Home Cosmetic Science Talk Formulating General Off Topic Stats…. What percentage of the overall cosmetic industry….is homecrafters?

  • PhilGeis

    Member
    July 5, 2023 at 8:29 pm

    By sales or volume - zippo.

    • Graillotion

      Member
      July 5, 2023 at 9:37 pm

      $$$ sales…hehehe… Only the almighty dollar counts right?

      Actually….where I am headed with this….some of the crafters think they are part of an elite group that big business is trying to target with elite natural preservatives. You know… AMT has already conquered P&G and L’Oréal, and Unilever, so homecrafters….as the next big fish are getting the ‘elite’ treatment and products. 😉

      Define…. ‘Zippo’ … Is that above or below 1%? If below…is it below .5%?

      • This reply was modified 9 months, 3 weeks ago by  Graillotion.
      • PhilGeis

        Member
        July 5, 2023 at 10:38 pm

        Don’t know how to address other than sales - units or $. Units are harder but Statistica estimates for example shampoo units ~380 million annually

        The industry is ~$300 billion globally. I doubt home crafters even register. In 30 years with P&G and representing P&G at CTFA/PCPC, can remember not even one comment of home crafter “competition.”

        What is AMT?

        • Graillotion

          Member
          July 5, 2023 at 11:42 pm

          AMT = active micro technologies

          A company that specializes in bringing elite preservatives of the most natural kind, to up and coming homecrafters. Almost any nice sounding herb/fruit/flower/yogurt…can preserve your emulsion, par excellence. 😉

          • This reply was modified 9 months, 3 weeks ago by  Graillotion.
          • PhilGeis

            Member
            July 6, 2023 at 12:38 am

            OK - AMT, but am confused. Homecrafters think big guys are conspiring to force AMT’s and other goofy stuff on them? Who conquered whom?

            • Graillotion

              Member
              July 6, 2023 at 12:45 am

              Sorry…sarcasm overload.

              The crafters think they are a big fish, so big successful companies like AMT are bringing them very special preservatives, since they are such a big, cash flush market segment. Preservatives so special, that even P&G is unaware of them, and unable to acquire them. 😋

              I get a little cynical…when I hang with the crafter’s too much. ☹

              • This reply was modified 9 months, 3 weeks ago by  Graillotion.
            • PhilGeis

              Member
              July 6, 2023 at 12:59 am

              Thanks ! I’m old and slow but get it.

              Good grief! Big successful folks like AMT offer special magic stuff only for home crafters with their big volumes. They really believe that crap?? Maybe AMT can offer promotional tin foil hats. 🤣

  • Microformulation

    Member
    July 6, 2023 at 8:03 am

    I would have to weigh in and agree with @PhilGeis

    I work with some emerging lines/start-ups and there is a great deal of naivete with many DIYer’s. In one case a “highly successful” DIYer presented us with their net/gross revenues. It was less than the amount we paid for cleaning supplies at a Contract Manufacturer.

    In our experience, it isn’t even a Technical issue but a Business issue. Some may see this as heresy, but Cosmetic companies survive with Good Business practices and Effective Marketing. If you want to avoid plateauing early on, you must have a Business Plan and the liquidity to move forward.

  • anokea

    Member
    July 7, 2023 at 9:08 am

    Speaking as a homecrafter, um, yeah… The percentage of sales is probably non-registerable. That being said, it would actually be a great marketing tactic to “target” the homecrafter sector with a few product lines, because some of these folks are gonna spend stupid amounts of money thinking that they’re really going to accomplish something. Dimes make dollars, folks, and it ALL adds up in the end. When I sell something, I don’t care if it’s King Charles or crackhead Jack that’s buying, the money spends the same.

  • Perry44

    Administrator
    July 7, 2023 at 10:06 am

    Yeah, sales wise maybe $10 million worldwide? But it also depends on the company and what you consider “home crafter.” Someone could start in their kitchen, get some sales on Etsy, then ramp up production by hiring a contract manufacturer. This could then turn into a real brand like Drunk Elephant or Sunday Riley. I don’t think those would count as “home crafters” any more.

    While I agree with @anokea that Dimes make dollars, when your company gets big enough, those dimes cost you more than they are worth. Which would you rather have,

    10 customers who spend $10 million a year or
    1 million customers who spend $100 a year?

    Almost any company would rather have the 10 customers.

    As an aside, when I was working as a “cost savings chemist” we didn’t even bother working on a project if it was only going to save $100,000 a year. To a home crafter that’s a lot of money. To a corporation it’s not even worth spending any time on it.

    • This reply was modified 9 months, 2 weeks ago by  Perry44.
  • Eliza

    Member
    July 11, 2023 at 10:05 am

    My client as a handcrafted nets 7.2 mil in profit

    handcrafted companies are being overlooked by L’Oréal, P&G but the large companies are getting screwed - - - marketing

    The smaller companies do not have formulating experience or on demand support. They get the marketing by the time it comes to chemists, we are wondering why people would use such products..

    they don’t don’t have a clue. One client tried to convince me that there were no allergens in her fragrance when I asked him for supporting documentation, he can’t furnish the information.

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