The Future of Cosmetics:
Growth, Innovation and Sustainability
The global cosmetics industry reached €555 billion in 2024 and is expected to grow at an average annual rate of 6% over the next three years, pushing the sector’s value to over €700 billion by 2028. This is according to the latest Annual Report by Centro Studi di Cosmetica Italia, which outlines a positive outlook for the cosmetics sector, driven in part by strong export performance.
The figures paint a picture of a healthy industry, despite international tensions, and a country, Italy, that continues to demonstrate its resilience and its ability to generate value, employment and innovation, confidently facing the challenges of a rapidly and constantly evolving world.
In 2024, production reached €16.5 billion, marking a 9.1% increase compared to 2023. For the 2025-2024 period, growth is estimated at 5.9%. Exports account for 47.9% of total production and have grown by 12%, with an overall value of €8 billion. The beating heart of the sector is concentrated in northwestern Italy, particularly in Lombardy, which remains the region with the highest density of cosmetics companies (54%). It is followed by Emilia-Romagna, Veneto and Tuscany.
Lombardy confirms its role as the ‘homeland’ of contract manufacturing: the total production value of contract manufacturing companies exceeds €2.1 billion (an 8.2% increase compared to 2023), with 79% of this value concentrated in Lombardy, amounting to nearly €1.7 billion.
CHINA, USA AND EUROPE
Looking at individual countries, the United States maintained the largest market share in 2024, with €107 billion, while China, despite experiencing slower growth, remains the second-largest global market with €65 billion.
From a regional perspective, Europe stands as the second-largest global market, with a total value of €104 billion. As for emerging markets, the Middle East and Africa are establishing themselves as new growth hubs, driven by a young population and a growing interest in personalized beauty products.
HYPER-PERSONALIZATION AND DIGITALIZATION
In terms of technological innovation and offerings tailored to specific requests, one of the most dynamic trends is hyper-personalization, made possible by the use of artificial intelligence and augmented reality. These technologies enable the creation of products that are increasingly aligned with consumers’ individual preferences and needs.
The evolution of digitalization continues, and new sales channels such as direct-to-consumer (DTC) are gaining ground. The new normal is shaped by onlife strategies—an imperceptible sum of all touchpoints between the brand and the consumer across every medium, whether digital or traditional. Over the past four years, corporate communication has confirmed the balance between two seemingly separate models, now increasingly perceived as a unified dialogue between brand and consumer.
New experiential models are gaining ground in retail spaces, aimed at increasing consumer engagement with brands, as well as fostering trust and identification with the values conveyed by companies. Corporate storytelling plays a central role in strengthening communication around key topics such as sustainability.
There is also a growing demand for gender-neutral products and those suitable for different ethnicities and skin types—a clear sign of heightened awareness around inclusion. At the same time, psychodermatology and neurocosmetics are gaining traction. While they are not yet formally recognized in regulatory classifications, these emerging fields highlight the increasingly close connection between mental well-being and skin health.
CHANNELS
Pharmacies, which account for 16.6% of consumption, recorded the third-best growth dynamic at the end of 2024, behind e-commerce and perfumeries, with a 5.7% increase compared to the previous year, reaching a value of over €2.2 billion. Over the past five years, the types of products sold have shifted: skincare and body care products grew (54.4%), while makeup declined.
In 2024, perfumeries, representing 20.7% of consumption, registered a 9.5% growth, reaching a value of over €2.77 billion, with polarized trends between traditional distribution and franchised stores. The channel is undergoing a historic evolution marked by an increasing engagement of younger consumer segments. Key factors enhancing the in-store experience include ease of brand search and selection (displays and category management), as well as trust and meeting specific needs. Online channels play a key role in this success.
The mass market grew by 5.6% compared to the previous year, with cosmetic consumption exceeding €5.5 billion. This channel accounts for 41.1% of consumption and includes hypermarkets and supermarkets (34.8%), SSS-Drug stores (37.7%), monobrand stores (18.5%), and others. Over four years, the weight of these different retail formats has shifted: in 2019, hypermarkets and supermarkets represented 46% of the value, while specialized stores (also known as SSS-Drug or Casa Toilette) accounted for 42%. By the end of 2024, this balance reversed, with hypermarkets and supermarkets dropping below 43% and SSS-Drug stores slightly above 46%.
Monobrand stores (+6.8%) and discount stores (+7.6%) performed well, while self-service outlets showed more moderate growth (+2.5%).
