Nail Polish Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

The industry experienced relatively marginal revenue declines during the recession. Demand from nail salons and shops waned as disposable income dropped, but consumers continued to purchase nail polishes from retailers, which supported revenue. The value of exports has also expanded substantially over the past five years due to the depreciating dollar and companies' efforts to expand to overseas markets. Over the next five years, the value of exports is set to continue expanding. Domestic demand will also increase as consumer incomes rise and visits to salons become for frequent. However, increased health regulation may cut into industry profit margins. For these reasons, industry research firm IBISWorld has added a report on the Nail Polish Manufacturing industry to its growing industry report collection.

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IBISWorld Market Research

IBISWorld Market Research

Though salon demand waned, continued consumer purchases sustained revenue

Los Angeles, CA (PRWEB) May 09, 2012

The Nail Polish Manufacturing industry has benefitted from its products' small indulgence nature. Because nail polish represents a small portion of consumers' discretionary incomes, these purchases were not limited as drastically as many other consumer goods like apparel and shoes. Therefore, even when per capita disposable income fell 3.2% in 2009 – its first drop since 1991 – industry revenue only declined 0.6% and rebounded quickly the following year. “Consumers did shy away from salon visits, doing manicures and pedicures at home instead. As Americans flocked to drugstores instead of nail salons, the average purchase price of nail polish fell – professional-grade lacquers are typically more expensive than store-bought ones,” says IBISWorld industry analyst Nikoleta Panteva. As a result, industry profitability suffered in 2009. Still, revenue is expected to grow at an average annual rate of 2.3% over the five years to 2012, totaling $1.1 billion.

The export market has been a growing opportunity for industry operators. As major players have expanded their reach globally, demand for US-made nail polish has mounted. Furthermore, the depreciating US currency has made domestic goods less expensive and more attractive on the international market. Export values have grown over the past five years. This trend is likely to continue over the next five years as the dollar remains weak and global demand mounts. The Nail Polish Manufacturing industry carries a moderate level of market share concentration. The industry's top two firms are Coty Inc. and Revlon. The remaining share of industry revenue is split among small-scale manufacturing firms that typically produce a specialized polish or cater to a niche consumer base. Over the past five years, the industry's largest companies added to their dominance by acquiring growing or successful nail polish lines. For example, Revlon added the Mirage Cosmetics Company and its Sinful Colors brand of nail polishes. Sinful Colors had achieved rapid popularity growth from 2010 on. Additionally, Coty Inc. grew to achieve the industry's largest share of revenue in 2012 with its key additions of Sally Hansen and OPI.

Over the next five years, IBISWorld expects industry concentration to grow as the larger companies continue to leverage favorable economies of scale to acquire successful companies or brands to add to their nail care divisions. “As consumer purchasing power returns, salon visits will become more frequent. Additionally, shoppers will be more willing to spend on cosmetics. As a result, industry revenue is projected to grow,” continues Panteva. However, a recent investigation into the components of nail polish may force some companies to reformulate and rebrand their products to be safer for human use. This may cut into some players' profit margins because research and development undertakings can be costly. For more information, visit IBISWorld’s Nail Polish Manufacturing in the US industry report page.

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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.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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.


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