Industry Analysis & Industry Trends
Although the Global Cosmetics Manufacturing industry is mature in most developed markets, it is also dynamic, characterized by a high degree of innovation, particularly within luxury and prestige product lines. In the previous period, the global recession limited revenue growth for industry manufacturers, and the volatile world price of crude oil (a key industry input) seriously impacted potential industry profit growth. In the coming years, the industry is poised for strong growth, despite its maturity in developed markets. Rebounding consumer purchasing power will pave the way for new product development and introduction, while industry operators' efforts to expand to currently underrepresented markets will continue to expand the industry's scope... read more
The Global Cosmetics Manufacturing industry has a moderate level of capital intensity, with industry operators spending about $0.31 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