Cosmetics industry: excellence as an antidote to the crisis

Despite a situation that is conditioned by the general slowdown in many sectors, both internally and internationally. the cosmetics industry maintains a positive trend, above the average of national manufacturing production. Positive indicators both for the preliminary results for the second half of 2018 and for the forecasts for the first few months of 2019. This is revealed by the survey of the situation made by Cosmetica Italia.

According to the report prepared by the Cosmetica Italia study center - and presented in February in Milan - with a global turnover of approximately € 11.2 billion (+ 2%) at the end of 2018 and further growth forecasts for the year course (+ 2.6%), the cosmetics sector continues to enjoy good health, confirming itself to be anti-cyclical
This trend is confirmed by domestic turnover, with a positive trend of just under one percentage point and, aboveall exports, up by 3.5% in 2018, for a value of 4,800 million euros. Once again, therefore, the evolution of exports has a significant impact on the trade balance, which exceeds 2,700 million euros.
As the president of Cosmetica Italia, Renato Ancorotti, commented:
«The closure of 2018 marks for our companies the entry into a phase of stability, in which the knowhow acquired during the post-crisis period is metabolized. Even in this scenario and against a contraction in GDP, the sector can count on its strengths: investments in innovation, product quality, qualified personnel training. The cosmetics industry is in fact an excellence, with its own specific dignity, which we hope can be enhanced and listened to by the institutions “.
 
Photograph of an industry
A glance at the demand for cosmetics in Italy at the end of 2018 confirms its anti-cyclical nature, albeit at a slower pace than in the last years (+ 0.5%) for a value of just over 10,100 million euro. The holding firm of the professional channels, hairdressing salons and beauty centers, contributes to this result - - which close 2018, up 0.5%.
The increases in large-scale retail trade (+ 0.5%) and in perfumery (+ 1.2%) are marginal, but numerically important, and are respectively the first and second place in domestic sales.
For the first time, analyzed separately from the Research Center, e-commerce continues to show trends that are superior to other channels, with an estimated growth of 10%. Direct sales (door to door and correspondence), which previously expressed this value, registered a contraction of 2% at the end of 2018.
Weak signs of uncertainty come from the pharmacy channel, which closes 2018 with a 1% decline; also in the herbalist shops the consumption trend shows a slow-down, although the trend values remain positive (+ 0.2%).
Finally, the cosmetic production by contractors, which is located upstream of the production chain, transversal to the other channels, shows a growth of 4% for 2018, predicting a further increase estimated at 6% for the first half of 2019.