About this report
 
About the market…
 
Whilst usage of fragrance in France is almost universal, market growth has faltered of late due to economic pressure on disposable incomes. A similar trend has characterised colour cosmetics, although sales of these lower-ticket items have been adversely affected by a long-term move towards a more ‘natural’ look and by a lack of NPD from the major manufacturers, whose energies have understandably been directed towards the much more dynamic skincare sector. The move towards ‘treatment’ cosmetics – products which purport to do the wearer good as well as decorate – has been inspired by trends in the skincare market. Younger consumers tend to drive NPD in cosmetics and the market has to be highly responsive to rapid changes in fashion, colour and style.
 

 
On the retail side, both these markets have been affected by the growth mass market outlets that have been steadily developing a premium segment. At the same time, perfumery chains have been discounting, which has intensified the debate about brand devaluation and the long-term future of the market.
 

 
About Mintel’s research…
 
Fusing together the latest consumer research and market analysis, Mintel's new report offers you all the insight and inspiration you need for designing clever, creative and profitable marketing strategies in this market. Use Mintel's research to:
 

 
Understand the major market trends and drivers in fragrance and cosmetics
 
Discover the factors that have the greatest impact in the purchasing of fragrances and cosmetics by consumers, enabling you to tailor your business accordingly
 
Pinpoint market potential before your competitors
 
Find out how to best reach key audiences with the most effective marketing communications
 
Measure market sizes and forecasts and build realistic business models
 
Gain insight into future trends
 
Spot new targeting opportunities.
 
Intriguing findings include…
 
23% of adults would be prepared to pay more for environmentally-friendly products and would never buy toiletries and cosmetics that have been tested on animals.
 

 
The under 20s on the lowest incomes are most likely to use blushers/highlighters more than daily.
 

 
22.3% of adults are ‘new product targets’, who are tempted to buy products they have seen advertised’ and often buy a new brand just to see what it’s like.
 

 

Contents
 

 
Introduction
 

 
Definitions
 
Abbreviations
 
Executive Summary
 
Quintessentially French
 
Women’s fragrances generate the bulk of sales
 
Face make-up the largest sector, but eye make-up growing more rapidly
 
Selective distribution dominates thanks to prestige fragrances
 
A handful of international players lead sales
 
Active new product development
 
High penetration for women’s fragrances, lower for colour cosmetics
 
Further growth possible
 
Market Drivers
 
Women in the core of purchasing and pressure
 
Figure 1: Trends in French adult female population, by age, 1999-2003
 
Deteriorating employment situation is a negative driver
 
Figure 2: Trends in French employment, 1998-2003
 
Figure 3: Trends in French PDI and consumer expenditure, at current and constant prices, 1998-2003
 
New EU guidelines for product safety
 
Market Size & Trends
 
A sluggish giant
 
Figure 4: French retail value sales of fragrances and colour cosmetics, at current and constant prices, 2000-05
 
Figure 5: French retail value sales of fragrances and colour cosmetics, by type, 2000-05
 
Figure 6: Indexed French retail value sales of fragrances and colour cosmetics, by type, 2000-05
 
Market Segmentation
 
Fragrances
 
Figure 7: French retail value sales of fragrances, at current and constant prices, 2000-05
 
Figure 8: French retail value sales of fragrances, by type, 2002-04
 
Variable performance in women’s fragrances
 
Figure 9: French retail value sales of women’s and unisex fragrances, by type, 2002-04
 
Towards lighter fragrances
 
Exclusively to everyone
 
Vital new product development
 
Colour cosmetics
 
Figure 10: French retail value sales of colour cosmetics, at current and constant prices, 2000-05
 
Figure 11: French retail value sales of colour cosmetics, by type, 2002-04
 
Figure 12: French retail value sales of colour cosmetics, % share by type, 2004
 
Face make-up
 
Figure 13: French retail value sales of face make-up, by type, 2002-04
 
Eye make-up
 
Figure 14: French retail value sales of eye make-up, by type, 2002-04
 
Lip make-up
 
Figure 15: French retail value sales of lip make-up, by type, 2002-04
 
Nail make-up
 
Figure 16: French retail value sales of nail make-up, by type, 2002-04
 
Distribution
 
Perfumeries and department stores take the lion’s share
 
Figure 17: French retail value sales of fragrances and colour cosmetics, by outlet type, 2002-04
 
Figure 18: French retail value sales of fragrances and colour cosmetics, % share by outlet type, 2004
 
Mass + prestige = “masstige”
 
Fragrances
 
Figure 19: French retail value sales of women’s and unisex fragrances, by outlet type, 2002-04
 
Figure 20: French retail value sales of men’s fragrances, by outlet type, 2002-04
 
Colour cosmetics
 
Figure 21: French retail value sales of colour cosmetics, by outlet type, 2002-04
 
Trading base
 
Health and beauty outlets
 
Figure 22: Health and beauty retailers in France, by number of outlets, 1993-2002
 
Figure 23: Major health and beauty product retailers in France, by number of outlets, 2003-04
 
Grocery outlets
 
Figure 24: Number of retail outlets in France, 1998-2003
 
Figure 25: Major French retailers of daily goods, by number of outlets, 2003-04
 
The Supply Structure
 
Manufacturers’ shares
 
Multinational dominance
 
Figure 26: Brands’ retail value shares of women’s fragrances* through grocery outlets, 2002-04
 
Figure 27: Brands’ retail value shares of women’s fragrances* through perfumeries and department stores, 2002-04
 
Figure 28: Manufacturers’ retail value shares of colour cosmetics through perfumeries and department stores, 2002-04
 
Figure 29: Manufacturers’ retail value shares of colour cosmetics through grocery outlets, 2002-04
 
Companies and brands
 
Beiersdorf
 
Chanel
 
Clarins
 
Coty
 
L’Oréal
 
LVMH
 
Yves Rocher
 
Yves Saint Laurent
 
New Product Development
 

 
New product launches 2004-05
 
Fragrances
 
Colour cosmetics
 
The Consumer
 

 
European comparison of product use
 
Figure 30: Penetration of perfume and eau de toilette and colour cosmetics, by women, by country, 2004
 
Figure 31: Penetration of aftershave/male fragrance, by men, by country, 2004
 
Trends in product use by type
 
Figure 32: Trends in penetration of fragrances and colour cosmetics in France, by type, by women, 2001-04
 
Figure 33: Trends in penetration of aftershave/male fragrance, by men, 2001-04
 
Penetration and frequency of using fragrances and colour cosmetics
 
Market maturity
 
Figure 34: Maturity of the French retail market for fragrances, 2004
 
Figure 35: Maturity of the French retail market for colour cosmetics, by sector, 2004
 
Perfume and eau de toilette
 
Aftershave/male fragrance
 
Foundation
 
Blusher and highlighter
 
Lipstick
 
Eye make-up
 
Nail varnish
 
Attitudes towards use of fragrances and cosmetics
 
Figure 36: Attitudes towards quality and brands, by women, 2004
 
Figure 37: Attitudes towards personal care, by women, 2004
 
Figure 38: Attitudes towards shopping and budgeting, by women, 2004
 
Figure 39: Attitudes towards media and advertising, by women, 2004
 
Figure 40: Attitudes towards ethics, by women, 2004
 
The Consumer – Detailed Demographics
 
Fragrances and colour cosmetics
 
Figure 41: Penetration of fragrances and colour cosmetics, by women, by age, 2004
 
Figure 42: Penetration of fragrances and colour cosmetics, by women, by income and working status, 2004
 
Figure 43: Penetration of fragrances and colour cosmetics, by women, by region, 2004
 
Figure 44: Penetration of fragrances and colour cosmetics, by women, by presence of children and household size, 2004
 
Perfume and eau de toilette
 
Figure 45: Penetration and frequency of using perfume and eau de toilette, by women, by demographic sub-group, 2004
 
Aftershave/male fragrance
 
Figure 46: Penetration and frequency of using aftershave/male fragrance, by men, by demographic sub-group, 2004
 
Foundation
 
Figure 47: Penetration and frequency of using foundation, by women, by demographic sub-group, 2004
 
Blusher and highlighter
 
Figure 48: Penetration and frequency of using blusher and highlighter, by women, by demographic sub-group, 2004
 
Lipstick
 
Figure 49: Penetration and frequency of using lipstick, by women, by demographic sub-group, 2004
 
Eye make-up
 
Figure 50: Penetration and frequency of using eye make-up, by women, by demographic sub-group, 2004
 
Nail varnish
 
Figure 51: Penetration and frequency of using nail varnish, by women, by demographic sub-group, 2004
 
Prospects
 
Unfavourable economic setting
 
Amalgamation of mass and prestige in fragrances
 
Static colour cosmetics
 
Forecast
 
Finding the niches
 
Figure 52: Forecast for French retail value sales of fragrances and colour cosmetics*, at current prices, 2005-10
 
Passing €3 billion
 
Figure 53: Forecast for French retail value sales of fragrances and colour cosmetics, at current prices**, indices, 2005-10
 
Cosmetics to lead growth
 
Eyes overshadow other areas
 
Women lead the fragrant revival…
 
…but men’s sector returns to growth
 
Figure 54: Forecast for French retail value sales of fragrances and colour cosmetics*, at 2005 prices, 2005-10
 
Real annual growth – if small
 
Figure 55: Forecast for French retail value sales of fragrances and colour cosmetics*, at 2005 prices, indices, 2005-10
 
Impact of income changes not always straightforward