According to the Fédération des Entreprises de la Beauté, French cosmetics exports fell by 1.16% in the first ten months of 2025. This decline marks the first contraction in at least two decades, excluding the anomalous period of the Covid pandemic, the sector having been accustomed to consistent annual growth of approximately 6%.
This is notable because France remains, by a considerable margin, the world’s largest exporter of fragrances, makeup, skincare, and haircare. Its export volume was 2.25 times that of the United States in 2024. The primary cause for this reversal is increased US tariffs and appreciation of the euro vs the dollar, the US being the leading destination for French beauty exports.
Exports to the American market alone fell by 18% during the first ten months of 2025. In contrast, sales to other regions, including China and the European Union, continued to grow. This divergence underscores the targeted impact of transatlantic trade policy. Furthermore, rising imports, particularly of K-Beauty products from Korea and goods from China, contributed to a 3.2% deterioration in the industry’s trade surplus.
The federation anticipates a more severe challenge in 2026. The combined effect of sustained tariffs and a stronger euro against the US dollar could lead to a decrease of €620 million in value. This economic pressure threatens the destruction of nearly 11,000 jobs across Europe. While the potential EU-India free trade agreement offers a future opportunity, the immediate outlook requires strategic adjustment.
The situation presents a critical test for the industry’s resilience. Maintaining its dominant global position on the long term will demand enhanced competitiveness and innovation. Even the most established export powerhouses are not immune to evolving trade dynamics and shifting competitive landscapes.