L’Oréal, Beiersdorf, Kiko Milan and Ancorotti Cosmetics Create ‘Value of Beauty Alliance’

L'Oréal Groupe, Beiersdorf as well as Givaudan, IFF, Kiko Milano and Ancorotti Cosmetics are calling attention to the beauty and personal care industry’s impact through the new “Value of Beauty Alliance.” The aim of the Alliance is to bring together actors of the European beauty and personal care value chain to raise awareness of the positive impact the industry has in Europe both at an economic and societal level.

L'Oréal and Beiersdorf are leaders in the category, and are ranked No. 2 and No. 8 in Happi's 2023 International Top 30 Report, respectively.  Kiko Milano and Ancorotti Cosmetics are beauty companies based in Italy.

The founding members gathered in Brussels at the end of January to present key figures and insights into the industry's diverse value chain and its major economic and societal contributions, to key stakeholders from the European Union institutions.

The report is said to encapsulate the “crucial role of the beauty value chain for the EU economy and society” as well as for health and well-being.

The beauty industry—a market boasting €74.1 billion in Europe—resonates deeply with 80% of EU consumers who see beauty products as integral to their daily lives, according to the stakeholders in this newly formed group.

“With six founding members, the alliance represents different facets of our sector.  I would like to welcome all members of our extensive value chain, industry and associations, to join hands with the Value of Beauty Alliance. Together we will amplify our voices and demonstrate the socio-economic significance of our industry for Europe,” said Nicolas Hieronimus, CEO of L'Oréal Groupe.

“Fueled by the relentless pursuit of innovation with a strong focus on sustainability, this vast and diverse ecosystem stretches across Europe, contributing to our economy, supporting our health and well-being, and shaping our society and culture,” said Vincent Warnery, CEO of Beiersdorf.

The Value of Beauty Alliance is open to all actors contributing to the cosmetics value chain in Europe, keen to help providing a better understanding of the economic and social contributions of the ecosystem. Albéa and PUIG already have committed to join this collective effort.

The report looks at three key areas, according to the Alliance: economy and innovation; health and wellbeing and society and culture.

Economy and Innovation

The European cosmetics and personal care industry is a vibrant ecosystem of innovation and employment, directly supporting over 3 million people employed within the entire value chain across the EU, evaluated at €74.1 billion total sales and forecasted to surpass €100 billion in annual value by 2027, according to the report data.

The sector is a cradle of scientific advancement, investing €2.35 billion in R&D and nurturing more than 30,040 scientists in diverse fields. By fostering this industry, the EU ensures it remains at the forefront of EU competitiveness, marrying economic prosperity with scientific ingenuity. Technology and product innovation is continuous, driven by consumer preferences, ever-changing beauty trends and sustainability, notes the Alliance.

Sustainability is a key priority at all points of the value chain from green energy usage and ethical testing to eco-friendly packaging, using recyclable materials in innovative ways to reduce waste, with continuous efforts to continue to improve its environment and social footprint.

In 2022, five out of the thirteen companies that globally achieved a Triple A CDP Rating for their sustainability efforts were in the beauty and personal care sector, according to the report.

Health and Wellbeing

The sector is not just a powerhouse of economic activity; it's also a central actor in helping to prevent some skin diseases. For example, using adapted sunscreen when needed can contribute to the prevention of skin cancers, said the Alliance.

A vast majority of Europe’s 448 million consumers use a variety of beauty and personal care products to enhance their wellbeing, reflecting the region's deep appreciation for high quality and innovative beauty and personal care products, according to the Alliance.

In Europe, nearly seven out of ten women (68%) see perfumes as important or very important, making them feel good in their daily lives, according to the report.

Society and Culture

The beauty industry is also an integral part of European culture and society, safeguarding, and nurturing skills like those related to perfume in the Pays de Grasse region of France, which have been inscribed in UNESCO’s Representative List of the Intangible Cultural Heritage of Humanity, according to the Alliance.

According to the report, beyond its social and cultural role, the sector is constantly reinventing itself and incorporates the ideal of an inclusive beauty, which describes products and practices that cater to everyone in society.

The Value of Beauty Alliance is open to all actors contributing to the beauty and personal care value chain in Europe, keen to help providing a better understanding of the economic and social contributions of the ecosystem.

Membership information is available here.