Changes in the Cosmetic Value Chains

Submitted by Tedora Aibu on 30 July 2020

Summary of the European Alliance Against Coronavirus Daily Webinar on 29 July 2020.

This morning’s session was dedicated to changes in the value chain of cosmetic sector. Matteo Locatelli, Vice President of Cosmetica Italy, the association that contains 95% of cosmetic companies in Italy, illustrated the results of the analysis made by the statistical office on the effects of the coronavirus. There has been a loss of almost 50% of turnover in the make-up sector, perfumes and personal care, while the body hygiene sector has been stable.

The actions that can be carried out for the economic revival of the cosmetic market are yet to be determined. The challenge is to find a new model to restart, with the help that clusters can give, and to ensure that the cosmetic products industry can survive. In these days of crisis, many companies have suspended projects related to sustainability. How long will it be possible to leave this aspect on standby? Sustainability is fundamental for the cosmetic industry because it depends on biodiversity as it provides a source of innovation and raw materials. Nature is established as a source of fundamental inputs and ingredients. Nowadays, cosmetic companies are beginning to also recognise the importance of taking steps to conserve biodiversity and to ensure its sustainable use.

Roberto Rocca, coordinator of the Sustainable and Digital Beauty Research Observatory at Politecnico di Milano, described how the cosmetic sector is constantly evolving and is meeting the three European trends: sustainability, digitalization and resilience. He presented the aims of the observatory and the operational structure, focusing on the role and potential of clusters as tools able to develop road maps to identify disruptive trends and to build bridges between companies and the university.

Adrià Martínez Noveleta, project manager of Beauty Cluster Barcelona, provided some examples of how the companies of the cluster have been able to reconvert their production and modify their value chain during the pandemic, always keeping high attention on their competitiveness. They have developed a map to assess the impact of Covid-19 in the value chain and to identify the main disruptions.

It is undeniable that we are facing a change. When will this change become stable?

Justine Hegon, project manager from Cosmetic Valley, focused on the disruption of the value chains generated by the pandemic with the consequent negative impact on consumers and their habits, without neglecting the impact on industries. During the lockdown, the Cosmetic Valley has carried out some actions that have supported the reconversion of the production lines and showed supplying support to the companies thinking already about the possible actions of revival of the economy.

A recording of the session is available here

These are the complete minutes of the meeting: 

20200729 ECA dailyminutes_v2.pdf

These are the presentations from the meeting: 

200729 CV presentation_ECA.pdf 29_07_Presentation_Roberto Rocca.pdf Beauty Value Chain Changes - Beauty Cluster Barcelona.pdf LOCATELLI - Changes in the Cosmetic Value Chains - 29 LUGLIO.pdf

Find information on the previous meetings here; information on the upcoming agenda here.  

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