November 28, 2023


Define Beauty Yourself

Fake products may hamper growth prospects of Europe’s hair care market

The new data was released in a report by global technology research and advisory firm TechNavio.

It states Germany is expected to represent 36% of the aforementioned growth, which would see the market accelerate at a 4.87% CAGR during the forecast period. This is hardly surprising, as the country has the largest number of spas in Europe and is home to luxury fashion and beauty product brands such as Beiersdorf AG and Henkel AG & Co. KGaA.

The German market is further driven by factors like the rise in product innovations and endorsements, which in turn drive demand for beauty and personal care products. 

However, the report also warns that counterfeiting poses a significant threat to the sector’s growth prospects.

Last year an Intellectual Property Crime Threat Assessment​ — produced jointly by Europol and the European Union Intellectual Property Office (EUIPO) — came to the same conclusion.

Failed by fakes

The report purports that counterfeit goods distribution has been particularly active since the COVID-19 pandemic, which offered fresh opportunities for trade in such products.

The latest data from the OECD (Organisation for Economic Co-operation and Development) and EUIPO show that imports of counterfeit goods reached €119 billion (US$131 billion) in 2019, accounting for 5.8% of all goods entering the EU.

The rise of the e-commerce industry has exacerbated this problem, allowing for greater penetration of counterfeit products made with harmful, low-quality ingredients. Distribution has shifted almost fully from brick-and-mortar to online stores, raising public health concerns as convincing counterfeits make it difficult for consumers to tell the difference between fake and genuine hairstyling products when shopping online.