Key growth driver
First of all, the study highlights the significant role the personal care products industry plays to drive and strengthen the U.S. economy. In 2013, the industry achieved US $169.3 billion in total sales with 90 per cent in domestic sales and 10 per cent from exports to international markets. Of the $169.3 billion in sales, $54.5 billion was generated by manufacturers, $47.2 billion by distributors, and $67.6 billion by services providers.
The personal care industry also contributes to a strong export economy. In 2014, the U.S. personal care industry produced a $ 5.8 billion trade surplus, exporting $16.9 billion worth of products while imports were $11.1 billion, while the overall U.S. manufacturing sector experienced trade deficits. Furthermore, the global reach of the personal care products industry continues to expand at a faster rate than the manufacturing sector overall, averaging a 9.5 per cent increase in exports annually from 1990 to 2014.
In 2013, the industry added nearly $237 billion to the U.S. gross domestic product (GDP), and supported 3.6 million domestic jobs (2.1 million direct and 1.5 million indirect). The personal care products industry has grown significantly over the last 25 years. Between 1990 and 2014, employment in our industry increased 43 per cent, compared to 27 per cent for U.S. nonfarm employment overall.
The study also points out that over two-thirds of the total employment in the industry is in small businesses with less than 50 employees and that women, including women with diverse backgrounds, are at the heart of the industry. The share of management positions held by women in the personal care products industry is higher than the U.S. average. Women and those with diverse backgrounds account for nearly 74 per cent of all industry employment and 61 per cent of management positions.
Key innovation driver
Cosmetics manufacturers invest nearly US $3 billion in research and development annually. In fact, 1 in 11 workers in our manufacturing sector are employed in a science, technology, engineering or mathematics (STEM) occupation, accounting for a total of 5,840 jobs. From 2002 to 2011, the industry increased R&D spending at an average rate of 9.7 per cent annually, compared to 6.9 per cent for manufacturing industries overall.
“In addition to the many tangible benefits our companies offer to consumers, the cosmetics and personal care products industry is directly responsible for creating American jobs,” said Lezlee Westine, President and CEO of the Personal Care Products Council. “We are proud to support the economy, contribute to social and environmental programs and meet the needs of American families.”