Italy has been in recession since mid-2011, and the country’s Gross Domestic Product has fallen sharply since 2007. These factors have impacted consumer spending on both essential and non-essential products, such as fragrances and skincare products.
Declining value shares for all major categories in the skincare sector
As far as skin care products are concerned, the decline, however, is likely to be minimal at a Compounded Annual Growth Rate (CAGR) of -0.1% by value up to 2017. Growth by volume is expected to be slightly positive and forecasted at a CAGR of 0.6% for the same time period.
Skincare will continue to remain the largest sector in the health and beauty industry in Italy up to 2017, according to Canadean [1]. However, it is forecasted to rank only eighth for growth among the nine other categories in the sector studied during that period. Slow economic recovery and reduced consumer spending is expected to put pressure on value growth for all major categories in the sector.
Fast growth of depilatories
Facial care, the largest category both by value and volume share in 2012, is expected to witness a volume CAGR of 0.6%, but a slight negative value growth at a CAGR -0.1% up to 2017. The category is expected to maintain its stronghold over the market despite a decline in value.
Depilatories, with only a modest contribution of 6.2% both by value and volume in 2012, is expected to be the fastest growing category by volume with a projected CAGR of 0.8% up to 2017.
The rest of the skincare market is split between body care, make-up remover and hand care, with the latter forecast to witness stagnant value growth and a small volume CAGR of 0.7% up to 2017.
Scent of recession
Concerning the Italian fragrance sector, Canadean forecasts the market to grow by a volume Compound Annual Growth Rate (CAGR) of just 1.4% during 2012-2017, while value growth is forecast to be even lower, at just 0.8%.
Although it is the largest category with over 60% of the sector, the female fragrances category is projected to show the slowest growth. The category will just meet average growth with a value CAGR at 0.7% and a volume CAGR of 1.4%.
Male fragrances are expected to perform slightly better in both value and volume terms, with CAGRs of 0.9% and 1.5%, respectively. The category commanded just above a 38% share in both volume and value terms in 2012.
Unisex fragrances will be the best performing category, although possessing a much lower market share, with 1.5% for both value and volume in 2012. Growth in this category is projected to be just slightly above sector levels, with value and volume CAGR at 1.1% and 1.6%, respectively.
