The shampoo market - Italy

1.2 The world market and the European market

Growth and market size

The global shampoo market is expected to reach $**.** billion by ****, with a CAGR of +*.**% projected for ****-****.

Global shampoo market World, ****-*****, in billions Source: ****

A promising segment

Dry shampoos are expected to grow much faster over the same period, with a CAGR of +*.**% to reach $*.* billion by ****. They are expected to account for **% of the market within five years.

Dry shampoo market World, ****-*****, in billions Source: ****

Shampoo in the hair care market

Shampoos are included in the hair care market. This market was worth $**.* billion in ****. Asia-Pacific dominates the hair care market with ** percent of total sales.

Hair care market share Worldwide, ****, in % Source: ****

The European market

The following data refer to Prodcom code ******** "Shampoo."

Italy is the second largest shampoo producing country in Europe by value, produced ** percent of total European production in ****, or *** million euros, behind France with ** percent of total production (***).[***]

Shampoo producing countries European Union, ****, in % Source: ****

1.3 The Italian market is growing

The data presented in the chart below are for ATECO code **.** in the"manufacture of toiletries: perfumes, cosmetics, soaps and the like" sector, which includes the following activities:

manufacture of perfumes and cosmetics: perfumes and toilet waters, beauty and make-up products, anti-sun and tanning preparations, manicure and pedicure preparations, shampoos, hair lacquers, waving and ironing preparations, toothpastes and oral hygiene preparations, including preparations to facilitate denture adhesion, shaving preparations, including pre- and post-shaving preparations, deodorants and bath salts, depilatory products manufacture of herbal products for cosmetic use manufacture of cosmetic soaps

We see that in Italy the sector is dynamic : in ** years from **** to ****, the overall annual turnover of the sector increased by +**%, from * *** million euros to * *** million euros.

Turnover of the toiletries manufacturing sector Italy, ****-****, million euros Source: ****

1.4 Foreign trade: Italy is a shampoo exporting country

The UN Comtrade data below is for HS Code ****** and refers to all shampoos.

The most striking fact from the chart below is Italy exports far more than it imports. In ****, it exported US$***.* million worth of shampoo and €***.* million worth of shampoo in **** for a change of +** percent in five years. Its imports, in addition to being much lower, increased much less, from US$***.* million to US$***.* million for a change of +**.*% over the same period.

External trade in shampoo Italy, ****-****, in millions of USD Source: ****

France

It is assumed that this market follows a logic of proximity, because, as you can read in the following graphs, * of the top * importing countries of Italian shampoos are European: France, Spain, UK and Germany, and the * countries from which Italy imports shampoos are: France (***).

Destinations of shampoo exports Italy, ****, in % Source: ****

Provenances of shampoo imports Italy, ****, in % Source: ****

2.1 Shampoos and hair products rank fifth in the frequency of use of personal care products

In the Year **** Report, Cosmetica Italia, National Association of Cosmetic Companies, offers a comprehensive picture of Italians' habits for cosmetic products, then personal care products. From these, the following chart presents the products used regularly by Italians:

Cosmetic products used regularly Italy, ****, in % Source: ****

Hair care products rank fifth among regularly used personal care products. Hair care products are of various types; all products included in this market are analyzed in Part * of this study.

2.1 Men and women: different types of consumption

From the study conducted by Cosmetica Italia, different purchasing characteristics emerge among the Italian population. Men and women have different needs regarding personal care, which is why these two categories will make different uses of cosmetics products. The graphs below present the breakdown, and it can be seen that men accord greater importance to hair care products than women, but only by *% . The difference is not very significant. The Italian population, confused men and women, pay a lot of attention to the product they buy. In fact, the global average on brand attention to buying hair care products is **%, while in Italy, **% of the population pays attention and gives weight to the brand they buy.

Consumption of cosmetic products by women Italy, ****, in % Source: ****

Consumption of cosmetic products by men Italy, ****, in % Source: ****

2.3 Factors influencing demand and best-selling products

A **** study published by YouGov Italy was interested in the factors that influence the Italian customer's choice of a personal care product. Thus, there are several factors that will play an important role in choosing a product from this macro category, of which shampoos are a part. We can see in the chart below that in first place is the quality of the product, followed by efficiency, the customer's past experience with the product, the presence of natural ingredients, price, etc.

Main factors influencing the purchase of cosmetic products Italy, ****, in % Source: ****

the organic sector of shampoos and hair care products

Purchasing criteria for natural and organic hair care products Europe, ****, % Source: ****

We find in the following graph the breakdown of sales of hair and scalp products by category, and we see that shampoos are the most sold products in this sector, with almost half of the sales (***).

Breakdown of sales of hair and scalp products by category Italy, ****, % Source: ****

3.1 The structure of the Italian market

As in Subpart *.*, the code to which the data refer is the ATECO code **.** for the sector"manufacture of toiletries: perfumes, cosmetics, soaps and the like." The following graphs show the trends in the number of enterprises in the sector and the number of people employed in the sector. Both experience steady growth, apart from an unexpected drop in the number of enterprises in ****.

The number of enterprises grew by +**.* percent from **** to **** while the number of employees grew by +** percent over the same period.

Number of enterprises in the toilet manufacturing sector Italy, ****-****, units Source: ****

Employment in the manufacturing of toilet products sector Italy, ****-****, thousands employed Source: ****

Geographical breakdown of enterprises

The data in the map below refer to ATECO code **"Manufacture of chemical products," which includes shampoo manufacturing, among others.

The market is extremely concentrated. in ****, the leading region in the sector is unequivocally Lombardy, with *,*** companies in the sector on its territory, which is explained by the region's great economic and technological dynamism. The following regions follow far behind: Veneto (***).

3.2 Italian production

Italian annual shampoo production experienced a gradual decline from **** to **** (***), and then stabilized and returned to the level of ** years earlier in ****, for a total change in ** years of only -*.*%.

Annual Italian shampoo production Italy, ****-****, in millions of euros Source: ****

3.3 Distribution remains dominated by large-scale retail

We see in the graph below that shampoos are bought much more in supermarkets and hypermarkets than in other distribution channels.

In detail, in **** out of ***.* million euros of shampoos sold in Italy, *** million euros were sold in large-scale retail (***). Only **.* million euros were sold in pharmacies and *.* million euros in perfumeries: the latter channel being the one that experienced the sharpest decrease from **** to ****, -**.*%.

Breakdown of shampoo purchases by distribution channel Italy, **** Source: ****

4.1 Composition of a shampoo and types of products

The composition of shampoos is regulated by the International Nomenclature of Cosmetic Ingredients (***).

Demineralized water is the main ingredient, accounting for **-**% of the composition and acting as a solvent. Washing agents, between ** and **% of the composition, dissolve the fats in the water. Shampoos also contain foaming agents (***) and preservatives. Other emulsifying agents and additives, such as silicone, oils, or citric acid, can be found in the composition of shampoos. Although this is the classic composition of shampoos, some movements advocate the use of natural products to wash hair because of the environmental danger of classic shampoos, such as the No Poo movement, which advocates the need to intersperse washes with shampoo and to use alternative products such as apple cider vinegar, baking soda, or eggs.

In addition to so-called "classic" shampoos, which consist of water, detergents, conditioners and preservatives, there are also dry shampoos. These are a mixture of powders that absorb sebum and trap dirt, which is then removed by brushing the hair. They are usually aerosols. Dry shampoos are composed mainly of cornstarch and rice starch.

Shampoo varieties are classified according to the type and texture of consumers' hair. Brands generally distinguish four hair consistencies:

Straight hair Wavy ...

4.2 Production costs and selling prices

When investing in a new cosmetics brand-in the shampoo business or otherwise-there are several types of costs to consider. We can analyze them below.

Costs of brand creation and management, which include: the creation or redesign of the logo, the creation of graphics for labels and packaging, the choice of packaging and gift wrapping, the analysis of the market and trends, the creation of materials to be able to sell products online. Production costs and bureaucratic processes. In order to establish a product with the Made in Italy label, higher costs must be expected, which involve product research and development, product production, and logistics. Made in Italy is a label that can be used only if the conditions set by law are met: you can read about the procedures to follow at this link. You can start with an external producer or choose your own facilities. In the first case you will need * to **,***€, in the second the cost will be higher. In addition, relying on an external partner allows you to significantly reduce costs and get rid of the various bureaucratic processes (***) certification, which is the technical dossier of the product that includes the Cosmetic Product Safety Assessment. The cost ...

5.1 Regulation (EC) No. 1223/2009

Regulation (***) ****/**** is based can be summarized as follows:

Harmonization of divergent regulations among member states Definition of key figures and their responsibilities Post-market surveillance system for cosmetics Centralized notification of cosmetics Clear definition of a cosmetic product Increased degree of safety of cosmetics Establishment of a system with positive and negative ingredient lists Reference to international standards

This regulation can be read at this link.

5.2 The cosmetics label regulation

In Europe, the label of cosmetics must be drawn up in accordance with Article ** of Regulation (***) No. ****/**** of the European Parliament and of the Council and Sindacato Medici Italiani.

The label must be written accurately and correctly to ensure that consumers can make an informed choice, based on an adequate level of information about the characteristics, composition and function of the cosmetic product.

For products placed on the market in Italy, the label shall be written in Italian. it is possible to provide for multilingual labels, but in this case for products intended for the Italian market at least some information must appear in Italian and with font sizes equivalent to those of texts appearing in other languages.

Article * of the Ministry of Health Decree of September **, **** states that the following information must appear in Italian:

for products marketed in Italy with a multilingual label: nominal content at the time of packaging, expressed by weight or volume date until which the cosmetic product will continue to perform its initial function special precautions for use function of the cosmetic product for products which, because of small container size or other practical reasons, bear on a wrapper, tag or instruction sheet attached to ...

6.1 Segmentation of actors

• L'Oréal Groupe
• AGF88 Holding
• Collistar
• Davines
• L'erbolario
• Manetti & Roberts
• Sodalis Group