Lipstick Manufacturing Industry During Covid-19 Pandemic

Topic: Industry
Words: 653 Pages: 2


OD4961 Lipstick manufacturing industry is involved in the preparation, blending compounding, and packaging of both therapeutic lip products and lipsticks. The company operates in the cosmetics industry, which comprises a variety of products such as lip balms, lip stains, lip liners, and lip gloss (O’Connor, 2020). The main interest in this industry is the growing awareness of the constant demand for beauty products in the whole world. Besides premiums on personal grooming are increasing at a notable pace and also changes in lifestyle and consumption patterns are becoming something to put into consideration. These factors have increased the demand for cosmetic products, thus making the lipstick manufacturing industries more attractive.

OD4961 Lipstick Manufacturing Industry Analysis

OD4961 Lipstick Manufacturing Industry is a large industry with various supply industries. This market has experienced unprecedented growth in the past decade reaching an estimated market value of $4.2 billion in 2019 (O’Connor, 2020). Some major supply industries in this chain include cardboard box container and manufacturing, soap and cleaning compound manufacturing, cosmetics and beauty products manufacturing, dye and pigments manufacturing, organic chemical manufacturing as well as packaging and labeling services. Furthermore, this sector has various demand industries where they supply their products. The main ones include beauty fragrance and cosmetic stores, pharmacies and drug stores, departmental stores, drugs cosmetics, and tailoring wholesaling as well as supermarkets and grocery stores. Other demanding industries include warehouse clubs and supercenters.

Moreover, it has related international industries in other continents which act as competitors. They include Soap & Cleaning Compound Manufacturing and Cosmetic & Beauty Products Manufacturing in the US which majors in manufacturing, blending, and compounding of a variety of cosmetic products. Others include Beauty, Cosmetics & Fragrance Stores in the US and 32562CA – Cosmetic & Beauty Product Manufacturing in Canada, C20.420 – Perfume & Cosmetics Manufacturing in the UK, and many others in China and Australia.

Main Activities and Major Players

The major players in this industry are the Estee Launder companies which supply its goods in more than 150 countries in the world. They have many brand names which include Estee Lauder, Clinique, Origins, Smash box, and many more. The companies have more than 48,000 employees globally with more than 850 workers involved in research and development. The major activities in these industries include manufacturing, blending, compounding, and packaging lipsticks, lip balms, lip liners, and lip gloss.

Key Economic Drivers

Consumer Confidence index

It reflects various trends in employment, incomes, business conditions, household finances, and the general economic outlook. High consumer confidence means that more people are going to purchase from this industry. This trend suggests a higher demand for cosmetic products in the target market. However, due to the pandemic, consumer confidence is low hence a decrease in the profits of this industry.

Consumer Spending

This measures the Americans spending both locally and abroad. When the spending is too high, the industry sales increase significantly hence profiting the industry and vice versa.

Research and Development Expenditure

Research and developments aid in bringing new products to the lipstick manufacturing industry. When research and development funds grew, it means the industry will be able to bring new and competitive products into the market hence more profits.

Trade-weighted Index

This measures the strength of the dollar against the currencies of the trading partners. If the US dollar becomes too strong, it means the lipstick industry will be too expensive and other countries will not afford them. This limits the industries’ revenues and incomes.


The lipstick manufacturing industry has experienced tremendous growth and expansion in the last few years to become a multibillion-dollar segment. This industry exhibits unprecedented levels of demand in the modern world due to increased awareness and premiums in personal grooming, coupled with increased consumer spending and preferences. Considering these facts, the OD4961 Lipstick Manufacturing Industry is expected to be on upward revenue projections, especially after COVID 19 pandemic is over.


O’Connor, C. (2020). Lipstick manufacturing. IBISWorld. Web.

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