In an attempt to gain a greater understanding of the cosmetics industry in general and the natural cosmetics industry specifically, I began to develop a stockpile of information.
Since my product would be naturally derived, I need to understand what harmful elements were present in mainstream makeup products. The National Center for Biotechnology Information had compiled some research into the hazardous effects of coal tar in cosmetics. Further research revealed that modern cosmetics are comprised of a number of potentially hazardous chemicals, some of which had been classified as carcinogenic by various public health organizations.
Surprising facts about cosmetic ingredients:
- Parabens: A widely used preservative that can mimic the hormone estrogen.
- Formaldehyde: Recently listed as a known carcinogen by the FDA.
- Coal Tar Dyes: A suspected carcinogen made from bituminous coal.
- Phthalates: A possible toxin that can be inhaled and absorbed through the skin from fragrances and nail polish.
The bulk of my market research focused on revenues and growth. An invaluable source for me was Cosmetic & Beauty Products Manufacturing in the US Industry Report, published by research firm IBISWorld. This report gave me key statistics snapshots of overall revenue, annual growth, industry performance, segments, and insight in to the future potential of the makeup market. The IBIS report also confirmed what I had already suspected, the demand for natural, nontoxic, and enhanced cosmetics products were on the rise worldwide.
The second key piece of research material was the TBC Beauty Facts, Figures, and Trends a 2012 breakdown of key players in the domestic and worldwide cosmetics market.
As I began to focus in on the differentiation of my produce, i.e. vitamin enhancement, I wanted to learn more about the success of VitaminWater. I had always felt that Pachama Cosmetics would be analogous to VitaminWater in that both are exsisting commodites with added bennifits. A very informative article was “How 50 Cent scored a half-billion”, published in the Washington Post December 2010. The article outlines how the brand was developed and made popular through grassroots marketing and finally celebrity endorsement. I thought this would be the perfect model for Pachama.
Final safety assessment of Coal Tar as used in cosmetics, http://www.ncbi.nlm.nih.gov/pubmed/18830861
Formaldehyde and Cancer risk http://www.cancer.gov/cancertopics/factsheet/Risk/formaldehyde
A Cosmetic Industry Overview for Cosmetic Chemists by Perry http://chemistscorner.com/a-cosmetic-market-overview-for-cosmetic-chemists
The “Greening” Of Personal Care: Separating Perception From Reality, April 15, 2008.