Industry Analysis & Industry Trends
Although the Global Cosmetics Manufacturing industry is mature in most developed markets, it is also dynamic and exhibits a high degree of innovation, particularly within luxury and prestige product lines. Global per capita income has risen and demand for pricey cosmetics and hair care products has grown accordingly, particularly in emerging markets. In addition to growing demand for prestige products in emerging markets, several other trends have defined the industry in recent years and will likely continue to do so in coming years. Operators have responded to changing consumer preferences by introducing and reformulating popular products to meet organic or all-natural standards... read more
The Global Cosmetics Manufacturing industry has a moderate level of capital intensity, with industry operators spending about $0.22 on capital for every dollar spent on labor. Businesses in this industry need high levels of capital to produce cosmetics, fragrances, and beauty and hair care products. Manufacturing processes are largely automated, which both increases capital intensity (because automated machinery is more expensive) and reduces labor cost (by reducing the need for staff). Staff who are employed in this industry perform a range of activities, from simple manual tasks to operating high-tech production lines.
As industry manufacturers continue to automate and mechanize operations over the next five years, the industry's capital intensity will gradually increase... read more