1、SOCIO-ECONOMIC CONTRIBUTION OF THE EUROPEAN COSMETICS INDUSTRY 2019 Socio-Economic Contribution of the European Cosmetics Industry June 2019 First published in June 2016 and updated with industry economic data in June 2019. To explore contributions for environmental sustainability, please refer to C

2、osmetics Europe Environmental Sustainability Report. Written by Cosmetics Europe with support from Risk followed by Poland and Spain SMEs for example, 96% of survey respondents indicated that they use toothpaste every day, while 83% use deodorant daily. A large majority (85%) of young people indicat

3、ed that cosmetic products make them “feel safer” (e.g. because they do not smell badly or break out in spots), while 53% use cosmetic products because they want to “feel more like a young man/woman”. In a 2015 survey by FEBEA, more than 60% of people said that cosmetics have a positive impact on the

4、ir well-being, image, self-confidence and mood (FEBEA, 2015). 2% 1% 4% 19% 42% 32% Strongly disagree Somewhat disagree Neither agree nor disagree Does not apply Somewhat agree Strongly agree THE PERSONAL CARE AND COSMETIC PRODUCTS THAT I USE HELP ME TO BUILD UP MY SELF-ESTEEM (COSMETICS EUROPE, 2017

5、) 2% 1% 4% 21% 43% 29% Strongly disagree Somewhat disagree Neither agree nor disagree Somewhat agree Strongly agree Does not apply THE PERSONAL CARE AND COSMETIC PRODUCTS THAT I USE IMPROVE MY QUALITY OF LIFE (COSMETICS EUROPE, 2017) 14 Socio-Economic Contribution of the European Cosmetics Industry

6、Low self-image and self-esteem can have a negative effect on our health. A study by the Renfrew Center Foundation (2012), which surveyed 1,292 women (aged 18+), found that almost half of women have negative feelings when they dont wear make-up. Of those surveyed, 16% felt unattractive, 14% felt self

7、- conscious and 14% felt that without wearing make- up they were “naked / as though something was missing”. The study found that women wear make-up because they like the way it makes them look (48% of respondents), and because cosmetic use makes them feel good (32%). IMPORTANCE OF PERSONAL CARE AND

8、COSMETIC PRODUCTS IN YOUR DAILY LIFE (IN %) (COSMETICS EUROPE, 2017) SUN CARE PRODUCTS ORAL CARE PRODUCTS SKIN CARE PRODUCTS BODY CARE PRODUCTS PERFUME PRODUCTS MAKE-UP PRODUCTS HAIR CARE PRODUCTS Does not apply Not important Not Very Important Neutral Important Very Important 0% 10% 20% 30% 40% 50%

9、 60% 70% 80% 90% 100% Look Good Feel Better (LGFB) is a charity dedicated to improving the self-esteem, confidence and well-being of women and teenagers undergoing cancer treatment. The charity is supported by over 50 leading companies and brands from the cosmetics industry. LGFB helps to improve se

10、lf-image and appearance through free group and self-help skincare and make-up workshops. The service is available in 27 countries worldwide and over 1.87 million people have been supported to date. A major research initiative highlighted that 97% of respondents felt more confident after attending a

11、LGFB workshop and that the effects of this are enduring, with 96% of respondents still feeling more confident three months later (out of 2,000 beneficiaries contacted). Source: Look Good Feel Better, UK (2019) 15 2. Supporting Jobs which implies that the total number of retail outlets selling cosmet

12、ic products is likely to be considerably higher than 46,400. NUMBER OF SMEs MANUFACTURING COSMETICS BY COUNTRY IN 2018 (EUROMONITOR INTERNATIONAL, 2019) COSMETIC SALES BY DISTRIBUTION CHANNEL (BY VALUE OF SALES) Based on partial data from Croatia, Germany, Italy, Spain and the UK. The uncertainty in

13、 these figures represents variations between countries. Supermarket / hypermarket36% Pharmacy / drug store57% Department store15% Direct selling5% Specialist cosmetics store / perfumery26% Hairdressing and beauty salon8% Online10% IT828 FR872 DE397 CH225 SE197 NL176 OTHER1350 PL493 ES476 HU228 UK578

14、 19 NUMBER OF ENTERPRISES INVOLVED IN THE WHOLESALE OF COSMETICS BY COUNTRY (EUROSTAT, 2015) NUMBER OF ENTERPRISES INVOLVED IN THE RETAIL SALE OF COSMETICS BY COUNTRY (SPECIALISED STORES ONLY) (EUROSTAT, 2015) OTHEROTHER4,9506,520 GRUK8701,180 SECZ9201,260 ROBG9501,960 NLPT10602,000 UKGR1,3502,410 D

15、EFR1,4304,010 PLDE1,6504,080 FRPL2,4104,380 ESES3,4806,300 ITIT3,92012,350 The beauty services sector (which includes hairdressing salons and other personal grooming establishments) relies heavily on the use of cosmetic products and a growing number of enterprises in the sector actively sell cosmeti

16、c products. Data are not available on the total number of beauty salons using and selling cosmetics in Europe, although information from five countries (France, Germany, Italy, Spain and the UK) indicates that there are at least 77,750 beauty salons (Clarke, 2009). It has been estimated that there a

17、re between 400,000 and 500,000 hairdressing establishments in the EU, with the largest number in Italy (73,000 in 2012), Germany and France (over 65,000 businesses per country) (ICF GHK, 2014). The sector is also sizable in terms of number of businesses in the Czech Republic, Poland, Spain and the U

18、K (more than 35,000 businesses respectively). The hairdressing sector is dominated by SMEs and micro-enterprises, with the average businesses consisting of five hairdressers (often one owner operator and four staff members). ICF GHK (2014) report that, in recent years, the share of micro-enterprises

19、 in the sector (ranging from companies run by owner operators to those having up to two employees) and franchised salons has grown at the expense of what can be considered small businesses (between three and ten employees). This can, in part, be attributed to policies to support self-employment. NUM

20、BER OF HAIRDRESSING ESTABLISHMENTS IN THE EU (ICF GHK, 2014) The number of European spas is also growing and may be a source of inward investment to Europe in the form of “wellness tourism”. Although specific data are not available, numerous other types of enterprises are also involved indirectly in

21、 the cosmetics value chain. For example, distribution is a key business area in the cosmetics value chain. Many enterprises are also likely to be involved in advertising and the provision of business services (IT, legal services, accountancy, utilities, property, etc.). HIGH ESTIMATE 500,000 LOW EST

22、IMATE 400,000 20 Socio-Economic Contribution of the European Cosmetics Industry 2.4 Contribution to Europes GDP (GVA) The manufacture of cosmetic products contributes (directly) around 11.05 billion in GVA to the European economy each year. In terms of indirect impacts, the wholesale and retail sale

23、 of cosmetics also contribute to Europes GDP. Data from Eurostat indicates that, in 2015, these activities contributed at least 18.14 billion in GVA to the European economy. Note that data are missing or incomplete for some countries (namely the Czech Republic, Ireland, the Netherlands, Slovenia and

24、 Switzerland) and that other indirect impacts along the supply chain have not been included in this estimate. A total of 29.19 billion is therefore likely to represent an underestimate of the total GVA contributed by the European cosmetics industry. THE COSMETICS INDUSTRY CONTRIBUTES TO THE FUTURE P

25、ROSPERITY OF EUROPE. GVA IN THE COSMETICS VALUE CHAIN ( BILLION, 2015) (EUROSTAT, 2015) FR 5.10 DE 1.56 IT 1.14 UK 1.00 ES 0.96 Other 2.26 DE 2.65 IT 0.95 UK 0.92 FR 0.91 ES 0.50 Other 2.59 DE 2.31 UK 2.04 FR 1.38 ES 1.06 IT 0.88 Other 3.33 FR 7.38 DE 6.52 UK 3.95 IT 2.97 ES 2.51 Other 8.36 MANUFACT

26、URE 11.05 billion RETAIL (SPECIALISED STORES) 8.02 billion WHOLESALE 10.12 billion TOTAL 29.19 billion 21 2.5 Job creation Including direct, indirect and induced employment, the European cosmetics industry is estimated to support over 2 million jobs. Direct employment Data from Eurostat for 2015 ind

27、icates that more than 138,000 people (FTE units) are employed directly in the manufacture of cosmetic products. France, Germany, Poland, the UK and Spain account for the majority (77%) of these jobs. Taking into account growth in the sector in recent years and accounting for data gaps in the Eurosta

28、t database, Cosmetics Europe calculate that, in 2018, total employment in the manufacture of cosmetic products was 167,730 workers. NUMBER OF WORKERS EMPLOYED IN THE MANUFACTURE OF COSMETIC PRODUCTS IN EUROPE (COSMETICS EUROPE, 2018) Indirect employment In 2015, at least 441,300 people were employed

29、 indirectly (downstream) in the European cosmetics value chain, where this includes employment in the wholesale and retail sale of cosmetic products in specialist stores (Eurostat 2015). As explained previously, specialist stores only make up a small proportion of total cosmetics sales and so the to

30、tal number of people involved in the retail sale of cosmetic products is likely to be considerably higher. TOTAL INDIRECT (DOWNSTREAM) EMPLOYMENT IN THE COSMETICS VALUE CHAIN (COSMETICS EUROPE, 2018) Taking into account recent growth in the European cosmetics industry and employment relating to the

31、distribution of cosmetic products and beauty services, Cosmetics Europe calculate that total indirect employment in the European cosmetics industry was 1.63 million workers in 2018. This includes around 1 million individuals that are active in the hairdressing sector in the EU (ICF GHK, 2014). THE C

32、OSMETICS INDUSTRY GENERATES MILLIONS OF JOBS THROUGHOUT THE EUROPEAN SUPPLY CHAIN. FR 47,040 DE 27,360 PL 18,470 IT 18,330 ES 14,410 Other 42,120 IT 296,520 DE 250,180 UK 188,290 FR 157,950 ES 117,230 Others 624,930 MANUFACTURE 167,730 workers TOTAL INDIRECT EMPLOYMENT 1,634,900 workers 22 It has be

33、en estimated that hairdressing makes up, on average, about 0.5% of total employment in the Member States and that Germany has the largest number of workers in the hairdressing sector (274,000) (ICF GHK, 2014). Note that, in reality, there are likely to be more than 1.6 million people employed indire

34、ctly in the European cosmetics industry as this figure excludes employment upstream in the cosmetics supply chain (e.g. in the manufacture of cosmetic ingredients, and provision of business services, etc.). Although reliable data on the total number of people employed upstream in the cosmetics value

35、 chain does not exist, the International Fragrance Association (IFRA) has estimated that there may be in the region of 7,000 people employed directly in the European fragrance industry. Fragrances are an important ingredient used in many cosmetic products, but also find use in some household and ind

36、ustrial products; thus, only a proportion of these jobs can be attributed to the production of cosmetic fragrances (IFRA, 2013). It has been estimated that around 60% to 70% of the worlds fully qualified perfumers reside in Europe (up to 540 to 630 people) (IFRA, 2013). Induced employment Our resear

37、ch indicates that an induced employment multiplier of 0.2 to 0.3 is appropriate for the cosmetics industry. An employment multiplier of 0.2 simply means that for every 10 jobs created directly or indirectly in the supply chain for cosmetic products, a further two jobs are created through induced emp

38、loyment effects. In total, it is estimated that 366,200 to 549,400 jobs are created as a result of induced employment effects in the European cosmetics industry. INDUCED EMPLOYMENT IN THE EUROPEAN COSMETICS INDUSTRY, NUMBER OF WORKERS (2018) (OWN ESTIMATE) HIGH ESTIMATE 549,400 WORKERS LOW ESTIMATE

39、366,200 WORKERS 23 2.6 Wages and salaries Direct employment Over 5.1 billion per year is paid in wages and salaries to workers employed directly in the manufacture of cosmetic products (based on 2015 data for most countries), note that this excludes wages and salaries paid to workers in Malta, Slove

40、nia, and Switzerland for which comparable data do not exist. Indirect employment Data on the total wages and salaries paid to workers employed indirectly by the cosmetics industry are only available for the wholesale and retail sale of cosmetics in specialised stores and are not available for other

41、sources of indirect employment up and down the supply chain. The data shown in the graphs to the right therefore underestimate the total wages and salaries paid. Nevertheless, this conservative data shows that, as a minimum, 12.0 billion is paid in wages and salaries to workers employed indirectly i

42、n the supply chain for cosmetics. TOTAL WAGES AND SALARIES PAID TO EMPLOYEES ( MILLION, 2015) (EUROSTAT, 2015) 2.7 Employment taxes Direct (8) decent work and economic growth; (9) industry, innovation and infrastructure and (12) responsible consumption and production. The European Commission has com

43、mitted to take this agenda forward, across many relevant policy areas, for example through initiatives such as the Circular Economy Strategy which is designed to address more sustainable patterns of production and consumption. Cosmetics Europe has engaged actively and voluntarily in areas included i

44、n the Commissions Circular Economy action plan, such as environmental claims, product environmental footprint, plastic marine litter; it is considering additional voluntary initiative opportunities. 5.1 Sustainability in action “Sustainable development” can be defined and interpreted in many differe

45、nt ways, but at its core is a focus on development that seeks to balance the different, and often competing, needs of the environment, society and economy both now and in the future. Cosmetics Europe fully supports the principles and objectives of sustainable development and its members commitment t

46、o sustainability is embedded in its mission statement: THE COSMETICS INDUSTRY PLACES A STRONG EMPHASIS ON ENSURING CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY AND SUPPORTING PROACTIVE VOLUNTARY AND SELF-REGULATORY INITIATIVES. “COSMETICS EUROPES MISSION IS TO SHAPE A EUROPEAN OPERATING ENVIRON

47、MENT CONDUCIVE TO LONG TERM GROWTH AND A SUSTAINABLE FUTURE” “SUSTAINABLE DEVELOPMENT IS DEVELOPMENT THAT MEETS THE NEEDS OF THE PRESENT WITHOUT COMPROMISING THE ABILITY OF FUTURE GENERATIONS TO MEET THEIR OWN NEEDS.” (BRUDTLAND COMMISSION, 1987) 36 Socio-Economic Contribution of the European Cosmet

48、ics Industry In line with the United Nations Global Compact (2015), some of the largest cosmetics companies in Europe have created codes of conduct for their suppliers in order to establish harmonised criteria in the areas of corruption, human rights and environmental protection, which must be met i

49、f they are to work together. Recently, Cosmetics Europe has focused its sustainability-related activities on a study into the Product Environmental Footprint Category Rules for shampoo, which is a voluntary pilot aimed at mirroring the development of the European Commissions pilots in this field. Cosmetics Europe has also engaged, together with four European supplier industry associations, in the development of best practice for the cosmetics industry in the field of compliance with legislation pertaining to access to geneti