The growth was about one third of the overall consumer spending, which increased by about 9% in 2015, its best year after 2008.
Retail sales, the best indicator of consumer spending, gained almost 9% in 2015, but the growth driver was the VAT cut for food from 24% to 9% as of June 1. The growth of non-food product sales was 3%.
Almost every segment of the cosmetics and perfume market contributed to its growth except for professional products sold via beauty parlors. This segment accounts for little of the overall market dominated by volume products and direct sales, which generate 75% of the RON3.5 billion together.
Romania’s cosmetics market is one of the least developed in Europe and in the region, because average spending per capita is less than EUR40 per year or EUR3.3 per month, considering its population stands at 20 million and the sales at EUR781 million.
Countries in the region spend at least twice as much, while countries like France spend four or five times that. Moreover, consumption is different in Romania from France, because Romanians buy mostly perfumes and make-up products, while people in France buy more skin care products.
Half of Romania’s population lives in rural areas, where the supply of cosmetics products is limited and direct sales companies dominate.
Under the circumstances, companies in the industry say the local cosmetics market can only grow and mature. (EUR1=RON4.4826)
(English version by Loredana Fratila-Cristescu)