Cosmetic and Personal Care industry highlights
The Cosmetic and Personal Care Product Manufacturing industry has posted strong growth over the past decade. The revenue of the U.S. cosmetic industry is estimated to amount to about $62.46 billion in 2016 and more than 11 billion personal care products are sold each year in the U.S. China has become one of the largest cosmetics markets in the world and ranks first in Asia. Industry revenue has been growing at an annualized rate of 12.2% in the five years through 2015, to an estimated $19.9 billion. Over the next five years, industry revenue is forecast to grow 3.4% annually, to total $23.6 billion in 2020.
Cosmetics development growth in organic products is also noticeable. The global market for organic personal care products should grow to be worth approximately $15.98 billion by 2020, reflecting annual growth rates of between 9% and 10% across Europe, North America and the Asia Pacific regions.
Key factors in Cosmetics development
Cosmetics development even complex and driven by trends, is supported by an effective NPD process. Time to market, collaboration, product information and product traceability are key success factors to optimize in cosmetics development.
Personal care and cosmetics challenges
Personal care companies face a myriad of challenges. To lead competition, personal care and cosmetics professionals have to be extremely aware of new trends and boost their cosmetics development and innovation processes.
Cosmetics industry is also facing extreme regulatory compliance expectances. Local and global regulations are stricter than ever and time and means to comply with new regulations are not easily accessible.
Short product lifecycles, fast-evolving trends, patent-protected applications, formidable competition for market share, new technology evolutions and high costs for complex chemistries and scientifically based innovations are other challenges to handle when in personal care products management.
The ability to succeed depends on new product innovation, effective formulation and testing new attributes to differentiate products in a crowded marketplace. Cosmetics product management from design to launch as well as cosmetics development are key in the industry. It is then essential to benefit from a robust personal care product management.
On this competitive and dynamic sector, personal care companies have to:
Lascom solution for personal care product management
Lascom provides a PLM solution to assist Personal care and cosmetics business with their issues. Through the platform use, companies are able to:
Lascom CPG includes ERP connectors to fit with business software already implemented to offer an exhaustive solution to personal care and cosmetics companies.
Benefits for personal care and cosmetics industries
Access our guides and whitepapers for your industry :
- Collaboration as a Key to Success in Retail – White Paper
- Improve growth and margins with PLM – Infographic
- Challenges in Personal Care and Cosmetics – Index card