The cosmetics market - Italy (2024)

1.2 The global market

Cosmetics are beauty products used for skin or body care or to accentuate the appearance of the human body. These refer to a range of products available mainly in different categories, such as skin care and hair care. The global cosmetics market reached a value of $***.** billion in **** and is expected to grow at a CAGR of *.* percent from **** to ****, to reach a value of about $***.** billion.

Global cosmetics market value World, ****-****, in billions of dollars (***) Expert Market Research

Europe accounts for a significant share of the industry, second only to the United States(***). The growth of the cosmetics industry in Europe has been driven by various factors such as the increasing use of anti-aging cosmetics and the growing demand for organic products and in the region.

Cosmetics industry consumption compared: major world states World, ****, in billion euros (***) Cosmetics Italy In the ranking of European sales of cosmetics, products dedicated to personal hygiene(***) are in first place, followed by products related to facial and body skin care, **.*%.

Composition of European consumption by macrocategories of cosmetics in **** Italy, ****, % Cosmetics Italy In the European context, Germany confirms its leadership in cosmetics consumption(***), followed by France with **.* billion euros.Italy holds the third ...

1.3 The domestic market

Despite the negative effects due to the prolonged Russian-Ukrainian conflict, high tensions on raw materials and related price increases, **** confirms a recovery dynamic in the production and market values of the Italian cosmetics industry. In fact, with the consolidation of the "new normal" and the overcoming of the production and market levels of the pre-pandemic period, the responsiveness and adaptability of the domestic cosmetics industry is reconfirmed, recording, at the end of ****, a **.* percentage point growth in overall turnover, rising from **.* billion euros in **** to **.* billion euros in ****.

COSMETICS INDUSTRY TURNOVER **.* billion euros SHARED VALUE CREATED BY THE COSMETICS SYSTEM IN ITALY **.* billion euros TURNOVER OF THE COSMETICS SUPPLY CHAIN ** billion euros VALUE OF THE COSMETICS ECONOMIC SYSTEM IN ITALY ** billion euros Italian cosmetics exports grow by **.* percent (***).

Breakdown of cosmetics industry sales by destination channel Italy, ****, % Cosmetics Italy

1.4 The foreign market

It can be seen that the value of exports dominates the value of imports throughout the period taken into analysis (***). As for imports, we can see that there has been growth in recent years: from **** to **** the value undergoes an increase of *.* percent.

Exports, Imports and Coverage Rate of Cosmetics Italy, ****-****, in millions of dollars (***) UNComtrade

In terms of exports, the top five consumer countries for cosmetics produced in Italy are France (***).

Distribution of exports among the top * consumer countries (***) Italy, ****, % UNComtrade Analyzing imports, we see that the top five countries supplying cosmetic products to Italy are France (***). Breakdown of imports among the top * supplier countries (***) Italy, ****, % UNComtrade

1.5 Impact of the conflict between Russia and Ukraine

The Russian-Ukrainian conflict has had a significant impact on the cosmetics manufacturing industry, leading to higher producer and consumer prices. Geopolitical tensions have generated instability in supply chains, with disruptions in transportation and access to crucial raw materials. This uncertainty has triggered an uptick in operating costs for companies in the sector, which have been faced with logistical challenges and fluctuations in material prices. Specifically, we see a rise in consumer prices of *.* points(***) from February ****, -the month in which the conflict broke out-, to December ****, -the latest available data.

Consumer price index in beauty products Italy, ****-****, base ****=*** Istat

The consumer price index are a reflection of the producer price index; again, there is an increase in value of *.*% from February **** to October ****.

Producer price index - manufacture of perfumes and cosmetics Italy, ****-****, base ****=*** Istat

2.1 Demand characteristics

To visualize the consumption of cosmetics in the Italian context, an analysis of the monthly household expenditure item in personal hygiene and wellness items, natural products and beauty products is proposed. Specifically, we see that since **** , spending has significantly decreased compared to ****(***).

Item of monthly household spending on personal hygiene and wellness items, natural products and beauty products Italy, ****-****, in current &euro Istat

at the end of ****, the cosmetics market in Italy accelerates the distribution model in light of the conditioning that emerged in the tail of crossing the pandemic crisis. The modulations recorded in the sale of cosmetics result from the new purchasing and consumption routines leading to a value of €**,*** million with a growth, compared to ****, of *.* percent. However, the war crisis, the slowdown in the availability of raw materials, as well as the energy price increase that has greatly impacted the lives of Italian businesses and households, suggest cautious estimates projected to the end of the year and ****. As for the breakdown of consumption by macro-category, it can be seen that the most purchased products are facial products(***).

Breakdown of consumption by macrocategories Italy, ****, % Cosmetics Italy

2.2 Demand drivers

Cosmetics are purchased more by women (***).

Estimated composition of consumption of cosmetic products for women (***) Italy, ****, % Cosmetics Italy

Consumers, on the other hand, concentrate their purchases in perfumery (***).

Estimated composition of cosmetic consumption for men (***) Italy, ****, % Cosmetics Italy

2.3 Geographical distribution of demand

Regarding the geographic distribution of cosmetics consumption, it can be seen that the highest value is concentrated in Northern Italy (***). As can be seen from the value of spending, products from this economic segment are in high demand and popular among Italian households.

2.4 New demand trends

HEALTH NURTURING

Consumers have long understood and incorporated into their routines the benefits of a holistic approach to health. This movement is set to increase in the coming years due to the growing aging population, progressively limited access to health care, and unbalanced diets. These factors will influence multiple consumer segments, giving cosmetics and dietary supplements an increasing opportunity to offset the effects of the hustle and bustle of everyday life. Other technologies to focus on are skin health devices and trackers. The market is expected to benefit from double-digit growth, driven by the development of personalized and enhanced products and experiences from evolving technologies. The global dietary supplement market will benefit from the growing appeal of holistic routines. As fitness in all its forms, from online personal coaching to group workouts, will continue to attract growing consumer interest, the market for workout-friendly cosmetics and other categories of products that prepare and soothe muscles before and after a workout will be on the rise. All categories, including skin care, hair care, personal care, makeup products, and fragrances, will be affected by this trend.[***]

COGNITIVE WELLNESS

In light of the critical issues of recent years, the quest for satisfaction and emotional well-being ...

3.1 Market structure and dynamics

Regarding the number of enterprises active in the manufacture of perfumes and cosmetics in the Italian context, there is a growth between **** and ****, amounting to *.** percent. The lowest value in the last five years taken into analysis is in ****, where only *** companies were present in the economic scenario. The value then grew by **.* percent in **** and continued this positive upward trend in ****.

Enterprises active in the manufacture of perfumes and cosmetics Italy, ****-****, in thousands Istat

**.* percent of enterprises active in the sector have the legal form of Limited Liability Companies(***), reduced percentages are, on the other hand, for Individual Entrepreneurs, freelancers and self-employed workers, who account for about **.* percent of enterprises active in the sector.

Legal form enterprises active in the manufacture of perfumes and cosmetics Italy, ****, % Istat With regard to the number of employees in enterprises active in perfume and cosmetics manufacturing, there is a significant growth from **** to ****, amounting to **.* percent. Consistent with the activity of the enterprises, it can be seen that the lowest value of employees was in ****, and then increased again in **** by *.* percent. Number of employees in perfume and cosmetics manufacturing Italy, ****-****, in thousands Istat

3.2 The Italian territory

In **** , the highest concentration of cosmetic enterprises is confirmed in the Northwest of Italy, with a weight on the geographical picture close to ** percent. Lombardy is confirmed as the region with the highest density of cosmetic companies, at nearly ** percent, followed by Emilia-Romagna(***). Calabria, Sardinia, Molise and Valle d'Aosta have insignificant industrial establishments, while Friuli-Venezia Giulia, with a share of*.* percent, remains the tail end of the North.

Regarding the geographic distribution of cosmetic companies' turnover in ****, a strong concentration is confirmed in Lombardy (***).

Geographical distribution of turnover of cosmetic companies Italy, ****, % Cosmetics Italy

Area * Liguria *.* percent; Lombardy **.* percent; Piedmont *.* percent; Aosta Valley *.* percent Area * Emilia Romagna *.*%; Friuli Venezia Giulia *.*%; Trentino Alto Adige *.*%; Veneto *.*% Area * Latium *.*%; Marche *.*%; Sardinia *.*%; Tuscany *.*%; Umbria *.*% Area * Abruzzo *.*%; Calabria *.*%; Campania *.*%; Molise *.*%; Puglia *.*%; Sicily *.*%

3.3 Value chain

The value chain in the cosmetics market includes several stages from the supply of raw materials to the sale to the end consumer. Here is a general summary of the main stages:

Raw material supply: this stage includes the production and supply of ingredients and materials used in the manufacture of cosmetic products. It includes manufacturers of oils, fragrances, dyes, preservatives, and other chemicals. Production and manufacturing: at this stage, raw materials are transformed into finished cosmetic products. This includes processes such as mixing, formulation, and packaging. Distribution and Wholesale: after production, cosmetic products are distributed to retailers through distributors or directly by the manufacturing companies. Retail: cosmetic products are sold to consumers through various retail channels, such as specialty stores, supermarkets, pharmacies, and e-commerce platforms. Marketing andAdvertising : marketing and advertising strategies are essential to increase brand awareness and influence consumers' purchasing decisions. This can include traditional advertising, digital marketing, influencer partnerships, and promotional campaigns.

Raw materials

In the cosmetics industry, functional raw materials are essential in determining the efficacy and characteristics of finished products.

Cleansers: remove dirt from skin, hair or nails. The most common are surfactants, but exfoliants and solvents can also clean surfaces. Conditioners: change the feel of ...

3.4 Distribution channels

The main distribution channels for cosmetics are: GDO and other channels: common channel for the distribution of cosmetics, offering a wide range of brands and products under one roof; they often target mass-market products and are chosen by consumers seeking to purchase cosmetics along with their regular spending on other products. Pharmacies and drug stores: significant outlets for the distribution of cosmetics, especially for products that are dermatologically approved or positioned as pharma-cosmetics. They provide a trusted environment for consumers seeking health- and wellness-conscious products. Direct Sales: includes sales through representatives or beauty consultants. Direct sales allow for personalized service and product demonstrations. Specialty Stores: specialty stores focus on specific types of cosmetic products or meet particular beauty needs, offering expert advice and a curated range of products. Beauty Sal ons: salons not only provide beauty services but also sell a range of cosmetic products used in their treatments. This allows consumers to purchase products used and recommended by professionals. Online Sales: online sales of cosmetics have seen significant growth. E-commerce platforms, brand websites and social media channels offer convenience, wide product choices and often competitive prices. Hypermarkets Retail establishment with a sales area greater than/equal to *,*** m* Supermarkets Retail ...

3.5 Main actors

4.1 Type of the offer

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4.2 Prices

Over the past year, the consumer price index for beauty products has grown significantly: from December **** to December **** there was an increase of *.* points(***). The growth in value occurred gradually and was certainly influenced by the recent price increases caused by the Russian-Ukrainian conflict. Consumer price index in beauty products Italy, ****-****, base ****=*** Istat Average prices of products on promotion Italian consumers show a strong interest in promotional offers and for those for beauty products on large-scale retail flyers represent a must in the overall promotional offer of Italian stores. Fragrance category The sector to be taken into the greatest consideration for the average promotional prices among the beauty products offered by GDO flyers is definitely perfumes; from the graph below, it can be guessed that the promotional prices in this segment present an average price of €**.** for men's Eau de Parfume and €**.** for women's Eau de Parfume.

Average price flyer promotions for the category Perfumes Italy, ****, in € Qberg

Lips category

Lip products saw significant increases over **** in the overall inflation rate: specifically, lip protectants and lipsticks grew by *% and *%. The average price for lip protectants is around €*.**, while lipsticks are expected to reach as high as €*.**.

Average price flyer promotions ...

4.3 New supply trends

Mineral makeup

Mineral makeup has a unique composition of minerals processed into a powder composed of microcrystals that naturally adhere to the skin. Being exclusively composed of minerals, they have no additives, preservatives, silicones, etc. inside them. So all substances that can become harmful to one's skin over time are avoided. The most common ingredients are:

Titanium dioxide Mica Iron oxide Zinc

In addition, Manganese Violet, Ultramarine Blue, Ferric Ferrocyanide, and others are included. Each of these minerals has properties, some are absorbent and sebum regulators and are suitable for oily skin, others are soothing, and still others act as sunscreens and are therefore protective.[***]

Ammonia-free hair dyes

Ammonia present in traditional hair dyes is used to make the pH alkaline. This condition promotes the opening of the hair cuticles and allows the penetration of molecules that participate in the chemical reaction that leads to the formation of the final color. In ammonia-free hair dyes, this agent is replaced by a derivative, such as monoethanolamine. This mimics the function of ammonia, helping to open the surface scales of the hair so that dyes cannot penetrate the fiber. Ammonia-free hair dyes also do not have the strong odor that characterizes variants that ...

5.1 EU cosmetics regulation: updates 2022

Regulation ****/**** was updated on March *, ****, and has new bans that cosmetic retailers must comply with when offering their products for sale.

These are zinc pyrithione and butylphenyl mathylproponial. In fact, these two substances have recently been classified as carcinogenic, mutagenic and toxic. As of March ****, cosmetics companies are no longer allowed to sell products containing one or more of the substances involved in this ban.

In addition to the aforementioned Regulation, the adoption in January **** of Regulation ****/*** changes the conditions of use of Methyl-N-methylanthranilate in cosmetic products.

All current news about the products that may or may not be used in the production of cosmetics, or the directions to be followed for labeling, can be found on the Cosmetica Italia website.

Standards for natural and sustainable cosmetics:

Cosmetics with natural-organic connotations:

A product characterized by graphic or textual elements that communicate its natural/organic connotation, in line with its formulation composition, i.e., the presence of a high number of organic or naturally derived ingredients. This cosmetic can also communicate: compliance with the international standard ISO *****; natural/organic certification according to the protocol of a specialized private body; and compliance with its own self-defined characterization, in compliance with Regulation ***/****.

Cosmetics with ...

6.1 Segmentation of actors

• KIKO Milano
• Sephora
• Bottega Verde
• Acqua di Parma
• L'Oréal Italia
• Paglieri
• Deborah Group