Cosmetic and Personal Care industry highlights
The Cosmetic and Personal Care Product Manufacturing industry has posted strong growth over the past decade. The revenue for the U.S. cosmetic industry is estimated to amount to $62.46 billion in 2016. 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% from 2010 through 2015, to an estimated $19.9 billion. Over the next five years through 2020, industry revenue is forecast to grow 3.4% annually, to total $23.6 billion.
Cosmetics development growth in organic products is also noticeable. The global market for organic personal care products will 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 ever 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 need to be extremely aware of new trends and boost their cosmetics development and innovation processes.
The cosmetics industry is also facing extreme regulatory compliance expectances. Local and global regulations are stricter than ever. Compliance with new regulations needs to be easily and quickly accesable.
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 in a crowded marketplace depends on new product innovation, effective formulation and testing new attributes to differentiate products.
Cosmetics product management from design to launch as well as cosmetics development are key in the industry. It is essential to benefit from an optimized personal care product management.
In this competitive and dynamic sector, personal care companies are being pressed to:
Lascom's solution for personal care product management
Lascom provides a Product Lifecycle Management (PLM) solution to assist personal care and cosmetics organizations with these issues. Through Lascom’s platform use, companies are able to:
Lascom CPG includes ERP connectors to fit with business software already in place.
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