How Beauty Manufacturers Operate

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The beauty industry is booming, and both large-scale and small-batch operations are thriving in today’s market. Social media influencers and Etsy entrepreneurs have changed the game in many ways, and cosmetics companies must adjust to stay relevant. While every business has its own specific production process, here’s how most beauty manufacturers operate today.

1. Identifying Market Trends

Much like fashion, cosmetics businesses rely heavily on current trends to develop new products and design the brand image. The beauty industry’s market value continues to trend upwards, with an expected value of $805.61 billion by 2023. This growth is largely due to millennials and the emerging emphasis on ‚Äúself-care‚Äú routines, which frequently include skincare and beauty products.

With millennials forming a larger portion of the customer base, companies must consider their desires and standards. For example, younger people tend to opt for inclusive, cruelty-free products with more natural ingredients and sustainable packaging. Instagram influencers also wield a surprising amount of power, especially in the marketing field. More companies are opting for this direct-to-consumer approach, which targets younger consumers and drives digital sales.

2. Safety & Quality Control

Before a beauty product can hit the production line, its ingredients must be analyzed and meet certain safety standards. The federal regulations for cosmetics are quite complicated in the US, especially for products that are considered both a cosmetic and a drug (such as sunscreen). While the FDA doesn’t pre-approve products or ingredients, cosmetics companies can be held liable if they go against industry guidelines and safety recommendations.

According to the FDA’s website, ‚ÄúAlthough U.S. regulations do not specify any particular testing regimens for cosmetic products or ingredients, it is the cosmetic company’s responsibility to substantiate product and ingredient safety prior to marketing.‚Äù This means that ingredients must be properly labeled, and all batches must be closely examined for contamination before they reach consumers.

3. Smart Production & Smart Products

The rise of indie brands and small eCommerce shops, like those on Etsy, inherently change the production process for bulk beauty products and materials. Whereas, previously, cosmetics companies had to order bulk material in tens of thousands of units, now customized small-batch production is becoming more common. This trend is also partly due to the ongoing Fourth Industrial Revolution and the emergence of smart factories. Production lines aren’t just getting more efficient; they’re also changing the products themselves.

Smarter machinery enables far more product customization, which is increasingly popular among consumers. Thanks to proprietary 3D modeling technology, you can now buy stick on nails that are completely customized to not only fit your individual style but your own nails as well. Say goodbye to ill-fitting press ons or spending a pretty penny at the nail salon to get acrylic nails that damage your nail beds. The gel nail stickers don’t use any harsh glue or toxins, unlike many artificial nails, making for easier removal and healthier, natural nails. These kinds of personalized, health-conscious beauty products are the future of cosmetics.

4. Assembling & Packaging

Smart technology also plays a key role in product assembly, packaging, and shipping. Conveyor automation isn’t exactly new, but certain additions are. With the rise of the Industrial Internet of Things, machines can actually talk to each other via sensors and optimize production by reducing downtime and increasing accuracy. Waste reduction has a huge impact on beauty products since many contain expensive ingredients.

Vacuum conveying is another production solution that’s particularly useful for manufacturing beauty products. A vacuum conveyor uses vacuum pump suction to keep lightweight products from flying away as they move down the conveying line at high speeds. This is definitely helpful when filling empty, lightweight containers with beauty products. Once the products are assembled and packaged, they’re ready to ship to your favorite beauty store‚Äîor right to your doorstep.

The way beauty manufacturers operate will continue to evolve alongside market trends and Industry 4.0. With more independent beauty companies and smarter technology, consumers will enjoy more personalized products that meet their specific wants and needs.

Faye Ellis brings unparalleled insight on the business trends that matter to our audience. She is a marketing expert who joined us as consultant and now manages all of our valued content.

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