Is the personal care sector losing momentum? In 2024, the beauty and hygiene sector in France achieved a turnover of €8.3 billion, marking a 3.1% decrease compared to the previous year. This trend is particularly striking when viewed within the global context. Experts from AURIS Finance, a mergers and acquisitions consultancy, provide their analysis and insights.
In France, sales of hygiene products (hair care, personal hygiene, beauty care and paper products) are in decline. During 2024, sales volumes in the sector fell by 2.2%, while overall turnover decreased by 3.1%.
A European exception
This is due to consumers becoming more aware of their spending habits. In the face of macroeconomic uncertainty and inflation, households have been forced to reduce their expenditure on non-essential items. This decline in purchasing power has been accompanied by a new regulatory framework. The Descrozaille Law, also known as Egalim 3 and effective as of March 2024, caps promotions on hygiene, beauty and cleaning products at 34% in value and 25% in volume in mass retail. A recent provision aimed at eliminating ‘super promotions’ in supermarkets has led to a significant decline in the attractiveness of HPC (household and personal care) products. In the weeks following the introduction of the measure, 74% of French people noticed an increase in prices, with six out of ten changing their shopping habits as a result. Some simply reduced their consumption, while others turned to discounters. Retailers such as Normal and Action experienced significant benefits from this price pressure.
Changing circumstances
In other regions, however, the market is experiencing growth. According to NielsenIQ, the global beauty market grew by 7.3% in 2024 compared to the previous year. This growth was largely driven by the dynamism of markets in Latin America (+19.1%) and Africa and the Middle East (27.1%). Conversely, North America and Western Europe are growing more slowly, at +7.8% and +7.7% respectively. In France, while the effects of the Egalim 3 law are expected to gradually fade, the market is now in the process of reinventing itself, giving way to simplified uses. Consequently, there has been an increased preference among consumers for all-in-one products. In addition, there is a growing focus on the search for products that are less harmful to the environment. Revenue generated by the sale of solid hygiene products is constantly evolving in France. The 2023 figure stands at £131 million, in comparison to £85 million two years prior.
Our experts at your service
In a context of declining purchasing power, brands are seeking to attract consumers by offering them affordable everyday products. To this end, they are actively seeking out the most innovative solutions. 2024 was a year of significant restructuring in the industry. In July of that year, Comptoir des Lys acquired Acorelle, a brand specialising in plant-based hair care and sun care products. Meanwhile, Léa Nature took over ABCD Nutrition in May 2024. At AURIS Finance, our sector-specialised experts provide comprehensive solutions. Our consumer goods, HPC specialists will support you throughout your sale or acquisition project.
