Industry Analysis & Industry Trends
When disposable income levels dropped during the recession, industry growth slowed, though it never declined. Renewed disposable income and consumers in emerging markets will provide a foundation for solid growth for the Global Cosmetics Manufacturing industry over the next five years... 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