Given Hollywood and its influence, it probably comes as no surprise that the United States is the world’s largest importer of beauty products - responsible for a whopping 11% of the total imported beauty products across the globe in 2015. This far surpasses the next few largest importers - Hong Kong (7.6%) and China (6.9%).
Movements in the global beauty products market are massive, with the industry estimated to hit $635.7 billion by 2019. The industry appears to be one of the few that is resistant to recession. According to Morgan Stanley, the global beauty industry has grown at an annual rate of 5% over the past ten years.
Thanks to the recovering global economy, demand for beauty products have been rising and is set to witness quite a significant growth. The strong demand is also due in part to changing lifestyles, as a result of rising consumer income in the West and growing middle classes in developing countries such as China and Brazil.
It’s also important to note the important role distribution channels play, especially online retailing. Supermarkets and internet retailing has made access to the purchase of beauty products easier than ever. All in all, the global change in lifestyle and consumer behaviour play an influential role in contributing to the rising demand.
The biggest market players include France’s L’Oreal Group, US’ Avon Products and Estée Lauder, and Luxembourg’s Oriflame Cosmetics. Investments in research for new products and expansion to larger production grounds to cater to the rising demand are common ground.
As the world’s largest market, it’s no wonder that the US is the leader of imports of many products, including ceramic tiles. Beauty products is no exception. In 2016, the US imported $4.53 billion worth of beauty products. That’s more than double of the $2.17 billion from as recently as 2010.
Of the total beauty products that the US imports, 20% come from China, followed by 17% from France, and 15% from Canada.
In general, the higher-end products are purchased from France, Canada, and Italy, while low-value products are sourced from China and Mexico.
The industry is no doubt booming, and that’s also largely thanks to the emergence of online beauty stores. Consumers have been flocking to these online stores at an increasing race. A wide range of companies are also marketing their products through social media platforms including YouTube and Instagram, allowing them to gain a wider reach and range.
The following infographic shows how US beauty products imports have evolved over the years.
"The problem with these costs is that they’re often impossible to predict and are thus hardly ever considered when analyzing and comparing ocean freight rates"
Klaus Lydsal, vice president of operations at iContainers