In recent years, the cosmetics market in Greece has been steadily growing with the competition between domestic, international chains and supermarkets escalating. According to the Panhellenic Association of Manufacturers & Cosmetics and Perfume Representatives, total cosmetics sales in Greece will increase in 2024 by 5.7% compared to 2023 while the corresponding sales increase in 2023 was 12.6% compared to the 2022.

Specifically, the Greek cosmetics market is estimated to close in 2024 with a value of about EUR 1.4 billion from around € 1.3 billion in 2023. It is noted that sales increase mainly in 2023 also had inflationary characteristics, as on average on average. Cosmetics sales prices increased by 7% while in 2024 they increased by 4.5%. This year is expected to increase cosmetics sales between 4% to 7% while the growth rate for 2026 is expected.

The individual categories stood out the makeup products, whose sales moved to +11.1% in 2024 (compared to +19.3% in 2023), the facial care species whose sales stood at +6.7% (compared to 13 , 4% in 2023), body care species that moved to +6.1% (versus 16%), aromas that reached +5.7% (versus 13.9%). Also, hair care species reached 2024 at +1.8% (versus +8.9% in 2023), sunscreen at +6.1% (versus 16% in 2023) and hygiene products at +3.7 % (versus 11.5% in 2023).

The largest participation in total cosmetics sales are 32%wide distribution products, followed by pharmacies with 20%, 16%selective distribution products, e -commerce with 15%, 7%hairdressers, standalone boutiques (Standalone Boutiques ) with 7%, direct door -to -door sales with 2%and 1%aesthetic institutes.

Market challenges

At the same time, one of the most important problems faced by the market in 2024 was, according to PSVAK, the government’s decision to reduce supermarket bids by 30% that caused a suffocating environment for businesses, especially in categories with Intense competition, such as hair care. In addition, the phenomenon of falsifying / imitation branded products has recently been observed and this has been alarming.

According to PSVAK, the lack of quality controls on these products poses risks to consumers, while affecting the image of branded brands, which are called upon to face unfair competition and possible defamation. At the same time, the increasing environmental consciousness of consumers requires a shift to sustainable practices, increasing production costs and creating new challenges for companies. Excessive packaging, plastic pollution and unsustainable resource consumption are serious problems that require immediate treatment, both on the part of companies and consumers. While efforts are being made to adopt more sustainable technologies and materials, such as the use of recycled materials or the reduction of the volume of packaging, the complete transition to a more eco -friendly model of production and consumption requires continuous effort, innovation and significant investments by all stakeholders.

Concerning the challenges shown for the cosmetics industry, Mintel research data shows that consumers are looking for products that reflect their individuality, promoting innovation in personalized solutions and sustainable practices. The rise of “Slow Beauty” emphasizes simplicity, authenticity and well -being, pushing brands operating in the field to make transparent and moral choices. Also, working with green initiatives and the integration of biotechnology gains consumer confidence, making viability a decisive market factor. But the utilization of technological developments, such as AI and real -time data analysis, offer new opportunities for personalized experiences and loyalty. Finally, smaller players and independent brands are dynamically entering the market, gaining consumer confidence with suggestions that focus on innovation, expertise and personal experience.

Sale prices determine the demand

The main factors that determine the demand for cosmetics are the selling prices of the products in combination with the available consumer income, the structure of the population by gender and age group, seasonality, advertising, and more. In this context, undoubtedly the two years 2022-2023 was a difficult time for the cosmetics industry, due to the energy crisis, the rise in raw material prices, the rise in transport costs, geopolitical tensions and intense inflationary pressure. According to ICAP CRIF’s study conclusions, these developments have led business businesses to their products, due to the compression of their profit margins.

Skin care products (face and body) have been the main category of cosmetics over time and are estimated to cover about 55% of total sales value, followed by 26% hair care products. In recent years there has been an increased consumer interest in natural -tested cosmetics, non -tested animals, as well as in olive oil -based products (especially overseas consumers).

A key element of diversification of the companies in the industry are the channels of their distribution network. According to the results of the same study, the broad distribution channel is estimated to cover about 48% of the total value of the domestic cosmetics market, followed by pharmacies, selective distribution, hairdressers and direct sales. Although the natural channel remains powerful, more and more consumers are turning to the cosmetics market via the internet (ecommerce). Electronic cosmetics sales are of particular value to the consumer, as it offers a variety of options and products, transaction speed and flexibility in delivery. The share of the examined channel is estimated at 14% – 16%.

Regarding the extroversion of businesses in the industry, by 2021 there has been a significant increase in cosmetics exports, with an average annual rate of about 19%. According to the study, some of these relates to imported species that are reviewed.

In the context of the preparation of the ICAP CRIF sectoral study, a financial analysis of the industry was carried out on the basis of selected indexes and a grouped balance sheet for the five-year period 2018-2022 was drafted, based on a representative sample of 29 companies. The analysis of the grouped balance sheet of these companies shows as follows: The total sales of the sample companies have risen five years except for the year 2020/19 due to the pandemic. In particular, in 2022 the total sales of the businesses increased 5.7% compared to the previous year. A similar course was followed by total gross profits, recording an increase of 2.6% in 2022/21. On the contrary, EBITDA profits have reduced the year 2022, after continuous increases in previous years.

Maria Tsivgeli