THE MADE IN ITALY EXCELLENCE,
the Italian Cosmetic Valley
Cosmetics is a crucial sector for our country and of all the regions, Lombardy is the one that accounts for the largest share of Italian cosmetics. Not only is almost half of the companies in the sector concentrated in Lombardy (48.3%), but in this region the cosmetics industry generates a turnover that is expected to reach 11.2 billion euros by 2024, or 67% of the entire national sector (source: Assolombarda).
Lombardy also boasts undisputed leadership in the third-party world. Between Crema, Bergamo, Milan, Monza and Brianza lies the Italian Beauty Valley, or ‘Quadrilateral of make-up’, which with its companies, of which about sixty are in make-up, is one of the jewels in the Made in Italy crown. The total value of the turnover of companies producing on behalf of third parties, close to 2 billion euro, is concentrated 75.4% in Lombardy, which, with a value of 1.5 billion euro, confirms itself as the region with the highest production vocation of the Italian cosmetics industrial system.
Turning to Italian companies are emerging European brands, but also many overseas realities that appreciate the perfect fusion of tradition and innovation, craftsmanship and industrial and highly specialised know-how that distinguishes beauty made in Italy.
In the global beauty industry, Italy's leading role is increasingly recognised. Italian manufacturers account for 20% of the global make-up market, estimated at USD 66 billion (retail price). Around 40% of all make-up products made on behalf of third parties come from Italy. Of the top 17 make-up manufacturers, as many as seven are Italian: it goes without saying that the sector not only embodies Made in Italy excellence and innovation, but also plays a major role in the country's economy,’ explains Marina Catino, partner at Kearney.
For the period 2023-28, Kearney estimates industry growth of 6.3%, with make-up at +7.3%, which is above the industry average. This rises to 8.5% if we look at growth in outsourced make-up production.
These figures clearly show how the sector represents a unique opportunity for companies in the Italian industrial fabric and the Cosmetic Valley that, among their differentiating factors, have the ability to innovate and respond quickly to market trends,’ continues Catino. ’With the growing trend for brands to outsource production, formulation and innovation, it is truly a golden moment for Italian subcontractors, who are appreciated worldwide for their profound know-how in the sector.
A recent article in the authoritative French newspaper Le Figaro highlighted the crucial role of the Italian Beauty Valley in the world. ‘Italian industrialists play a central role in the make-up market. With its 640 cosmetic companies, of which about sixty are in make-up, the Italian Cosmetic Valley has enabled so many brands to enter the market. The power of these suppliers has enabled a real revolution in the market. Several emerging European brands and many American brands rely on the skills of Italian subcontractors and their know-how in terms of innovation and product development'.