Research of the market and economic state of enterprises in the cosmetics industry in the context of reforming the regulatory framework and harmonization in accordance with the requirements of the EU regulations

Authors

DOI:

https://doi.org/10.15587/1729-4061.2022.258652

Keywords:

enterprises, cosmetic industry, regulatory framework, competitiveness, economic development, market, Technical Regulations, investment potential

Abstract

There is a certain dissonance between the rate of increase in demand, for an expanded range of perfumery and cosmetic goods, and the slow development of regulatory and legal regulation of their production and safety.

During the research, it was established that the inertia of state bodies regarding the approval of laws has a significant impact on the economic development of industry enterprises. Problems in methods for determining substances have been identified; ambiguity of the legislative framework regarding the legal liability of producers for falsification, use of non-regulated components, labeling requirements.

To solve the problem, a critical analysis of the regulatory impact of the regulatory framework, in time, on the economic condition and competitiveness of industry products was carried out. The legislative requirements put forward in Ukraine, EU countries, Canada, America, China on control of production and testing of cosmetics on animals have been analyzed. As a result of the research, four stages of reforming regulatory regulation by the state and bringing the legislative framework of the industry in line with European requirements have been identified and substantiated. New categories introduced into the regulatory framework have been identified and the prospects for exporting goods produced within the framework of the new regulatory framework are shown.

Based on the results of the research, identical and different requirements of the Ukrainian and European regulations for cosmetic products, for packaging, labeling, methods for studying stability, physical and chemical indicators, sampling procedure for expert evaluation were established.

It is shown that the introduced changes meet the requirements of European standards and could increase the competitiveness and investment potential of domestic enterprises of the cosmetic industry

Author Biographies

Viktoriia Akmen, State Biotechnological University

PhD, Associate Professor

Department of Trade, Hotel, and Restaurant Business and Customs

Svetlana Sorokina, State Biotechnological University

PhD, Associate Professor

Department of Trade, Hotel, and Restaurant Business and Customs

Olena Kruhlova, State Biotechnological University

PhD, Professor

Department of Economics and Business

Marianna Pavlyshyn, Ivan Franko National University of Lviv

PhD, Associate Professor, Head of Department

Department of Management and Expertise

Lyudmila Volynets, National Transport University

PhD, Assistant Professor

Department of Transport Law and Logistics

Olena Kot, State Biotechnological University

PhD, Associate Professor

Department of Economics and Business

Alina Sevostianova, National Transport University

PhD, Associate Professor

Department of Transport Law and Logistics

Nataliia Cherevychna, National Aerospace University “Kharkiv Aviation Institute”

PhD, Associate Professor

Department of Public Administration and Entrepreneurship

Hanna Zabrodska, State Biotechnological University

PhD, Associate Professor

Department of Tourism

Nataliia Lutsiv, Ivan Franko National University of Lviv

PhD, Associate Professor

Department of Management and Expertise

References

  1. Zhang, L., Adique, A., Sarkar, P., Shenai, V., Sampath, M., Lai, R. et. al. (2020). The Impact of Routine Skin Care on the Quality of Life. Cosmetics, 7 (3), 59. doi: https://doi.org/10.3390/cosmetics7030059
  2. Jung, S. J., Hwang, Y. S., Choi, C. M., Park, A. S., Kim, S. U., Kim, H. J. et. al. (2015). Examination and Quantification of Preservatives in Cosmetics for Children. Journal of the Society of Cosmetic Scientists of Korea, 41 (3), 219–227. doi: https://doi.org/10.15230/scsk.2015.41.3.219
  3. Akmen, V. O., Sorokina, S. V., Berdova, V. O. (2019). Doslidzhennia asortymentu ta pokaznykiv yakosti kosmetychnykh zasobiv dlia dohliadu za oblychchiam. Rozvytok kharchovykh vyrobnytstv, restorannoho ta hotelnoho hospodarstv i torhivli: problemy, perspektyvy, efektyvnist: materialy Mizhnar. nauk.-prakt. konf. Ch. 1. Kharkiv, 139–140.
  4. Michelutti, L., Bulfoni, M., Bolzon, V., Nencioni, E. (2020). Preliminary Evidence of a Molecular Detection Method to Analyze Bacterial DNA as a Quality Indicator in Cosmetics. Cosmetics, 7 (3), 54. doi: https://doi.org/10.3390/cosmetics7030054
  5. Stettler, H., Crowther, J. M., Brandt, M., Lu, B., Boxshall, A., Salvo, R. et. al. (2021). Targeted dry skin treatment using a multifunctional topical moisturizer. International Journal of Cosmetic Science, 43 (2), 191–200. doi: https://doi.org/10.1111/ics.12680
  6. Directives commission directive 2010/4/EU of 8 February 2010. Available at: http://www.icqc.eu/userfiles/File/2010_4.pdf
  7. Directives commission directive 2010/3/EU of 1 February 2010. Available at: http://www.icqc.eu/userfiles/File/2010_3.pdf
  8. Kordiiaka, Yu. M., Baitsar, R. I. (2016). Problemy tekhnichnoho rehuliuvannia kosmetychnoi haluzi. Standartyzatsiia, sertyfikatsiya, yakist, 2, 38–44. Available at: http://nbuv.gov.ua/UJRN/ssia_2016_2_12
  9. Gervason, S., Napoli, M., Dreux‐Zhiga, A., Lazzarelli, C., Garcier, S., Briand, A. et. al. (2019). Attenuation of negative effects of senescence in human skin using an extract from Shingomonas hydrophobicum: development of new skin care solution. International Journal of Cosmetic Science. doi: https://doi.org/10.1111/ics.12534
  10. Park, S. J., Kwak, B. M., Lee, M. G., Bin, B. H. (2020). A Study on Factors Affecting the Effect of Blue Light Blocking in Sunscreen. Journal of the Society of Cosmetic Scientists of Korea, 46 (4), 383–390. doi: https://doi.org/10.15230/SCSK.2020.46.4.383
  11. Bordes, C., Bolzinger, M., El Achak, M., Pirot, F., Arquier, D., Agusti, G., Chevalier, Y. (2021). Formulation of Pickering emulsions for the development of surfactant‐free sunscreen creams. International Journal of Cosmetic Science, 43 (4), 432–445. doi: https://doi.org/10.1111/ics.12709
  12. Yamada, M., Dang, N., Lin, L. L., Flewell‐Smith, R., Espartero, L. J. L., Bramono, D. et. al. (2021). Elongated microparticles tuned for targeting hyaluronic acid delivery to specific skin strata. International Journal of Cosmetic Science, 43 (6), 738–747. doi: https://doi.org/10.1111/ics.12749
  13. Li, Z., Maxon, B., Nguyen, K., Lee, M., Gu, M., Pretzer, P. (2017). A general formulation strategy toward long-wear color cosmetics with sebum resistance. Journal of cosmetic science, 68, 91–98. Available at: https://library.scconline.org/v068n01/89
  14. Baitsar, R. I., Kordiyaka, Yu. M. (2015). Ultrafioletovi filtry u kosmetychniy produktsiyi. Vymiriuvannia, kontrol ta diahnostyka u tekhnichnykh systemakh: materialy III Mizhnar. nauk. konf. Vinnytsia, 37–40.
  15. Sharkawy, A., Silva, A. M., Rodrigues, F., Barreiro, F., Rodrigues, A. (2021). Pickering emulsions stabilized with chitosan/collagen peptides nanoparticles as green topical delivery vehicles for cannabidiol (CBD). Colloids and Surfaces A: Physicochemical and Engineering Aspects, 631, 127677. doi: https://doi.org/10.1016/j.colsurfa.2021.127677
  16. Al‐Rekabi, Z., Rawlings, A. V., Lucas, R. A., Raj, N., Clifford, C. A. (2021). Characterizing the nanomechanical properties of microcomedones after treatment with sodium salicylate ex vivo using atomic force microscopy. International Journal of Cosmetic Science, 43 (5), 610–618. doi: https://doi.org/10.1111/ics.12729
  17. Kalashnyk, O. V., Moroz, S. E., Kyrychenko, O. V. (2020). Practical aspects of using databases to identify cosmetics products. Herald of Khmelnytskyi national university. Visnyk Khmelnytskoho natsionalnoho universytetu, 1 (281), 110–116. Available at: http://journals.khnu.km.ua/vestnik/wp-content/uploads/2021/01/1-2020_281.pdf
  18. Teremetskyi, V., Аrtem, S. (2020). Standardization and certification of cosmetic products as administrative and legal means of cosmetological services market regulation. Visnyk APSVT, 3-4, 114–121. Available at: https://www.socosvita.kiev.ua/sites/default/files/Visnyk_3-4_2020-114-121.pdf
  19. Baitsar, R. I., Kordiyaka, Yu. M., Zelisko, A. M. (2015). Osoblyvosti rozvytku kosmetychnoi haluzi v Ukraini. Strategiya kachestva v promyshlennosti i obrazovanii: materialy XI Mizhnar. konf. Vol. II (2). Varna, 517–520.
  20. Chekhovska, I. V., Bilousyuk, V. V. (2019). Legal regulation of the market of cosmetology services: comparative legal analysis. Mizhnarodnyi yurydychnyi visnyk: aktualni problemy suchasnosti (teoriya ta praktyka), 15, 101–111. doi: https://doi.org/10.33244/2521-1196.15.2019.101-111
  21. Su, Z., Luo, F., Pei, X., Zhang, F., Xing, S., Wang, G. (2020). Final Publication of the “Regulations on the Supervision and Administration of Cosmetics” and New Prospectives of Cosmetic Science in China. Cosmetics, 7 (4), 98. doi: https://doi.org/10.3390/cosmetics7040098
  22. Barbulova, A., Colucci, G., Apone, F. (2015). New Trends in Cosmetics: By-Products of Plant Origin and Their Potential Use as Cosmetic Active Ingredients. Cosmetics, 2 (2), 82–92. doi: https://doi.org/10.3390/cosmetics2020082
  23. Kennedy, K., Cal, R., Casey, R., Lopez, C., Adelfio, A., Molloy, B. et. al. (2020). The anti‐ageing effects of a natural peptide discovered by artificial intelligence. International Journal of Cosmetic Science, 42 (4), 388–398. doi: https://doi.org/10.1111/ics.12635
  24. Fagot, D., Pham, D. M., Laboureau, J., Planel, E., Guerin, L., Nègre, C. et. al. (2018). Crocin, a natural molecule with potentially beneficial effects against skin ageing. International Journal of Cosmetic Science, 40(4), 388–400. doi: https://doi.org/10.1111/ics.12472
  25. Mehling, A., Kolle, S. N., Wareing, B., Landsiedel, R. (2022). True Grit: A Story of Perseverance Making Two Out of Three the First Non-Animal Testing Strategy (Adopted as OECD Guideline No. 497). Cosmetics, 9 (1), 22. doi: https://doi.org/10.3390/cosmetics9010022
  26. Animal Attraction: Federal Bill to End Cosmetics Testing on Animals Introduced in Congress. Available at: https://web.archive.org/web/20140311022116/http://www.khou.com/community/blogs/animal-attraction/Animal-Attraction---249254631.html
  27. Cruelty Free International Applauds Congressman Jim Moran for Bill to End Cosmetics Testing on Animals in the United States. Available at: https://web.archive.org/web/20140318031816/https://www.reuters.com/article/2014/03/05/bc-cfi-idUSnPnpHM6w1%2B98%2BPRN20140305
  28. China’s Animal Testing Laws May 1, 2021 – What You Need To Know! Available at: https://ethicalelephant.com/understanding-china-animal-testing-laws/
  29. Terzi, O. O. (2018). The methodological toolkit for studying the problems of administrative management in the field of health care. Science and Education a New Dimension, VI (178 (29)), 42–45. doi: https://doi.org/10.31174/send-hs2018-178vi29-10
  30. Lebedynets, V. O., Kazakova, V. S., Kazakova, I. S. (2017). Derzhavne rehuliuvannia obihu likarskykh kosmetychnykh preparativ v Ukraini. Upravlinnia yakistiu v farmatsiyi: materialy XI Nauk.-prakt. konf. Kharkiv, 22–24.
  31. Pro sproshchenu systemu opodatkuvannia, obliku ta zvitnosti subiektiv maloho pidpryiemnytstva: Ukaz Prezydenta Ukrainy vid 3 lypnia 1998 roku No. 727/98 (1998). Ofitsiynyi visnyk Ukrainy, 27, 975.
  32. Derzhavni sanitarni pravyla i normy bezpeky produktsiyi parfumerno-kosmetychnoi promyslovosti: zatv. postanov. holovnoho derzh. san. likaria Ukrainy vid 1.07.1999 roku No. 27. Available at: https://zakon.rada.gov.ua/rada/show/v0027588-99#Text
  33. Lutsiv, N. V. (2013). Commodity reseаrch аspects of perfumed wаres in Ukrаine. Naukovyi visnyk Natsionalnoho lisotekhnichnoho universytetu Ukrainy, 23.4, 252–261. Available at: http://nbuv.gov.ua/UJRN/nvnltu_2013_23.4_42
  34. Regulation (EC) No 1223/2009. European parliament and of the council of 30 November 2009 on cosmetic products. Official Journal of the European Union, L 342/59–L 342/209. Available at: https://ec.europa.eu/health/system/files/2016-11/cosmetic_1223_2009_regulation_en_0.pdf
  35. Document de référence: Classement des produits situés à la frontière entre les cosmétiques et les drogues est disponible sur Internet à l'adresse suivante. Available at: https://www.canada.ca/content/dam/hc-sc/migration/hc-sc/cps-spc/alt_formats/hecs-sesc/pdf/pubs/indust/cosmet_drug_guide-drogue_ref/cosmet_drug_guide-drogue_ref-fra.pdf
  36. Tekhnichnyi rehlament na kosmetychnu produktsiyu: Postanova Kabinetu Ministriv Ukrainy vid 20 sichnia 2021 r. No. 65. Available at: https://zakon.rada.gov.ua/laws/show/65-2021-%D0%BF#Text
  37. Fortune Business Insights. Available at: https://www.fortunebusinessinsights.com/infographics/cosmetics-market-102614
  38. Vovchak, О., Kulyniak, І., Halkiv, L., Pavlyshyn, М., Horbenko, Т. (2021). Development of crisis diagnostic at the enterprise: financial and economic breakdown. Financial and Credit Activity Problems of Theory and Practice, 3 (38), 292–303. doi: https://doi.org/10.18371/fcaptp.v3i38.237459
  39. Husieva, N., Kandyba, Y., Kobylin, P. (2019). Transformation of foreign commerce of Ukraine: realities, problems, perspectives. Human Geography Journal, 26, 55–75. doi: https://doi.org/10.26565/2076-1333-2019-26-06
  40. Foreign Trade Indicators of Ukraine. Available at: https://bi.customs.gov.ua/en/trade/

Downloads

Published

2022-06-30

How to Cite

Akmen, V., Sorokina, S., Kruhlova, O., Pavlyshyn, M., Volynets, L., Kot, O., Sevostianova, A., Cherevychna, N., Zabrodska, H., & Lutsiv, N. (2022). Research of the market and economic state of enterprises in the cosmetics industry in the context of reforming the regulatory framework and harmonization in accordance with the requirements of the EU regulations . Eastern-European Journal of Enterprise Technologies, 3(13 (117), 24–36. https://doi.org/10.15587/1729-4061.2022.258652

Issue

Section

Transfer of technologies: industry, energy, nanotechnology