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Sunday, September 25, 2022
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The cosmetics industry against Covid-19


In order to better understand how this flagship sector of the French economy, dominant in Europe, which employs 164,000 people for a turnover of 24 billion euros, was impacted by the Covid-19 crisis, a major national survey has was carried out by Cosmed, a professional association representing the cosmetics industry in France.

This survey shows a negative impact of the health crisis on the turnover of nearly 80% of companies, only a minority of them (7%) having seen growth opportunities.

In post containment, the recovery manifested itself fairly quickly with 49% total or partial recovery. For 41% of the companies questioned, the crisis had no impact on industrial activity, in particular thanks to their involvement in the production of hydroalcoholic products (PHA). A situation made possible thanks to the authorities' decision to authorize several formulas, in two decrees published on March 20 and 27, 2020 to which Cosmed made a significant contribution: 34% of the companies in the panel manufactured PHAs.

Overall, the negative impacts, beyond the drop in sales (50%), highlighted product launches postponed (38%), cash flow problems (37%), a drop in production (34% ), workforce reductions (29%) and postponement of investments (26%). Despite the situation, and in particular the closure of points of sale during the lockdown, only 28% of companies were actively seeking new distribution channels out of the crisis.

In terms of support, companies have made extensive use of State aid: partial unemployment (47%), postponement of social deadlines (37%), loans guaranteed by the State (28%), solidarity fund (10%) or postponement of tax deadlines (10%).

In order to prepare for the future, 62% of the companies in the panel wish to be better informed about consumer expectations in order to be able to adapt their marketing.

Some 59% of the companies in the panel would like the aid mechanisms to be extended, particularly with regard to exports. Environmental aspects are at the heart of the concerns of 80% of them.

Once again, despite the importance of the shock and in comparison with other sectors, the cosmetics industry shows its resilience in the face of crises with a rapid recovery. However, some segments, such as makeup and perfumes, are still suffering.


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