This is marketing research on the cosmetics – Europe (Italy) industry and can include information on the background, market structure, definitions, competitors, trends and developments of cosmetics in Italy and is related to other topics such as beauty, fashion and retail.

Italy: Toiletries and Cosmetics

Table of Contents

1 Market Demand 
2 Market Data 
3 Suppliers 
4 Market Issues and Obstacles 
5 Sources

Italy has a sophisticated and developed cosmetic market. Approximately 9 billion euros of cosmetic products are sold in Italy every year making it the fourth largest market in Europe. Although highly competitive, there is potential for growth in several sectors of the Italian cosmetics industry. Body care, hair, face, and hygiene products continue to dominate the cosmetic industry and account for 60 percent of all cosmetic sales. Best prospects are found in raw materials, naturally derived products, and innovative or unique products. Naturally derived products are a growing market segment within Italy. Italian consumers are becoming increasingly attuned to a “wellness culture” and products derived from natural active ingredients are progressively popular.

Market Demand

Italy is a large producer of fragrances and cosmetics, which includes several multinational cosmetic companies selling their products. Italy is also a large exporter of cosmetic and toiletry products. It exports mainly to France, Germany, United Kingdom, Germany, United States and Spain. Russia is also one of the most important emerging markets for cosmetics produced in Italy. The Italian Association of Cosmetic Industry (UNIPRO) reports that although exports are still significant, there has been a revival in the domestic market, which has had a positive impact on the growth of sales volumes as a whole. Italians still prefer to buy the best quality products they can afford, while possessing a more cautious attitude towards spending money on luxury items. While the Italian cosmetic market is highly competitive, it is open to new products, particularly those that are natural or contain natural active ingredients derived from plants and vegetable extracts.

Good potential exists for innovative products directed to problem areas (eg. facial creams for wrinkles, cellulite treatments, sun block and related protection from the environment, enriched lipsticks, etc.). Similar potential exists for cosmetic products aimed at non-traditional consumers such as men, children, and the elderly. Since Italy imports almost all its raw materials, it is possible to supply Italian manufacturers with ingredients such as aloe vera, lavender, and essential oils. There is an increasing market for men’s products as men have discovered the pleasure and the benefits of dedicating more to their well being. There are also good prospects for products that distinguish themselves from what is already available on the Italian market, e.g. tea-tree and eucalyptus-based products. An important factor is also the packing of the product. It must be of high quality and good design as Italians prefer products that are nicely packaged and creative.

Market Data

The Italian cosmetic market has registered a continued increase in sales reaching 9 billion euros in 2007. According to recent estimates provided by UNIPRO, exports of Italy’s cosmetics grew by 5.3 percent reaching a total of 2.25 billion euro, while imports increased by 4.5 percent totaling 1.43 billion euro with respect to 2006. Italy exports approximately 28 percent of its total turnover.

Hair and body care products continue to dominate the cosmetic industry. These two products make up 32 percent of the total marketplace. Facial care, make-up, and body hygiene products are the best prospect products for U.S. companies and 43 percent of the total cosmetics market is directly made up of these three different product areas.

Italian consumers seem to prefer more specialized channels for purchasing cosmetic products. The pharmacy channel for purchasing cosmetic continues to be the most lively as it increased 8.5 percent from the previous year. The pharmacy channel offers sophisticated products at a more affordable price to most consumers. However, the perfumery channel still remains an important aspect to the concept of beauty, although there has been a change in consumption to other channels due to the expensive nature of the products. The herbalist shop market is another major potential participant in the marketplace, registering an increase of 4 percent with respect to previous years. Consumers remain enthusiastic about the herbalist market due to its perceived value for money.

Suppliers

The following companies are distributing Italian and French cosmetic products in Italy:

• Door and Channel - Top sellers in women’s fragrances
• Armani - Number one in men’s fragrances
• L’Oreal Italia Spa. - strongest in color cosmetics
• Coty Lancaster Italia S.p.a.
• Deborah Italia S.p.a.
• Euroitalia S.r.l.
• Eurocosmesi S.p.a.
• Schiapparelli Pikenz S.p.a.

Market Issues and Obstacles

In order to be competitive in the Italian market companies should be prepared to heavily invest in promoting their products and brands. U.S. companies will need to be able to effectively promote their image and appeal to Italian tastes and fashion preferences. Packaging is also a key component. Products should be packaged in a well-presented, eye-catching fashion. In addition, to sell cosmetic products in Italy a U.S. company must have an Italian representative (either a subsidiary/representative office/agent/distributor/or importer) whose company is properly registered in Italy.

All ingredients used in cosmetic products are subject to stringent European and Italian regulations guaranteeing consumer protection. The Italian consolidated text of laws of the EU directive n. 2002/34 pertains to production and commercial distribution of cosmetics products in Italy. The decree laws are important, as they provide not only a new set of rules regarding production and distribution, but also a new definition of cosmetics. This definition allows for the recognition that cosmetics can have a role in the “protection and maintenance of the well being of the skin and related areas.” It is mandatory for a company importing U.S. cosmetic products to maintain a file or dossier containing all the information needed to evaluate the safety of the cosmetic product and prove its effectiveness.

Italy imports nearly all its cosmetic ingredients. Substances such as aloe vera, lavender, and essential oils are used in the production of locally made products. Demand for raw materials will increase as Italy continues to sell its products abroad. Italian exports have been growing at an average rate of 5 percent per year over the past 10 years. Italy exports mainly within the European Union, United States, and recently in emerging markets such as Russia.

There remain ample opportunities in the Italian cosmetic market. Despite its competitiveness, there is room for innovative products of high quality and good design in the marketplace. Italians also tend to choose products that are nicely packaged and creative.

For additional information on Cosmetics Legislation in the European Union please visit the following links:

http://http://www.buyusainfo.net/docs/x_6757976.pdf
http://ec.europa.eu/enterprise/cosmetics/index_en.htm
Trade Event
COSMOPROF Italy
April 10-April 13, 2008-Bologna, Italy

COSMOPROF is the world’s leading trade show in the beauty sector. The 2007 edition had over 2,110 exhibitors of which 1,143 were from abroad, and over 30,477 foreign visitors attended the show. A U.S. Pavilion is organized every year.

For information you may wish to contact the show organizers as follows:

So.Ge.Cos S.p.A.
COSMOPROF
Via Filargo, 38
20143 Milan
Tel.: + 39.02.796.420
Fax: + 39.02.795036

Sources

U.S. Department of Commerce