Italian exports are growing steadily: in the first six months of 2025 they reached 322.6 billion euros (+2.1% over 2024), with outstanding performance in pharmaceuticals (+38.8%) and agribusiness (+5.8%). 2026 will be a year of strategic consolidation for Italian SMEs, which will have to balance geopolitical risks and opportunities in key markets. The article analyzes the historic overtaking of Japan in Q3 2025 and Italy's positioning as the world's ninth largest exporting economy. Priority markets for 2026 are the United States, India, Vietnam, Southeast Asia, and East Asia, with focus on pharmaceuticals, agribusiness, industrial automation, and green technologies.
Made in Italy has evolved: Italy competes at the top of the world in high value-added sectors such as pharmaceuticals, precision mechanics, and energy transition technologies. In the third quarter of 2025, Italy achieved +4.5% in exports, surpassing Japan. This is a historic achievement, with a non-EU share over 55% of the total.
Understanding the current context of Italian exports is crucial for calibrating international expansion strategies. In the first six months of 2025, Italian exports reached 322.6 billion euros, in 2.1% growth compared to the same period in 2024, according to the ICE Agency's “Markets in Real Time” bulletin. The trade balance remained largely positive at 22.8 billion euros, despite a growth in imports (+4.6%) driven by rising energy and intermediate goods prices.
The most significant dynamic concerns the sectoral composition of the’export. Pharmaceuticals remained the main driver with an increase of 38.8%, contributing more than 3 percentage points to overall growth, thanks to expansion in key markets such as Spain, the United Kingdom and the United States. Agribusiness recorded +5.8%, consolidating its growth in Europe and North America and aiming to exceed 70 billion euros in exports for the first time in 2025. Metallurgy (+3.4%) and transport equipment other than motor vehicles also showed positive performance, offsetting difficulties in machinery, textiles and automotive.
Geographically, diversification is evident, with Switzerland (+13.4%), Spain (+11.8%) and the United Kingdom (+8.2%) driving growth, while declines were recorded toward Turkey (-18.2%), Russia (-17.3%) and China (-11.7%), a sign of a complex international framework that requires adaptability and selective market presidium. The year 2024 had already set a record with 305.3 billion euros of exports to non-EU countries (+1.16% compared to 2023), the highest value in the past decade.
These data indicate that Italian exports are not going through an occasional rebound phase, but rather a stable and sustained maturation, with a diversified and resilient production system that has been able to integrate quality, innovation and the ability to penetrate global markets.
The year 2025 marked a turning point for Italy in the global export landscape. In the third quarter, Italy surpassed Japan in quarterly exports, as certified by the OECD report, with a +4.5% that represents one of the most robust performances among the G20 economies. This is not an isolated figure: it is the result of years of industrial consolidation, modernization of SMEs and the ability to position itself in higher value-added segments.
Italy is now confirmed as the world's ninth largest exporter by value, with a basket of products that goes far beyond traditional sectors. Contemporary Made in Italy means pharmaceuticals, industrial automation, precision mechanics, intermediate goods, energy transition technologies, in addition to the classic luxury, fashion and agrifood sectors. This sectoral diversification makes the Italian export system more resilient to changes in global demand and allows it to compete effectively with traditionally dominant economies such as Germany, France and Japan.
The share of exports to non-EU markets exceeded 55% of the total, confirming the ability of Italian companies to penetrate high value-added markets and reduce exposure to regional crises. The United States remains the main trading partner, followed by Germany, France, China and Middle Eastern countries. However, the real strength of Italian exports lies in the ability to preside over both mature and emerging markets at the same time, with differentiated strategies and a long-term approach.
The comparison with Japan-confirmed by OECD data for Q3 2025-is not only symbolic: it shows that Italy has the tools, skills and industrial positioning to consolidate a global leadership role in international trade.
In the face of a complex geopolitical environment, there are markets that offer Italian SMEs real prospects for expansion, supported by sound economic fundamentals and growing demand dynamics. Four geographic areas emerge with particular prominence for 2026.
Despite the uncertainties related to the tariff policies, the U.S. market remains a strategic reference point for Italian exports, supported by steady economic growth and sophisticated demand. The numbers confirm the solidity of this trend: in the first nine months of 2025, Italian exports to the United States grew by 6.9% compared to the same period in 2024, just as the debate over tariffs intensified.
Italian SMEs find room for growth precisely in sectors where manufacturing excellence, distinctive design and technological innovation are decisive factors:
The push toward green technologies and sustainable mobility is also creating opportunities for specialized suppliers who previously struggled to enter the U.S. market.
When value addition is evident and products meet specific market needs, tariff barriers weigh less than the ability to build strong business relationships and meet stringent regulatory standards. SMEs that preside over the right distribution channels and invest in regulatory compliance will continue to perform well in 2026 and beyond.
With more than 1.4 billion inhabitants and consolidated economic growth around 7% annually, India represents one of the most significant opportunities for Italian SMEs in the medium to long term. Goldman Sachs predicts that India will become the world's second largest economy by 2075, while Martin Wolf of the Financial Times estimates that its purchasing power will exceed that of the United States by 30% as early as 2050.
Sectors with the greatest potential for Italian SMEs in India include:
The reforms initiated by the Modi government - from the “Make in India” program to incentives for digitization and local manufacturing-have reduced some barriers to entry for foreign investors, although bureaucratic complexities remain that require a structured and patient approach.
The growth of India's middle class-increasingly numerous, urbanized, and connected-is fueling a sophisticated demand that recognizes and seeks high-end Western products where quality and authenticity make all the difference.
For Italian SMEs, India requires significant initial investment, cultural adaptability and long-term vision. One crucial aspect to consider is Bureau of Indian Standards (BIS) certification, which is mandatory for many product categories-from electronics to building materials, from chemicals to safety items. Obtaining BIS certification can take 3 to 6 months and incurs costs, but it is an essential step in legally entering the Indian market and building credibility with local distributors and customers. The process involves laboratory testing at BIS-accredited facilities, inspections of production units and an annual license renewal. Italian SMEs planning to enter India must therefore consider BIS certification as a medium-term strategic investment, not as a mere bureaucratic requirement: having BIS-certified products increases the trust of Indian business partners and facilitates access to public tenders and government contracts. Those willing to build with this perspective will find margins and opportunities for development that are difficult to replicate in more mature markets.
The Vietnam has consolidated its role as a manufacturing alternative to China in recent years, with growth rates above 6% annually and policies favorable to foreign investment. For Italian SMEs specializing in industrial machinery, automation, components, and consumer goods, the Vietnamese market offers opportunities both on the export front and on possible manufacturing set-ups.
Accelerated urbanization and the expansion of the middle class are changing consumption throughout Southeast Asia. Premium food products, affordable luxury goods, pharmaceuticals, and consumer technologies are finding rapidly expanding demand in countries such as:
These are markets still relatively unmanned by Italian SMEs, where there are concrete spaces for those who arrive with clear value propositions and well-constructed distribution networks.
The EU-Vietnam Free Trade Agreement (EVFTA), active since 2020, has significantly reduced customs duties and simplified trade in key sectors, helping to make Vietnam the leading ASEAN exporter to the EU. This has improved the investment climate and opened up service markets, creating a favorable environment for Italian companies looking to expand in this geographical area.
China, Japan, South Korea and Taiwan represent mature markets but still rich in potential for specific segments. In China, despite the slowdown in overall growth and the decline recorded by Italian exports in the first months of 2025 (-11.7%), luxury goods consumption continues to grow at double-digit rates, driven by the increasingly numerous and sophisticated urban middle class. Opportunities focus on:
Japan and South Korea offer opportunities in high-tech sectors:
These are demanding markets, where quality standards are very high, but which recognize and reward Italian excellence when it comes with continuity and reliability in supply.
The winning approach in East Asia involves building long-term relationships, adapting products to local preferences without betraying brand identity, and having a physical presence on the ground through representative offices or strong distribution partnerships.
Taking advantage of identified opportunities requires a structured, nonepisodic approach that turns analysis into concrete action.
Pharmaceuticals, agribusiness, industrial automation and energy transition technologies are the pillars of Italian export growth. SMEs need to invest in innovation, international certifications and the ability to respond to increasingly stringent regulatory standards. In particular, Italian pharmaceuticals demonstrated in 2025 that they can compete at the highest global levels: consolidating this advantage requires investment in R&D and partnerships with international research centers.
Although the U.S., Germany and France remain central, emerging markets-India, Vietnam, Southeast Asia-offer much higher growth rates and market spaces that are still underserved. SMEs need to map the most relevant industry clusters for their sector and build differentiated entry strategies that take into account the cultural, regulatory and distributional specificities of each country.
Exporting is no longer just about selling products, but about building lasting relationships. Identifying partners with sector-specific expertise, after-sales capabilities and an established network is crucial, especially in complex markets such as India and China. Physical presence, including through representative offices or temporary export management, significantly accelerates time to market.
4. Investing in regulatory compliance and certifications
Each market has specific standards (FDA in the US, BIS in India, CSA in Canada, specific certifications for Southeast Asia). SMEs must be proactive in mapping regulatory requirements and obtaining the necessary certifications before entering the market, turning compliance from a barrier into a competitive advantage.
5. Taking advantage of free trade agreements
The EVFTA with Vietnam and other bilateral agreements significantly reduce tariffs and facilitate access to government procurement. SMEs need to systematically learn about and take advantage of these tools, mapping out the specific benefits for their sector and building business strategies that leverage them.
6. Adapting product and communication without losing identity
International consumers and businesses have different expectations than those in Europe. Products must comply with local certifications, labeling must be compliant (often bilingual or multilingual), and marketing materials must communicate value, sustainability and long-term reliability, adapting to cultural preferences without betraying the authenticity of Made in Italy.
7. Monitor geopolitical and regulatory developments.
The international environment is constantly changing, with trade tensions, shifting tariff policies and new regulations regarding environmental sustainability. SMEs must equip themselves with business intelligence and continuous monitoring tools to anticipate changes and turn them into opportunities rather than threats.
As the data illustrate, Italy has consolidated a prominent position in global trade in 2024-2025. Overtaking Japan in Q3 2025, certified by the OECD, confirms a process of industrial evolution that has led the country to become the world's ninth largest exporter, with over 55% of direct sales to non-EU markets.
The agribusiness sector is experiencing a particularly positive phase: exports could exceed 70 billion euros in 2025, driven by the European Union (+9%) and significant performances in Poland (+17.3%), Romania (+11.1%) and Spain (+14.5%). The challenge for 2026 will be to strengthen the non-EU presence, which grew by 4% in 2025 despite declines in the United States, Russia, and Japan.
Made in Italy is transforming from a brand of tradition to a pillar of the global geo-economy. For Italian SMEs, a window of historic opportunity is opening: strategic markets - the United States, India, Vietnam, Southeast Asia, East Asia - offer extraordinary growth margins for those who invest in long-term relationships and continuous presidium. Made in Italy exports in 2026 will be characterized by the ability to balance technological innovation and manufacturing tradition, simultaneously garrisoning mature and emerging markets with differentiated strategies but consistent with Italy's brand identity.
2026 will be a crucial year to consolidate this leadership: Italian companies that are able to seize opportunities in strategic markets, investing in long-term relationships and ongoing presidium, will be able to turn global challenges into lasting competitive advantages.
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