Conexio consulting

THE BEAUTIFUL SECTOR OF TURKEY: COSMETICS

THE BEAUTIFUL SECTOR OF TURKEY: COSMETICS

The world cosmetics sector, which grows 10% on average every year, has a volume of 460 billion dollars and is expected to reach 675 billion dollars by 2020. In Turkey, it is over 8 billion TL.

Mr. Murat Akyüz, Chairman of the Board of Directors of the Association of Exporters of Turkish Chemical Materials and Products (İKMİB), expressing that the cosmetic sector is of great importance for Turkey and said, “Cosmetics exports have reached 1.1 billion dollars last year. Our sector has achieved an important momentum along with the development of packaging sector. According to this, 33 products of 11 Turkish companies will be selling at Amazon.com. Mr. Akyüz said that these products will soon meet the world market and continues ‘Although Turkey’s ability to sell online is very high, it can not normally reach high figures. The Turkish cosmetics industry is very good in some products such as room spray, wet wipes and soap in the world. Here Americans say ‘Britain is selling us the products but when we look on it, it says ‘Made in Turkey’. Akyüz pointed out that the Turkish products which will be going online on Amazon.com will contribute to export numbers and said in cosmetics, he expects 100% export increase to USA after 5 years.

Aniello Musella, Director of the Italian Foreign Trade and Promotion Agency (ITA) in Istanbul, stated that Turkey is an important market for Italian producers too and said ‘Even only in 2015, imports of $ 51 million were made from Italy in cosmetics. Between 2014 and 2016, the demand for the cosmetics sector increased by 6 percent. When we look at the per capita cosmetic consumption rates, it is seen that the per capita consumption in Turkey is 18 Euros, while in Europe it is 145 Euros. These figures show us the strength of the sector’s growth potential.’

We can easily say there is a fast growth between 2014- 2016 and this growth potential is mostly done by the tourists from Middle East. Arab tourists who shop at 2-3 times the average basket, buy 20,000 TL product at a time. Tourists from the countries of the region, are doing especially the cosmetics shopping from Turkey. There are even those who come to Turkey just to get cosmetics. This rate of 2-3 times the average basket shopping increases the income of cosmetic shops.

Shops such as Sephora, Gratis, M.A.C, Eyüp Sabri Tuncer, Flormar and Golden Rose are especially preferred. Turkey’s cosmetics market, which has grown the fastest in the retail sector, attracted the attention of Middle Eastern investors as well as global brands. They are in negotiation with Turkish companies for partnership and franchise models. In İstiklal Street (the main street in Taksim) cosmetic brands are opening second stores. 20 brands are expected to open 597 stores in one year.

Especially in the personal care products, rose, ud, amber and newIstanbul-based Eau de Cologne series receive a great interest from the Middle East, and from time to time there are even entrepreneurial customers who want to move store concepts to their countries.

Conexio is a consulting firm in Turkey based in Istanbul that provides services to local and foreign companies with commercial or investment interests in the region.

LinkedIn