Compiled by PricewaterhouseCoopers with the co-operation of the Personal Care Products Council the report highlights the continued growth of the industry through several recent economic downturns and highlights how it now contributes significantly to nation’s economy.
Titled Economic and Social Contribution of the US Personal Care Industry, the report highlights the definition of the industry in the US, as well as the economic contributions it makes, both on a federal- and state-level.
Industry makes strong economic and social contributions
“This study confirms that communities across the country rely on the industry’s economic and social contributions to support jobs and spur economic growth,” said Lezlee Westine, President and CEO of the Personal Care Products Council.
One of the first points raised in the report is that despite the rapid globalization of manufacturing processes, the cosmetics and personal care industry has continued to make a big impact on the domestic market, with the vast majority of products still being produced in the country.
Beyond this, the distribution of such products through wholesalers and retailers, together with all the associated personal care services provided by beauty professionals serves to make a big impact on the country’s annual GDP.
Personal care has a nationwide economic impact
The report refers to data from 2013 that illustrates how the industry generated at GDP of $236.9bn, kept 3.6 million in work with $114.3 billion in income, and provides $56bn in tax payments on a federal and state level.
Putting it into context, the industry represents approximately 2.0% of the nation’s total employment and approximately 1.4% of the total $17tn GDP in that year.
On a state-level, the report points to the fact that economic contributions are fairly evenly distributed across all 50 states, with the biggest contributions coming from California, New York, Florida, and Illinois.
However, as a percentage of state employment, it’s no surprise that the personal care hub of New Jersey counts personal care employment as making up 3.5% of its total employment, while not far behind that figure is North Carolina with 2.9%, Tennessee with 2.6% and Ohio and Illinois both accounting for 2.5% of total state employment.
An industry where women are in charge
The employment statistics also underline the fact that women make up a strong percentage of the total figures, accounting for a significantly higher percent than in most other industries in the nation.
Specifically, the report highlights how women and those with diverse backgrounds account for nearly 74% of all industry employment and 61% of management positions.
On top of all the contribution the industry makes to the nation, the report also highlights the mark it makes worldwide, thanks to a high level of exports.
The statistics contained in the report show that in 2014, the personal care products industry exported nearly $17 bn, contributing nearly $6 bn to the nation’s surplus while the overall US manufacturing sector experienced trade deficits.