Cosmetics industry comprises companies that operate by manufacturing, producing, marketing and retailing cosmetics and related products. The industry comprises establishments that are primarily into cosmetics, perfumes, toiletries, personal grooming and healthcare products. In addition there are these establishments include beauty supply stores, specialty cosmetics stores and fragrance stores. The beauty and cosmetics fragrance industry revenue concentration follows the distraction of population across the globe. All the beauty and cosmetics retailers have experienced overall growth over the past five years, despite a few blemishes during the recession. Well-recognized brand names such as those of Unilever and Procter & Gamble (P&G), the availability of non-discretionary products, that is shampoo and sunscreen, and strong bargaining power with upstream suppliers have allowed the industry’s largest players to grow even as other manufacturers have suffered.

 

As per-capita disposable income is expected to continue rising slowly across the world, there will be a stronger downstream demand from wholesalers and retailers resulting in the industry revenue to fare better over the next five years. Nevertheless, competition will remain a key feature, pushing operators out of the industry. Over the years to come, the cosmetics and toiletry industry is predicted to record gains across the board, with particularly strong growth expected for sun protection and anti-aging products as consumers become increasingly aware of the dangers of sun exposure and more concerned with preserving a youthful appearance. As consumers become increasingly wary of potential toxicity in cosmetics and toiletries, market segments offering fragrance-free products made using natural ingredients and essential oils are likely to record strong growth. According to Packaged Facts, companies will focus on packaging to afford their products a more sophisticated appearance. Rising disposable income and new product introductions will continue to support revenue growth in the coming years. Nevertheless, competition is on the rise from department stores, mass merchandisers and e-tailers, which will pressure product prices and industry profit margins.