The cosmetics market, and the global cosmetics industry more generally, is experiencing a time of great prosperity, with a current value of $427 billion (McKinsey & Company): a turnover set to grow by 6 percent annually, reaching $580 billion in 2027.
In this scenario, the Italian cosmetics market remains in splendid health and maintains a growth trend that continues to surprise.
According to pre-consensus data, in 2023 the total turnover of the domestic cosmetics industry will record double-digit growth, exceeding the impressive figure of 15.1 billion euros, a remarkable 13.8 percent increase over the previous year.
Innovation, quality, research, sustainability: 4 cornerstones of the Italian cosmetics market
The extraordinary result just mentioned is not just a numerical figure, but represents a testimony to the strength and vitality of the Italian cosmetics industry and market.
It is the point of arrival and departure of a seamless commitment to 3 cornerstones towards which the Italian cosmetics industry is constantly oriented and which therefore characterize the companies in the sector: innovation, quality and research.
Also not to be overlooked is their ability to read, interpret and consequently adapt to the changing as much as new needs of consumers, with a view to increasing attention to wellness and sustainability. Factors, these, that have contributed significantly to the sector’s continued success.
The paradigm shift for the global cosmetics market
Italian cosmetic companies showcased the best of their production on the stage of Cosmoprof Worldwide Bologna, which recently concluded its edition for the current year. A strongly international fair, with protagonists from all over the world, and increasingly renowned in the industry, so much so that it is a must-attend annual event for companies, professionals and beauty enthusiasts.
What emerged from the event is the paradigm shift that the cosmetics industry is experiencing: an unprecedented shift from simply seeking aesthetic perfection to recapturing total well-being.
This shift reflects a growing consumer awareness of the importance of emotional, physical, and mental well-being, rather than focusing exclusively on the outward appearance. It is no coincidence, then, that the cosmetic market increasingly claims an inclusive role that identifies it as a comfortable space where people can find solutions to improve their personal balance with awareness, welcoming emotions and fragilities.
Cosmetic companies are responding to this evolution by valuing a holistic approach to beauty that considers the balance between mind, body, and soul as the basis for achieving true well-being.
What does this new paradigm translate into? The cosmetic market is increasingly focusing on formulating products that not only improve appearance, but also promote skin health, reduce stress, and promote inner peace.
In addition, companies are increasingly striving to create meaningful experiences for consumers, offering not only products, but also services and environments that promote relaxation and overall well-being. This approach is also reflected in communication and marketing, which increasingly focus on individual empowerment and self-acceptance, rather than on creating inaccessible beauty ideals.
The distribution channels and physical and commercial spaces of the cosmetics industry are also transforming to give greater resonance to personal well-being. Dedicated wellness areas in stores are increasing, with the world’s leading retailers creating spaces specifically dedicated to wellness. Wellness-related activities are on the rise in hotels and spas, which are increasingly expanding their offerings to include a variety of treatments and services dedicated to wellness. Finally, companies are increasingly investing in the design of physical spaces that promote wellness and tranquility. These spaces are designed to create a relaxing and welcoming atmosphere, using elements such as soft lighting, soothing colors, plants, and comfortable furnishings.
Cosmetics industry exports rise with opportunities for diversification
Finally, a focus on the export values of the cosmetics market. There is no shortage of challenges, but the cosmetics industry is proving resilient and ready to seize the opportunities offered by international markets.
According to data shared by Cosmetica Italia, the national association of cosmetic companies, cosmetic market exports will close 2023 with a record value close to 7 billion euros. Internationalization mainly concerns the American and Asian area, as the chart above shows.
Hence the more than positive outlook for 2024, which is projected with an estimated growth of around 7.5 billion euros thanks to continued investment in innovation, research and development, as mentioned above, and diversification of the internationalization strategy. The latter continues to be a key factor in the development of the cosmetics market, supporting the consolidation of the leadership position in the domestic market and the integration of the opportunities offered by digitalization and the latest innovations in terms of Artificial Intelligence and Virtual Reality.
At Roncucci&Partners we help companies develop themselves and their business, embrace change and evolve to thrive in a world that is increasingly complicated, insidious and requires great expertise. We do this by applying punctual methods and rigorous strategies, the result of many years of experience and the richness of the numerous success stories we have conducted all over the world. Passion and method are indeed our guides to enhance the present and build the future.
