The Cosmetics Industry

The existence of cosmetics is very old. Ancient Romans and ancient Chinese made soap
by boiling fats and oils. However, as Geoffrey Jones (Professor of Business History at the
Harvard Business School) points out in his book Beauty Imagined, “the craft of making soap,
like perfume, was ancient, but so was people’s refusal to use it” (page 69). Although Cosmetic
products can be traced back to 4,000 BC, the cosmetic market only popularized – starting with
soap – during the end of the 19th and early 20th century. This was only possible because of the
industrial revolution and the great advances in the chemistry enabling a much cheaper and
broader production.
Today, skin care, hair care, make-up, perfumes, toiletries, deodorants, and oral cosmetics
became a part of our daily routine and hygiene essentials. The cosmetics industry suffered a great
transformation: from selling luxury products to mass essential products of daily life. “It is one of
the more intriguing stories in modern business history,” Jones wrote.
Currently, the cosmetic’s industry is mainly controlled by a few multi-national
corporations, such as L’Oréal, Unilever, Protector & Gamble Co., The Estee Lauder Companies,
Shiseido Company, and others. Last year, 2018, Zion Market Research published a report in
which the global cosmetic products market was valued at “around USD 532 billion in 2017 and
is expected to reach approximately USD 863 billion in 2024, growing at a CAGR of slightly
above 7% between 2018 and 2024”(Allied Market Research, para 1).
The increasing demand trend for cosmetics products has already begun. The growth in
this global economy has been mainly impacted by the changing lifestyles, rising demands of skin
and sun care products due to climatic changes (Allied Market Research, para 2) and social media
strong influence. “On average, the last two years have seen over 100 new brands debuting in
department and specialty stores" says Larissa Jensen, beauty industry analyst at the NPD Group
(Pina, 2019, para 4).
However, some experts defend that the beauty cosmetics industry might slow down if
brands do not remain committed to evolution, both in their product and their marketing. In
Tanisha Pina’s article, ‘The skin-care industry is thriving — but how long can this boom last?’,
she defends that the most sustainable brands are the ones that will have a better future in the
economic market. She is not the only one who states that. In the Allied Market Research
preview, the top factors that will influence this industry in the following years include: the use of
natural ingredients and changing packaging styles and attractive market strategies.
The cosmetics industry has suffered great transformations. It is prominent in the future
global economic market if it follows ecological and sustainable initiatives and technologies to
thrive as the market will become more competitive and costumers more demanding of these.
References
Jones, G. (2010). Beauty Imagined : A History of the Global Beauty Industry. Oxford: OUP Oxford.
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Allied Market Research (2016). Cosmetics Market by Category (Skin & Sun Care Products, Hair Care
Products, Deodorants, Makeup & Color Cosmetics, Fragrances) and by Distribution Channel
(General departmental store, Supermarkets, Drug stores, Brand outlets) - Global Opportunity
Analysis and Industry Forecast, 2014 – 2022. Retrieved from:
https://www.alliedmarketresearch.com/cosmetics-market

Pina, T., (2019). THE SKIN-CARE INDUSTRY IS THRIVING — BUT HOW LONG CAN THIS BOOM
LAST?. Retrieved from: https://fashionista.com/2019/01/skin-care-beauty-industry-growth