1. Introduction to the Italian Cosmetic System
Luca Nava
General Director
November,

2. Cosmetica Italia - the personal care association
✓about 500 companies associated (95% of them are SMEs)
✓Industry employees: 35,000 direct (200,000 including indirect workers)
✓Member of Cosmetics Europe (the european personal care association)
✓ Achieved ISO certification since June 2008 and ISO since June 2013

3. Cosmetica Italia - the personal care association
General Assembly
Council (50)
Managing board (14)
President (+2 Vice-Presidents)
Six product area groups
cosmetics in pharmacies
cosmetics for beauty salons
professional products for hairdressers
contract manufactoring
cosmetics in herbalist shops
cosmetics in perfume shops

4. Activities and servicies
Cosmetica Italia - the personal care association
Activities and servicies
Technical and Regulatory Area
Taxes and Economic affairs Area
International Relations Area
Statistics and economic analysis
ABC-cosmetici.it (our consumer focused website)
Certification and testing
Training
School and university Communication and external relationships
Local meetings with entrepreneurs

5. Cosmetics in Italy: benchmark
• The production/export ratio has gone up to 38% in 2015; other consumer goods sectors, such as the shoe market, reported a value of 80%: consequently, there are solid opportunities to further expand the internationalisation processes
• The value of communication investments in cosmetics represent
44% of “non-food” products
• 60% of make-up distributed around the world is produced by Italian
contract manufactures
• Since 1990 exports of cosmetic products reported an average growth of more than 5% per year; the highest percentage of the last decade was
reached in 2010 with +17%
• In Europe Italy is the fourth cosmetics market after Germany, UK and
France; in world sales it ranks sixth (following USA and Japan)

6. Cosmetics in Italy: benchmark
• The industry provides employment for a total of 35,000 people: 54% women (by comparison the average percentage in manufacturing industry is 28%)
• Graduated women are approximately 1,700 (45% of graduated working in cosmetic industry)
• Considering the total amount of people employed in the sector, 11% are graduated (whereas the national average is 6%)
• Considering contract manufacturing (third party manufacturing), women employed represent the 75% of the total workforce
• Not only graduated with a Science degree, but also graduated with competences in economics and marketing are requested

7. Developments in the Cosmetics Industry
figures in million euro
final figures 2014
variation % 2014/13
final figures 2015
variation % 2015/14
forecasts % 2016/15
Turnover Italy (sell-in)
6,116
-1.0
6,207
1.5
Traditional channels
5,610
-0.7
5,713
1.8
2.0
Professional channels
506
-3.5
494
-2.4
-1.5
Exports
3,333
4.9
3,810
14.2
10.0
Global turnover
9,449
1.0
10,013
6.0
5.0
2015
10,030 global
62% Italy
38% exports
(35% in 2014)

8. Structure of the Cosmetics supply chain
INDUSTRY
RAW MATERIALS
MACHINERY
PACKAGING
TOTAL SUPPLY CHAIN
Turnover 2014
(var.% 2014/13)
9,419
(+1.2%)
870
(+2.5%)
295
(+2.0%)
2,990
(+2,1%)
13,574
(+1.5%)
Turnover 2015
(var.% 2015/14)
10,030
(+6.6%)
895
(+3.0%)
300
3,140
(+5,0%)
14,365
(+5.8%)
Forecast % 2016/15
+5,0%
+2,0%
+3,0%
+3.5%
Exports 2015
3,810
(+14.3%)
305
225
(+1.0%)
1,500
(+3,0%)
5,840
(+8.5%)
Exports/turnover 2015
38%
34%
74%
48%
41%
Figures in million euro

9. million euro Italian consumption of cosmetic products in 2015
The cosmetic products market in 2015
1,2%
9,847
million euro Italian consumption of cosmetic products in 2015
(var ,4%)
4.134
Self service
Discount
Traditional grocery
Single brand stores
1.024
+1,5%
+0,9% 1.
(+12,7%)
1.9401
+8,1%
-2,2% 2.
701
+2,9%
-3,2%
(-1,7%) 3. 4.
figures in million euro
1. Self Service Specialist Drug
2. Super/Hypermarket
3. Domicile
4. Mail order and e-commerce
figures in million euro

10. Macroeconomics ’04-’16 Italian cosmetics industry exports Italian GDP
forecast
Italian cosmetics industry exports
Million euro
Billion euro
Italian GDP
processing by Cosmetica Italia Statistics Dept. of ISTAT data

11. % weight on total export in 2015
Italian cosmetics industry exports - top 10
% weight on total export in 2015
exports % var. ’15/’14
ranking
16.
10. 9. 8. 7. 6. 5. 4. 3. 2. 1.
processing by Cosmetica Italia Statistics Dept. of ISTAT data, figures in million euro

12. Italian cosmetics industry exports to South Korea - 2015
49 million euro
Worldwide Exports
3.810 million euro

13. ... Few words on the regulatory system in place
Since July 2013, the EU Regulation 1223/2009 on cosmetics products is in place (it has replaced the previous Directive 76/768/EC)
One Regulation for 28 EU countries (still including UK): full regulatory harmonisation!
The main pillars
a clear and wide definition of “cosmetic” (no cosmeceutical, no quasi-drug, etc.)
in-market control at member state level (no pre-authorisation before marketing)
clear roles and responsibilities through the supply chain
responsibility for the compliance is with the Responsible Person
risk assessment approach to assess the final product safety (Cosmetic Safety Report)
positive and Negative Ingredient Lists

14. ... Few words on the regulatory system in place
The main pillars
Product notification centralised at EU level
Good Manufacturing Practices (GMP)
Pre-market notification of new nanomaterials
Cosmetovigilance system in place
Cosmetic claims management
Italian Ministry of Health is the local Competent Authority, responsible for both the correct application of the Regulation and post-marketing controls.

15. Introduction to the Italian Cosmetic System
Thank you
Luca Nava
General Director
November,