New PCPC report highlights economic contributions of US beauty industry

20-Jun-2024 - Last updated on 20-Jun-2024 at 20:49 GMT

"In 2022, the industry created employment opportunities for 4.6 million Americans, marking a significant 17% increase since 2018," said PCPC President and CEO Thomas Myers. © bee32 Getty Images

The top five states in 2022 where the beauty industry has the most significant economic and social impacts were California, Texas, Florida, New York, and New Jersey, says a new report from the PCPC that details and insight into the beauty industry's contributions to employment rates, diversity and inclusion, and sustainable innovations.

The Personal Care Products Council (PCPC) new report, "The Beauty of Impact," utilizes the most recent data available (from 2022) to highlight the cosmetics and personal care product industries' role in "in job creation, economic growth, scientific advancement, sustainability and community support," as described by the PCPC.

In a press release announcing the report's release, PCPC President and CEO Thomas Myers shared, "On every measure, our industry is thriving and contributing to the US economy while serving as an agent for positive change for people and the planet." We spoke to Myers for his insights into the key takeaways from "The Beauty of Impact" for cosmetics and personal care product manufacturers and suppliers.

Critical insights

The report first provided detailed state and metropolitan area breakdowns demonstrating the areas where the beauty industry has had the most significant economic and social impacts.

While "at the state and local levels, the cosmetics and personal care products industry continues to be a dynamic force, positively impacting every state's economy," said Myers, the top five states in 2022 according to the report were California with 590,190 jobs generating $27.4bn in labor income, Texas with 412,170 jobs generating $16.1bn in labor income, Florida with 347,950 jobs generating $13bn in labor income, New York with 273,020 jobs generating $14.5bn in labor income, and New Jersey with 214,810 jobs generating $12.7bn in labor income.

Further insight into these results revealed that "the industry is especially prominent in the New York metropolitan area and Los Angeles," said Myers. "In the greater New York area, the cosmetics and personal care products industry directly and indirectly generated $11.8 bn in labor income and 193,450 jobs," he explained, "while the Los Angeles area benefited from $5.9 bn in labor income and 128,530 industry-supported jobs."

Additionally, he shared, "as a percentage of total state employment, jobs directly and indirectly supported by the personal care products industry were highest in New Jersey (3.6%), followed by Tennessee (3.0%), Ohio (2.9%), Arkansas (2.8%), and Delaware (2.7%)."

These positive economic results followed the COVID-19 economic recovery after "the onset of the COVID-19 pandemic in 2020 drastically reduced consumer spending in the United States and globally," Myers said.

"Between 2019 and 2020, nine out of 14 major U.S. spending categories showed declines in spending, including personal care products and services with a 17.8% reduction," he explained, but "despite this dip, spending on personal care products and services was able to bounce back, highlighting the importance and essentiality of these products and services to consumers."

The report also noted that "in 2022, the industry created employment opportunities for 4.6 million Americans, marking a significant 17% increase since 2018," Myers highlighted. "The personal care products sector supports 2.2% of total US jobs (direct, indirect and induced)," he added, and further emphasized that "it is notable that more than 70% of employees work for a small business."

Future outlook

The outlook for the cosmetics and personal care product industries remains positive. For example, the PCPC's report highlighted "that initiatives to promote diversity and inclusion are increasingly becoming a staple of Corporate Social Responsibility (CSR) strategies among beauty and personal care products companies," Myers shared, and that "PCPC member companies continue to make extraordinary commitments and progress to sustainability with more than half of our member companies integrating sustainable business practices into their operations and 56% of CEOs identifying sustainability as one of their top priorities."

Further, he added, "our member companies also promote diverse leadership and ensure their products meet the varied needs of our consumers." For example, he illustrated, "women make up nearly 80% of the beauty and personal care industry workforce, and people of color represent 33% of our workforce."

In conclusion, Myers summarized, "we know we are not perfect and that we have more to do," and "in 2024 and beyond, consumers can continue to trust our industry's commitment to science, safety and to the well-being of people and the planet."

For a deeper sense of the industry's broad economic and social impact, the full report and an executive summary are both available on the PCPC's website.