Europe Cosmetic Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Europe Cosmetic Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Europe Cosmetic Packaging Market is estimated to grow at a CAGR of about 2.6% over the forecast period. Driven by the changing consumer preference towards the beauty industry over the years, the European region currently represents the potential market for organic and natural cosmetic products. A survey conducted by Global Web Index on over 2,300 web users from the United Kingdom who buy organic and natural cosmetic products regularly indicated that about 80% did so because they care about the environment and health. About 64% of the respondents are looking for products with recyclable packaging.

• The beauty industry in the United Kingdom contributes to a total of GBP 1.74 billion in 2019 to the nation's economy. As per the Oxford Economics Report, the largest portion of this share was generated from care and maintenance products. The major driving factor for the rise in packaging demand in the region is driven by the popularity of vegan cosmetic products in the United Kingdom.
• While In Italy, oral care is gaining benefits from rising consumer consciousness related to the importance of preventing oral problems and proper oral hygiene. This is increasing the export and import volumes of oral care products in Italy, therefore causing growth in Italian consumers' usage of products. For instance, About 76.3% of the respondents/patients suffering from diabetes in Italy said that they brush their teeth after each meal. These factors are expected to increase the usage of toothpaste in the country.
• The cosmetics manufacturers in the region are continuously investing in sustainable caps and closure development, which will help the overall industry gain sustainable growth. For instance, in February 2019, Aptar Beauty + Home has announced the launch of a dispensing closure in the European region. This closure comprises 50% post-consumer recycled resin (PCR), which will help maintain a significant dominance in the sustainably growing cosmetic packaging industry.
• Players, including ACME Cosmetic Components and Dr. Franke GmbH & Co. KG announced a European joint venture in March 2019 to produce and market its range of metal packaging for the color cosmetics industry. Factors like these broaden the metal packaging capabilities in the cosmetic sector in the European cosmetic packaging market.
• Moreover, amidst the COVID-19 impact, the region, including Germany, still maintains the lead as a packaging supplier for cosmetics. Some of the German suppliers for the cosmetic industry are looking to introduce automation in their plants. For instance, Colgate-Palmolive reported sales to surge for the first quarter of 2020, with growth particularly strong in Germany despite the ongoing Covid-19 crisis.

• Tubes and stick types of cosmetic packaging offer convenience, portability, and flexibility to hold a wide range of semi-solid products. Owing to this benefit, they have been widely used in the cosmetic packaging market. Tube and stick packaging for beauty and cosmetic products are expected to grow over the forecast period, owing to the growing demand for skin care products from the end customers. The increasing preference for natural and organic beauty products in the region is expected to accentuate the growth of the market.
• For instance, approximately less than 50 % of all Europe's tubes go to the cosmetics sector. The rising incomes in Eastern European countries, coupled with constantly improving the standard of living, will further accentuate the demand for cosmetic products in this region.
• In March 2019, the European tube manufacturers' association announced that the tub industry in the region, owing to the rising demand, despite the considerable uncertainty and difficult economic environment, has expanded its overall production by 1% year-on-year to reach 11.5 billion units. This instance showcases the growing popularity of the tube with European consumers as a consumer-friendly, sustainable, and function form of packaging. Therefore, it is anticipated to drive the growth of the market in the region.
• Also, the steady growth of social media and online shopping in the region, including the United Kingdom, Germany, and Nordic, play a significant influence on the customers' purchasing decision where primary product packaging and shipping packaging has a vital role. The growth of e-commerce is also driving the cosmetics product that aids the growth of the tube packaging market.

• France dominates the European cosmetic market due to the quality of products and constant innovation. According to the French Federation of Beauty Companies (FEBEA), the French cosmetics industry spends about 2% of its turnover in R & D each year.
• SMEs in the region make up most cosmetic manufacturers, which also export all over the EU nations. Moreover, French multinational conglomerates such as LVMH, L'oréal, and Estée Lauder own many of the world's most popular beauty brands. Over the centuries, France became the hub of beauty products and also became one of the French economy's revenues generator.
• The vendors in this region are keen on tackling the industry's plastic problem. Hence they are developing sustainable solutions for major players. For instance, L'Oréal has also partnered with Albéa to create the industry's first carton-based cosmetic tube, where a bio-based, paper-like material replaces plastic. The industrial production will begin in the second half of 2020.
• Additionally, In response to the rapid increase in the number of coronavirus cases in France, some of Manosque facilities that manufacture beauty and well-being products for the L'Occitane en Provence and Melvita brands have been reassigned to the production of verbena-scented hand sanitizer. The French federation for beauty companies (FEBEA) has also mobilized its network to ramp up production of hygiene and hydroalcoholic products amid the ongoing Covid-19 outbreak.

The Europe Cosmetic Packaging Market is moderately competitive owing to the significance led by the presence of regions including Germany that hold mature cosmetic markets with the presence of players such as L’Oréal, Beiersdorf, Procter & Gamble, Henkel, and Unilever that occupy one-third of the cosmetics market in the region. Thereby, the packaging stakeholders with the long-term relationship with cosmetics brands leverage the market growth. Some of the recent developments in the market are:

• January 2020: Bulgaria-based Induplast SpA, a manufacturer of packaging for cosmetics, announced the acquisition of Verve SpA, based in Vedano Olona, active in the production and marketing of bottles and jars. This acquisition is aimed to leverage the expansion of the catalog of both the companies and increase the customer base.
• October 2019: Albea SA, based in France, announced a partnership with a prominent 3D technology innovation start-up, Erpro 3D Factory. This partnership would allow the company and Erpro 3D Factory to offer industrial series of fully-personalized cosmetic packaging solutions in creative shapes. Erpro 3D Factory’s unique technology most recently used to design innovative 3D mascara brushes for a renowned cosmetic brand, allowing for industrial series in creative shapes that traditional injection molding does not allow, typically for color cosmetics packaging, fragrance caps, skincare jars, and more.

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