#BeautyRecap: August 31st, 2015

Here’s this week’s update on the cosmetic and personal care industry!

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QYResearch Reports
releases ‘China Cosmetics Industry Report 2015’
: OEM and ODM manufacturers on
the rise, industry surpasses 230 billion RMB, or 36 billion USD a year. 8-12%
increase annually.

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Kline Group’s
Natural Personal Care Global Series report identifies top 3 trends driving
growth in the natural cosmetics and personal care segment.

Consumer Awareness: Consumers are becoming more educated thanks to the internet and
social media. Consumers are looking to reduce exposure to toxins and becoming
more aware of potential harm certain ingredients can cause. Consumers want more
transparency from cosmetic companies, from their sourcing practices,
production, and sustainability.

Distribution Channel Expansion: Natural cosmetics and
personal care products have escaped specialty shops and can now be found in
mass retailers at all price-points. Retailers are also expanding natural
positioning by creating their own private-label brands which are capitalizing
on the natural trend and appeal.

Penetration
Into Traditional Product Categories: Natural brands are developing new products
that are designed to compete with traditionally non-natural products,
especially makeup.

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Grand View Research predicts that organic personal care market will grow to almost $16 billion by
2020
. Organic certification will be an important driver. Market is still
relatively fragmented with many small domestic companies vs. large
international corporations.

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Women’s Marketing posts US Millennial Beauty Consumer Infographic.
46% of
Millennials purchase beauty products every week, 94% buy them at least monthly.
64% spend more than $50 a month on beauty, 30% spend more than $100. Almost 50%
choose natural products, as well as American made products. Youtube, Instagram,
and Facebook are big drivers in new product discovery.

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OECD releases 2 new eye irritation test guidelines and updates skin irritation tests.

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Estee Lauder focuses
on Millennials

Citing key brands like MAC, Clinique, Glamglow and eponymous
Estee Lauder.

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Former marketing
chief of Burt’s Bees, Mike Indursky announces that Bliss World will be
launching color cosmetics market in next few months.
Expanding into a total
lifestyle brand.

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The Indie Beauty
Expo had its first major convention on August 27th
, all brands are at least 50%
owned by the founder.

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Ricky’s NYC opens
’#’
a beauty store that only sells cosmetics popular on social media network
Instagram.

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MAC Cosmetics
launches line of beauty products for customers that want to look like their
dogs.

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Pamela Anderson pens letter criticizing Estee Lauder, owner of MAC Cosmetics for allowing their products to be tested on animals, so they can retail in China.

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NBTY, formerly
Nature’s Bounty, announces purchase of Dr. Organic skin care
brand.
NBTY is a vitamin and health supplement manufacturer, and operates the Holland and Barrett retail chain in the UK.

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Avon shares bounce
up slightly as news is announced that $62 million settlement reached over
bribery scandal.
Shareholders sued the company alleging that former C-level
executives bribed Chinese government officials to expand business.

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Russian MPs draft
law that will prohibit animal testing.
Sergey Doronin, of the Committee of
Agriculture, “[…] we want to keep pace with the times and not be on the
list of third world countries involved in the testing of cosmetics [through]
archaic methods”

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Turkey restricts
sales of cosmetic products that use animal testing.

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Israeli-German team publish study using their “liver-on-chip”, elucidates mechanism of
side-effects caused by acetaminophen. May lead to valid and human relevant
alternative to animal testing for drugs and cosmetics.

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Personal Care
Products Safety Act will allow US FDA increased oversight in safety and
regulation of the cosmetics industry
. All manufacturers will be required to
abide by GMP (Good Manufacturing Practices) standard.

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