Cosmetics industry flocks to Milan

This year’s show saw Milan’s Fiera Milano Rho exhibition hall full to capacity with 6,850 professionals looking to source the newest products and latest developments from the world’s cosmetics and personal care industry. With a third of these visiting from Italy, the annual show was undoubtedly a hot topic within the Italian beauty industry. During the three day event from 29-31 March, 560 local and international exhibitors welcomed crowds of visitors, making this year’s event by far the largest attended outside the flagship show in Paris. Stand space was pushed to 10,987m2, making the event the biggest in the show’s history. Alongside a host of key industry players, in-cosmetics also provided a platform for over 70 first-time exhibitors looking to launch their products to the visitors at the show.

The show

On the opening day of the show, Euromonitor International presented their latest predictions for the beauty and personal care industry. The presentation was followed by a debate on Euromonitor’s findings with senior figures from Europe’s beauty industry, including Dr Erik Schulze zur Wiesche from Henkel and Antonio Argentieri from L’Erbolario. Euromonitor International outlined the four strategies companies are following to succeed post-recession and gave their predictions for the next five years. Irina Barbalova, head of beauty and personal care at Euromonitor International said: “The beauty and personal care (BPC) industry registered 5% growth globally in 2010 mainly due to the strong performance of mass market products. “Premium cosmetics registered 2.5% global growth in 2010. Growth in the premium segment in the US, UK and Germany outperformed that of mass cosmetics. China has more than doubled its share of premium sales since 2000 and this is set to reach 18% by 2015, largely driven by premium skin care.” However, Euromonitor’s latest research indicates that mass cosmetics will have an even stronger presence globally by 2015, as the dominance of Latin America in the global beauty landscape increases. The rising penetration of private label, with over US$ 2 billion of sales in skin care in 2010, will help drive this trend. Oru Mohiuddin, senior personal care company analyst at Euromonitor International said: “Leading BPC companies registered healthy growth in 2010, with the top ten global BPC companies posting a combined sales growth rate increase of nearly 7% last year.” Euromonitor explained the four key strategies that successful BPC companies are following to succeed in the postrecession world are firstly that companies have strengthened their emerging market expansion strategies in “frontier markets” such as South Africa, Egypt or Indonesia. They are strengthening their offering to the local consumer by localising their research and development to create products more suited to regional preferences. Secondly, with 55% of total revenue, Western markets remain important. However a more value-conscious consumer has forced companies to add value to their mass ranges. Manufacturers have included scientifically advanced technology to mass range products or acquired professional ranges to be distributed in the retail sector to make the most of that “value for money” feeling. The third strategy was the use of new media. Companies are exploring new opportunities to engage with consumers offered by increasing internet and smart phone usage. Social networking, online retailing and consumer reviews are predicted to play an increasingly important role in shaping consumer trends in the BPC sector. Finally, the use of sustainability as brand communication. Intense competition and greater consumer awareness have put companies under pressure to increase their credentials as good corporate citizens. BPC manufacturers are dedicating efforts to reduce waste, water consumption and gas emission as well as improving sustainable sourcing, cooperating with ingredients suppliers and packagers to achieve better results. Euromonitor International forecasts show that between 2010 and 2015, global growth for the BPC industry will be driven by emerging markets. For example, Latin America will replace North America as the third largest region globally by 2015.