The US personal care products industry includes about 750 companies with combined annual revenue of $40 billion. Major companies include Procter & Gamble, Johnson & Johnson, and Estee Lauder. The industry is concentrated: the 50 largest firms account for nearly 70 percent of industry revenue.
This industry includes companies engaged primarily in preparing, blending, compounding, and packaging toilet preparations. Products produced include makeup, shampoo, creams and lotions, perfume, skin care products, sunscreen, mouthwash, and shaving products.
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 capital-intensive: average annual revenue per worker is over $600,000.
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