Italian Market Demand Remains for 'Made in Italy' Products, According to Ancorotti
In the dynamic world of business, Ancorotti Cosmetics, a European company based in Cremona, is facing a series of challenges. The company, specialising in the cosmetics industry on a third-party basis, is particularly concerned about the impact of US tariffs and increasing regulatory pressure.
Ancorotti Cosmetics is expecting a significant increase in revenues for 2025, having closed 2024 with strong growth figures, reaching €150 million in turnover (+30% on 2023). However, the high tariff rates announced by former US President Trump are a concern for the company. The US tariffs on European products, including cosmetics, impose a 15% tariff rate on EU exports to the US market, resulting in higher costs and making Ancorotti's products less attractive to American buyers.
The exact extent of the potential impact of US tariffs is currently difficult to estimate. Graziano Fumarola, the COO of Ancorotti Cosmetics, emphasises the need to manage uncertainty as crucial for doing business. He acknowledges that the potential impact of US tariffs on Ancorotti Cosmetics could vary depending on the final tariff rates.
The French cosmetics industry, representative of the European beauty sector, fears significant losses—up to €300 million annually—and job risks, highlighting the challenge to a key export sector heavily reliant on the US market.
To manage these internal and external uncertainties, Ancorotti Cosmetics, like other companies, must engage in strategic adjustments. This includes diversifying supply chains, lobbying for favourable trade terms, and sustaining innovation to maintain brand resilience in price-sensitive segments.
The company is also strengthening its presence in strategically important high-potential areas, such as the Middle East, particularly in Saudi Arabia and the United Arab Emirates. Ancorotti group has a presence in 50 different countries, and 60% of its sales are concentrated in the United States, France, and Germany. The group expresses confidence in the market's demand for "made in Italy" products.
Moreover, Ancorotti Cosmetics' business has been significantly affected by the pandemic. However, the company has registered significant growth in Northern Europe. The group has 300 active clients and reached €220 million in turnover in 2024.
Internal dynamics at the European level risk compromising the competitiveness of Ancorotti Cosmetics' industrial system. The company is particularly concerned about increasing regulatory pressure, which cannot disregard an evaluation of economic sustainability, especially for SMEs.
In summary, the US tariffs create cost pressures, disrupt supply chains, and threaten jobs in European cosmetics, pushing companies like Ancorotti Cosmetics to navigate these challenges by supply chain optimization, advocacy for trade policy improvements, and maintaining innovation and brand positioning to mitigate price sensitivity in key markets.
- Despite the strong growth figures in 2024, the 15% tariff rate on EU exports to the US market, resulting from US tariffs on European products, is a concern for Ancorotti Cosmetics, causing higher costs and making their products less attractive to American buyers.
- To counteract internal and external uncertainties, Ancorotti Cosmetics is implementing strategic adjustments such as diversifying supply chains, lobbying for favourable trade terms, and sustaining innovation to maintain brand resilience in price-sensitive segments, while also strengthening their presence in strategically important high-potential areas like the Middle East.
