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Toiletries and Cosmetics
SIC 2844NAICS 325620The toiletries industry manufactures the world's perfumes, cosmetics, shampoos, and related personal toilet preparations. Coverage of general soap and detergent manufacturing may be found under the heading Soaps and Detergents..INDUSTRY SNAPSHOTThe cosmetics and toiletries industry experienced difficult times during the early 2000s. Overall profits and growth stagnated in January 2001, and dropped even more after the September 2001 acts of terrorism in the United States. This followed regular, if unspectacular, profits for many companies through the end of 2000. Kline & Co. reported that the U.S. cosmetics and toiletries industry grew by less than 2 percent in 2003, the third consecutive year of single-digit growth. Mature markets and saturation from competing lines were major factors that contributed to flat sales. Conditions improved slightly in 2004, however, with global sales approaching US$150 billion, an increase of more than 4 percent.Global Cosmetic Industry blamed price cutting at megastores such as Wal-Mart for the decrease in large profit margins that many department stores and other outlets typically enjoyed. In addition, sales in such stores have blurred the once definitive line between producers of luxury care products and those typically bought by ordinary consumers.In a separate industry analysis, published in the June 2004 issue of Global Cosmetic Industry, Euromonitor data placed the global retail market for cosmetics and toiletries at US$201.5 billion in 2003, up 4.8 percent from the previous year. At US$62.9 billion (31.2 percent), Western Europe held the largest market share, followed by North America (24.6 percent), Asia Pacific (23 percent), Latin America (9.3 percent), Eastern Europe (6.2 percent), Africa/Middle East (4.4 percent), and Australasia (1 percent). The greatest growth in 2004 was attributed to growing markets such as Argentina, Brazil, Russia, and China.Of the 11 categories tracked by Euromonitor, the top five accounted for more than 75 percent of global sales. At US$42.5 billion, hair care was by far the leading category, with 21.1 per...See the full content of this document
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