About this report
 
About the market…
 
Italy is a strong producer of fragrances and colour cosmetics, with several multinational cosmetics companies sourcing much of their production in Italy. Thus, Italy is a net exporter, which has a positive trade balance.
 

 
Sales in both the fragrance and cosmetic sectors were negatively affected by the recent recession, although colour cosmetics remained in growth thanks to its lower exposure in the premium segments. Italians still prefer to buy the best quality they can afford but have become more cautious about spending money on luxury products and more judicious in their purchasing decisions.
 

 
While socio-demographic trends are largely positive, further measures are needed to improve market performance and ensure future growth. In fragrances, pricing policies will play a key role in helping to grow both the customer base and the frequency of usage.
 

 
About Mintel’s research…
 
Pooling together the latest consumer research market analysis, Mintel's new report offers you all the insight and inspiration you need for designing clever, creative and profitable marketing strategies. Use Mintel's research to:
 

 
? Understand the major market trends and drivers in fragrance and cosmetics
 

 
? Pinpoint market potential before your competitors
 

 
? Find out how to best reach key audiences with the most effective marketing communications
 

 
? Measure market sizes and forecasts and build realistic business models
 

 
? Gain insight into future trends
 

 
? Gather in-depth New Product information
 

 
? Gain knowledge of current advertising and promotional campaigns.
 

 
Intriguing findings include…
 
Italy has high penetration rates for men's cosmetics and toiletries, where over 80% of men use aftershave or eau de toilette.
 

 
The 55-65 age group is growing both in terms of the number of fragrance users and the average number of products used.
 

 
Foundations accounted for around half of the facial makeup market in 2004 and managed to remain in modest growth thanks to technologically advanced products that came on the market.
 

Contents
 

 
Introduction
 

 
Definitions
 
Abbreviations
 
Executive Summary
 
Fragrances sluggish, make-up more dynamic
 
High interest, but more cautious spending
 
Potential to increase consumer base
 
Biased towards prestige
 
Eye make-up registers best growth
 
Perfumeries maintain dominant position
 
Italian exports grow, but multinationals dominate the domestic market
 
Active new product development
 
Looks still matter
 
Market Drivers
 
Economy – good news and bad news
 
Figure 1: Italian consumer expenditure, at current and constant prices, 1998-2003
 
Increasing number of 35-44s is good news
 
Figure 2: Projections of Italian population, by age, 2005-09
 
Rising female employment supports sales
 
Figure 3: Trends in Italian employment, 1998-2003
 
Figure 4: Women as % of working population, by country, 2003
 
Men’s grooming habits are changing
 
Low penetration rates in Western European terms
 
New EU guidelines for product safety
 
Market Size and Trends
 
Back to growth
 
Figure 5: Italian retail value sales of fragrances and colour cosmetics, at current and constant prices, 2000-05
 
Colour cosmetics more dynamic
 
Figure 6: Italian retail value sales of fragrances and colour cosmetics, by type, 2000-05
 
Figure 7: Indexed Italian retail value sales of fragrances and colour cosmetics, by type, 2000-05
 
Figure 8: Italian per capita expenditure on fragrances and colour cosmetics through retail, by type, 2000-05
 
Market Segmentation
 
Fragrances
 
Sluggish performance due to volume decline
 
Figure 9: Italian retail value sales of fragrances, at current and constant prices, 2000-05
 
Figure 10: Italian retail value sales of fragrances, by type, 2002-04
 
Prestige products dominate
 
Figure 11: Italian retail value sales of fragrances, prestige vs mass-market, 2002-04
 
Women’s fragrances
 
Figure 12: Italian retail value sales of women’s fragrances, by type, 2002-04
 
Men’s fragrances
 
Figure 13: Italian retail value sales of men’s fragrances, by type, 2002-04
 
Fragrances for young and the very young
 
Colour cosmetics
 
Figure 14: Italian retail value sales of colour cosmetics, at current and constant prices, 2000-05
 
Figure 15: Italian retail value sales of colour cosmetics, by type, 2002-04
 
Figure 16: Italian retail value sales of colour cosmetics, % share by sector, 2004
 
“High-tech” facial make-up
 
Figure 17: Italian retail value sales of face make-up, by type, 2002-04
 
Long lashes and easy application
 
Figure 18: Italian retail value sales of eye make-up, by type, 2002-04
 
Dual-purpose products in lip make-up
 
Figure 19: Italian retail value sales of lip make-up, by type, 2002-04
 
Strength and protection for the nails
 
Popular gift sets and make-up collections
 
Distribution
 
Popularity of prestige brands grants perfumeries top position
 
Figure 20: Italian retail value sales of fragrances and colour cosmetics, by outlet type, 2002-04
 
Fragrances
 
Figure 21: Italian retail value sales of fragrances, by outlet type, 2002-04
 
Colour cosmetics
 
Figure 22: Italian retail value sales of colour cosmetics, by outlet type, 2002-04
 
Figure 23: Italian retail value sales of fragrances and colour cosmetics, by product and outlet type, 2004
 
Trading base
 
Health and beauty outlets
 
Figure 24: Major health and beauty retailers in Italy, by number of outlets, 2003-04
 
Grocery outlets
 
Figure 25: Number of retail food outlets in Italy, by type, 1995-2002
 
Figure 26: Major grocery retailers in Italy, by number of outlets, 2003-04
 
The Supply Structure
 
Manufacturers’ shares
 
Dior and Chanel top sellers in women’s fragrances
 
Figure 27: Brands’ retail value shares of women’s fragrances, 2002-04
 
Armani number-one in men’s fragrances
 
Figure 28: Brands’ retail value shares of men’s fragrances, 2002-04
 
L’Oréal strongest in colour cosmetics
 
Figure 29: Brands’ retail value shares of colour cosmetics, 2002-04
 
Advertising and promotion
 
Figure 30: Advertising expenditure on fragrances and colour cosmetics in Italy, 2003-04
 
Companies and brands
 
Coty Lancaster Italia SpA
 
Deborah Italia SpA
 
Euroitalia Srl
 
Eurocosmesi SpA
 
ITF SpA
 
L’Oréal Italia SpA
 
Schiapparelli Pikenz SpA
 
New Product Development
 
Luxury and sensuality feature in women’s fragrances
 
Subtle and unusual scents for men
 
Pastel eyeshadows
 
Lips remain sensual and glossy
 
“High-tech” foundations for every skin type
 
Glamour dominates new make-up collections
 
New product launches 2004-05
 
Fragrances
 
Colour cosmetics
 
Prospects
 
Looking good remains a priority
 
Ageing population an emerging target
 
Young and middle-aged the key user groups
 
Sales of fragrances to recover
 
Consumer spending patterns and attitudes are changing
 
Reaching the consumer – the choice of medium
 
Modernisation and concentration in distribution
 
Online shopping set to increase
 
Forecast
 
Pent-up demand waiting to be released
 
Figure 31: Forecast for Italian retail value sales of fragrances and colour cosmetics*, at current prices, 2005-10
 
Growth of €½ billion
 
Figure 32: Forecast for Italian retail value sales of fragrances and colour cosmetics*, at current prices, indices, 2005-10
 
More fragrant outlook
 
Make-up improvement less marked
 
The eyes have it
 
Lips and face make-up do less well
 
Real growth takes off…
 
Figure 33: Forecast for Italian retail value sales of fragrances and colour cosmetics*, at 2005 prices, 2005-10
 
…after hesitant start
 
Figure 34: Forecast for Italian retail value sales of fragrances and colour cosmetics* at 2005 prices, indices, 2005-10
 
Economy critical