Response to Claims That 95% of Cosmetics Are Counterfeit | Despite Restrictions, $400 Million in Exports

The chairman of the board of the Iranian Association of Detergent, Hygiene and Cosmetics Industries rejected claims that 95% of market cosmetics are counterfeit, reporting that 90% of skincare products are produced domestically and the industry exports $400 million.

The Chairman of the Board of Directors of the Detergent, Health and Cosmetic Industries Association, rejecting the claim that 95% of the cosmetic products in the market are fake, announced the domestic production of 90% of the skin care products and the export of 400 million dollars of this industry.

Ambassador Arjan-Maryam Sarkhosh: Are 95% of cosmetics and health products in the Iranian market really fake? The publication of this statistic by an official of the Cosmetics and Perfumery Union has created concerns about the health of consumers; A claim that domestic producers reject and believe that due to the high share of domestic production in meeting market needs, such a number cannot be an accurate picture of the state of this industry.

The story started with the statements of Masoud Tehrani, the vice-chairman of the Cosmetics and Perfumery Union, who announced at the beginning of October this year that about 95% of the cosmetic and health products available in the country's market are fake. He also cited the statements of the officials of the Food and Drug Organization and the Ministry of Industry, Mines and Trade, and announced a decrease of 80 to 85 percent in the quality of purchases.

On the other hand, the activists of the cosmetics and health products production industry consider this statistic unrealistic and emphasize that a significant part of the country's market needs is provided through domestic producers.

Alireza Kiani, Chairman of the Board of Directors of the Iran Detergent, Hygiene and Cosmetic Industry Association, on the sidelines of the 8th Exhibition of Cosmetic, Hygiene and Detergent Products (Iran Cosmetica), in a conversation with Ambassador Arjan, rejecting the claim that 95% of the products in the market are fake, says: it is better that such statistics be announced by reliable and responsible authorities. The Ministry of Health, the Ministry of Industry, Mining and Trade and the specialized organizations of this industry are among the authorities that can provide more detailed information about the production and market situation.

He continues by referring to the domestic production capacity: currently, 100% of the country's need for detergent products is provided through domestic production. Also, nearly 90% of skin care products, including gels and creams, are domestically produced. Of course, we have not yet reached such a level of self-sufficiency in the field of cosmetic products, but despite this amount of domestic production, how can we claim that 95% of the products in the market are fake or smuggled?

According to this industrial activist, although the existence of counterfeit and smuggled products in the market cannot be denied, announcing general statistics without separating different product groups can give a false picture of the market situation.

smuggling and fraud; Two different health threats

One of the important points in examining the cosmetics market is the difference between contraband and counterfeit goods. Any product that entered the country through an unofficial route is not necessarily fake; Just as every fake product is not necessarily imported from abroad.

However, both groups can be problematic for consumers. Counterfeit products may contain unknown ingredients, allergens, or chemical pollutants, and their use can lead to inflammation, skin allergies, and eye damage. On the other hand, products that are supplied outside the formal supply chain and supervision may not be reliable in terms of storage conditions, use-by dates and authenticity.

Kiani also confirms the presence of smuggled products in the market and says: Iran is a vast country and has wide borders. It is natural that contraband goods enter the country through certain routes despite the controls. We cannot claim that the market is completely free of these products, but the important thing is that consumers pay attention to the authenticity of the goods when buying.

According to the Chairman of the Board of Directors of the Detergent, Hygiene and Cosmetic Industry Association, some of the smuggled products are sold in small stores, especially on the outskirts of big cities.

He explains about the method of identifying authorized products: Our most important recommendation is that people buy products that have the authenticity label of the Ministry of Health. The second recommendation is to buy from reputable centers. Pharmacies, chain stores and reputable online stores that operate under the supervision of responsible institutions are a safer way to buy these products.

Of course, the existence of the authenticity label alone is not enough, and consumers should also inquire about the authenticity code of the product from the official channels; Because it is possible to forge the label and packaging of well-known products.

Exports of 400 million dollars despite restrictions

While the issue of smuggling and counterfeit products is one of the challenges of the cosmetics market, Kiani also says about the export capacity of this industry: currently, the export of the country's detergent, cosmetics and hygiene industry is about 400 million dollars. Of course, this number can be higher and its limitation does not mean that the quality of Iranian products is low.

He states that one of the reasons for the limited export is the problems of providing raw materials and the priority of meeting the needs of the domestic market. On the other hand, there are also policies and regulations that require producers to supply the domestic market before exporting.

According to him, Iran's cosmetic and health industry has the capacity to increase exports, but the realization of this goal requires improving the supply conditions of raw materials and reducing production and trade restrictions.

The impact of war on the cosmetics industry

The Chairman of the Board of Directors of the Detergent, Sanitary and Cosmetic Industry Association also explains about the impact of war conditions and economic restrictions on this industry: "The damage caused by the war to the country's economy is not limited to one industry and has affected various production sectors. Our industry is not exempt from these conditions and we have faced problems in providing foreign exchange, importing raw materials and logistics issues.

He emphasizes that the problems caused by the war conditions exist in many industries and industries and its impact cannot be limited to the cosmetics industry.

The activity of more than 300 companies in the detergent and cosmetic industry

Kiani further points to the situation of the producers of this industry and says: Currently, about 300 companies producing detergent, cosmetic and health products are members of the association, and some active companies have not yet become members of the association.

Referring to the 8th Iran Cosmetics Exhibition, he adds: This year, there was a good reception from industry activists and member companies of the association, and we hope to see this exhibition held more widely next year, with the participation of about 400 companies.

Cosmetics market needs clarification

According to Ambassador Arjan, despite the producers' emphasis on the high share of domestic products in the market, the challenge of the presence of smuggled and counterfeit goods cannot be ignored. The lower price of some unauthorized products and the decrease in the purchasing power of consumers can also provide an opportunity to increase the demand for cheap and unauthentic goods. However, declaring that 95% of cosmetic products on the market are counterfeit is a big claim that requires documented data, market sampling and separate examination of different product groups to confirm. The high share of domestic production alone is not enough to definitively reject this statistic. What is important in this regard is the release of official and segregated statistics by regulatory bodies; Statistics that determine what share of the market is available to domestically produced products, official imports, smuggled goods and counterfeit products. Until then, consumers should pay more attention to the authenticity of the products, health permits and credibility of the supply centers.