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The cosmetics and personal care industry makes a significant social and economic contribution to national and regional economies across the EU.  Through the purchase of goods and services and the payment of taxes and employee wages, the cosmetics industry generates multiple rounds of economic spending and re-spending that benefits the European economy and its citizens.

The report prepared by RPA on behalf of Cosmetics Europe, provides a comprehensive evaluation of the socio-economic contribution made by the European cosmetics industry (covering the EU-28 plus Norway and Switzerland).  Based on a top-down analysis of the cosmetics supply chain, starting from raw material inputs, through manufacturing, distribution and wholesale, to retail and the beauty services industry, the report seeks to illustrate the socio-economic importance of the European cosmetics industry, considering indicators such as employment (jobs and wages), social security contributions and Gross Value Added (GVA).

The research is based on a combination of literature review and consultation with companies and industry associations operating in the sector.  Conservative estimates have been used throughout to ensure that benefits are not overstated.  While the focus of this study has been on producing quantitative (economic) information, some of the wider, qualitative, benefits of the sector are also discussed.  In particular, consideration is given to the various ways in which cosmetics (through satisfying individual’s various physical and emotional needs) tangibly improve people’s lives.  By combining quantitative data on the economic benefits of the European cosmetics industry with qualitative information on the wider catalytic impacts of cosmetics, this study aims to capture the full effect of the cosmetic products industry across its entire value chain.

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