Cosmetics have been around for centuries. The first usage of cosmetics can be dated back to the Egyptians. Unguent jars have been found from tombs of Egyptian dynasty rulers. Unguent was a substance used to hydrate skin and keep it wrinkle-free for both men and women. The women of Egypt are also known to have used color on eyelids which were very similar to eyeshadow in the present period.
Cosmetic products today are perhaps a necessity for a great proportion of women. There are a lot of us who use it daily. This increasing usage and other factors have helped the industry to flourish beyond expectations. In this article, we will be focusing on the different aspects and components of the cosmetic industry and just why it is as successful as it is today.
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Economic Aspect
Everything aside, the cosmetic industry has a huge economic impact. Today, the beauty and makeup industry are worth a staggering 511 billion dollars globally. It is expected to grow to 716.6 billion dollars by the year 2025. There is not a country in this world where makeup products are not sold. In 2019, Kylie Jenner became the youngest self-made billionaire all due to her cosmetic company, Kylie cosmetics. This shows just how much demand there is for such products.
Economically speaking, the makeup industry has created a lot of jobs for people. Its wide range of prices has made it accessible to all classes of people. As the industry grows, there will be greater demand for workers to produce more goods. Thus, ultimately having a positive impact on that region or country’s economy.
Covid Impact
While COVID had a lot of industries down on their knees, the beauty industry has still persevered. China reported an 80 percent fall in sales but the next month there was only a 20 percent fall left. This means that it rebounded by 60 percent. This goes to show how the industry was knocked down but got right back up.
How many of you have glammed yourself up sitting at home just because you were bored? I’m sure a lot of us have. Every time you glam up because you’re bored, makeup is consumed. Even with skincare, people who never followed skincare routines started to do so. Factors like these have allowed the cosmetic industry to stay afloat during this pandemic.
Competition
There is no doubt that the cosmetic industry is very competitive. There are thousands of firms competing in the market. Big names such as Loreal, Kylie, Mac, KKW, and many more have made it very competitive for small as well as large-scale manufacturers. This has benefited the consumers since they have a wider variety of options. For example, it is common to find a false lashes factory. Just the number of factories or such products shows how many producers there are in the market for these products.
The competition has also led to lower prices making them more accessible to everyone. Products which were once viewed as luxury items are now available for the majority of the population.
Major Components
The cosmetic industry is mainly made up of many components. It includes everything from makeup, hair shampoos to toiletries and whatnot. However, we will be discussing a few of the more prominent components.
Makeup
Makeup is a major contributor to the cosmetic industry. It constituted 18% of the sales in the entire cosmetic industry. Considering that it is not a necessity, that is a good amount of contribution. It consists of products such as mascara, lipstick, eye shadow, and other similar products.
Skincare
Skincare was the biggest contributor last year amounting to a whopping 40% of all sales in the cosmetic industry. Skincare includes any products made with the purpose to enhance your skin. It includes products such as sunscreen, lotion, moisturizers, and much more.
Hair Care
Hair Care products are something that all of us use. It amounted to 21% of cosmetic sales and was ahead of makeup. Haircare products can be termed as a necessity since cleaning and maintaining your hair is often considered basic hygiene.
Trends
The cosmetic industry is always under constant shifts due to trends. Some of the current notable trends in the industry are listed below.
Better Pricing
With the advent of social media branding and better connectivity, smaller brands can also build a good amount of consumer base. Smaller businesses tend to attract consumers with better pricing and niche products. This has led larger manufacturers to cut down their prices as well. Ultimately creating better overall pricing in the industry.
Transparency
Consumers nowadays are much more conscious about the ingredients of what they use and purchase. This has led to producers being more transparent about the ingredients. Ultimately forcing them to use more natural ingredients in their product.
Sustainability
Similar to transparency, consumers want eco-friendly products. Recyclable packaging is a positive outcome of this trend. Other than this, products that are not tested on animals are also in demand. All in all, the focus of this trend is to prevent any harmful effects on the environment.
Conclusion
The cosmetics industry is massive and continues to grow every passing day. We are excited to see where it stands in a few years from now.
