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Cosmetic and Beauty Products Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated
  • USA - English


News provided by

IBISWorld

Dec 04, 2013, 02:00 ET

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New product developments and overseas expansion will drive industry growth.

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Los Angeles, CA (PRWEB) December 03, 2013 -- The wide range of beauty and personal care goods produced by the Cosmetic and Beauty Products Manufacturing industry protects its participants from drastic changes in disposable income. Fluctuating incomes do affect cosmetics, but essential goods, such as shampoo, experience steadier demand. Revenue for the industry dropped 26.7% in 2009 because of weakened economies worldwide. However, revenue quickly turned around as customers who had given up discretionary purchases of the industry's premium goods turned to cheaper industry alternatives. According to IBISWorld Industry Analust Jocelyn Phillips, “As consumer confidence levels have slowly returned to prerecessionary levels, the industry has recovered as well, experiencing double-digit revenue growth by 2012.” IBISWorld expects revenue to grow 1.8% in 2013 to $48.5 billion, bringing the average annual revenue decline to just 2.4% throughout the five years to 2013.

The number of industry employees declined in the wake of the recession-fueled dip in industry revenue. In the five years to 2013, operators cut employment at an average annual rate of 2.1% to 54,527 employees; this cost cutting helped players sustain profit. Profit margins were further bolstered by increased market opportunities overseas. Exports are expected to increase from 11.9% of revenue in 2008 to 14.9% in 2013. Overseas retailers depend on the appeal of American-made goods for their perceived high quality; moreover, the weakness of the US dollar made domestic products cheaper on the global market.

The characteristics that have supported the industry's rebound from its 2009 recessionary lows will drive its success in the five years to 2018. The diversity of product lines and firms' commitment to product development will keep revenue growth steady in the five years to 2018. IBISWorld expects revenue and profit to increase by 2018. “Firms will likely continue to develop premium product lines to satisfy domestic consumers with rising disposable incomes as well as foreign customers who expect American goods to be high quality,” says Phillips. Exports are forecast to increase by 2018. As a result, IBISWorld expects employment and wages to increase in the five years to 2018, as industry players invest more into facilities and human resources and expand their research and development (R&D) teams to remain competitive.

For more information, visit IBISWorld’s Cosmetic and Beauty Products Manufacturing in the US industry report 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

The Cosmetic and Beauty Products Manufacturing industry prepares, blends, compounds and packages beauty products and cosmetics. Products included in this industry are perfumes, makeup items, hair preparations, face creams, lotions and other toiletries. Toothpastes, toothbrushes, soaps and body washes are not included in this industry.

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.

Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]

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