The last few months have witnessed the second and fourth quarter sales figures for makeup companies coming in.
These figures have come in from suppliers to the cosmetics industry and cosmetics manufacturers. They look quite promising, with double-digit growth in certain cases.
The luxury sector is in particular looking upbeat; Estee Lauder has seen its maximum increase in operating income since it went public in 1995.
The ‘lipstick effect’ is not to be dismissed, that is, more people buy makeup during a recession due to wishing to look better in order to feel better.
The consolidation amongst suppliers means a reduction in choice of supply for manufacturers.
So the growth of the cosmetics industry has been termed cautious yet optimistic.