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Personal Care Products Manufacturing
First Research, Oct 2009, Pages: 10
First Research is the leading industry intelligence company that helps sales teams perform faster and smarter, open doors, and close more deals. First Research performs the 'heavy lifting' by synthesizing hundreds of sources into an easy to digest format that a sales person can consume very quickly to better understand a prospect's business issues.
Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US personal care products industry includes about 750 companies with combined annual revenue of $40 billion. Major companies include Estee Lauder, Johnson & Johnson, and Procter & Gamble. The industry is concentrated: the 50 largest firms account for about 70 percent of industry revenue.
This industry includes companies engaged primarily in preparing, blending, compounding, and packaging toilet preparations. Products include makeup, shampoo, and various creams and lotions.
COMPETITIVE LANDSCAPE
Demand is driven by population growth and consumer preferences. The profitability of individual companies depends on product innovation, effective sales and marketing, and efficient operations. Large companies have scale advantages in purchasing, manufacturing, distribution, and marketing. Small companies can compete effectively by offering specialized products. The industry is capital-intensive: average annual revenue per worker exceeds $600,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include cosmetics, hair products, and creams and lotions. Cosmetics (makeup, deodorant, and nail products) are 33 percent of industry revenue; hair products, 25 percent; and creams and lotions, 21 percent. Other products include perfume (10 percent); mouthwashes (2 percent); and shaving preparations (2 percent).
Cosmetics, such as lipstick, follow current fashion trends and come in a wide variety of colors. Lipstick is made of dyes and pigments in a fragranced oil-wax base. Ingredients are melted separately, and then oils and solvents are ground together with desired color pigments. The manufacturing process includes three distinct steps: melting and mixing the lipstick, molding by pouring the ...
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