Italian cosmetics industry surges: €15B turnover revealed in economic survey

16 Feb 2024 --- The Cosmetica Italia Study Center unveiled the findings of its 46th Economic Survey, providing a comprehensive overview of the cosmetics sector’s performance in Italy. Held biannually, the survey serves as a barometer for assessing market dynamics and identifying prevailing trends.

Preliminary data from 2023 revealed a noteworthy upswing in the sector, with total turnover reaching €15 billion (US$16.15 billion), marking a 13.3% increase from the previous year. 

Forecasts for 2024 are equally optimistic, with an anticipated growth rate of 9.8%, pushing the turnover value to €16.5 billion (US$17.77 billion). Export figures were particularly striking, amounting to €7 billion (US$7.54 billion) in 2023, representing a 19.5% surge from 2022, with a further projected increase of 12% in 2024.

Benedetto Lavino, president of Cosmetica Italia, remarks on the survey findings: “In 2023, despite difficulties linked to costs and availability of raw materials, energy increases, the Italian cosmetics industry recorded positive trends both on the domestic market and on international markets.”

Lavino attributed this success to the industry’s commitment to innovation, research and adaptability to evolving consumer preferences.

Resilience amid market challenges
Last year, despite market uncertainties including inflation, disrupted supply chains, and fluctuating demand for luxury purchases, beauty companies globally adapted in fiscal with annual results showing a bullish outlook as hair and skin care companies exceeded sales predictions.

One of the key market for Italian cosmetics is the internal market.The report highlighted the contribution of cosmetic contracting, which saw a turnover of €2 billion (US$2.15 billion) in 2023, up by 9.1% compared to 2022. Forecasts for 2024 anticipate a continued growth trajectory, with a projected increase of 7.5%, pushing contract turnover to over €2.1 billion (US$2.26 billion).

Domestic consumption within Italy demonstrated growth as well, with preliminary estimates indicating an 8.9% uptick from 2022, amounting to €12.5 billion (US$13.46 billion). Projections for 2024 suggest a sustained upward trend, with an expected increase of 8.4%, reaching a consumption value of €13.5 billion (US$14.53 billion).

Positive growth and emerging trends
Among distribution channels, large-scale retail maintained its dominance, with a consumption value of €5.2 billion (US$5.6 billion) in 2023, marking an 8% increase from 2022. Following closely behind, pharmacies recorded 7.4% growth, reaching €2.1 billion (US$2.26 billion). Professional channels, including hairdressing salons and beauty centers, also exhibited positive trends, with increases of 6.1% and 5.1%, respectively.

A detailed analysis of distribution channels revealed uniformly positive trends across various segments. Perfumery, for instance, witnessed a 12.6% increase in consumption, reaching €2.5 billion (US$2.69 billion) in 2023. E-commerce also experienced substantial growth, with a 12.5% surge, resulting in a market value of €1.1 billion (US$1.18 billion). Additionally, herbal medicine consumption grew by 12%, totaling €400 million (US$ 431 million).

The Economic Survey also delved into thematic considerations, with a specific focus on AI and its growing strategic significance in the cosmetics industry.

Gian Andrea Positano, head of the Cosmetica Italia Study Centre, highlights: “It is interesting to note how cosmetic companies are facing the evolution, both strategic and operational, of the effects and applications of AI: more than 50% of respondents are evaluating the introduction of digital methods for managing communication and defining market analyses.”

Edited by Sichong Wang