Focus on innovation and new product development will drive growth in the future.
New York, NY (PRWEB) November 19, 2014
Considered at once a discretionary product and an affordable luxury, the Lipstick Manufacturing industry may experience growth in periods of economic distress as well as periods of economic prosperity. According to IBISWorld Industry Analyst Sarah Kahn, “Despite volatile consumer sentiment and disposable income during the recession, consumers continued to demand new lipstick, sales of which declined much less in 2009 than cosmetics overall.” With the economic recovery and new fashion trends, consumers have begun to purchase diverse new products. After a lull in demand, in which consumers preferred lip gloss, lipstick came back into fashion in all colors, as well as moisturizing, natural and long-lasting brands. In the five years to 2014, revenue is expected to grow an average annual 7.3% to $1.4 billion, growing 5.8% in 2014 alone.
Focus on innovation and new product development will drive growth in the future. In the five years to 2019, revenue is forecast to expand. Profit margins will also rise as companies improve efficiency by automating the manufacturing process. Manufacturers are increasingly expected to develop niche products for a diversified customer base.
An increasingly health-conscious customer base is becoming progressively more aware and sensitive to product ingredients. “Consumers are increasingly concerned with using products that are chemical-based or have traces of metals or animal by-products, pushing companies to invest in research and development to offer new natural and safe products,” says Kahn. Additionally, consumers' loyalty to individual labels has diminished, despite warnings that they should not mix skin care products from different brands. Manufacturers are expected to become increasingly competitive for these disloyal customers, targeting “cocktailing” consumers that combine different brands and layer different products on top of each other. Finally, as the sociocultural trend Nomcore becomes a fashion movement, consumers, including celebrities such as Beyonce and Kate Middleton, have embraced a bare-faced look, proudly adding hashtag #nomakeup to their selfies. The industry is expected to battle this existential threat in the coming five years.
For more information, visit IBISWorld’s Lipstick 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
Companies in this industry manufacture lipstick. For companies that make a wide variety of cosmetic products, however, only the manufacture of lipstick and lip stains are included within this industry (lip gloss and lip balm are excluded).
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.