Private label Cosmetics

Traditional cosmetic manufacturers catering to the nationally or globally branded products are feeling the pinch from the new kids on the block, the "private label manufacturer".

Whilst branded products command a premium price for manufacturers compared to those produced for private label retailers there is still the room for the niche.

Private label cosmetics are growing at a rapid pace, increasing their share of the global marketplace and eating into the market share of brands according to ACNielsen.

An ACNielsen global study conducted in May across 38 markets found that cosmetics represent the fastest growing private label sector, at a rate of 23 percent ( 25 percent in Poland ) based on product sales.

Branded manufaturers should not worry just yet as even though the growth is large, in terms of overall market share, they are at the bottom of the pile with just 2 percent. Personal care has a 5 percent share, but is growing considerably more slowly - at just 3 percent.

The introduction of the Plastic Cosmetic Tube has helped contribute to this growth enabling more application and portable cosmetic to be introduced into the market.

This shift in trend with supermarkets, spas, even hotels creating there own private label has enabled some forward thinking manufacturer to focus on this market including co-operation with branding and marketing image companies so that the client can be offers a one stop concept of the start to finish of there private label cosmetic program.