This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview

Unit: USD thousands

 

2015

2016

2017

2018 (Estimated)

Total Local Production

1,340,000

1,411,000

1,450,000

1,455,000

Total Exports

733,000

887,337

988,710

995,000

Total Imports

1,047,000

1,210,425

1,296,600

1,300,000

Imports from the US
 

47,000

86,818

87,110

88,000

Total Market Size

1,654,000

1,734,088

1,757,890

1,760,000

Exchange Rates

24.203

25.045

20.884

20.158

Sources: Unofficial CS Prague estimates; Czech Statistical Office (HS33); PROKOS (Association of Manufacturers, Importers, Exporters and Resellers of Cosmetic Products and Ingredients); World of Beauty and Spa; Union of Beauticians. Exchange rates: U.S. Treasury Department.

Czech consumers are well known for being traditional, conservative, and price sensitive. However, these traits do not generally apply when it comes to purchases of cosmetics and toiletries. The younger generation, which is fashion conscious and travels widely outside the country, has a greater awareness of global trends. Branding plays an important role in purchasing decisions. Most large international players are already present in the market. The reputation of the United States as a source of high quality and innovative products enhances opportunities for U.S. cosmetics firms,  however, selecting the right partner and marketing strategy are keys to success in this market. 

Hair Care: The market is very competitive with a large number of available brands. However, there are only a handful of strong dominant players. Henkel is the leader in the hair care segment with almost one quarter of the market. Other successful hair care companies include Beiersdorf (Nivea brand), Unilever (Timotei, Dove), L’Oreal (Elseve), Garnier (Fructis), and P&G (Pantene, Head & Shoulders). Customers are not loyal to brands and companies often create novelty products to attract attention. Wella and L’Oreal dominate at hair salons because they provide professional training and excellent product placement options. As long hair remains fashionable, hair extensions and hair growth products have seen increased demand.

Skin Care: Sales of skincare products have been relatively stable, due to the rise of new products (including for men). The skin care sector has also benefitted from an increasing number of image conscious women and adolescent girls using makeup at a younger age. The majority of women use colored cosmetics. Recently, there has been a growing trend towards more natural looking makeup. Additionally, the market for sun care products is growing with a greater awareness of the effects of prolonged sun exposure. Due to the climate, sun tanning products do well and tanned skin continues to be a beauty trend. Anti-aging products are expected to maintain their popularity. On average, a Czech woman uses nine cosmetic items a day and spends $80 each month on cosmetics. However, this amount also includes hairdresser or cosmetic salon costs. Beiersdorf leads in Czech skin care market sales with almost 20 percent of the market, followed by L’Oreal. In the past five years, a number of new skin care and color cosmetics brands have entered this market. These include Bobby Brown, MAC, Aesop, Sisley, and Kiehl’s.

Nails: For Czech women, well-tended hands and nails have become a necessity, but they still use fewer nail care products than women in the United States. With innovations in the nail care industry and the influence of other Western trends, Czech women are starting to use a wider range of products which will support further growth in the nail care sector. An estimated 45 percent of Czech women use nail polish. The percentage of women using nail art is still relatively low. Most Czech women do not use brightly colored nail polish, although the younger generation is ready to try unusual colors and patterns.

Dental: Currently, the main products in the dental hygiene market are toothpaste and toothbrushes. Diversification in dental hygiene is still relatively limited for most Central and Eastern European customers, including the Czech Republic. There has been a boom in mouthwash products, mainly thanks to Johnson & Johnson’s Listerine brand’s entry into the market which was supported by a strong promotional campaign. There has also been broader promotion of dental hygienist services, electric toothbrushes, dental floss, interdental brushes, and dental water jets.

Fragrances: The Czech fragrance market is mature with a number of well-established international brands in the country. The market has experienced stable growth over the last decade and is expected to continue to grow. Online sales and an increased focus on quality branded products have led to a growth in sales of more luxurious perfumes. Perfumes/fragrances are used by 75 percent of women (one quarter uses them more than once a day) and by 45 percent of men.
Other: Czech women are increasingly sensitive about their appearance and the availability of modern treatments, including aesthetic medicines and plastic surgery. In the past few years, many beauty salons have started to offer new thinning equipment for non-invasive liposuction, cryptolisis (freezing liposuction), lymphatic drainage, and anti-cellulite lipo-massage. In the past these treatments were available to only a limited group of women, but are now more widely available and used.
 

Leading Sub-Sectors

  • Natural/Organic/Bio products

  • Innovative devices for aesthetic medicine

Opportunities

The U.S. Commercial Service in the Czech Republic has been working with the World of Beauty and Spa Prague trade fair organizer to introduce new U.S. brands to Czech consumers by marketing product catalogs and samples at the fair. The next catalog show is planned for September 2018.
Event:             World of Beauty and Spa
Dates:              September 7-8, 2018
Venue:             Letnany Fairground, Prague
Organizer:       ExpoBeauty Prague s.r.o.
 

Web Resources

Association of Manufacturers, Importers, Exporters and Resellers of Cosmetic Products and Ingredients (PROKOS)  www.sdrprokos.cz
Ministry of Health  
Union of Beauticians  
U.S. Commercial Service:  Veronika.Novakova@trade.gov

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.