A recent Euronomitor report noted that the sector witnessed strong sales growth in 2008, with the market being valued at €255.4m for that year.
The market grew by 45.8 per cent between 2003-8, and despite the current economic climate, forecasted sales growth is not as bad as expected, said Euromonitor, who predicts growth of 12.2 per cent between 2008-13.
Compared to international players who dominate the industry, such as Procter and Gamble and Unilever, domestic companies have a smaller market share, the report noted.
However, as there is plenty of room for future growth within the market, with Euromonitor suggesting it could even double in size in the long-term, this could be set to change.
Investment in production
In line with the growth potential in the region, personal care company Neva, has recently announced it has invested €4.4 million in a new production facility in Rakitje, Zagreb.
Neva’s new factory represents the largest investment of the Atlantic Grupa (the Croation group to which the company belongs) in the cosmetics and personal care segment.
Emil Tedeschi, the president of Atlantic Grupa’s management board, said in a statement that construction of the new plant is integral to increasing production for both domestic sales and exportation.
Atlantic’s brands in the personal care segment, which include Rosal lip balm, enjoy a significant presence and recognisability in Croatia, said Tedeschi.
Exportation of products
As well as supplying to the Croatian market, the company also exports their products to other countries.
Gabrijela Kasapovic, director of corporate communication at Atlantic Grupa told CosmeticsDesign that products for export represent a third of the company’s production.
The products are mainly exported to the South East Europe (SEE) countries, as well as to the EU, Switzerland, USA and Israel. In addition, the company has recently entered the large Russian market.
Kasapovic added that the Atlantic also produces private label products for large international partners.
In addition, the company has distributed Johnson & Johnson personal care products to the Croatian market since 1999.