2024-02-13 09:44:10
Tunisia has 60 structured cosmetics companies, each employing 6 people or more. But according to a recent study carried out by the Technical Center for Chemistry, the number of laboratories, small and medium-sized and very small businesses (TSMEs) in this sector amounts to 774, of which 75% operate in the informal sector or employ undeclared workers.
Unlike traditionally buoyant sectors, such as tourism or phosphate which suffered the repercussions of the political and economic crises that raged during the first decade post-revolution, the cosmetics industry has fully flourished, taking advantage of a growing trend. of consumption. According to professionals, this sector has a bright future ahead of it. It is still necessary to resolve certain problems which hinder its development.
For over 50 years
Although this industry existed before independence, a real hard core made up of a few large companies, which knew how to jealously guard the secret of their success, was solidly built towards the end of the 1960s with the start of the liberalization process. of the Tunisian economy. Some cosmetics manufacturers have been active for more than 50 years.
“These are family businesses where the profession was passed down from generation to generation,” explains, in an interview with The Press, the engineer-director within the Strategy and Technology Transfer Department at the Technical Center for Chemistry, Mohsen Bguili. Today, Tunisia has 60 structured cosmetic companies, each employing 6 people or more. But according to a recent study carried out by the Technical Center for Chemistry (CTC), the number of laboratories, small and medium-sized and very small enterprises (Tpme) in this sector amounts to 774, of which 75% operate in the informal or employ undeclared workers.
Indeed, this branch has a particularity: it attracts women with higher education qualifications who choose to specialize, particularly in the manufacturing of natural and organic products. Moreover, the new cosmetic brands which are growing like mushrooms every day and whose advertising campaigns are flooding social networks bear witness to this entrepreneurial fever.
A growth two digits
Over the period from 2005 to 2019, the sector performed well. Recording an annual growth of 11% (at current prices), the cosmetics industry has experienced real growth, taking advantage of a booming market which reached 2,000 million dinars in 2019. Moreover, the beauty budget of Tunisians has a lot evolved, over this same period going from 30 dinars per year to 113 dinars in 2019. 50% of this budget is devoted to the purchase of perfumery products, according to INS data.
Even during the Covid crisis, the drop in sales of beauty products was offset by strong demand for hydroalcoholic gels. The sector has certainly been hit hard by the consequences of the Covid crisis, but it has shown resilience. “It’s one of the rare branches of the chemical industry that has done well in recent years,” said the engineer.
The parallel market, ce concurrent invisible
In 2019, local production only covered 19% of market demand, competing with imports and products circulating on the parallel market. Its market share was 24% in 2015.
According to Bguili, this decline is attributable to the development of the parallel market which has continued to gain ground, eating into market share of locally manufactured products. Because we must not hide the fact, despite its robustness, the sector is weakened by many difficulties which are eating away at it.
There are essentially two main problems: difficulties in accessing financing and the increase in customs duties applied to raw materials. “Customs duties are around 30% for certain inputs. This situation opens a boulevard to the informal circuit which prospers to the detriment of the structured circuit and impacts the competitiveness of the Tunisian company,” underlined the director.
Companies are today paying the price for the unfair competition they face, against a backdrop of difficult socio-economic conditions which affect the purchasing power of consumers. But it is a sector that has a future. According to Bguili, the sector can continue this momentum and benefit from the growth in demand. For the high and mid-range segments, the Tunisian product can really become more competitive and compete with products imported from abroad.
Because Tunisian companies have acquired the necessary know-how and benefit from Tunisia’s undeniable comparative advantages.
The sector’s activity will also depend on the stability of neighboring countries, in this case Libya, one of the main importing countries of Tunisian cosmetic products. The engineer affirms, in this sense, that, according to the feedback from companies in the sector and based on the resultsresults of the study carried out by the CTC, the strengthening of control of marketed products, investment in support programs, in particular, technical as well as in projects to bring them into compliance with quality standards, the reinvention of packaging (which, according to several studies, constitute a criterion of choice when purchasing cosmetic products) and the revision of taxes applied to raw materials in addition to the relaxation of access to credits, are measures likely to improve the competitiveness of the Tunisian cosmetics industry both on the local market than in foreign markets. Young entrepreneurs can also benefit from the untapped potential offered by the valorization of raw materials produced in Tunisia, such as essential oils and clay.
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