has reported that as consumer confidence levels slowly returned to pre-recessionary levels, since dropping by 26.7% in 2009 due to weakened econimomies worldwide – and the beauty products manufacturing industry has recovered as well, experiencing double-digit revenue growth in 2012.
However, revenue quickly turned around as customers who had given up discretionary purchases of the industry's premium goods turned to cheaper industry alternatives.
Now, IBISWorld expects revenue for the cosmetics and beauty products manufacturing industry to grow 1.8% in 2013 to $48.5 billion,
bringing the average annual revenue decline to just 2.4% throughout the five years to 2013.
What does this mean for industry employees?
In the five years to 2013, operators cut employment at an average annual rate of 2.1% to 54,527 employees; this cost cutting helped players sustain average profit margins. Profit margins were further bolstered by increased market opportunities overseas. Overseas retailers depend on the appeal of American-made goods for their perceived high quality; moreover, the weakness of the US dollar made domestic products cheaper on the global market.
Looking Ahead to 2018
The characteristics that have supported the industry's rebound from its 2009 recessionary lows will drive its success in the five years to 2018.
"The diversity of product lines and firms' commitment to product development will keep revenue growth steady over the period," says Phillips.
Firms will likely continue to develop premium product lines to satisfy domestic consumers with rising disposable incomes as well as foreign customers who expect American goods to be high quality. Additionally, as exports are forecast to climb, IBISWorld expects employment and wages to increase in the five years to 2018 as industry players invest more into facilities and human resources and expand their research and development (R&D) teams to remain competitive.
For more information, visit IBISWorld’s Cosmetic & Beauty Products Manufacturing in the US industry report page.
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