The market for pens - Italy

1.2 Global market analysis

The global market for writing instruments was valued at $** billion in ****, and is projected to reach a value of $** billion by ****, growing at a CAGR of *.* percent. The chart below shows the evolution of the size of the market under analysis, and its forecast to ****.

Pens Market - Global Size World, ****-****, in billions of USD. Source: ****

The upward trend that emerges from the graph above is mainly due to the facts that, on the one hand, demand for writing instruments remains very stable and, on the other hand, innovations are disrupting the industry. For example, to meet the demand of millennials and the younger generation's use of technology, smart pens have been introduced that are sold as writing instruments. However, in the above market size, it is estimated that ** percent of the total value of writing instruments comes from pens, while the remaining ** percent includes pencils, markers, coloring instruments, and others. Finally, the market for pens includes a wide range of products, such as luxury pens, designer pens, organic pens, etc.

Considering the applications of pens, **** data show that the vast majority of pen users are students, covering ** percent of the total market spending. The graph below shows the proportion ...

1.3 The Italian market

In Italy, the market for pens is characterized not only by the production and distribution of standard items-namely, ballpoint pens that dispose of themselves once they run out of ink-but also by the creation of luxury pens. These are tools that, at first, may seem a bit unfashionable, especially considering the proliferation of computers and tablets. In truth, they still attract much interest from collectors around the world. The most sought-after, at the moment, are certainly the limited editions of Montblanc, but also of the Italian Montegrappa, known for its precious and extremely rare celluloid workmanship-which in the past was a flagship of the Italian Omas-which is highly sought-after in the Arab markets, to which it continually dedicates its rarest and most valuable versions.

Among those described, a relevant example of a collectible pen is the fountain pen version - which uses a metal nib to apply a water-based ink to the paper. Of course, for the purposes of collecting, the various components must not have been replaced or compromised, the caps must be the original ones, and great importance is placed on the integrity of the nibs. In addition, the fountain pen can be ruined in the constant presence of ...

1.4 Analysis of import and export

Introducing the analysis of imports and exports, the graph below shows the volume that international pen trade took in the period from **** to ****. Specifically, from the graph below, it is possible to assess a reversal that imports and exports have experienced: from a trade deficit situation that ran from **** to ****, a surplus was realized in ****, with exports amounting to ***.* million USD and imports valued at ***.* million USD, and a coverage rate of ***.* percent. Analyzing the **** data, the turnaround in imports and exports is also explained by the fact that the pandemic was a real constraint on international trade, especially considering countries far from Italy. Thus, since Italy mainly relies on Asian countries for pen imports, the pandemic outbreak can be considered the main reason why there has been such a reversal in the import-export trend.

The market for pens - Analysis of imports and exports Italy, ****-****, in millions of dollars. Source: ****

Analyzing international trade, the **** figures show that pen imports amount to US$***.* million, with the main exporting countries being Germany (***). The graph below shows the percentage of pen imports related to the most relevant exporting countries.

By Market - Import Italy, ****, in %. Source: ****

From the graph above, it can ...

2.1 Overview of demand

Considering the broader category of stationery in general, the Italian market recorded a value of more than *** million in ****. In terms of the weight of the segments, writing ranks first with a market share close to ** percent and a total value of more than *** million. This is followed by office products with a market share of over ** percent and a value of *** million. In third place are coloring supplies, followed by highlighting products[***].

Stationery Products - Demand Italy, ****, in %. Source: ****

Within this segment, writing shows a different trend depending on the individual segments. Fine ballpoint pens (***), which helped sustain the sector's value trend, thanks also to a positioning that covers all price ranges, including the medium-high ones. All other products declined. The table below summarizes the main pen categories and the relative growth recorded from **** to ****.

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2.2 Demand drivers

Education level

As shown in Part *.*, nearly **% of pen users are students. Therefore, it can be inferred that education is one of the main drivers for the market under consideration. In particular, it is also relevant to consider the different levels of degree attained by the population, since, in general, traditional writing tools are more used by high school students, while college students make greater use of computers and tablets.

To assess a country's level of education, it is necessary to analyze the share of the population between the ages of ** and ** with at least an upper secondary education degree - in the case of Italy, the percentage of individuals who have obtained the "Diploma di Maturità," which is considered the level of education essential for participation in the labor market with potential for individual growth. In ****, this share is **.*% (***). The graph below shows the trend of Italian education level and the average of European countries.

Education level Italy, ****-****, as % of population **-** with at least an upper secondary education degree Source: ****

Taking **** as the basis for our analysis, the level of education in Italy was, together with that of Spain, the lowest among other similar European economies-France, Germany and ...

2.3 New trends in demand

For so long, personalized pens have been a viable alternative for gifts or for companies as a personalized gadget to offer their customers or sponsors. However, in recent years, there has been an increased focus among users on the material chosen to produce the pens. In this period, the focus has shifted to personalized ecological pens, that is, pens made from environmentally friendly materials or natural elements. Manufacturers and importers of business gadgets have researched, researched and produced pens with a variety of raw materials. The following table shows the characteristics of the main types of pens made from recycled materials.

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2.4 Geographical distribution of demand

Considering the demand drivers analyzed in section *.*, it is possible to assess the level of education in different Italian regions to get a clear understanding of the distribution of demand for pens.

Specifically, in the graph above, the level of education for each macro-region is calculated in terms of % of the population aged **-** with at least an upper secondary education degree. Therefore, since education level is one of the main drivers for the demand for pens, it is to be expected that the distribution of demand across Italy would reflect the distribution of education. The table below shows the data used to construct the map, which refers to ****.

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However, the link between the distribution of demand for pens and that for education can be explained by the correlation between regions where education reaches higher levels and the higher average expenditure that households incur per month. The table below shows the average prices for different Italian macro-regions.

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Notably, the above table shows that the macro regions where the average monthly expenditure that households incur on pens is highest are those where the level of education is also highest. Therefore, it can be inferred that the distribution of education in ...

3.1 Market structure and dynamics

Given the high specificity of the market, it is necessary to consider the main components of which pens are made to assess the number and type of legal entities operating in the sector in the Italian landscape. Considering the most widely used types of pens, they consist mainly of a plastic casing containing ink. Therefore, in analyzing the market structure, we rely on the following ATECOs:

ATECO **.**.** - Manufacture of plastic articles for office and school; ATECO **.**.** - Manufacture of office and non-industrial consumer chemicals.

As for the total number of plastic manufacturers related to the pen market, the number of entities in Italy saw a ** percent decrease in the period from **** to ****. The chart below shows the recorded trend.

Plastic products for school and office use - Number of entities Italy, ****-****, in units. Source: ****

Regarding the legal form of entities available in the country, the graph below shows the percentage proportion for the main categories, covering the year ****:

Plastic products for school and office - Legal form Italy, ****, in %. Source: Istat In the end, the number of employees in the sector trended downward, reflecting the reduction in the number of players operating in the market under analysis.

Plastic products ...

3.2 Value chain

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Specifically, from the graph above, it can be seen that pen distribution is mainly associated with two types of channels: on the one hand, store-based retailers, ranging from large grocery stores to mixed retailers that provide a variety of products. On the other hand, store-less retailing mainly involves e-commerce platforms that offer a wide variety of products belonging to the stationery sector, allowing customers to easily find what they need and meet their demand.

3.3 Distribution channels

Considering the broader category of stationery products, the chart below shows the proportion of products sold in the main distribution channels.

Stationery Products - Distribution Channels Italy, ****, in %. Source: ****

However, considering the value chain for pen production reported in the previous section, it is to be expected that part of the "Others" category will be represented by e-commerce platforms specializing in stationery products.

4.1 Type of the offer

The pen market offers a wide variety of products, which differ in many factors, including the size of the pen tip, the type of ink used, the color, and so on. The following categories of pens can be listed:

Ballpoint pens; Roller pens; Gel pens; Markers and highlighters; Touchscreen pens with stylus.

The following table summarizes the main characteristics of the categories of pens presented.

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4.2 Prices

To assess the price of pens in the Italian market, we need to consider the consumer price index of stationery products, which are represented by ECOICOP ****. Considering the graph below, we can see an increasing trend in the consumer price index for stationery products, calculated using **** as the base (***). As described in Section *.*, **** was a special year because of the impact of Covid-** on the sector. This is also reflected in a slight inflection in the reported index.

Stationary Products - Consumer Price Index Italy, ****-****, based on **** = *** Source: ****

Recalling the categories of pens introduced in the previous section, the table below shows their average price.

Category Average price Ballpoint pens €*.** Rollerball pens €*.** Gel pens €*.** Markers and highlighters €*.** Touchscreen pens with stylus €*.** [***]

5.1 Regulatory framework

6.1 Segmentation

• Staedtler
• Henkel Italia
• Pilot Pen France
• F.I.L.A.
• Montblanc (Richemont Groupe)
• Parker Pen Company
• Schwan-Stabilo