The cosmetics and personal care industry in Europe is a remarkable illustration of the continent's innovation and global influence. With a market worth billions, the sector’s products are woven into the fabric of daily life, contributing not only to hygiene and personal confidence but also to Europe’s economic resilience and reputation for excellence on the global stage.
However, this landmark industry currently stands at a crossroads where a delicate balance between regulation, sustainability, and competitiveness is needed to protect its legacy and safeguard its future. That was the key message to emerge from a recent policy dinner in Strasbourg that brought together industry leaders and policymakers from across Europe.
French MEP Marie-Pierre Vedrenne hosted the event. She explained the immense importance of the cosmetics industry both to the European economy and to the lives of individual consumers.
“This is a sector that is a true European symbol of excellence,” Vedrenne told guests. It is an industry that stretches our global influence across the world, creates jobs in Europe, and inspires dreams.”
Few sectors “inspire dreams” quite as much as the cosmetics and personal care industry. The sector is much more than a crucial economic driver. It is a cornerstone of Europe’s cultural identity and has become a byword for quality globally. However, that legacy and heritage are under threat as the sector faces a series of challenges that may potentially undermine its future.
Concerns that recently adopted regulations could turn out to be disproportionate and potentially ineffective dominated the evening’s discussions. These include the Urban Waste Water treatment directive (UWWTD) and some provisions related to unsold goods under the Ecodesign regulation.
These regulations aim to address pressing environmental challenges. However, industry insiders believe that as they stand they might not fulfil their objective of reducing water pollution or waste, and may generate unintended consequences for a sector that is a European success story. Much hope was expressed during the dinner about the upcoming simplification package, and the Omnibus Directive that could tackle some of the inconsistencies or duplications of recently adopted texts.
A lot of people think our industry is all about the big companies such as L’Oréal and Unilever. While those are very important, there are 9,000 SMEs producing and exporting cosmetics in Europe
MEP Vedrenne called for a more nuanced regulatory framework that fosters innovation while safeguarding jobs and investment. Her plea was echoed by MEP Elzbieta Łukacijewska from Poland who co-hosted the event. She too highlighted the potential tension that could exist between economic competitiveness and environmental protection, calling for “balanced, streamlined regulation,” that is developed with businesses not imposed upon them.
“Being aware of these challenges is important, but our focus must also be on practical and effective solutions,” she explained to industry guests. “While environmental objectives are vital, we must ensure our regulations are balanced, supporting innovation without overburdening the SMEs that are so important for the European economy.”
As MEP Łukacijewska highlighted, the challenges for the SMEs that form the backbone of the cosmetics and personal care industry are particularly acute. Complex and overlapping regulations disproportionately burden smaller firms that lack the resources to navigate constantly changing requirements.
For John Chave, Director-General of Cosmetics Europe, policymakers sometimes lose sight of the critical role that SMEs play within the industry and do not always fully understand the challenges that regulation places upon them.
“A lot of people think our industry is all about the big companies such as L'Oréal and Unilever,” he explained. “While those are very important, there are 9,000 SMEs producing and exporting cosmetics in Europe.”
Those SMEs are a vital part of a wider sector that is leading the way when it comes to innovation and growth, benefiting from a heritage and ecosystem that stretches right across the European Union. For those businesses, overly burdensome regulation is not just an abstract concern. It could ultimately turn out to be an existential threat.
There are already signs that the globally leading role that the European cosmetics and personal care industry plays is at risk as businesses struggle to keep pace in an ever-changing policy landscape.
“We used to be the biggest market in the world but now we’re only the second biggest,” Chave pointed out. “We have to find a way to protect both consumers and the environment but also make sure we don’t slip further down.”
Chave argues that the sector’s competitiveness now hinges on risk-based consumer safety regulations, robust impact assessments, and a unified approach across the EU. The spectre of hazard-based regulation, he warns, threatens to dismantle decades of progress. This will be important to closely monitor in the upcoming REACH review.
If regulators strike the wrong balance, then the impact would be profound and extend far beyond the industry affecting consumers and the wider economy alike. Europe’s cosmetics sector invests over €2 billion annually in research and development and supports almost 30,000 scientific jobs. However, leading figures from the industry warned that such investment depends on a stable operating environment that allows businesses to plan and invest effectively.
“The cosmetics industry is competitive, employs many people, and exports worldwide,” Chave told guests. “But Europe is putting weights on the back of a champion athlete - slowing it down with disproportionate regulation.”
MEP Łukacijewska, who sits on the influential Committee on the Environment, Public Health and Food Safety gave her personal commitment to listen to the concerns expressed by guests from the sector.
“I will strive to uphold the principles of proportionality in all future chemical and cosmetics regulation,” she pledged to industry leaders. “Let us work together to shape a regulatory environment where our industry will thrive sustainably.”
The stakes are high, but so is the potential. The cosmetics industry has already demonstrated its resilience and adaptability, weathering crises and driving advancements in science and sustainability. With a collective commitment to balance the competing demands of consumers, sustainability, and competitiveness, it can remain a flagship of European excellence, creating jobs, inspiring confidence, and leading the world in innovation.