Cosmetic industry

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Cosmetics at department store Farmers Centre Place in Hamilton, New Zealand JPG Farmers Centre Place cosmetics 2013.jpg
Cosmetics at department store Farmers Centre Place in Hamilton, New Zealand

The cosmetic industry describes the industry that manufactures and distributes cosmetic products. These include colour cosmetics, like foundation and mascara, skincare such as moisturisers and cleansers, haircare such as shampoos, conditioners and hair colours, and toiletries such as bubble bath and soap. The manufacturing industry is dominated by a small number of multinational corporations that originated in the early 20th century, but the distribution and sale of cosmetics is spread among a wide range of different businesses. Cosmetics must be safe when customers use them in accordance with the label's instructions or in the conventional or expected manner. One measure a producer may take to guarantee the safety of a cosmetic product is product testing. FDA occasionally does testing as part of its research program or when looking into potential safety issues with a product. Both the cosmetics business and consumers can benefit from the FDA's resources on product testing.

Contents

The largest cosmetic companies are L'Oreal, Estée Lauder, Coty, Nivea, Shiseido and Chanel. [1] The market volume of the cosmetics industry in Europe and the United States is about EUR €70 billion per year, according to a 2005 publication. [2] The worldwide cosmetics and perfume industry currently generates an estimated annual turnover of US$170 billion (according to Eurostaf – May 2007). Europe is the leading market, representing approximately €63 billion[ as of? ].

By region

Americas

United States

Within the United States, the state of California has the largest concentration of beauty establishments in America at 25.5%, followed by New Jersey at 8.1% of American beauty establishments. [3] Since 2016, the number of cosmetic stores rises between 3 and 4% each year and employment in this division is rising each year 13-16%.[ citation needed ]

California has the largest concentration due to social media marketing from celebrities and ‘beauty gurus’. For example, Kylie Jenner's company Kylie Cosmetics, is valued at $800 million and sold an estimated $330 million worth of makeup in 2017. YouTube and social media influencers Jeffree Star (Jeffree Star Cosmetics), and Michelle Phan (Ipsy), and pop-star Rihanna with her Fenty Beauty line of cosmetics, have also contributed to California's rising popularity in the beauty industry.[ citation needed ]

Because the US dollar is so valuable to other countries around the world, it has become extremely expensive for most countries to import American beauty products and to export their own products to America. However, there are a few countries with beauty products that are in popular demand in America due to their quality and value including France, Canada, Italy, and the United Kingdom.

As of 2018, “These four countries account for 45.2% of all industry imports as domestic consumers demand luxury products”. [3] South Korean and Japanese skincare products which are designed to be more gentle and innovative, are also becoming more popularized in the United States due to their quality and affordability. The U.S. has held the same regulation over this industry since 1938 under the FD&C Act, which has gained additional amendments over time. [4]

Canada

Canada is a big influencer in the American beauty industry due to its proximity to the United States and because it falls under the North American Free Trade Agreement (NAFTA). This agreement “eliminates most tariffs on products traded between Canada, Mexico, and the United States," [5] and allows Canada to trade superfluously. Canada accounts for an estimated 13.6% of imports and 19.9% of cosmetic exports in 2018. [3] [ citation needed ]Because Mexico also benefits from the NAFTA trade agreement, they represent another top cosmetic importer and exporter for lower-priced beauty products which are manufactured in mass and sold in large drug store chains in America.[ citation needed ]

Europe

France

Cosmetic sales in France reached €6.5 billion in 2006, according to FIPAR (Fédération des Industries de la Parfumerie – the French federation for the perfume industry). [6] France is another country in which the cosmetic industry plays an important role, both nationally and internationally. Most products with a label, "Made in France" are valued on the international market. According to data from 2008, the cosmetic industry has grown constantly in France for 40 consecutive years. Famous cosmetic brands produced in France include Vichy, Yves Saint Laurent, Yves Rocher, Bioderma and L'Oreal. L'Oreal is known for its mass production of hair and makeup products which are produced in mass and sold in drug stores in America as well as internationally. L'Oreal has gained popularity especially due to its app Makeup Genius which allows users to try on makeup using their phone camera in addition to working with Los Angeles-based NYX Cosmetics and Estee Lauder's MAC Cosmetics, L'Oreal is one of the leading cosmetic brands in the United States. According to the company's latest financial report of 2017, North America accounted for 13.6% of the company's global cosmetic sales. [7]

Cosmetics at Life Pharmacy at Westfield Albany on the North Shore of Auckland, New Zealand Life Pharmacy Westfield Albany cosmetics 2013.jpg
Cosmetics at Life Pharmacy at Westfield Albany on the North Shore of Auckland, New Zealand

Germany

In Germany, the cosmetic industry generated €12.6 billion of retail sales in 2008, [7] which, at the time, made the German cosmetic industry the third largest in the world after Japan and the United States. It has been shown that Germany's cosmetic industry grew nearly 5 percent in one year, from 2007 to 2008. German exports in this industry reached €5.8 billion in 2008, whereas imports of cosmetics totaled €3 billion. [7] Germany gains most of its imported cosmetics from France, Switzerland, the United States and Italy.[ citation needed ]

Italy

Belarus

The Belarusian cosmetics market consists of Belarusian companies. There are more than 20 cosmetic companies in Belarus - Belita, Vitex, Lux Visage, Mastige, Modum, Rekish Cosmetics. The volume of the cosmetic market is more than 300 million euros per year.[ citation needed ]

Asia

The cosmetic industry in Asia is mainly dominated by regional cosmetic brands. Shiseido Co. LTD, A popular cosmetic brand based in Japan, has 82.1% of its sales in Asia. [8] No other Western company in the top 10 match these kinds of regional sales. Furthermore, geographic dispersion of sales by Asian cosmetic companies in Asia accounted for 92.42% of sales, while geographic dispersion of assets of Asian cosmetic companies in Asia was 87.05%. [8] Western cosmetic companies often have failed to gain footholds in various countries. For example, in Japan, many advertisement campaigns that find success in the West, such as celebrity appearances and references to science, did not sway a sample group of respondents to purchase the foreign brands. [9] However, despite the lack of Western cosmetic presence, the growing trend of “fair skin”, or whiting one's skin, can expose consumers skin to harmful chemicals when using “fairness creams”. [10]

While there has been significant economic growth in many Asian markets, regulation pertaining to chemicals in cosmetic products has been concurrently lacking. SK-II, a cosmetic product owned by P&G, was found to contain banned heavy metals in China in 2006. [11] Another study found that women who had recently moved to Vancouver, Canada from East and South Asia had higher levels of lead in their blood than South and East Asian immigrants who had been living in Canada for longer. [12] One of sources of lead was determined to be some facial powders marketed in various regions of Asia. [13]

Fashion designer collaboration

Due to the popularity of cosmetics, especially fragrances and perfumes, many designers who are not necessarily involved in the cosmetic industry came up with different perfumes carrying their names. Moreover, some actors and singers have their own perfume line (such as Celine Dion). Designer perfumes are, like any other designer products, the most expensive in the industry as the consumer pays not only for the product but also for the brand.[ citation needed ]

Marketing

The cosmetic industry worldwide seems to be continuously developing, now more than ever with the advent of the Internet companies. Many famous companies sell their cosmetic products online also, in countries in which they do not have representatives.

Research on the email marketing of cosmetics to consumers suggests they are goal-oriented with email content that is seen as useful, motivating recipients to visit a store to test the cosmetics or talk to sales representatives. Useful content included special sales offerings and new product information rather than information about makeup trends. [14]

Controversies

Colorism

Many companies advertise white or light skin as not only a cosmetic change, but a lifestyle change. White beauty implies a lifestyle of “sophistication, beauty, power, and wealth.” Mass advertising and marketing from the US and Europe, as well as multiple mass media forms are used to reach other cultures to influence their purchasing habits. Many of the skin lightening products sold usually have celebrity endorsements, further increasing sales and the desire for lighter skin. These products can cause serious damage to skin and pose a health risk to the consumer. [15]

In a study done by S. S. Agrawal and Pallavi Sharma on eleven skin lightening products sold in India, it was found that “mercury was detected in all the samples of the skin lightening creams in the range of 0.14–0.36 ppm.” This study also observed that none of the brands tested include mercury as an ingredient on the packaging, which may mislead consumers regarding health risks. In a report by the World Health Organization, it was stated that “skin whitening products can cause leukemia, liver and kidney cancer and could also result in severe skin conditions.” [16] Though these health risks exist, women of color in many parts of the world are purchasing skin lightening creams.

Choma and Prusaczyk's survey of women of color in the US and India “show[s] that chronic surveillance of skin tone predicts skin tone dissatisfaction and skin bleaching.” Some companies in the cosmetic industry have capitalized off of the cultural pressure and standards for having lighter skin.  This study concluded that “skin bleaching is not merely a physical or aesthetic change, but one with potentially wide-ranging implications on psychological well-being and, more broadly, the perpetuation of racist ideologies and beauty standards.” [17]

Impact on environment

Some components found in cosmetics, as well as their production, have been found to have negative environmental impact. [18] [19] [20] [21] For example, Palm oil is found in lipstick, and shampoo. Palm oil is connected to the destruction of forests and habitats of endangered species, including orangutans, tigers, elephants, and rhinos. [22] [23]

Animal testing

Animal testing has been a large controversy in the cosmetic industry. Animal tests performed include the Draize eye irritancy test, where test chemicals are applied to rabbits’ eyes and left on for several days, [24] and toxicity tests such as LD50, where a substance's toxicity is tested by determining the concentration at which it will kill 50% of the test animals. [25]

Due to public outcry as well as financial and temporal considerations, animal testing in cosmetics has steadily been decreasing over time and replaced with non-animal tests. [26] One of these non-animal tests is the Environmental Protection Agency’s ToxCast which has a similar accuracy compared to animal tests but achieves results with fewer economic costs and less time. [26]

An EU ban of marketing cosmetic products which have been tested on animals became effective in 2013. [27] There are a few exceptions to this law. Animal testing data for cosmetics can be used if the data for the ingredient used in the cosmetic originated from testing for non-cosmetic products. [27] Secondly, if a country outside of the EU requires animal testing and the cosmetic product was tested in that country, the ban also does not apply. [27] Cosmetic tests on animals are still legal in several countries, such as the US, Japan, Russia, [26] and China.

There are a number of cosmetics companies that claim they are “cruelty-free,” such as Bath & Body Works, Aveda, ELF, and Milani, [28] but some argue that because the label of “cruelty-free” both lacks regulation and standardized third-party certification, it has little real weight. [24] Brands that claim to be cruelty free often advertize this with a logo of a rabbit on their products.

In some cases, cosmetic testing is done on humans, which also leads to a related discussion of best practices and ethics. [29]

Labor rights and body politics

A number of studies have focused on social issues such as labor rights and sociology of the body. [30] [31] [32] Research has found that some retail stores have discriminatory hiring practices and prefer to hire class-privileged workers to promote their upscale image. [31]

See also

Related Research Articles

Maybelline New York, trading as Maybelline, is an American multinational cosmetics, skin care, perfume, and personal care company, based in New York City. It was founded in Chicago in 1914, and has been a subsidiary of French cosmetics company L'Oréal since 1996.

Avon Products, Inc. or simply known as Avon, is an Anglo-American multinational company selling cosmetics, skin care, perfume, and personal care products. It is a multi-level marketing company based in London. In 2020, Avon had annual sales of $9.1 billion worldwide.

<span class="mw-page-title-main">Cosmetics</span> Substances applied to the body to change appearance or fragrance

Cosmetics are composed of mixtures of chemical compounds derived from either natural sources or synthetically created ones. Cosmetics have various purposes, including personal and skin care. They can also be used to conceal blemishes and enhance natural features. Makeup can also add colour to a person's face, enhance a person's features or change the appearance of the face entirely to resemble a different person, creature, or object.

<span class="mw-page-title-main">The Estée Lauder Companies</span> American multinational cosmetics company

The Estée Lauder Companies Inc. is an American multinational cosmetics company, a manufacturer and marketer of makeup, skincare, perfume, and hair care products, based in Midtown Manhattan, New York City. It is the second largest cosmetics company in the world after L'Oréal. The company owns a diverse portfolio of brands, including La Mer, Jo Malone London, Clinique and Tom Ford Beauty, among many more, distributed internationally through both digital commerce and retail channels.

L'Oréal S.A. is a French multinational personal care company headquartered in Clichy, Hauts-de-Seine, with a registered office in Paris. As of 2018, it was the world's largest cosmetics company and has developed activities in the field, concentrating on hair color, skin care, sun protection, make-up, perfume, and hair care.

<span class="mw-page-title-main">The Body Shop</span> International cosmetics, skin care company

The Body Shop International Limited, trading as the Body Shop, is a British cosmetics, skin care, and perfume company founded in 1976 by Anita Roddick.

<span class="mw-page-title-main">Neutrogena</span> American cosmetics company

Neutrogena Corporation, trading as Neutrogena, is an American company that produces cosmetics, skin care and hair care, is owned by parent company Kenvue and is headquartered in Los Angeles, California. According to product advertising at their website, Neutrogena products are distributed in more than 70 countries.

<span class="mw-page-title-main">Olay</span> American skin care brand owned by Procter & Gamble

Olay or Olaz, previously Oil of Olay, Oil of Olaz, Oil of Ulan, or Oil of Ulay, is an American skin care brand owned by Procter & Gamble. For the 2009 fiscal year, which ended on June 30, Olay accounted for an estimated $2.8 billion of P&G's revenue.

<span class="mw-page-title-main">Cosmetics advertising</span> Promotion of cosmetics and beauty products

Cosmetic advertising is the promotion of cosmetics and beauty products by the cosmetics industry through a variety of media. The advertising campaigns are usually aimed at women wishing to improve their appearance, commonly to increase physical attractiveness and reduce the signs of ageing.

<span class="mw-page-title-main">Shiseido</span> Japanese cosmetics producer

Shiseido Company, Limited is a Japanese multinational cosmetic company founded in Tokyo, Japan in 1872. Its product categories consist of: skin care, makeup, body care, hair care, and fragrances. The company is one of the oldest cosmetic companies in the world and celebrated its 150th anniversary in 2022. It is the largest cosmetic firm in Japan and the fifth largest cosmetic company in the world. In Japan, Shiseido is available at cosmetic counters at selected department stores and most pharmacies. The company owns numerous brands and subsidiaries worldwide, in addition to its founding label. The company is headquartered in Tokyo, and is traded on the Tokyo Stock Exchange, where it is a constituent of the Nikkei 225 and TOPIX Large70 indices.

<span class="mw-page-title-main">Skin whitening</span> Practice of using chemical substances to lighten the skin

Skin whitening, also known as skin lightening and skin bleaching, is the practice of using chemical substances in an attempt to lighten the skin or provide an even skin color by reducing the melanin concentration in the skin. Several chemicals have been shown to be effective in skin whitening, while some have proven to be toxic or have questionable safety profiles. This includes mercury compounds which may cause neurological problems and kidney problems.

<span class="mw-page-title-main">Kiehl's</span> American cosmetics retailer

Kiehl's LLC is an American cosmetics brand retailer that specializes in skin, hair, and body care products. It started as a single pharmacy in Manhattan at Third Avenue and East 13th Street in 1851. Kiehl's was purchased by the L'Oréal Group in 2000 and has 65 stores in the United States and 400 stores worldwide as of 2015, with over 1,000 points of sale supplemented by sales in department stores, select airport locations, as well as independent stockists. In contrast to its market competitors, Kiehl's is distinguished for its unorthodox marketing approach, exceptionally large male clientele base, and its products' simple and straightforward packaging.

<span class="mw-page-title-main">History of cosmetics</span> History of cosmetics in cultures

The history of cosmetics spans at least 7,000 years and is present in almost every society on earth. Cosmetic body art is argued to have been the earliest form of a ritual in human culture. The evidence for this comes in the form of utilised red mineral pigments including crayons associated with the emergence of Homo sapiens in Africa. Cosmetics are mentioned in the Old Testament—2 Kings 9:30 where Jezebel painted her eyelids—approximately 840 BC—and the book of Esther describes various beauty treatments as well.

<span class="mw-page-title-main">Ingredients of cosmetics</span> Ingredients used in makeup

Cosmetics ingredients come from a variety of sources but, unlike the ingredients of food, are often not considered by most consumers. Cosmetics often use vibrant colors that are derived from a wide variety of sources, ranging from crushed insects to rust.

<span class="mw-page-title-main">Testing cosmetics on animals</span> Form of animal testing

Cosmetic testing on animals is a type of animal testing used to test the safety and hypoallergenic properties of cosmetic products for use by humans.

Almay is an American cosmetics brand owned by Revlon which markets products toward people with sensitive skin.

<span class="mw-page-title-main">Cosmetics in Korea</span>

Cosmetics have been used in Korea since antiquity. Today, cosmetics are an important industry in South Korea.

<span class="mw-page-title-main">Glow & Lovely</span> Skin whitening cream popular in the Indian subcontinent

Glow & Lovely is an Indian skin-lightening cosmetic product of Hindustan Unilever introduced to the market in India in 1975. Glow & Lovely is available in India, Bangladesh, Malaysia, Indonesia, Singapore, Brunei, Thailand, Sri Lanka, Pakistan, Mauritius and other parts of Asia and is also exported to other parts of the world, such as the West, where it is sold in Asian supermarkets.

<span class="mw-page-title-main">K-beauty</span> Umbrella term for skin-care products that derive from South Korea

K-beauty is an umbrella term for skincare products that are derived from South Korea. The fad gained popularity worldwide, especially in East Asia, Southeast Asia, South Asia, and the Western world, and focuses on health, hydration, and an emphasis on brightening effects.

Male cosmetics include all cosmetic products marketed towards men, such as makeup, skincare products, hair care products, body care products, sun care products, perfumes, and other decorative cosmetics.

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Further reading