Another year of growth for the Italian cosmetics industry

Having posted record turnover of 18 billion euros (+2.9 per cent), with an extended supply chain (packaging, raw materials, machinery and distribution) generating a total value of 49 billion euros and employing around 500,000 people, 105,000 of whom are direct employees, the Italian cosmetics industry is tackling global macroeconomic challenges and preparing to close another year – 2026 – with a positive performance which, according to forecasts by the trade association Cosmetica Italia, a 4 per cent increase in total turnover, driven by a 5 per cent rise in exports – the sector’s true strategic asset – which account for almost 50 per cent of total turnover.

In 2025, in fact, Italia retains its position as the world’s fifth-largest exporter, accounting for 5.6 per cent of the global market. Exports – for which the United States is the leading destination, with a value of 1.2 billion, followed by France (900 million) and Germany (800 million) – reached a value of 8.6 billion, up 4.1 per cent, making a decisive contribution to a trade surplus of 5.1 billion, a record high.

The upward trend is also evident in the domestic market: consumption stood at 12.8 billion, up 3.2% – a figure that ranks Italia as the third-largest European market for cosmetics consumption and the tenth-largest globally – driven by the expansion of the e-commerce sector, which recorded a 9.8 per cent surge. Forecasts for 2026 confirm a strengthening of consumer spending, with growth expected to reach 3.5 per cent. Analysing the individual product categories, skincare is the leading segment at 4.3 billion euros, followed by haircare (2.95 billion) and personal care (2.26 billion). Rounding off the market are make-up, stable at 1.72 billion, and fragrances, which, at 1.55 billion, represent the most dynamic sector (+7.4 per cent).

Despite the favourable outlook, the two-year period 2026–2027 requires Italian companies to resolve a number of strategic issues, as highlighted in the 2026 Observatory report produced by Teha – The European House Ambrosetti – and recently presented at the Cosmetica Italia public meeting, as explained by its president, Benedetto Lavino: “This is a sector capable of combining growth, skilled employment, production capacity and innovation, and is strategic for the national economy. It grows, invests, innovates, exports and generates value throughout the supply chain. However, a national strategy is needed to transform this leadership into a lasting competitive advantage.”

There are three priorities to focus on: “The simplification and harmonisation of the regulatory framework for the sustainable transition to enable more efficient planning of industrial activities and investments,” added Lavino; support for boosting investment in R&D through an increase in the tax credit for R&D activities to up to 40 per cent; the development of a national strategy capable of transforming industrial and manufacturing leadership into an asset for the international positioning of the Italian cosmetics sector, by stimulating demand and increasing the perceived value of the entire ‘Italian beauty’ sector’.