Cosmetics in Italy

Australian Trade Commission (Austrade) > 1

Contents

Market characteristics and trends ................................................................................... 2

Products ......................................................................................................................... 2
Outlets ........................................................................................................................... 3

Market demand ............................................................................................................... 5

Issues and obstacles ....................................................................................................... 5

Import restrictions and tariffs ......................................................................................... 6

Labelling ........................................................................................................................ 7
Products that are not tested on animals ............................................................................. 7
Sun care products ........................................................................................................... 8

Opportunities for Australia .............................................................................................. 8

Major trade fairs ............................................................................................................. 9

Useful websites and associations .................................................................................... 9





Australian Trade Commission (Austrade) > 2
Market characteristics and trends
Products
In 2010, body products experienced the highest increase in sales value compared to other cosmetic
categories. With 16.2 per cent of total sales, this category reached a value of almost 1,270 million.
Within this category, cellulite products experienced the best performance with growth of 4.9 per
cent and a sales value of almost 107 million. Body oil products also improved, increasing 4.5 per
cent to a sales value of just over 32 million. Weighing down the results however was the reduction
in the sun and pigmentation products sector. This category dropped by 1.9 per cent to a value of
just over 350 million. Firming, zone-specific and anti-ageing body products did not fare much
better, falling by 1.7 per cent to 54 million. It confirms that not only is consumers choice of
products changing, but also that they are starting to reappraise the true value of certain specialised
products.
Products for the face, with sales of 1,180 million and a growth of almost 1 per cent, represents the
second most important category. Apart from facial wipes (which, with sales of 43 million,
increased by 4.1 per cent) and anti-ageing, anti-wrinkle creams (which grew by three per cent to a
value of more than 465 million), other segments experienced a reduction. This included the eye
area and zone-specific products which, with sales of 125 million, fell by almost two per cent and
the moisturising and nourishing creams which, with 269 million in sales, experienced a contraction
of 1.4 per cent.
In third place is the category of hair and scalp products. This group suffered a drop of 2.3 per cent,
to a value of 1,155 million. Shampoos, with little more than 490 million in sales and a dip of 0.4
per cent, was weighed down by decreases in products such as after-shampoo, conditioners and
masks, with 152 million in sales and a drop of 2.1 per cent. The most significant decrease in value
belongs to colours and colouring mousses with a total of 242 million and a drop of 3.1 per cent.
Body hygiene products were next with a market value of more than 1,065 million. The growth of
foot hygiene products is significant, increasing by 6.1 per cent to more than 40 million. Intimate
hygiene products also increased by 2.6 per cent to almost 271 million.
The constant attention that companies are dedicating to the evolution of the market together with
their commitment to research and innovation - has definitely sparked value growth of some items,
in line with the trends of increasing choice and segmentation of products and the polarisation of
consumption.
Nail polish sales had a value of more than 100 million and a growth of 16.7 per cent, confirming
that even a traditional, established product can achieve success in a moment of crisis.
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The perfume segment had sales of almost 934 million, an increase of four per cent compared to
the previous year.
Other products that, in 2010, experienced good growth include makeup cases, which reached sales
of almost 60 million a growth of 11.8 per cent (making up 15.3 per cent of the overall perfume
sector sales), de-pigmenting products, up six per cent, with sales of a little under 15 million,
solvents with a growth of 17.1 per cent and a market value of 32 million and womens gifts,
increasing by 14.4 per cent and reaching a value of more than 66 million.


Outlets
The overall sales value of cosmetics in Italy in 2010 exceeded 9,260 million, an increase of one per
cent compared to the previous year. This is a satisfactory outcome if one considers the significant
negative impact on consumers propensity to buy after the global financial crisis of 2008.
Sales of cosmetics via pharmacies showed a positive trend, with sales in 2010 reaching 1,478
million, an increase of 3.3 per cent. Cosmetics sold via this outlet represent 15.7 per cent of the
total, a number that is constantly growing. This is a confirmation of the faith that consumers have in
this outlet - they recognise that pharmacies generally have a higher level of product specialisation
and better service levels than other distribution outlets.
Oral hygiene
Male
products
Male perfumes
Female perfumes
Hair
Face
Lips
3.3 per
cent
Hands
2.7 per
cent
Body
16.7
per
cent
Body hygiene
14 per cent
Female
products
72.4 per

per cent on total sales
Male
products
27.6 per
cent
Composition of cosmetic product sales in 2010
Gifts
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Cosmetics that are sold through herbalist outlets are also becoming more popular. With a sales
value of 365 million and a growth of 5.5 per cent, herbalists sales were strengthened thanks to the
ever more discerning purchasing choices by consumers, who are becoming more oriented towards
healthy and natural products.
Sales in perfumeries, after a significant period of contraction, experienced a slight recovery in 2010:
an increase of 0.7 per cent with a sales value equal to 2,260 million. Perfumeries, with a share of
24.6 per cent of total sales, is the second biggest sales outlet for cosmetics after the major
distributors.
Companies that sold via the major distributors in 2010 aimed to optimise their price positioning and
ensure they sustained the demand for their products in these outlets, which represent more than 44
per cent of the national cosmetics distribution market.
An above average growth was recorded for direct sales in 2010, exceeding 473 million, an increase
of 7.2 per cent.

Cosmetic products distribution channels
Pharmacy
Perfumery
Other outlets
Hairdressing
Direct sales
Beauty
institutes
Consumption in millions of euros, public price, tax included
() per cent variation compared to 2009
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Market demand
Italy has a sophisticated and well-developed cosmetics market. Approximately 9 billion 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. Body care, hair, face and hygiene
products continue to dominate the cosmetic industry and account for 60 per cent of all cosmetic
sales. The most positive forecasts are for raw materials, naturally derived products and innovative
or unique products. Naturally derived products are an expanding market segment within Italy.
Italian consumers are becoming increasingly attuned to a wellness culture and products derived
from natural active ingredients are progressively popular.
Italy is a large producer of fragrances and cosmetics, with several multinational cosmetics
companies. Italy is also a large exporter of cosmetics and toiletry products. It exports primarily to
France, Germany, the United Kingdom, Germany, the United States and Spain. Russia is also one of
the most important emerging markets for cosmetics produced in Italy. The Italian Cosmetics
Industry Association (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 cosmetics 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.
As 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 mens
products as men have discovered the pleasure and the benefits of dedicating more time and energy
to their wellbeing. There are also good prospects for products that distinguish themselves from what
is already available on the Italian market eg. tea tree and eucalyptus-based products. A key factor is
the packaging of the product. Italians prefer products that are nicely packaged and with a creative
design, therefore it is recommended that the casing and wrapping are of a high quality, with time
and effort put into product presentation.
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. Companies must successfully 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 manner. In addition, to sell cosmetic products in Italy, a
company must have an Italian representative (a subsidiary, representative office, an agent, a
distributor and/or importer) whose company is correctly registered in Italy.
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All ingredients used in cosmetic products are subject to stringent European and Italian regulations,
which are designed to guarantee consumer protection. The Italian consolidated text of laws of the
EU directive n. 2002/34 concerns 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
cosmetics to be recognised as playing a role in the protection and maintenance of the wellbeing of
the skin and related areas. It is mandatory for a company importing Australian 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 five per cent per year over the past 10 years.
Opportunity still exists in the Italian cosmetics market. Despite its competitiveness, there is still
room in the marketplace for innovative products of high quality and good design.
Import restrictions and tariffs
There are no trade barriers or quotas on cosmetics or skin care products imported into Italy. The
customs duty charged on most cosmetic products is 6.6 per cent on CIF value. An additional 20 per
cent VAT is applicable, regardless of the origin of production.
The following is a summary of EU requirements. Please note it is not exhaustive and is not a
substitute for a legal opinion. In April 1997, the Italian Council of Ministers approved the legal
decree necessary to convert the European Union cosmetics directive into domestic law. This law
provides a series of measures that guarantee total clarity about cosmetic products and improved
consumer safety.
Pre-packed goods require quantity statements (mass or volume), pack identification and assurance
of the absence of deceptive practices (eg. empty space in opaque containers.) In addition, all
cosmetic products manufactured in or imported to the EU must be labelled with the ingredients
contained in the products. The labelling must be in Italian, but can either be printed directly onto the
package or applied in the form of a sticker.
In addition, EU regulations require that the following details are supplied to the local health ministry:
contact details of the local importer/distributor, description of the cosmetic product and complete
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contact details of the individual and/or company appointed within the EU to retain the Product
Information Dossier.
Labelling
The labelling on the packaging of cosmetic products either printed directly on the package or in
the form of a sticker must contain the following items:
The name and the registered office of the producer or the person in charge of the production
and marketing of the cosmetic product
The content (must be in Italian)
The minimum duration date if it is less than 30 months, or the validity of the product once it
is opened if the unopened products expiry date is more than 30 months (must be written in
Italian). For products with a minimum duration of more than 30 months an indication of the
recommended period of time in which the product must be used once it is opened, without
the risk of the consumer being exposed to harmful effects, must be provided. This should be
visible and in front of the symbol that represents an opened jar of cream
Instructions for use (must be in Italian)
Should it be impossible to print specific instructions for use directly on the bottle or on the
external packaging, there must be an instruction sheet inside the package or an instruction
tag attached to the product. There must also be a referral to this information contained on
the product itself.
Batch number
The country of origin for products manufactured in non-EU countries
The purpose of the product (must be in Italian)
List of ingredients
It is important to remember that, as of 1 January 2007 the ingredients used in cosmetic products
must be declared on the packaging of the products, bearing in mind the updated version of the
decision 2006/257/CE.

It is also forbidden for cosmetic products to boast any therapeutic activities or the ability to cure
ailments.
Products that are not tested on animals
Information on the packaging of the cosmetics, or on any type of document, instruction sheet, label
or pamphlet associated with it, stating that the product was developed without testing on animals is
only permitted on the condition that the manufacturer and its suppliers have not carried out or
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commissioned any animal experimentations on the finished product, its prototype or on any of its
ingredients. In addition, it must not have used any ingredients subjected to testing on animals.
Sun care products
Information that is relative to the efficacy of products for sun protection must be simple and easy to
understand. It should be based on standard definitions in order to allow the consumer to compare
and select the right product according to sun exposure and for a certain type of skin.

It is particularly important that the information regarding the level of protection from ultraviolet
rays, both UVA and UVB, is featured in a uniform and standard manner, to facilitate the choice of
product.

It is further recommended that, to indicate the level of protection of the product, one of the
following four categories are stated on the label: low, medium, high and very high.
These category indications allow for the provision of simpler and more pertinent information on the
efficacy of the products rather than simply stating the sun protection factor. The category should
appear on the label in an equally visible manner as the sun protection factor.
Opportunities for Australia
As mentioned above, while the Italian cosmetics market is highly competitive, it is also open to new
products, especially those that are natural or contain natural active ingredients derived from plants
and vegetable extracts.
Good potential exists for innovative products aimed specifically at problem areas (eg. facial creams
for wrinkles, cellulite treatments, specialised sun blocks and related protection from the
environment, enriched lipsticks, etc). Similar potential exists for cosmetic products targeted at non-
traditional consumers such as men, children and the elderly.
Italians tend to buy products that they already recognise and know well. They are generally very
brand-conscious, therefore promotional activities are critical. Italians are prepared to pay for a good
product, but they need to be sure that it is of high quality.
In terms of establishing yourself in the Italian market, it is important to create and maintain strong,
open relationships with local clients and to communicate regularly.
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Major trade fairs
COSMOPROF International Perfumery and Cosmetics Exhibition www.cosmoprof.it
Held annually in March the largest cosmetics trade fair in Italy. Perfume and cosmetics, hair
products, gifts, products and equipment for hair and beauty salons.
Cosmofarma Exhibition www.cosmofarma.com/ita/index.asp
Held annually in May. International exhibition of pharmaceutical products and services for health,
wellness and beauty.
Useful websites and associations
Italian Cosmetics Industry Association www.unipro.org (Italian only)
International Federation of the Society of Cosmetic Chemists www.ifscc.org



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