the last three years (2021-2023), after the reduction suffered in 2020 due to the pandemic. According to Eleni Demertzi, Senior Manager of ICAP CRIF’s Economic & Sectoral Studies Department, skin care products (face and body) have consistently occupied the largest share in domestic cosmetics production, in terms of value, followed by hair care products.