Secrets of the Cosmetics Industry
The world of cosmetics is full of glitz and glamor. High-profile celebrities serving as ambassadors for brands, runway shows at Paris Fashion Week, and elaborate PR boxes a la Tarte (we saw the iPads and Hermes bracelets). Despite so much visibility, the average consumer (me!) has no idea what actually goes on to develop and manufacture new cosmetic products. Luckily for you, this past summer, I was a Research & Development intern at a personal care contract manufacturer (see proof below). I’ve learned so much about the entire industry, and I’m here to share it all.
Courtesy of Author
I specifically worked on the product development team and developed formulations for 10+ products/customers. These projects spanned a wide range of product types, from skin to hair to sunscreen. My culminating project consisted of reverse engineering an existing product of my choice. I recreated Rhode’s Peptide Glazing Fluid (sorry Hailey) and made samples for my family and friends. I independently performed the roles of formulator, product developer, and marketer to guide the product’s development; I even created my own brand name and logo.
In my opinion, the biggest and most shocking takeaway from this summer is that most cosmetics brands are just glorified marketing firms. Very few brands have in-house cosmetic chemists, including those owned by huge conglomerates like L’Oreal or Coty. Most contract out the formulation process. However, the brands do guide product development. They specify which ingredients they want, send benchmarks for feel and color, and place limitations on cost. The chemist uses this information to workshop a formulation. Once the chemist is happy, a sample is sent to the brand, who then either approves the formula or, more likely, provides redirections for improvement.
Courtesy of Cosmetic Lab
Another interesting insight is that sometimes claims ingredients, spotlighted ingredients of a product, aren't at a high enough percentage (< 0.5%) to be as effective as clinical studies may have shown. Claims ingredients are included specifically to support the marketing story and are plastered all over the label, often a trending and expensive ingredient. Types of claims ingredients include natural extracts, vitamins, proteins, etc. These ingredients are added to differentiate a product from its competitors and craft a more convincing pitch to the consumers. So, don't get too wrapped up in what's stated on the label!
In a similar vein, it's sometimes the case that different brands will have different formulations for the same type of product that don't actually vary by much. Even when there is a large price difference. Often, products will have the same functional ingredients or the ingredients that provide the benefits of the product. For example, humectants are ingredients that pull water into your skin and prevent any dryness. While the specific raw ingredient may not be from the same supplier and can vary slightly in chemical structure, the INCI (International Nomenclature of Cosmetic Ingredients) name is the same, indicating that the ingredients basically are identical. To achieve different structures, the processing of the raw material is different and can result in a higher price. This variance will affect the properties of the raw material but is usually not enough for the average consumer to notice a difference as the functionality remains largely the same.
This past summer, I learned that the cosmetics industry is much more complex than I had originally known. What tends to make a product stand out in this competitive market is creative marketing, rather than incredible formulation. That being said, the vast network of raw material suppliers, contract manufacturers, and brands are continuously innovating and coming up with new products for us to try! My advice is to continue to read labels and buy products based on your experience. Everyone has their own preferences when it comes to feel and functionality. But know that more expensive isn’t always better.
Featured Image Courtesy of Cosmetics Design Europe
