Italian cosmetics: the most loved in Hong Kong

Over 100 Italian companies animated the 2018 edition of Cosmoprof Asia and Cosmopack Asia, which took place in Hong Kong according to the formula “1 Fair 2 Venues” and where the Association Cosmetica Italia* promoted an Italian collective participation made up of 36 companies.

«In Hong Kong, while the domestic market is more or less stable, the demand for cosmetics made by Italian companies continues to grow consistently» comments the president of Cosmetica Italia, Renato Ancorotti. «Here, as in the rest of the world, the uniqueness of the products offered by Italian companies is recognised because they provide a perfect blend of quality, safety, innovation and service. At Cosmoprof Asia, our companies will demonstrate this by representing the various aspects of the industry, from the supply chain to the finished product».
For four days, the cosmetics industry had turned towards the East, ready to take advantage of the latest beauty trends and important business opportunities. Thanks to the well - established “1 Fair 2 Venues” format, the  Hong Kong engagement has been revamped with  Cosmoprof Asia, Asian version of Cosmoprof hosting exhibitors of finished products (Hong Convention and Exhibition Centre - from 14 to 16 November) and Cosmopack Asia, the Asian version of Cosmopack addressed to the companies representing the entire cosmetics supply chain (Asia World Expo - from 13 to 15 November).

A business of value
There is great interest from Italian cosmetics companies toward this trade show, the most important in the Asian - Pacific region: over 100 Italian companies, around half of which are members of Cosmetica Italia, in fact took part confirming their attention towards processes of internationalisation.
Indeed, in 2017 too, exports showed a growing trend (+7.1% ) for a value of 4,617 million Euros.
Considering only the Asian area, Hong Kong is the first market for exports of Italian cosmetics with a value of 199 million Euros and a significantly positive trend of 27.1 % more as against the previous year.
In particular, face care and body care products account for approximately half the Italian cosmetics exported to Hong Kong with a total value of almost 99 million Euros (+26% as compared to 2016); alcohol - based perfume products come second and, with a value close to 76 million Euros, account for 38.1% of Italian exports to this market. In third place come hair care products which, even with much lower sales figures (8.9 million Euros ), show a lively growth trend (+76% ).
The turnover for the cosmetics industry in Italy in 2017 reached almost 11 billion Euros. The role of foreign markets remains fundamental, with the positive trend in exports generating a trade surplus of over 2.5 billion Euros. The cosmetics industry as a whole, encompassing suppliers of ingredients, machinery, through to packaging for finish ed goods, topped 15.6 billion Euros in value.

Facts and merits of a segment
Some data may help to better understand the value of the sector.
Our country is fourth for cosmetics markets after Germany, France and the United Kingdom with 35,000 people employed, which total 200,000 counting downstream activities.
54% of those employed in the sector are women (about 19,000), while the manufacturing industry average is stable at 28%. The total number of university graduates among the employed is 11% against a national average of 6%, and the women with a university degree number about 1,700, 45% of those with university degrees in the sector. In addition to workers specialized in pharmaceutical chemistry and cosmetology, many are specialized in economy and marketing.
Regarding innovation and technology, the research and development that the cosmetics companies in Italy invest is about 7% of the turnover against a national average estimated to be about 3%.
Moreover, let’s not forget that cosmetics covers 44% of investments in communication of “non food” assets, and that over 6 5 % of the makeup distributed in Europe is produced in Italy.
The export/production ratio was equal t o 42 % at year - end 201 7 , but t here are still wide margins for the sector’s internationalization processes. Since 2000 the growth of exports has been higher than the growth of the cosmetic demand, testifying the rise of the Italian competitiveness in this field.

* Established in 1967, Cosmetica Italia is the national association that unites over 500 companies in the cosmetic sector, from SMEs to multinationals, representing 95% of the industry’s turnover.
In Hong Kong a Memorandum of Understanding between Cosmetica Italia and China Beautèville has been signed: the agreement outlines a cooperation which aims to favour the exchange of information regarding the cosmetics sector, the regulations and the market trends.