In 2018, according to Statista.com, the United States was considered the most valuable market in the world for beauty and personal care, with approximately $89.5 billion in revenue that year. Hair care was the largest segment of the sector, making up 24% of sales, and eye makeup brought in the highest profit, at over $1.9 billion.

We all know that big companies rule the personal-care industry. Statista.com confirms it:

Since the early twentieth century, the production of cosmetics and beauty products has been controlled by a handful of multi-national corporations– L'Oréal, Unilever, Procter & Gamble Co., The Estee Lauder Companies, Shiseido Company, to name a few. But as we already saw, there’s a huge market here in the United States, so if you have a good product and you market it well, chances are, it will find a space.

The Challenge—and a Solution

When starting out in business or any other field, it’s often wise to start out by studying someone who’s already successful. They’ve already done all the legwork necessary to get started, establish themselves, grow, and keep going. Their stories often have lessons for the rest of us.

And then you have to figure out how to distinguish yourself. This goes double in markets that are dominated by major, entrenched players—industries like cosmetics and personal care.

There are many suppliers and manufacturing companies that can help new businesses get their foot on the ladder to growth. By collaborating with the right industry partners, new brands can achieve long-term success in the personal-care industry.

In fact, certain suppliers (including contract manufacturers) cater specifically to smaller-scale operations. They work with Cosmetic Creators to help them get their ideas and formulas into packages and into customers’ bags.

The Major Players

Who are the largest manufacturers in this industry that’s knocking on the door of a 12-figure total annual turnover?

According to Statista: the top manufacturers worldwide are:

• French giant L’Oréal, with $33.4 billion in worldwide revenue in 2020
• Unilever, with $22.5 billion
• Estee Lauder with $15.9 billion
• Procter & Gamble with $13.9 billion

Rounding out the top 10:

• Shiseido
• Coty
• LVMH Moet Hennesy Louis Vuitton
• Beiersdorf
• Chanel
• L Brands (home to Bath & Body Works and Victoria’s Secret)

All these companies are established multinational corporations. They have massive budgets, reputations, and distribution.

What they may not have is the agility, low overhead, imagination, and freedom to experiment that are enjoyed by a company just starting out—that is, a company like yours.

Goldn Can Help

There are many contract manufacturers out there that cater to companies with different production run sizes, in different locations, with different focus.

How best to work with one? That’s why Goldn is here.

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