Nail polish provides a small sense of indulgence during times of declining disposable income and tighter purse strings
Los Angeles, CA (PRWEB) April 27, 2012
The Nail Polish Manufacturing industry has remained resilient over the past five years, despite the economic downturn. According to IBISWorld industry analyst Nikoleta Panteva, “Like many other cosmetic products, nail polish provides a small sense of indulgence during times of declining disposable income and tighter purse strings. The low price point for nail polishes has allowed consumers to treat themselves while sticking to their budget.” This trend has helped buoy other cosmetics during the recession as well. These trends are forecast to continue over the next five years.
Despite the resilience of the industry over the past five years, 2012 is expected to be difficult year for the industry. In April 2012, California’s Department of Toxic Substances Control (DTSC) found that 80.0% of salon nail polishes tested contain toxic chemicals. Even nail polishes listed as non-toxic were found to contain the trio of chemicals that could lead to birth defects, asthma and other health conditions. According to Panteva, “consumer demand is expected to weaken as a result of these findings, as salon-goers choose not to risk health complications in salons.” IBISWorld expects Nail Polish Manufacturing industry revenue to suffer during the year as a result.
The DTSC’s findings and the subsequent lowered demand are expected to drive nail polish manufacturers to reformulate their products. The increasing focus on natural and nontoxic products will continue to drive product innovation over the five years to 2017. Other superficial innovations, such as gels, nail pens and crackle topcoats, have stimulated demand over the past few years and are expected to continue to do so. Similarly, fashion trends like seasonal colors will continue to drive sales over the long term.
Overall, the outlook for the industry, and key players such as Revlon, OPI and Cosmetic Industries, is positive. Professional products are expected to continue making their way into consumer-facing retail outlets, such as drugstores and beauty supply stores, which will stimulate sales. One key challenge for US nail polish manufacturers in the outlook period may be increased import competition. High-end designer nail polishes from Europe and low-priced bargain nail polishes from Asia are expected to challenge US manufacturers over the next five years. For more information visit IBISWorld’s Nail Polish Manufacturing in the US industry page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry manufactures nail polish. Nail polish is used as a cosmetic product that is applied to the nails for aesthetic purposes. Companies that manufacture nail polish typically do so alongside other cosmetic manufacturing.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.