1. Spanish Cosmetic Market Carmen Ribera Commercial Specialist US Commercial Service - US Embassy Madrid, Spain

2. SNAPSHOT OF SPAIN  Population: 47 million  GDP: $1.4 trillion (2012 est.)  US exports to Spain: $9.4 billion in 2012  12th largest economy – 13 th largest importer

3. COSMETIC & TOILETRIES MARKET  Market size: 7.5 billion/year (industry data).  Fifth largest European producer.  Annual expenditure of Spaniard in cosmetics: 8 million Euros.  Business structure: 300 companies employs 32,000 people.  60% of the sector is made up of SME’s.  Exports: 2.35 billion Euros.  Imports: 1.9 billion Euros.  US imports 144 million Euros.

4. Market Share by Products Groups (2011)

5. KEY SUPPLIERS  All major international brand are in Spain  L’Oreal dominates the market, followed by Grupo Puig, Procter and Gamble, Uniliver and Coty (38% share)  Other Players: LVMH, Estee Lauder, Coty Beauty and The Colomer group.

6. Distribution Channels for Cosmetics and Toiletries (2011)

7. DISTRIBUTION CHANNELS  Mass Market: El Corte Ingles, Carrefour, Alcampo and Mercadona  Specialty stores referred to as “Perfumerias”: Gilgo, Juteco, Sephora, Bodybell, Duglas, Marionnaud  Cosmetic and pharmaceutical markets are closely integrated. The term “Parafarmacia” lies between cosmetic an pharmacy market.

8. MARKET ENTRY  In order to be successful in this competitive market, any foreign companies must be ready to: Invest heavily in marketing; Offer good quality, competitive prices and develop an attractive marketing strategy.  Cosmetic products commercialized in Spain need to be authorized and registered by the Spain Drug and Health Products Agency from the Spanish Ministry of Health.  Process approval usually last 3 to 6 months.

9. MARKET ISSUES AND OBTACLES  Spain adheres to the EU cosmetic directive (1976 EU Cosmetics Directive and its amendments). Implemented into Spanish law via the Royal Decree 1599/1977.  Cosmetic products manufactured outside the EU, the manufacturer needs to appoint an authorized importer. The importer has to be authorized by the Spanish Drugs and Health Products Agency (AEMPS).  Labeling requirements prior sending the product to Spain.  Tariffs in imports from the United States stand at zero for perfumes and cosmetics but there is a Value Added Tax (IVA) of 21%.

10. OPPORTUNITIES  Demand for natural cosmetics is growing. Spanish consumer tend to purchase natural products for beauty and hygiene.  Opportunities exist for companies that produce chemical-free cosmetics, formulated with natural constituents that offer biodegradable packaging, no side effects to the skin and no animal testing characteristics.

11. TRADE SHOWS  Salon Look International (International Exhibition for the Image and Integral Aesthetics) Madrid, October 4-6, 2013 email: salonlook@salonlook.ifema.es www.ifema.es/ferias/salonlook/default.html  Cosmobelleza and Wellness (Exhibition of Hairdressing, Aesthetic and Wellness) Barcelona, February 2-4, 2013 www.cosmobelleza.com Spain offer two major trade shows for the cosmetic sector.

12. CS Spain Contact Carmen Ribera Commercial Specialist US Commercial Service – US Embassy carmen.ribera@trade.tov Phone: +34 91-308-1544 www.export.gov/spain carmen.ribera@trade.tov