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
Starting a New Business
Barriers to entry in the industry are moderate and include substantial capital requirements, access to distribution networks and skilled labor. Establishing a brand name also presents a barrier for some new entrants. These barriers largely reflect the moderate and growing market concentration among cosmetics manufacturers.
Potential firms must be able to competitively price products, which typically requires larger-scale production facilities that allow firms to achieve economies of scale. Given the homogeneity of some industry products, price is key differentiating factor among operators. However, achieving economies of scale requires significant capital outlay... read more