Economic analysis presented by the Italian Cosmetics Studies Centre had outlined a recovery in turnover across the Italian Beauty Market and the national cosmetics industry. It also projects an uptick to once again reach pre-crisis levels during the second half of 2022.

According to forecasts, in the second half of the year 2021, the overall turnover of the entire Italian cosmetic chain will exceed €11.7 Billion with a growth of 10.4% compared to 2020 and, although we will still have to wait a year to return to global pre-pandemic, the data prove that the sector is positively affected by the stability of the Italian Beauty Market and can be optimistic about international opportunities as well.

Renato Ancorotti, President of Cosmetics Italy
Renato Ancorotti, President of Cosmetics Italy

The forecast we present today, takes into account the return to new normality and to new-found confidence,” explains Renato Ancorotti, President of Cosmetics Italy. “Unlike other industries, the cosmetics sector has never followed regular economic cycles. Even in the ongoing uncertain macroeconomic scenario, it has demonstrated better performance than the majority of the manufacturing sectors, showing a strong reactionary capacity. This emphasises the positive response of our industry to changing methods of purchase and consumption. This cautious optimism is supported by the gradual upward trend in production across cosmetic companies, mostly due to international trade. The return of trade fairs and events represents an irreplaceable tool for our export. Italian cosmetics continue to be appreciated outside our national borders for the global and multidisciplinary approach that is at their foundation.”

The recovery in international trade is set to bring a positive leap in export sales of 14% by the end of the year, with value of €4.7 Billion and a trade balance that will exceed €2 Billion. The security measures adopted to protect the health of the population and the vaccine campaigns have accelerated the progressive return to the usual life and consumption habits in Italy, where estimates for the end of 2021 indicate an internal market growth of 8.5%, for a value of €10.6 Billion. By the end of 2021, the growth of e-commerce is expected to go up by 29.7%, with a value of €900 Million, pharmacy up 4.0%, reaching €1.9 Billion and mass-market up 1.5%, reaching €4.5 Billion, confirming the driving role of cosmetic consumption. Even the professional channels are reacting positively after a long period of lockdowns: hair is up 14.8% and beauty by 12.6%) for an estimated yearly turnover respectively of €520 Million and €190 Million.

“Confirming the collective reaction capabilities of the Cosmetic industry, our surveys show that as many as one operators out of two expect to make a full recovery from emergency health effects within 2022. Increase of GDP, recovery of industrial dynamics, renewed propensity to consume: these are all indicators that are emerging from the analysis of industry and market and talk of recovery already in place,” highlights Gian Andrea Positano, Head of Research Centre of Cosmetics Italy. “Companies are riding the so-called new normality with the innate capacity to react and, simultaneously, invest in new products and new engagement tools for consumers.”