At €13.2 Billion, the Italian cosmetics industry exceeds its pre-Covid level of turnover. Pier Giorgio Scrimaglio Estetica Export Project Leader The sector is exceeding pre-pandemic turnover levels, according to preliminary data published for 2022. The total turnover of the Italian cosmetics industry stands at €13.2 Billion (up 9% compared to 2019); the forecast for <strong>2023</strong> indicates further growth to €14.2 Billion (up 7.7% compared to 2022). Export has never been more crucial as it is now: in fact, exports represent over 42% of turnover across the sector. In particular, the preliminary data for 2022 shows a figure of € 5.6 Billion (up 15.8% compared to 2021), estimated at €6.2 Billion for <strong>2023</strong> (up 10% compared to 2022). It’s worth noting that the trade balance, which at the end of 2022 reached a record level of €3.2 Billion, is now growing by over €400 Million compared to 2021. There’s also been positive performance in the domestic market. In fact, cosmetics consumption in Italy will have reached €11.6 Billion in 2022 (up 8.9% compared to 2021) and it is estimated that in <strong>2023</strong> it will reach €12.3 Billion (up 6.3% compared to 2022). (source: Conjunctural survey by the Centro Studi di Cosmetica Italia) The challenge goes on 2022 wasn’t an easy year for Italian companies. They had to face up to problems and issues which had been going on for a long time and which continue to be part of everyday life. The challenges for the Italian cosmetics industry are not over and the uncertainties related to supply chain and the impact of the war in Ukraine are weighing on its recovery. It’s not only foundries, ceramics and textiles, but the shock of expensive fuel bills that is also being felt by the cosmetics industry. The Associazione di Categoria Cosmetica Italia trade association estimates that companies have seen an energy surcharge of more than 35%. This is a very heavy and transversal increase across an entire supply chain which is worth almost €17 Billion: the cosmetics industry (€11.8 Billion), raw materials (€1 Billion), machinery (€366 Million) and packaging (€3.8 Billion). The high bills, in fact, are added to the increases due to the difficulty in the procurement of raw materials. Here, we are talking about an 18% increase for raw materials cosmetics & packaging and an increase deriving from the transformation and production of cosmetics of just over 11%. Companies with a commercial-distribution orientation, on the other hand, are more affected by the increase in the cost of logistics, which is close to 10%. In recent months, there has been a progressive and widespread decrease in the prices of raw materials, but the effect on margins still remains. (source: ilsole24ore.com) Facing the future with innovation and flexibility During the pandemic, the sector demonstrated its ability to react and today continues to show a strong capacity for innovation and flexibility in responding to market changes imposed by any problems and situations that may arise. In such difficult circumstances, the Italian cosmetics industry shows confirming its commitment and sense of fair play by limiting price rises. Its vitality is evident in its ever-growing interest in export destinations, in particular to non-European markets. PUBLISHER AND MANAGING DIRECTOR: Roberto Pissimiglia EXPORT BUSINESS DEVELOPMENT MANAGER: Pier Giorgio Scrimaglio - pg.scrimaglio@estetica.it CIRCULATION MANAGER: Elena Flaugnatti - e.flaugnatti@estetica.it EDITORIAL STAFF: Gary Kelly, Paolo Maggi, Glorianna Vaschetto DIGITAL: Alessandro Zanetti i Advertising Head Office: Via Cavour, 50, 10123 Torino (Italy) Tel.: +39 011 83921111 - Fax: +39 011 812 56 61 ONLINE business@esteticaexport.com - pec@pec.estetica.it www.esteticaexport.com PRINTED IN ITALY. Registration n. 435 of 7.4.49, Turin Law Court. All rights reserved. Reproduction in whole or in part of texts or photography is prohibited. Manuscripts, photographs and art are selected at the discretion of the publi sher free of charge (advertising exclu ded). Whether published or not, no material will be returned and remains the property of the publishing house, which may make use of it as seen fit. This may include the withdrawal of publication rights to other publishing houses. Estetica requires exclusive publication rights in the hairdressing sector for all photography submitted which must not therefore be offered for publication to other magazines in the hairdressing trade or industry. Version March <strong>2023</strong>