Cosmetics Sector Continues to Grow Through Exports

BeautyEurasia, the leading sector and business collaboration platform bringing together personal care and cosmetics brands in Turkey and Eurasia, is preparing to open its doors at Istanbul Convention and Exhibition Centre (İFM) on 16–18 June 2021. Preparations are underway at full speed to bring together domestic participants and foreign buyers at BeautyEurasia. While measures taken to combat Covid-19 have affected all sectors worldwide and in Turkey and transformed business models, the cosmetics sector experienced growth in foreign trade volume in the first quarter of 2021. Ahead of the fair that BeautyEurasia will hold on 16–18 June 2021, one of the most important meeting points for the cosmetics sector, foreign trade growth data for the sector has created a positive outlook for the future. Positive expectations particularly for the remaining months of the year are increasing demand from participants in BeautyEurasia. The opportunity it provides to bring together domestic participants with foreign buyers makes BeautyEurasia even more attractive, while creating added value for the sector.

Growth in the Cosmetics Sector Stands Out

While cosmetics exports and imports in 2020 took place under the impact of the Covid-19 pandemic, foreign trade in cosmetic products continued to be affected by the pandemic in 2021. Despite lockdown and restriction measures being implemented in most foreign markets in the first quarter, trade growth continues due to optimistic expectations for the remainder of the year. Turkey's exports are positively affected as a result. In the first quarter of 2021, exports increased 3.8%, rising to USD 462.1 million, while imports decreased 5.8%, reaching USD 236.4 million.

Rapid Growth in Cleaning and Hygiene Product Consumption in the Domestic Market

In the domestic market, the restriction and lockdown decisions implemented particularly limited spending in January and February. In March, spending gained some momentum. In the first quarter of 2021, spending increased 28%, reaching TRY 3.72 billion. In the first quarter of the year, cosmetics and personal care product prices rose 24% compared to the same period last year. Therefore, as a significant portion of the spending increase in the first quarter stemmed from price increases, the actual spending growth was 3.2%. Many products within the scope of cosmetics products are experiencing rapidly increasing demand to protect against the effects of the pandemic. However, stagnation continues in spending on discretionary care and similar products.

Increase Expected in Domestic and Foreign Demand in the Second Half of 2021

Hyve Group Regional Director Kemal Ülgen, emphasizing that an increase in domestic and foreign demand is expected in the second half of 2021, stated: "Vaccination has accelerated particularly in developed countries abroad. Vaccinations are expected to be completed by the end of the first half of the year. As restrictions are lifted as a result, growth in demand will accelerate in the second half of the year. I expect faster growth in Turkey's exports in the second half of the year. In the domestic market, there will be gradual recovery. Since vaccination is expected to continue through the summer months and recovery rates are expected to rise in the last quarter, I hope for slower growth in the second and third quarters of the domestic market and faster growth in the last quarter. Imports will move lower due to slow recovery and high exchange rates. Among cosmetics products, demand for cleaning materials and products, hygiene products, baby hygiene products, cologne and similar preparations will continue to be a driver in the domestic market. We can anticipate an increase in domestic and foreign demand in the second half of 2021." Hyve Group Regional Director Kemal Ülgen, continuing by sharing information about BeautyEurasia's 2021 targets, stated: "As Hyve Group, we aim to contribute to the development of the cosmetics sector by combining our extensive experience and expertise in Turkey and the Eurasia Region with our group's current strong global network. With BeautyEurasia, we bring together different stakeholders in the sector, ensuring that hundreds of participants and visitors are informed about developments in the industry. With the fair we will hold on 16–18 June 2021, we aim to be a driving force for the sector and provide added value."

Participants Await BeautyEurasia with Keen Interest

Dermokil Board Member Nedim Murat Karaca, emphasizing that as a company they view BeautyEurasia fair as one of the most prestigious fairs taking place in Turkey, said: "We have secured our place at BeautyEurasia 2021 to introduce our new products and take advantage of the export opportunities the fair offers. Our expectations from BeautyEurasia are to come together again with our domestic and foreign visitors and gain new business partners for our portfolio, and to introduce our new projects that we will announce for 2021 to our guests and receive their valuable feedback. In addition to our products in the skin care, oral care, hair care and body care categories, we plan to launch our innovative products that we will implement during 2021. Furthermore, we will conduct a rehearsal at the fair for the openings in the global economy that may occur after the pandemic. We believe that domestic and foreign visitors will show strong interest in BeautyEurasia this year due to fairs that were cancelled or postponed last year, and we are looking forward to 16 June with excitement," he said. Novon CEO Erdal Köktürk, sharing his thoughts on BeautyEurasia, stated: "BeautyEurasia is a very important fair where we have participated before. At BeautyEurasia, we aim to meet with our domestic and foreign visitors and showcase and promote our rich product diversity. Moreover, since we will come together with important companies and names in the cosmetics sector, BeautyEurasia creates very great opportunities for us."