The Development of Made in Italy Exports

Made in Italy is a global symbol of quality, creativity, craftsmanship, and innovation. In today’s complex economic environment, expanding abroad has become a necessity for Italian companies, as the domestic market alone is insufficient to ensure sustainable growth.

For this reason, succeeding in international markets requires a clear and well-defined strategy that integrates innovation, internationalisation, and appropriate financial solutions.

This article delves into the topic of Made in Italy exports, beginning with an analysis of the macroeconomic landscape, exploring the key elements for competing in foreign markets, the importance of internationalisation and trade finance, and the strategic factors that can support Italian companies in their journey of international development.

THE MACROECONOMIC LANDSCAPE OF MADE IN ITALY
 

Made in Italy has always stood out for its adaptability and resilience in challenging macroeconomic contexts. In recent years, Italian exports have demonstrated significant growth, highlighting the strength of key sectors such as fashion, agri-food, and chemicals. Despite geopolitical tensions, the demand for high-quality Italian products continues to grow, maintaining a strong global reputation for well-known brands.

According to data from the Confcommercio Study on Made in Italy, Italy ranks among the world’s top ten exporters, positioned immediately after Germany. Approximately 75% of national exports come from strategic sectors such as machinery, metallurgy, fashion, automotive, agri-food, chemicals, and pharmaceuticals. Among the Made in Italy sectors, the wine and beverage segment dominates the global market with a 9.4% share, followed by textiles/clothing (6.1%), furniture (6.0%), machinery (5.4%), and jewellery (5.0%).

Italy’s main trading partner remains Germany, followed by the United States, which has risen to second place ahead of France. While EU27 partners account for nearly half of total exports, Italian companies face competition from countries like China, Poland, India, and Vietnam, which compete primarily on cost, as well as from Germany, France, Spain, and the UK, which in some sectors offer products similar to those manufactured in Italy.

The study includes approximately 140,000 Italian exporting companies, many of which are micro-enterprises accessing foreign markets out of necessity but often unable to consolidate a long-term presence. Thus, it is crucial to promote facilitated financing measures to increase the number of exporting companies and strengthen the operations of those already active in international markets.

Free Trade Agreements and European partnerships are critical in distributing Italian products abroad. Recent agreements with countries such as Canada and Japan have included the recognition of hundreds of Typical Geographical indication, significantly reducing the phenomenon of Italian sounding and enabling high-quality Italian products to access key markets.

On a national level, Made in Italy promotion has intensified since 2015, driven by the Extraordinary Plan for the Promotion of Made in Italy and Investment Attraction. This program has continued to receive government funding, reaching an allocation of €168.7 million for 2022/2023 and €149.7 million for 2024. Thanks to these initiatives, promotional spending for Italian companies abroad reached €220.3 million in 2023, primarily invested in sporting events and trade fairs.

MADE IN ITALY EXPORT TRENDS
 

While export data for 2021/2022 showed growth compared to the pandemic period, the international economic situation heavily impacted 2023, leading to a slowdown in exports that continued into 2024. This decline was driven by weak German demand, Europe’s automotive crisis, and a slowdown in luxury markets, particularly in China—a traditional driver of sales for Made in Italy products.

According to forecasts from Intesa Sanpaolo's Research Department, Italian exports are expected to recover starting in 2025, driven by an anticipated rebound in European demand and the continued competitiveness of Italian offerings.

The Industrial Sectors Analysis Report, published by Intesa Sanpaolo’s Research Department and Prometeia in October, indicates that international market prospects are more favourable for the pharmaceutical, cosmetics, and food and beverage sectors. Even sectors that were more penalised in the past two years, such as mechanics and fashion, are expected to regain momentum, thanks to increased European demand and robust growth in the U.S. economy.

It is worth mentioning the USA, since the outcome of the recent presidential elections won by Donald Trump could significantly influence the trend of world trade, and therefore also of a major exporting country like Italy, which sees the USA as an important target market: according to the latest analyses published by the Research Department, leading sectors of Italian industry such as Mechanics, Food and Beverage, Automotive and Fashions allocate over 12% of their total exports to the USA market.

At the time of this writing, official information does not make it possible to predict which effective measures will be taken against Europe, and against Italy, which already export under a tariff regime (introduced during the first Trump administration). Even if we don’t underestimate the different scenarios that could arise, such as a further tightening of the tariffs currently in force, some factors lead us to lean towards an outcome that is not so unfavorable.

The strategic importance of some productions, both for the strengthening of the US production base, as in the case of Mechanics, and for the extensive Europe-US (and Italy-US) investment network, make negotiated solutions highly possible.

The impact of climate of uncertainty on confidence could still be significant, even if compromises were to be reached.

In light of this evidence, it remains crucial for Italian companies that embody the excellence of Made in Italy to identify new strategies to tap into demand in non-traditional markets while maintaining their competitiveness.

KEY ELEMENTS AND TOOLS FOR COMPETING IN FOREIGN MARKETS
 

Today’s uncertain context has made the challenges of international trade more evident, emphasizing the need to diversify export destinations.

The ICE Report 2023-2024 analyzes expected import growth rates and Italy’s market share to identify the most promising markets for Italian companies.

For SMEs within Made in Italy, consolidating traditional strengths such as design and quality is essential to maintain the market share acquired over the years. Investments in the twin transition—combining digital innovation and environmental sustainability—can also be strategic levers to enhance products and increase their perceived added value in the market.

Italian exporters must adapt their offerings to local needs and implement marketing strategies aimed at foreign market growth. Investing in market analysis, partnerships with local players, and networking events is crucial.

Digital tools are also strategic for seizing new opportunities and overcoming challenges in foreign markets. E-commerce platforms, advertising campaigns, and digital export activities can optimize sales, reach wider audiences, and amplify Made in Italy’s presence in even the most distant markets, contributing to the success of Italian companies abroad.

THE IMPORTANCE OF INTERNATIONALIZATION AND TRADE FINANCE FOR MADE IN ITALY DEVELOPMENT
 

Competing in foreign markets is no easy task. The challenges a company must face to emerge and achieve long-term growth are numerous. Selling abroad is only the final step of a more complex journey that encompasses all aspects of internationalization. This process begins with digital transformation, which accelerates the promotion and sale of products in foreign markets through digital export and extends to trade finance solutions that facilitate international transactions and provide easier access to global markets.

The ICE Report highlights the need to focus on digitalisation as a pathway to boosting exports. Referencing DESI (Digital Economy and Society Index) data, it underscores the significant progress Italian companies still need to make to remain competitive in this area. In 2023, Italy was still below the European average in terms of adopting digital technologies, making a shift in strategy increasingly necessary to truly make a difference.

Partnerships with international e-commerce platforms and digital consultancy services are essential tools for Italian companies looking to expand their presence in global markets. Additionally, leveraging advanced digital technologies can be strategic in enhancing the competitiveness of Italian businesses. For instance, blockchain can support supply chain tracking to certify product authenticity and quality while combating the Italian-sounding phenomenon. Similarly, the use of international corporate banking platforms like Inbiz by Intesa Sanpaolo can provide Italian companies with the security they need to conduct commercial operations in new markets.

INTESA SANPAOLO’S GLOBAL PRESENCE AND DEDICATED SOLUTIONS FOR CLIENT COMPANIES
 

Given these considerations, the growth potential of Italian exports is evident, but so is the need for continuous focus on innovation, sustainability, and access to effective financial tools to maintain competitiveness in international markets. Combining internationalization strategies, trade finance tools, and institutional support is crucial to securing a bright future for Made in Italy abroad.

In this context, Intesa Sanpaolo stands out as a strategic partner with its extensive international presence and ability to support companies in conquering foreign markets. With subsidiaries, branches, and representative offices abroad, along with a wide network of partnerships, the Intesa Sanpaolo Group offers entrepreneurs the expertise of qualified professionals, on-site strategic services in major foreign markets, customized investment optimization solutions, and more.

The Inbiz corporate banking platform provides an advanced trade finance solution, including the Foreign Operations module, a dedicated area for companies looking to expand abroad. Through Inbiz, businesses can access strategic information, monitor import and export operations, consult insights from prestigious providers, and stay updated on key international trade topics.

The development of Made in Italy exports is a significant opportunity for Italian companies when approached with a strategic and well-planned mindset. With the support of strong institutions and partners, Italian businesses can effectively navigate the complexities of international markets, strengthening the reputation and value of the Italian brand worldwide.

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