Study Finds Personal Care Products Industry Major Contributor to U.S. Economy
Today, the Personal Care Products Council (the Council) released a new study by PricewaterhouseCoopers (PwC) on the economic and social contributions of the personal care products industry in the United States. The study found the industry is one of the most dynamic and innovative industries driving the U.S. economy.
“In addition to the many tangible benefits our companies offer to consumers, the cosmetics and personal care products industry is directly responsible for creating American jobs,” said Lezlee Westine, President and CEO of the Personal Care Products Council. “We are proud to support the economy, contribute to social and environmental programs and meet the needs of American families.”
To better understand the value of these contributions, the Council engaged PwC to measure the industry’s economic and social impact, using the most recent government data. Key findings of the study include:
- The personal care products industry strengthens the U.S. economy. In 2013, the industry added nearly $237 billion to the U.S. gross domestic product (GDP), and supported 3.6 million domestic jobs that earned $144 billion in wages and incomes through its direct, indirect and induced contributions.
- Industry contributes to a strong export economy. In 2014, the personal care products industry exported nearly $17 billion, contributing nearly $6 billion to the nation’s surplus while the overall U.S. manufacturing sector experienced trade deficits.
- Industry helps small business owners thrive. Over two-thirds of the total employment in the industry is in small businesses with less than 50 employees.
- Women, including women with diverse backgrounds, are at the heart of the industry. The share of management positions held by women in the personal care products industry is higher than the U.S. average. Women and those with diverse backgrounds account for nearly 74 percent of all industry employment and 61 percent of management positions.
- Significant research and development investment drives innovation. Cosmetics manufacturers invest nearly $3 billion in research and development annually and continue to provide consumers an array of innovative, high-quality products. The industry employs approximately 6,000 scientific and technical professionals dedicated to ensuring product and ingredient safety.
“Every day, millions of families around the world trust and rely on personal care products to improve their health and well-being and to enhance their daily lives,” said Westine. “This study confirms that communities across the country rely on the industry’s economic and social contributions to support jobs and spur economic growth.”