Italian cosmetics revenue reaches record €18 billion as exports drive growth

Exports lift Italian industry revenue to a record

Italy’s cosmetics industry closed 2025 with record revenue of €18 billion, an increase of 2.9%, according to the Cosmetica Italia Research Centre. Exports generated almost half of total industry revenue, underlining the sector’s dependence on international demand despite continued growth in the domestic market.

The United States remained the leading destination for Italian cosmetics, receiving products worth €1.2 billion, followed by France and Germany. Italy held fifth place among global cosmetics exporters, with a 5.6% share. Its manufacturing position is particularly strong in selected categories: the country is the world’s largest exporter of hair dyes and hair preparations and ranks third in fragrances.

Revenue is expected to accelerate by about 4% in the current year. The industry also supports a much broader manufacturing network. An observatory created by The European House – Ambrosetti and Cosmetica Italia estimates that the extended supply chain, including machinery, raw materials and packaging, generates €49 billion in revenue and €31.5 billion in value added while supporting about 500,000 jobs.

Domestic sales remain firm as online channels expand

Italian consumers purchased €12.8 billion of cosmetics, making Italy Europe’s third-largest market and the tenth largest worldwide. Domestic consumption grew by an annual average of 6.5% over the past three years, exceeding the global average. Skincare led the market by volume, followed by haircare, cleansing products, makeup and fragrances.

Distribution is also changing. E-commerce recorded the strongest channel growth and approached €1.4 billion in sales. Product development increasingly crosses traditional category boundaries through “multi-skinification,” with skincare ingredients, functions and claims moving into haircare and makeup. Consumers are also placing greater emphasis on practical and sustainable packaging, personalized treatments and products combining technology with traditional ingredients and rituals.

These trends reflect a growing premium segment. La Repubblica reports that fragrances will remain the largest global beauty category over the coming years, closely followed by sun care and makeup. Premium positioning is becoming more influential in purchasing decisions, offering Italian manufacturers opportunities in categories where formulation, packaging and brand presentation carry significant value.

India and Brazil broaden the industry’s growth map

The global cosmetics market reached €571 billion in 2025 and could rise to €718 billion by 2029, according to Euromonitor figures cited by La Repubblica. Average annual growth was 4% between 2022 and 2025, while forecasts for the following four years point to 6.2%. The United States remains the largest national market, with consumption exceeding €110 billion, while China is the other principal global center.

Brazil is driving sustained growth in Latin America, and India is becoming a high-potential consumer market as its population moves toward 1.5 billion within the next few years. These markets give Italian producers additional options beyond their established European and US destinations. The Middle East remains strategically important, particularly for fragrances, although growth estimates depend on geopolitical developments.

Expansion comes with higher production and energy costs as well as investment requirements linked to European environmental regulation. The EU Packaging and Packaging Waste Regulation sets requirements covering recyclability, recycled content, volume reduction and reuse. Compliance is especially demanding for cosmetics companies because packaging is both a container and an important part of product experience and brand positioning. Italian manufacturers will therefore have to balance international expansion with packaging redesign, regulatory spending and protection of premium margins.