The Milano Beauty Week stage (26 September-2 October 2023) formed the setting of the half-yearly appointment with the Cosmetica Italia Research Centre’s Economic Survey, which shows a sector in excellent health, forecast to grow also in 2024.
In the context of the numerous initiatives organised in Milan and aimed at spreading the culture of beauty and wellbeing, the projections of Cosmetica Italia made it possible to take a photograph of the dynamics of the sector, also from an economic point of view.
«At the end of the year we expect the total turnover of the cosmetics industry in Italy to reach 14.8 billion euros, up by 10.9% compared to 2022 – reported Benedetto Lavino, president of Cosmetica Italia – and the forecast for 2024 points to a further increase that will take the turnover to 16 billion. These numbers enable our country to be classified as the third in Europe for turnover, after Germany and France».
The domestic market is growing, while containing prices
The importance of the sector and its ability to create value for the national economic system is undeniable. With regards to the domestic market, preliminary 2023 figures point to a consumption value of 12.4 billion euros (+8.2% against 2022), with growth forecast to arrive at 13.1 billion for 2024. It is worth pointing out that the Italian cosmetics market has been able to absorb changes in margins and contain price increases; in the first half of 2023, in fact, the cosmetics sector kept price increases below the general average of the main purchase categories (+7.5% against a little over 12% for the average of consumer goods).
Double speed exports
Exports also continue to grow and, according to estimates, at the end of 2023 will reach 6.7 billion euros (+15% against 2022). In 2024 there is expected to be a further jump of 10% which will raise the Italian cosmetics value to 7.4 billion euros. The trend in contract production is also significant and, placed upstream of the supply chain, offers an important indication of the sector trend: the preliminary 2023 figures indicate a turnover value of 2 billion euros (+9.1% against 2022).
Distribution channels trend
Mass market, perfumeries and pharmacies remain the three most important channels in terms of value, but e-commerce and perfumeries have the most significant growth dynamics.
More specifically, estimates for the second quarter indicate a value of 5.2 billion euros for cosmetics purchased in mass retail; in second position, cosmetics consumption in perfumeries show 2.5 billion euros and growth forecast for next year of 8.5%. Pharmacies remain in third place among purchase channels with a preliminary value of 2 billion euros in 2023. The fourth distribution channel is e-commerce, which at the end of the year will go on to generate 1.1 billion euros, with sustained growth rates also for 2024 (+9.8%). Professional hairdressing (around 600 million euros) and herbalists, close to 400 million, follow. Direct sales, door-to-door and mail order show analogous values (around 400 million euros); finally, the beauty profession with an estimated value at the end of 2023 of almost 200 million euros.
Company strategies oriented towards sustainability were examined during the meeting.
«From an analysis of business strategy directions, in particular with regards to the question of sustainability, it was found that over 4 companies out of 5 are focusing on investments for energy efficiency through the integration or replacement of systems and with innovative instruments and technologies »
pointed out Gian Andrea Positano, chief of Cosmetica Italia’s research Centre.
Cosmetica Italia – national association of cosmetic companies founded in 1967, is the national association of cosmetics companies that brings together over 640 companies, from SMEs to multinationals, representing 90% of the sector’s turnover which in 2022 exceeded 13 billion euros.