Industry Analysis & Industry Trends
The Cosmetic and Personal Care Product Manufacturing industry has shown strong growth over the past decade. China has become one of the largest cosmetics markets in the world and ranks second in Asia after Japan. Industry revenue has been growing at an annualized rate of 9.9% in the five years through 2014 to an estimated $17.0 billion. Over the next five years, industry revenue is forecast to grow 5.0% annually to total $21.5 billion in 2019. The demand for cosmetic and personal care products in China is expected to be high over the period, which serves as a strong driver. However, the rising price of raw materials continues to shrink profitability.
Chinese cosmetic and personal care product manufacturers mostly compete in lower-end markets.... purchase to read more
Industry Report - Starting a New Business Chapter
Many small and medium-sized enterprises target niche markets or regional markets, where competition is less intense. There are relatively lower barriers to entry in these markets.
For cosmetics manufacturers, product differentiation is one of the main competitive success factors. Existing brands have established high brand identification and loyalty with customers. New entrants need to invest substantially to establish their own brand loyalty.
Distribution networks are a major entry barrier. While major players have control of distribution channels, new entrants have to offer more benefits to distributors to leverage existing distribution networks... purchase to read more