The discussion was attended by ministry officials, representatives of the ‘Mongolian Cosmetics Cluster’ NGO, Mongolian National Chamber of Commerce and Industry, Mongolian Agency for Standardization and Metrology, Mongolian Customs General Administration, Mongolian Academy of Sciences as well as representatives of over 30 cosmetics companies.

As of 2018, domestic manufacturers have produced cosmetics worth MNT 4 billion. In the last 5 years, production has grown by 21 percent each year, with the variety of products continuing to increase. The export of products made with organic commodities without any additives is speculated to grow in the next few years. Currently, Mongolia is exporting organic cosmetic products to 16 countries, such as China and Korea. While only 4 percent of the products being manufactured were exported in 2013, the percentage has increased to over 30 percent in the recent years.

It was proven by a study conducted by the EU-funded Trade Related Assistance of Mongolia (TRAM) project that Mongolian cosmetic products made with organic commodities have the potential to be exported. However, as domestic manufacturers take only 2 to 5 percent of the total market despite its quick development in the last 30 years, it shows that it is necessary to improve competitiveness, the legal framework for the sector, and a pleasant business environment. Thus, in aims of bringing the sector to a new level, 27 manufacturing companies and over 40 commodity supplying companies have banded together to establish the ‘Mongolian organic cosmetics cluster’ NGO. The organization’s aim is to have the unique cosmetic products of Mongolia enter the global market.

The participants mainly discussed the current state of the domestic cosmetics market, pressing issues and opportunities for export, quality standards for commodities, legal framework, and establishing a platform for the value-added system.