Italy is known as the country of the three Fs: Fashion, Food and Furniture (Furniture). But, for some time, various sectors have been growing at a rapid pace, driving the national economy and becoming increasingly appreciated abroad. Among these, we can certainly include the cosmetics sector.
Upon closer inspection, the weight of this sector in the national economy has increased significantly in recent years, especially in the post-pandemic period: the sector closed 2022 with a turnover of 14.2 billion euros, up by 7.7% compared to 2021 which closed at 13.2 billion, with an increase of 9% compared to 2019, the pre-crisis year.
Not only that: the driving force for the post-covid recovery is above all the export of cosmetics, which account for over 42%: the data at the end of 2022 speak of a value of Italian exports of 5.6 billion euros ( +15.8% compared to 2021), and which is expected to increase to 6.2 billion (+10% compared to 2022) for 2023).
But which are the countries where cosmetics are most appreciated? Which markets should Italian companies focus their cosmetics exports on? to exploit the best business opportunities?
The numbers reported above show how the passion for beauty, personal care and attention to physical appearance are very important elements for foreign consumers, who increasingly use Italian products. This is particularly true for three specific countries, which have seen significant growth in cosmetic products from Italy in recent years: United States, South Korea, United Arab Emirates.
The United States is, after Europe, the main global market for beauty products, with a total turnover of over 80 billion euros in 2022. It is therefore not surprising that Italian companies export for 11.6% of total value of the cosmetics sector, worth 563 billion euros.
In particular, the USA is the second destination market for Made in Italy, only behind France. Especially appreciated the Parfums, whose exports, according to Eurostat data, they have practically doubled compared to the pre-pandemic, both in terms of values (193 million euros in 2022 against 107 million euros in 2019) and volumes (+88% in 2022 against 2019). Growing too essential oils, which in 2022 fully recovered pre-pandemic values, with Italian exports increasing in terms of volumes by 18% compared to 2019.
South Korea represents a rather solid economy, being the tenth largest globally and the fourth largest in Asia. An even more relevant element is the fact that this country is characterized by a medium-high per capita income, comparable to that of Italy, which has allowed the consolidation of a rather substantial middle-high class segment of the population. Furthermore, South Korea has proven to be relatively resilient to the current international situation, with a fall in GDP that was limited to -0.7% in 2020, and growth that in the period 2021-2023 is estimated to be at + 2.7% average per year.
As for the United States, also in South Korea, imports of Made in Italy cosmetic products have returned to pre-pandemic levelsa, both in absolute values and in real terms. In fact, compared to the year of the pandemic, the value of exports reached 55 million euros (+26.3% compared to 2020), while volumes recorded a +9.5%. In this market they are perfumes are particularly appreciated (28 million euros of exports in 2022 against 20 million in 2020) and hair solutions, the latter sector which in 2022 reached a value of 5.6 million against 4.7 million in 2020.
United Arab Emirates represent a very important destination for Made in Italy, especially as regards the fashion, luxury, furniture and construction sectors. And thanks to recent reforms regarding foreign investments, the opportunities for Italian SMEs have multiplied, even in other sectors, such as cosmetics.
So much so that the value of Made in Italy exports in this sector went from 143 million euros in 2019 to 235 million in 2022 according to Eurostat: a considerable increase only partly justified by inflation, since the volumes, in the same period of time, increased by 17.5%. And in this country they are beauty products are very popular, such as make-up, manicure products and body creams, a sector that has grown of 37.5% compared to the pre-pandemic.
The numbers reported show how, for Italian cosmetics exports, this is a particularly important historical moment, whichand manufacturing companies of the Peninsula must absolutely exploit to increase its presence abroad. In particular, the countries to focus on are the United States, South Korea and the United Arab Emirates, three nations that have seen the export of Made in Italy cosmetics increase not only in terms of values, but also in terms of absolute values.
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