The Beauty industry is centuries old. So are some of the brands that dominate the market. There is a wide variety of products to choose from that could make you look better or give you a unique look. The entire industry is estimated to annually generate revenue of around $170 billion. Some of the premium brands in this category are associated with a designer or a celebrity. The big brands have spent a long time carefully building their brands and they enjoy the fruits of that labor. They do have to keep their product line updated. Customers are always looking for something new. New fragrances, colors, etc. tend to generate a buzz especially if it is backed by one of the bigger brands.

Cosmetics industry

Handmade cosmetics are a new change in the market. They have been around for a while, but their adoption rates are growing. In an otherwise closed market of a few big brands, handmade products are carving a niche for themselves. It is seen as a fast-growing market since the growth of this sector is decentralized. Private label cosmetics manufacturers are spread out across the world. They may operate at a national level or at a neighborhood level. The bigger brands find it hard to compete with them because they all behave and operate differently from each other.

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How is handmade different?

Handmade cosmetics have many advantages over the big and established brands. They are able to offer a much larger array of options to a customer. These options are often tweaked to meet local expectations. They also use locally procured ingredients in manufacturing. Since it is made locally they have a better connection with the community they operate in. 

Handmade products mostly use natural ingredients and don’t rely on synthetic chemicals that may harm the skin. They are considered safer to use and the ingredients are sometimes known to even improve the skin.  Over the past few decades, consumers are becoming more conscious of their choices and consequences. The cosmetics industry has been fighting to save face over allegations of testing cosmetics on animals to check their safety. Handmade cosmetics do not come with this baggage.

The retailers make a better profit out of private label homemade products. They benefit from the shorter supply chain. There are fewer stakeholders hence they can make a profit even by selling handmade at a lower price point. The demand for handmade cosmetics is such that they are often in short supply and are hence slightly more expensive than the popular brands. Private label products also save a lot on marketing costs.

Handmade products are considered environment-friendly. They do not use too much packaging. They also use mostly natural ingredients thus limiting the pollution of local water bodies. As customers get more aware and responsible, it is reasonable to expect that more people will move towards handmade private label products. For the time being the big brands still dominate the market owing to their brand value, aggressive marketing, and mass production.

Author Bio: I’m Aaliya and I love cooking new dishes, reading and jogging. I have written for health, fashion sections of the site for the past 2 years.