Cosmetics and toiletries to Spain
Click to Send this to a FriendClick? to print pageContact usChange to standard fontChange to large font
Trends and opportunities
The market

Spain is one of the 10 largest economies in the world, is a member of the European Union and is the fastest growing major industrialised country in the world. This growth in economic status and considerable growth in the GDP has led to an overall increase in demand for consumer products.


Growth rates over the past few years indicate that the cosmetic, toiletry, health and beauty products industry in Spain is an extremely lucrative market, experiencing an average growth rate of 8.7 per cent since 1998.


The Spanish cosmetics industry, according to the European Cosmetic Trade Association, refers to a myriad of products, but can be divided into five major categories:


Toiletries lead this market at 26.1 per cent of total sales, followed by hair care, skincare, perfumes/fragrances, and decorative cosmetics respectively.


Specialty cosmetics have risen 13 per cent since 1998 and the sub-sector of skin cremes has shown an increase of 19 per cent. Perfumes also show great promise – the US companies that have put their products on the market have been greatly received and are producing high returns. Their sales have risen 20 per cent and demand appears to be rising. The market is very accommodating to new products and is extremely tolerant of imports, which account for 51 per cent of total sales.
Opportunities

As the Spanish consumer becomes more health conscience and has an increased knowledge of the benefits of natural products, opportunities exist for innovative, middle to high-end Australian health and beauty products.


Emerging sub-sectors in the cosmetic sector include:


Competitive environment

Key suppliers of health and beauty products to the market include France, Germany, Italy, the UK and USA. However, the market is receptive to imports and product innovations.


The Spanish companies Puig, Puig Beauty and Fashion and Myrurgia (bought by Puig), hold a substantial share of the cosmetics market and also distribute products, which include brands such as Calvin Klein, Christian Dior and Armani.


Major European companies selling in Spain are: L'Oreal, Sephora and Guerlain from France; Elizabeth Arden (Unilever) Dutch-British; Lancaster from the UK; Nivea, Henkel and Benkshire from Germany.


US companies such as Estee Lauder, Avon and Revlon also have a stronghold within the import market. Japan's Shiseido has also entered the Spanish market, but in a more selective way.
back to top of siteback to top
Tariffs, regulations and customs

As a member of the European Union (EU), Spain is also regulated by European Directives. Most of these directives are now incorporated into Spanish law. Information about European directives in this area can be found in the EU website. Latest reports and information on the directives can be obtained (for a fee) from the European Cosmetic, Toiletry and Perfumery Association. Information about how these directives apply in Spain can be obtained from the relevant government offices.


Spain is part of the harmonised trade system of the EU. Common Customs Tariff (CCT) is applicable to goods from non-EU countries, including Australia.


Most duties are ad valorem (%), based on the GATT Valuation Code (approximate CIF value). Customs duties on cosmetics preparations from Australia vary according to product type and exporters should first establish the correct TARIC code for their product in order to obtain the correct duty percentage. The TARIC database is available in all the EU's official languages.


If you are shipping any goods to Europe, you should obtain a written customs duty ruling, known as Binding Tariff Information (BTI). Getting a BTI is free and will prevent any conflict over customs or excise duty. A BTI is valid for six years.


Standard VAT in Spain (in Spanish IVA, Impuesto sobre el Valor Añadido) is 16 per cent. Most cosmetics and toiletries attract 16 per cent IVA, however, some pharmaceutical products have a lower rate and medicines four per cent only.


Cosmetics directives for the EU and a separate Royal decree exist for the importation of these products into Spain. The import tariff for the majority of cosmetic and beauty products from Australia, including decorative cosmetics, hair care, skin products and perfumes is currently zero per cent or 2.3 per cent.


Labelling requirements for Spain and the EU are similar to those of Australia and companies should inform themselves on the specific labelling requirements for each product, through the Spanish importer/distributor, prior to sending the products to Spain, to avoid problems with Spanish customs.
Industry standards

The EU has passed a Cosmetic Directive which all companies, including those in the EU, must adhere to.


A summary of the labelling requirements is as follows:


Spain also has its own set of laws surrounding the cosmetic industry that is referred to as the Royal Decree of 1997. These laws include specifications on imported cosmetics as follows:





Information concerning these laws and regulations can be obtained by contacting the Spanish Ministry of Health and Consumption, (Ministerio de Sanidad y Consumo), which is the Spanish equivalent of the Australian Department of Health.
More information

Spanish Directorate General for Pharmaceutical and Health Products - Ministry of Health
Direccion General de Farmacia y Productos Sanitarios
Del Ministerio de Sanidad y Consumo
Paseo del Prado, 18-20
28014, Madrid
Spain
Tel: (34) 91 596 1089
Fax: (34) 91 596 4480


Additional detailed information on customs duties may be obtained from Taric S.A.
back to top of siteback to top
Marketing your products and services
Market entry

Like many other Western European markets, it is essential to deal with a local distributor or agent who is familiar with European Union (EU) and Spanish import regulations and marketing practices.


Distribution networks are highly segmented and therefore it is common to have several distributors to cover the mainland territory and islands. Given the strength and maturity of the cosmetics industry, manufacturing under licence or joint ventures with local companies are other viable options for Australian suppliers looking to enter the Spanish market.


The Spanish franchising market is currently the No.1 franchise market in Europe and therefore, could provide an assured way to enter the market for innovative business concepts. (Source: Tormo & Asociados 2005 - Spanish Franchise Consultants)


The mass distribution channel dominate cosmetics and toiletries sales in Spain:

* El Corte Ingles, is Spain's largest department store and dominates the market with over 300+ stores throughout Spain and Portugal.
* Hypermarkets – Carrefour and Alcampo
* Supermarkets – Eroski, Mercadona, Dia and Caprabo

Despite the large volumes sold via the mass distribution channel, many Spanish consumers still use traditional channels to purchase their cosmetic and toiletry products such as perfumery stores (perfumeries), pharmacies, and beauty and hairdressing salons, where they receive more personal attention and advice from trained staff.


Spanish pharmacies (either franchise chains or privately owned) tend to specialise in European brands sold exclusively through pharmacies, such as Vichy, Isdin and RoC?, but many also sell homeopathic and natural/organic cosmetics.


Thermal spas and health resorts are another promising outlet for the right products. Popular spas are located throughout Spain, especially in the areas of Galicia, Aragón, Castilla y Leon & Castilla – La Mancha, and all also offer beauty treatments. Patrons are generally willing to pay higher prices for innovative and unique products. (Source: Spanish Thermal Springs & Spa Association – Spanish only)
Distribution channels

Cosmetic and toiletry products are distributed through five main channels in Spain:

* Mass distribution – 49%
* Specialised distribution – 28%
* Pharmacies – 9%
* Hairdressers - 8%
* Direct sales via catalogue or the Internet – 6%

The mass distribution channel in Spain accounts for almost 50 per cent of total sales via El Corte Ingles, and hypermarkets Carrefour and Al Campo.


The specialised stores called perfumerías, such as Body Bell, Gilgo, Marionnaud, Juteco and Sephora, account for a considerable portion of the market share in sales.


Distribution via pharmacies offers Spanish consumers products with dermo-cosmetic applications. A limited number of companies, usually European choose to distribute their products exclusively in pharmacies.


A new culture of spa and health/fitness centres is currently emerging in Spain and high quality/natural beauty products are now being commercialised through this more specialised and personalised distribution channel.
back to top of siteback to top
Links and industry contacts
Cosmetics and toiletry-related resources

Spanish Agency for Medicines and Health Products (Agencia Espanola de Medicamentos y Productos Sanitarios - AEMPS - www.agemed.es
The European Cosmetics, Toiletry and Perfumery Association - www.colipa.com
Regulatory Association for the Advertising Industry - www.aap.es
The Spanish Cosmetics & Toiletries Association - www.stanpa.es
Spanish Ministry of Health and Consumption (Ministerio de Sanidad y Consumo) - www.msc.es/en/home.htm
back to top of siteback to top
Contact details

The Australian Trade Commission (Austrade) is the Federal Government agency that helps Australian companies win overseas business for their products and services by reducing the time, cost and risk involved in selecting, entering and developing international markets.

Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.

A list of Austrade offices (in alphabetical order of country) is available.
More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au