Cosmetics market slows down in 2007

The cosmetics market grew by 20% in 2007 against the previous year and reached 720 million euros, according to data from the international statistics institute Euromonitor. However, the main players say the growth rate was lower compared with previous few years, with a higher growth rate being experienced only for the new product categories, with very small market shares. Some factors that slowed down the growth rate of cosmetics companies were the intensification of competition on the local market, and the slowdown in the Romanians’ appetite for consumption. In order to boost their market shares, the large players have had to develop new product categories, introduce premium products or acquire local producers unable to survive on the market. Moreover, no-name products have been left behind by buyers, who prefer established brands. The only segment that increased 30% against 2006 was that of dermocosmetics. These products amounted to 18 million euros in 2005, and exceeded 20 million euros in 2007.