Personal Care Products

The coronavirus pandemic, which began in late 2019, had a major impact on the personal care products industry. Business lockdowns, social distancing requirements, and mask mandates turned the public's focus to products for hygiene, including hand sanitizers, and cleaning products. The research group McKinsey & Company found that consumers intended to spend less on beauty products in the near term and would spend more in other areas, such as footwear and clothing. That said, there was an uptick in lipstick purchases, which many consider to be an "affordable luxury," even during stressful times.

Post pandemic the personal care products industry shows steady growth. In 2023, the global beauty market retail sales were $446 billion, up 10 percent compared to sales in 2022, as reported by McKinsey & Company. Comprising fragrance, makeup, skin care, and hair care, this sector "beat expectations and outperformed other consumer sectors, such as apparel." The report also showed that while online sales of personal care products grew during the pandemic, growth in sales at physical locations have picked up since the pandemic. Overall, the beauty industry has been resilient throughout the economic slowdown, although the report attributed its growth in revenue to price increases in beauty products. The report concludes that the personal care products industry will need to focus on product differentiation, tune in more to consumers' preferences, and embrace new technologies, such as artificial intelligence and generative AI, to continue growing while maintaining a strong customer base.

There are several areas in which the pandemic will have long-term effects on the beauty products industry. First, self-care and do-it-yourself beauty products grew quickly in 2020, and this growth has continued. Post pandemic, consumers will continue to seek ways to be involved in creating their own personalized products in an effort to save money. Direct-to-consumer e-commerce had been growing prior to the pandemic, and this trend will continue in the years to come. The pandemic also highlighted the importance of having supplies to meet the demand. Moving forward, there will be more innovation in the personal care industry, which means "there may be a greater role for contract manufacturers, both to diversify (and thus reduce production risks) and to serve as thought partners in product innovation."

Overall employment prospects in the personal-care products industry should be good in the coming years. American society is placing an increasing emphasis on personal appearance and hygiene, which suggests that companies providing products that enhance attractiveness will continue to have good growth. As people live longer, the growing number of older people will fuel increasing popularity in cosmetics and general-care products (such as anti-aging creams and lotions) that help people look younger. The teen market is also a growing sector of the personal-care products industry. Many teens use beauty products on a daily basis, and a growing number are relying on social media and watching videos, such as makeup tutorials on YouTube, to learn more about personal care and beauty products.

The number of jobs for research and development professionals should continue to enjoy good growth as a result of the public’s demand for new products, including “green” products.

Employment in manufacturing will be only fair as a result of plant automation and more efficient production methods, although the implementation of “green manufacturing” techniques should create demand for workers with specialized knowledge and training.

Employment of market research analysts and marketing specialists is expected to grow by about 8 percent (or faster than the average for all careers) through 2033, according to the U.S. Department of Labor. Many companies want to improve their products and services and to identify new potential markets and customers. Market research analysts and specialists will be needed to gather information about consumer behavior and develop marketing strategies to help companies meet consumers' needs.

The cosmetics sales industry is one of the most successful industries in the United States. Despite its strong growth, the industry is extremely competitive, and many businesses—especially smaller cosmetics stores—fail each year. The weakening of consumer confidence, increased competition from other retailers and direct-marketers, and the growth of Internet businesses are just some of the issues cosmetics stores will face in the next decade. Brick-and-mortar stores will be focusing on improving customer service to compete with online retailers, which can mean more job opportunities for retail sales workers.

The “green products” movement will also continue to affect employment in the personal-care products industry. Consumers are increasingly seeking personal-care products that have natural ingredients because studies have shown that some synthetic ingredients are harmful to the human body and to the environment. Consumers are also requiring personal-care products manufacturers to be more forthcoming about listing all product ingredients. According to a report by Morningstar, the global organic cosmetics market was valued at $21.56 billion in 2024 and projected to reach $35.45 billion by 2034, growing at a compound annual rate of 5.1 percent. This growth will be driven by the public's heightened focus on health, environmental sustainability, and concern about the risks from synthetic chemicals.

Trends in the personal care products industry, according to Morningstar, include an overall shift to wellness-based beauty regimes with the use of organic skincare, makeup, and hair care. As the economy strengthens and consumers' disposable income increases, more consumers will be able to buy premium organic cosmetics. There is keen competition in the organic cosmetics market, however, and established industry leaders such as Estée Lauder, L'Oréal Group, Unilever, Procter & Gamble, among others, are "investing heavily in developing products derived from organic ingredients with minimal to no chemical additives. This intense competition has resulted in a diverse array of organic cosmetic products flooding the global marketplace." Among the top challenges that personal care products companies will continue to face are high production costs, supply chain constraints, regulatory hurdles, misleading claims about "natural" and "organic," and obtaining certified organic ingredients certification.

The Cosmetic Ingredient Review Expert Panel, formed in 1976 by the Personal Care Products Council and supported by the U.S. Food and Drug Administration, is tasked with reviewing and assessing the safety of ingredients used in cosmetics. The panel is an independent body of medical and scientific experts who assess the safety of cosmetics ingredients. These developments suggest that there will be strong demand in the personal care products industry for scientists (especially toxicologists), compliance and regulatory professionals, and public relations specialists in the coming years.