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Turkey – A Rising Star in Western Europe’s Beauty and Personal Care Ingredients Industry

August 24th, 2012
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IntroArticleAnalyst Insight by John Madden, Global Head of
Ingredients Research 

Classified as part of Western
Europe, the growing economy in Turkey
can sometimes be overlooked due to the continuing economic doom and gloom
facing much of the rest of the region. Turkey,
unlike it neighbour Greece, is very much on the up and is enjoying strong
economic growth. Indeed, the country is more akin to the Middle East than
perhaps Western Europe, with a rising
population, rising disposable incomes
and increased urbanisation. This is giving rise to a buoyant ingredients
market, particularly in the beauty and personal care

Economy recovers quickly after
economic downturn

The Turkish economy was hit by the global economic
. According to official figures, the rate of inflation fell to 6.5% in
2011 from around 8.6% in 2010 and is forecast to fall further to 5.5% in 2012
and 4.7% by 2016. Real GDP growth in 2011 was 8.5% compared with a decline of nearly 5% in 2009, demonstrating
better economic prospects for the country.

Beauty and personal care remains

The beauty
and personal care category has remained strong, with products considered
affordable luxuries and thus less affected than many other fast moving consumer
goods categories during the crisis. In 2011, the market as a whole saw current value growth of 12%,
compared with a review period CAGR of
just under 11%. The best performers in 2011 were oral care with around 18% value growth, sun care with 15% and baby care
with 14%. Over the 2011-2016 forecast
period the category is expected to post a
constant value CAGR of 4%, with oral care,
colour cosmetics, baby care and skin care expected to be some of the best

Turkey outperforms the rest of Western Europe in ingredients

Within ingredients,
beauty and personal care is set to
be the strongest growth category
. Over 2011-2016,
the category is anticipated a volume
CAGR of more than 8% compared with 4% for home care
and 2% for packaged food.

Looking at the individual categories within beauty and personal
care, the growth prospects for ingredients use in Turkey far exceed those of the Western
European region as a whole. For
example, ingredients used in sun care are forecast a 12% CAGR over 2011-2016
in Turkey compared with just 2% in Western Europe.

Growth Prospects for Ingredients Use by Beauty and Personal Care Category 2011-2016


 Source: Euromonitor

Many of the leading ingredient suppliers to the beauty and personal
care industry

are active in Turkey, and have opened
up sales offices or manufacturing sites. These include Firmenich, Givaudan,
IFF, Symrise, Croda and BASF. This presence is vital if suppliers are to meet
the demands of the Turkish market, which are very different to those in much of
the rest of Europe. A sales presence,
or even a manufacturing presence in the
country, can also be used as a foothold
into the Middle Eastern market, whose trends mirror many of those seen in Turkey.

Have a question or a thought to add? Leave us a comment below.