Industry Analysis & Industry Trends
The Global Cosmetics Manufacturing industry is a dynamic industry, characterized by a high degree of innovation and the constant introduction of new or reformulated products. In the European Union, major cosmetic companies replace or reformulate one-quarter of their products every year. At the same time, it is a relatively mature industry, a characteristic that has led manufacturers around the world to seek new growth opportunities.
Over the past few decades, the industry has enjoyed moderate growth rates... read more
Industry Investment
The Global Cosmetics Manufacturing industry is deemed to have a medium level of capital intensity with five units of labor being employed for each unit of labor. This reflects the fact that, as is typical with the general chemical manufacturing sector, capital costs for the industry are relatively higher than other industries such as the retail sector, due to the nature of machinery tied up in purpose specific activities as well as in the plant itself. Businesses in this industry have high levels of fixed capital needed to produce quality cosmetics, fragrances, and beauty and hair care products. In addition, larger operators tend to be more capital intensive.
At the same time, the manufacturing process is semi-automated reflecting the type of technology employed... read more