The sunscreen market - Italy

1.2 A Growing Global Market

Forecast of the value of the sunscreen market World, ****-****, in billion USD Source: ****

In ****, the world market was estimated to be worth *.** billion USD. It is a very dynamic and fast-growing market, driven upwards by increasingly sustained global demand.

This is due to the fact that individuals are increasingly aware of the dangers of overexposing their skin to the sun, which can lead to serious diseases (***). As a result, it seems logical that forecasts for the future value of the world market are on the rise, since it is expected to reach a value close to **.* billion USD in **** [***].

The forecasts thus give a growth of the market with a largely positive CAGR equal to *.**%.

According to The World, Americans are the world's largest consumers of sunscreen, having consumed **.* million liters of product in ****.

1.3 The Italian Market

The growth in the consumption of body products in Italy has been almost flat between **** and ****, +*.*%, and affected the overall trend of the market in **** with **.*% of total consumption, representing the second most important family of the Italian cosmetics market, after skincare.

The first category within the body products subcategory is deodorants and antiperspirants, up *.*% and with a value of *** million euros. The second place goes to sunscreen and pigment products, up *.*%, with sales close to *** million euros [***].

Evolution of the sales of sunscreen and pigmented body products Italy, ****-****, in million euros Source: ****

Sales in this sector, as it is visible from the graph above, have been following an alternating trend, reaching a peak of ***.* million euros in ****.

Looking closely to the sun care products market, we see that sunscreen and after sun lotions accounted for **.*% of the overall market value in **** thus making up the largest category by far. 

  Breakdown of the market value of sun care products, by product type Italy, ****, in % Source: ****

1.4 Imports and Exports

In order to analyze the trade balance of Italy for the sunscreen market we are going to use the HS commodity code ******: Cosmetic and toilet preparations, for the case of the skin (***).

Imports, Exports and Coverage Rate for HS Code ****** Italy, ****-****, in million USD and % Source: ****

From the graph above, we can see how Italy is a net exporter of sun care products as it can be noted also looking at the evolution of the coverage rate which has been on an increasing trend over the past * years and always well above ***%. 

****, overall, has not been a good year both in terms of imports and exports, but this has to do with the COVID-** pandemic effect on international trade. 

  Breakdown of imports, by main supplier countries Italy, ****, in % Source: UN Comtrade  

Italy's imports of sun care products mainly come from France (***), and the other main supplier countries only account for smaller percentages of the total.

The situation with exports, on the other hand, is completely different and appear very fragmented between the consumer countries. The top * consumer countries indeed only account for **.*% of the total. 

  Breakdown of exports, by main customer countries Italy, ****, in % Source: UN Comtrade  

1.5 COVID-19 Impact

The most immediate and direct effect of the COVID-** pandemic on consumption of sunscreen and sun care product has been that of diminishing demand in the first phase of the county's lockdown, during which, being forced to stay in their homes, Italians needed less protection against the damaging effect of sunlight.

However, after entering "phase *" of the Covid-** period in May ****, Italians started going out again and also getting organized to figure out how they could go on vacation to the beach or to the mountains. They were thus again able to expose themselves to the sun to get a little "color", even in the city, after so much time locked up indoors. So a typical seasonal opportunity presented itself again for pharmacists: the sale of safe tanning products and sunscreens [***]. 

In general, the summer of **** was characterized by many Italians developing a much more sensitive and unprepared skin, after the long months closed indoors for the lockdown. This in turn meant that, never as this year,  the skin needed to be protected from sun exposure.

At the same time, year after year, we have become more sensitive to the environment and therefore to the sea, aware that our behavior has ...

2.1 Demand Characteristics

**% of Italians use sunscreen while the remaining **% do not. Of the first, **% are women. These percentages make sunscreens one of the personal care products mostly used in Italy [***].

In general, women are more diligent: they apply sunscreens more often (***) use facial sunscreens year-round or nearly.

Nearly one in three people believe that sunscreen is effective immediately after application (***), and only **% think sunscreens are only needed in the summer [***].

Going a bit more in depth, the following two graphs show the reasons why sunscreen users do use this product and the reasons why Italians who declare to not use it don’t.

**% of Italians use sunscreen because... Italy, ****, in % Source: ****

**% of Italians do not use sunscreen because Italy, ****, in % Source: YouGov The main factors sunscreen users take into consideration when choosing a sunscreen are the level of sun protection factors SPF (***), the cost, the brand and the composition.

Main factors taken into consideration when choosing a sunscreen Italy, ****, in % Source: ****

2.2 Demand Drivers

Most Italians, as we have mentioned, use sunscreen mainly when they expose themselves directly to the sun. That is, when they lie down in the sun with the intention of getting a tan. With respect to this, an important demand driver is the percentage of Italians who expose themselves to the sun with the aim to get tanned.

A survey conducted by the  Istituto Ixè for Coldiretti in **** asked the respondents whether they were planning to expose themselves to sunlight to get tanned and if they intended to use sunscreen. The graph, below, shows the results of this survey.

Answer to the question: During the summer, will you expose yourself to sunlight with the aim to get tanned? If so, will you use sunscreens?" Italy, ****, in % Source: ****

Excessive exposure to ultraviolet (***). The sun is the most significant natural source of UV exposure, although in recent years there has been a great increase in artificial sources of ultraviolet radiation, such as tanning lamps [***]. That is why, an important determinant for the demand of sunscreen and sun care products is the UV index level in Italy, as these products are aimed precisely at protecting individuals from the damaging effect of UV radiations. 

The ...

2.3 Consumer Profile and Consumption Habits

Generation

A survey conducted by OnePoll for eDreams, involving **,*** people from Italy, France, Spain, the United Kingdom, Portugal, the United States, Sweden and Germany, revealed the habits of sunbathing in these countries [***]. 

On the Italian front, the generational comparison shows a picture of the population of vacationers who are not very attentive to the damage caused by high exposure to the sun in the **-** year old range. Millennials seem to be fans of the "atomic" tan: only slightly more than half of them (***) use a medium-high protection factor.

The other generations (***) use creams with SPF higher than factor ** in **% of cases, while the highest levels of awareness of the importance of adequate protection from the sun are recorded among the over **s, who use products with medium-high protection in **% of cases. The Italian figure, in this case, goes against the global average, according to which millennials are * times more aware than their parents. Suffice it to say that, internationally, **% of baby boomers have never purchased sunscreen, compared to *% of millennials.

Moreover, young Italians aged **-** are among those who spend the most hours in the sun, with *% of them going so far as to tan for *-* hours a day, ...

2.4 New Trends in Demand and Seasonality

Italians are getting more and more aware of the damage that UV rays can have on their skin: this is why so many people choose to wear sunscreen all year round and above all never to expose themselves to direct sunlight or at least to do so at limited times and always absolutely protected.

However, as we have seen in the previous sections, many Italians actually enjoy exposing themselves to the sunlight. These individuals, however, being aware of the risks connected to such practice are demanding products which will allow them to get the tan they desire while, at the same time, eliminating the risks of exposure to the sun.

The latest technologies in the field of self-tanning products were thought precisely to answer this consumer need. These products indeed now exists in different formulations, both as a melanin stimulator and as a real tint that colors the skin temporarily.

The objective of these products is achieving an absolutely natural effect by gradually coloring the skin, to obtain the desired effect without encountering the risks of direct exposure to sunlight [***].

Overall, sunscreen is an extremely seasonal product, as already mentioned within the scope of this study. We have an indicator of ...

3.1 Market Structure and Dynamics

There are about ** thousand companies in Italy related to the cosmetics sector, between production, wholesale and retail, of which *,*** in Lombardy, +*.*% in **** in the face of a slowdown in the sector at the national level, according to data processed by the Chamber of Commerce on the business register. In Milan there are *,*** (***) [***].

Geographic Distribution of Cosmetic Sector Companies, by main cities

Italy, ****, in number of companies

Source: ****

3.2 Production Process and Product Composition

Production of Sunscreen

The production process of a sunscreen can be long and costly, as the development of a new product can take up to ** years, and require * years of research for *** trials

This is due to the difficulty of finding the right balance between the various components, often numerous, in order to obtain the desired characteristics and degree of protection [***].

The Test Phase

Before any sunscreen marketing process, tests are carried out to measure its effectiveness and to quantify its protective strength. To date, two options are recommended for carrying out the tests:

In Vivo method ISO ***** and ISO ***** with tests carried out on volunteer individuals placed under a UV lamp after applying the product to their backs. The reaction time of the skin to UV light is then timed; In Vivo method ISO ***** with tests carried out using machines only. The principle is identical to the excpetion that the creams are not applied on individuals but on transparent plates.

Please note that the second test method cannot be used with sunscreens containing mineral filters [***]

Ingredients to avoid:

Buthylhydroxyanisol (***); Glycol ethers; Parabens; UV filters acting as endocrine disrupters: octyl methoxycinnamate (***).

3.3 Distribution Channels

 Among the traditional distribution channels, the ones through which sunscreen and sun care products are sold are:

Pharmacies Perfume Shops Large-scalre retail shops and other channels

Pharmacies dominate this sector as **.*% of the sales of the sector are done through this distribution channel, followed by Large-scale retail shops (***) [***].

Breakdown of sunscreen and pigmented body product sales, by distribution channel Italy, ****, in % Source: ****

For what concerns the online channel, Cosmetica Italia, within the scope of its annual reports, conducted an analysis of the penetration of online purchases for different cosmetic products. Sunscreen creams have an online purchase penetration equal to **.*% which is a high percentage overall, but smaller, if compared to the other products analyzed in the report.  Purchase of cosmetics product online: penetration of purchase Italy, ****, in % Source: Cosmetica  

4.1 Offer Typology

Sunscreen products are cosmetic products designed and used to protect the skin from the action of sunlight. The market offers a surprising variety of sunscreen products suitable for the most varied needs and capable of responding to the tastes of each individual.

Types of Solar Formulations

Sun Oils: Solar oils can be derived from natural oils and are the oldest cosmetic vehicles. They allow an excellent dispersion of sunscreens (***). Stick, Lipogel or Gel Anidri: They are similar to oils, but have a solid form, often rich in Vaseline or mineral oils; their application is limited to small skin areas because they can be sticky and greasy. The sticks are indicated for small sensitive areas - such as the face - to cover existing sun hyperpigmentation and prevent worsening or to protect surgical and recent scars. Hydrogel: Hydrogels are water-based products, very often hydroalcoholic (***) with a repairing action on sun damage, refreshing, soothing and moisturizing, with a high percentage of phytoderivatives and active substances. Emulsions: O/A and A/O emulsions (***) on the skin surface, to guarantee resistance to removal from washing and resistance to perspiration. Pastes and Dense Creams: Pastes and dense creams are particularly suitable for children; they are usually ...

4.2 Pricing

To have a complete overview of the pricing in this market, it is necessary to distinguish between different types of sunscreens:

The sunscreens chosen for the analysis are the best sellers and best reviewed on the marketplace  Amazon in ****.

From the table above, it is clearly visible how organic and children sunscreens are, on average, more expensive than traditional sunscreen.

4.3 Innovation as a Key Success Factor

In Italy, more than *% of turnover of sunscreen products is spent each year on research and innovation. In general, all over Europe in five years there have been more than * thousand patents presented, with more than ** thousand researchers, biologists, chemists, physicists, doctors and toxicologists. There are more than ** centers working on it, producing every year innovative realities aimed at creating products that respect the natural ability of the skin to regenerate itself [***].

The main focus of innovation in the sector of sunscreen and sun protection has been towards hi-tech and eco-sustainability. According to studies on the potential negative impact of sunscreens dispersed in the water, each year * to * thousand tons of sunscreens are released in tropical coral reef areas and about ** thousand in the seas. Within ** to ** hours of their release into the sea, most of these formulations destroy or damage algae and coral particles [***].

Some chemicals contained in these products damage the sea and the species which inhabit it, such as fish and corals. Many cosmetics and sunscreen companies are investing significant funds to innovate their products in this sense formulating new generation eco-sustainable oils and sunscreens that respect the aquatic environment by selecting biodegradable, often natural and organic ingredients, ...

5.1 The European Cosmetics Regulation

Sunscreen products, like all cosmetics, are regulated by the European Cosmetics Regulation. This Regulation, however, is not the only regulatory reference. In ****, in fact, the European Commission published a "Recommendation on the efficacy of sunscreen products and related claims" with the aim of clarifying this field and simplifying consumer choices by making the indications on the label of sunscreen products more uniform and simple. This Recommendation has been welcomed by the European industry, which has immediately undertaken to apply it to the products that are placed on the market.

Here are the main points provided in the Recommendation:

It Provides precise definitions: In this document, first of all, a precise definition of sunscreen product is provided, understood as "any preparation (***) intended to be placed in contact with human skin for the exclusive or main purpose of protecting it from UV radiation by absorbing, dispersing or refracting it". In addition, definitions of other relevant terms are provided, such as UVB rays, UVA rays, sun protection factor, and UVA protection factor. Information on indication, protection, precautions for use and instructions for use: The Recommendation provides a range of guidance on the protection, use precautions, and instructions for use of sunscreens, such as:

Specifies ...

6.1 Segmentation

• La Roche-Posay
• Vichy
• Eau Thermale d'Avène (Pierre Fabre Groupe)
• Piz Buin
• Hawaiian Tropic
• Australian Gold
• MyKAY
• Suntribe Sunscreen
• Bionike