Made in Italy beauty is moving towards 12 billion in 2022 (+2.7%)

A moment of Cosmoprof

The beautiful tricolor looks straight towards the recovery while maintaining the trajectory, but downshifting. According to the latest findings from study center from Cosmetics Italy the sector will archive 2021 with a higher export value than expected in recent months; the general performance of growth, on the other hand, will slow down in 2022 both in terms of turnover, with +2.7% estimated in 2021 against 6.5% previously, and in terms of exports, which will increase by 3 % and not more than 7%. The consequences are clearly attributable to the complex international scenario. Despite the changes, the return to 2019 levels remains confirmed, when beauty generated a business of 12.1 billion euros. The details have been explained to CFP from Renato AncorottiPresident of the association.

In what economic scenario does Cosmoprof start?
The preliminary values ​​for 2021 are slightly higher than the estimates that we have developed in recent months, demonstrating the inelastic nature of the sector able to face the difficulties of the last two years; on the international market front, we are seeing a sustained recovery, equal to an increase in 2020 of 13.8% (compared to the + 13% previously estimated for 4.7 billion, ed) leading the trade balance to touch pre-Covid values.

What performance do you estimate for the sub-fund in 2022?
As we know, various elements of uncertainty weigh on the forecasts for 2022. However, these gray areas do not seem to harm the prospects for recovery and growth: although at a slower pace, it is estimated at this day that the turnover of the cosmetics industry (which in 2021 is estimated at 11.7 billion, ed), will increase by 2.7% over the current year, with a return to pre-crisis values. A return that we expect for the moment also for exports.

Renato Ancorotti, President of Cosmetica Italia

What are the consequences of this slowdown?
The projections for 2022 are influenced by many factors. On the one hand, the health and economic situation with the pandemic has led to slowdowns in the value chain and a spiral of increases upstream of the supply chain with repercussions on production costs, on the other hand the uncertainty of the geopolitical scenario linked to the crisis of the war remains. Specifically in Russia and Ukraine, Italy’s cosmetics exports to these areas at the end of 2021 reached 165 million euros, with a growth of 18.2%. During the first months of 2022, it is likely that there will be a contraction similar to previous conflicts, with a drop of more than 10 percentage points and a value that will not exceed 140 million euros.

What will be the biggest challenges for your people and what will they need to focus on for the recovery?
Businesses have to deal with rising raw material and energy costs. For the time being, however, they are distinguished by a constant propensity to invest in research and innovation, just think that around 6% of turnover, i.e. double the average for the manufacturing industry, is invested in this area. This trend is crucial in a strategic perspective of adapting to market changes, while continuing to maintain high standards of supply. (All rights reserved)

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