The Manager Association of Consumer Products' Manufacturers' Association expressed; "We must aspire to improve the competition capability in the cosmetic's export by cancelling the distortion of the licensing for export in the conditions for the product marketing license also in Israel".
The Manufacturer's Association in Israel organized a tour of three of Israeli cosmetics companies for journalists on August 7th.
The visit to a few of the production plants by the journalists was extremely interesting and inspiring for us. It was truly a pleasure to witness the enormous production of the Israeli cosmetics products sent all over the world to various department stores and business networks. We are proud to be Israelis and admire the Managerial and working staff at these cosmetic plants. The production plants we visited operate in an organized manner under the cleanest conditions.
This visit allowed us to appreciate the high technology, professionalism and hygienic conditions of these cosmetic's production companies in Israel.
The data from the Manufacturer's Association in Israel indicates that, due to regulatory difficulties, there has been a withdrawal of 10% in the Israeli Cosmetics Industry exports in 2015. In 2014, the Israeli Cosmetics exports amounted to 609 million dollars, while in 2015 the exports amounted to 546 million dollars only – a decline of 63 million dollars.
The main export decline occurred In relation to Eastern Europe and Russia, amounting to about 40%, from 73 million dollars in the year 2014, to 44 million dollars in 2015. Also, there was a decline of about 31% in cosmetic's export to the European Union countries, from 250 million dollars in 2014, down to 218 million dollars in 2015.
On the other hand, there was an increase of 14% in 2015 in the Export to countries in the Asian Continent, from 67 million dollars in 2014, to 76 million dollars in 2015.
Likewise, according to the Manufacturers Association data, most of the Israeli Cosmetics Export in 2015 was directed mainly to the European Union States (40%), North America (31%), Asia (14%), and the remaining export to the developing countries in Central and South America, Africa and the rest of the world (7%).
The Cosmetics Industry in Israel in 2015 includes up to 80 production plants, most of which are small and medium size, employing some 10 thousands workers directly and indirectly. The annual activity cycle is estimated at about 4 milliard NIS, where about 50% of the production is intended for export. The net profit of the Industry-wide is estimated at about 2 – 5% from the cycle.
The Manager of the Association of Consumer Products and Construction, who manages the Cosmetic Branch in the Manufacturer's Association, Adi Shauli, states that: "The Cosmetics Industry Manufacturers Association is promoting nowadays, in collaboration with Knesset Member Merav Ben Ari, (in the Kulanu party) the legislation of Pharmacists' regulations, after many years of working together with the Ministry of Health, with the aim of bringing these legislation regulations for a speedy approval by the Knesset. The matter of exemption from licensing for a cosmetic product intended for export, which is not sold in the domestic market, will be resolved by regulatory approval that adopts the Cosmetics European Regulation aimed for alignment with the European regulation dealing with cosmetics. The industrialists see in this legislation an opportunity to work in coordination with advanced countries in the world. Even today, many of the industrialists meet the standards of new regulation requirements, in order to export abroad. They do this with much success, bringing about pride for the Israeli Industry in general, and especially for the Cosmetics Industry".
The "Peer-Pharm" owner, Haviv Peer, says: "Israel is considered today one of the leading countries in the world in the Cosmetics Field, among others, thanks to the Dead Sea, which is a wonderful and natural resource for beauty products. Also, Israelis have courage, which is expressed in innovation and new developments. Israelis are always open to adopt new standards and they do not adopt fixed stands, like European companies, most of which manufacture, until today, cosmetic products in the same formats used back in the 70's."
The "SPA Cosmetics" owner, Jacky Shklarsh , states: 'The Israeli cosmetic branch is developing, but there are great governmental barriers that prevent the export growth, and regulations that cause enormous workload. For example, when in Europe it's enough to fit and register, in Israel, one must pay a fee for each and every product. We would like to adopt the European standard also in Israel."
The "A. Meshi" owner, Irmiyahu Mizrahi, conveys : 'The cosmetics industry in Israel is innovative and very developed. Israeli cosmetics are greatly appraised in the whole world, especially in the field of hair care, in which we are making a major breakthrough. Nonetheless, the government regulations make it very difficult for the industry to progress. I wish that the government starts offering more support and assistance measures to the Cosmetic's Industry, so that we can export more abroad. We will appreciate assistance in grants and exhibitions abroad, and in reducing the regulation required to export abroad.'
Background material on the exhibited plants:
"Peer-Pharm" - This plant was established in 1991, and today manufactures a number of brand-name products such as: "Andrea Milano", "Frulatte", 'Spa-Pharm' and "Organi-Care". The companys' products include more than 7.000 items, exported to 20 countries, such as; United States, Korea, China, Sweden, Poland, France, Hong-Kong, Singapore, Denmark, Germany, Ukraine, Romania, and others.
"SPA Cosmetics" - This brand was founded in 1988, and today its products comprise 80 different brand-name products, including different 700 various, which are exported mainly to North America and other national networks, such as England, Germany, Hong-Kong, China, etc.
"A. Meshi" - This plant, which manufactures the product 'Mon Platin'' was established in 1994,and today in its products, include more than 600 items, exported to 50 countries; among these: United States, Italy, Spain, Belarus, Russia, Guatemala, Ecuador, Mexico, Canada, Cyprus, Greece, Lithuania, Slovakia, Check Republic, and others.