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The Cosmetics Industry
BY Nina Shand
South Africa
14 June 2019
R 14 400.00 (ZAR)  
estimated $ 1 004.77 (USD) *
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The Cosmetics Industry


The cosmetics manufacturing industry has been under pressure from challenging economic conditions. Multinational companies such as Unilever, Johnson & Johnson and Procter & Gamble account for the majority of sales in this sector, and may outsource the manufacture of their products to contract or third party manufacturers. There are around 250 players operating in South Africa’s formal cosmetics sector, with the growth over the past two years coming mainly from the SMME sector.


Changing Trends


The sector is characterised by change, some of it brought on by technology and social media which affect buying choices and force legacy brands to reinvent and renew their products to remain relevant. Cosmetic companies have become more aware of diversity and representation, consumer concerns about sustainability and the use of organic products, and the growing interest in cosmetics by male customers. A large number of cannabis-infused cosmetic products have also been developed.


SMME Opportunities


There has been an increase in the number of start-ups that cater for niche markets such as natural products or ethnic personal care products. The industry offers great scope for SMMEs in line with the growing demand for affordable home and personal care products, as the manufacture of products on a small-scale is a relatively simple process. Manufacturers also have the opportunity to make private label products, which are steadily making inroads. Stakeholders believe that small-scale entrepreneurs can compete effectively if they provide superior customer service, serve a specific local community, or cater for the needs of a specialised niche market.


Report Coverage


This report describes the cosmetics industry and the factors and trends that influence it. There are profiles of 69 companies including dominant players such as Unilever, which is the subject of corporate action by 25.7% shareholder Remgro, and Indigo Brands, the person care and beauty products division of AVI. There are profiles of companies such as Avon Justine and Avroy Shlain, members of the direct selling industry, which plays an important role in this sector, and numerous niche manufacturers such as Oh-Lief Natural Products.


Page
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 2
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 7
4.1. Local 7
4.1.1. Corporate Actions 13
4.1.2. Regulations 15
4.1.3. Enterprise Development and Social Economic Development 19
4.2. Continental 21
4.3. International 25
5. INFLUENCING FACTORS 28
5.1. Economic Environment 28
5.2. Rising Operating Costs 29
5.3. Government Initiatives 30
5.4. Health Concerns 30
5.5. Social Media and Marketing 32
5.6. Technology, Research and Development (R&D) and Innovation 33
5.7. Labour 36
5.8. Counterfeiting 38
5.9. Environmental Concerns 38
6. COMPETITION 41
6.1. Barriers to Entry 42
7. SWOT ANALYSIS 44
8. OUTLOOK 45
9. INDUSTRY ASSOCIATIONS 45
10. REFERENCES 46
10.1. Publications 46
10.2. Websites 47
APPENDIX 1 49
Summary of Notable Players 49
APPENDIX 2 57
Summary of Main Trade Agreements between South Africa and the Rest of the World 57
COMPANY PROFILES 58
AEROSOL AND COSMETIC WORKS CC (THE) 58
AMKA PRODUCTS (PTY) LTD 60
ASCENDIS HEALTH LTD 63
ASPEN PHARMACARE HOLDINGS LTD 69
AVON JUSTINE (PTY) LTD 75
AVROY SHLAIN COSMETICS (PTY) LTD 78
AZOCHEM LABORATORIES (PTY) LTD 80
BEIERSDORF CONSUMER PRODUCTS (PTY) LTD 82
BEIGE HOLDINGS LTD 84
BENWOOD MANUFACTURING AND PACKAGING CO (PTY) LTD (THE) 87
BOARDMAN BROTHERS (PTY) LTD 89
BRUNATIONAL (PTY) LTD 92
CAL-MO (PTY) LTD 94
CANWAY (PTY) LTD 96
CAPE TOWN TOILETRY COMPANY (PTY) LTD (THE) 98
CATWALK COSMETIC LABORATORIES (PTY) LTD 100
CAVI BRANDS (PTY) LTD 102
CHARLOTTE RHYS MANUFACTURING (PTY) LTD 104
CLARINS (SOUTH AFRICA) (PTY) LTD 106
COLGATE-PALMOLIVE (PTY) LTD 108
COSMETIX (PTY) LTD 111
COSQ MANUFACTURING CC 113
CREIGHTON PRODUCTS (PTY) LTD 115
D AND A COSMETICS (PTY) LTD 117
ELIZABETH ARDEN (SOUTH AFRICA) (PTY) LTD 119
ENVIRON SKIN CARE (PTY) LTD 121
ESSE TRUST (THE) 123
ESSEL PRODUCTS CC 125
ESTEE LAUDER COMPANIES (PTY) LTD 127
GALDERMA LABORATORIES SOUTH AFRICA (PTY) LTD 129
GIVAUDAN SOUTH AFRICA (PTY) LTD 131
GLAXOSMITHKLINE SOUTH AFRICA (PTY) LTD 133
GODREJ SOUTH AFRICA (PTY) LTD 136
HENKEL SOUTH AFRICA (PTY) LTD 138
HOUSE OF ALOES (PTY) LTD (THE) 141
HUBERS CC 143
IMBALIE BEAUTY LTD 145
INDIGO BRANDS (PTY) LTD 148
ISABELLA GARCIA INTERNATIONAL (PTY) LTD 150
ISLICES MANUFACTURING (PTY) LTD 152
JOHNSON AND JOHNSON (PTY) LTD 154
KALAHARI SPA (PTY) LTD 156
L'OREAL MANUFACTURING MIDRAND (PTY) LTD 158
L'OREAL SOUTH AFRICA (PTY) LTD 160
LAMELLE RESEARCH LABORATORIES CC 162
LEE CHEM LABORATORIES (PTY) LTD 163
LISA SMIT ENTERPRISES CC 165
M3 COSMETIC LABS SOUTH AFRICA (PTY) LTD 167
MARICO SOUTH AFRICA (PTY) LTD 169
NEOLIFE INTERNATIONAL (PTY) LTD 171
OH-LIEF NATURAL PRODUCTS (PTY) LTD 173
P AND G SOUTH AFRICAN TRADING (PTY) LTD 175
PALMER'S COSMETICS (PTY) LTD 177
PREMIER FMCG (PTY) LTD 179
PRIME PRODUCT MANUFACTURING (PTY) LTD 184
RAIN AFRICA INNOVATIONS (PTY) LTD 186
RECKITT BENCKISER SOUTH AFRICA (PTY) LTD 188
REGIMA SKIN TREATMENTS CC 190
REVLON SOUTH AFRICA (PTY) LTD 192
ROLFE INDUSTRIAL HOLDINGS (PTY) LTD 194
SCENT PAC (PTY) LTD 196
SERENDIPITY TOILETRIES (PTY) LTD 198
SKIN REJUVENATION TECHNOLOGIES (PTY) LTD 200
SUN FACTOR LABORATORIES CC 202
TARTAN TIMBERS (PTY) LTD 204
TIGER CONSUMER BRANDS LTD 205
UNILEVER SOUTH AFRICA (PTY) LTD 209
UNION-SWISS (PTY) LTD 212
WILLA KRAUSE GROUP (PTY) LTD 214