| SIC Codes: | 2844 |
| NAICS Codes: | 325620 |
Companies in this industry manufacture toiletries and grooming products, including perfumes, shampoos, skin lotions, and shaving cream, as well as lipstick, mascara, and other cosmetics. Major companies include Estee Lauder, Johnson & Johnson, and Procter & Gamble (all based in the US), as well as L’Oreal (France), Shiseido (Japan), and Unilever (the Netherlands and the UK).
Demand is driven by population growth and consumer preferences. The profitability of individual companies depends on product innovation, effective sales and marketing, and efficient operations. Large companies have scale advantages in purchasing, manufacturing, distribution, and marketing. Small companies can compete effectively by offering specialized products. The industry is concentrated: the 50 largest firms account for about 85 percent of industry revenue.
Major products include cosmetics (35 percent of industry revenue), hair products (25 percent), and creams and lotions (20 percent). Other products include perfume (10 percent), toothpaste and mouthwashes (5 percent), and shaving preparations.
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