The challenges of cosmetics between new generations, sustainability and international markets

"The consumer is at the centre of our strategy and this is very challenging because there are so many brands as well as targets and distribution channels": this is how Federica Polinori, managing director and general manager of The Estée Lauder Companies Italia, described the development model of the cosmetics giant with $15.6 billion in net sales in 2024 at Il Sole 24 Ore's Luxury Summit 2025.

"Our strengths are our portfolio of more than 20 brands spanning all categories of luxury cosmetics, and innovation, which is crucial for a very dynamic and growing sector. The challenge for us is to ensure that our historic brands remain consumer favourites, but also to add new brands. The emblem of our 'hero' products is the iconic Estée Lauder serum, which after 40 years is still the market leader with 60,000 units sold per year, and which we have revamped in formula and more sustainable packaging. To remain competitive in the serum segment, but not only, we have added The Ordinary, a new vegan and sustainable brand, to our portfolio. The codes of luxury are changing'.

For Davide Bollati, president of the Davines Group - active in the professional cosmetics sector with the Davines haircare and Comfort Zone skincare brands -, luxury 'is about relationships, connection, putting humanism at the heart of the economy by pursuing organic growth in a holistic system at all levels of corporate decision making. We are a company that started from a small artisan workshop created by my parents, which then grew internationally: 80% of our turnover comes from abroad where we have a dozen branches. We have developed thanks to a mix of sustainability and performance and ten years ago we became BCorp'.

For the second year in a row, the group has been included in the Beauty Inc Top 100 of the international magazine Wwd, a ranking of the world's leading cosmetics companies by turnover. "This achievement has an even more special significance for us if we consider that among the 100 leading companies in the world cosmetics market there are only 12 unlisted companies, which do not have investment funds in their shareholding structure and which have grown completely organically without having carried out M&A operations of other brands," commented Bollati. "And the fact that we are part of this small group of family-owned and independent companies is further confirmation of the strength of our entrepreneurial model, guided by a long-term vision that focuses on beauty, sustainability and innovation.

The Davines group - which in 2024 reached a turnover of 295 million euro with an increase of 12% - is a historic protagonist of the most important cosmetics fair in the world, Cosmoprof Worldwide Bologna. "An exhibition organiser has to be good at photographing and reading the market momentum because the market wins over everything and you have to follow it," explained Enrico Zannini, General Manager of BolognaFiere Cosmoprof. "Bologna has remained the most important beauty fair in the world because the Italian cosmetics industry is a leader and the two sides - fair on the one hand and exhibiting companies on the other - have helped each other grow. The fair hosts the entire supply chain, from packaging to machinery to product brands. It also has a strong internationality rate: just think that 75% of the exhibitors come from abroad with visitors arriving from 150 countries. Another factor that has contributed to the development of Cosmoprof has been the strategy of taking the brand around the world: we now have six editions, three in Asia and two in the United States in addition to the Italian one.