How is tech manufacturing changing the cosmetic industry (and helping grow revenues)?
The cosmetics industry is undergoing a huge transformation. Wellness, diversity, and sustainability are taking a front seat. As are the latest advances in tech manufacturing. Are you part of the emerging trends that are turning heads in how product creation and sampling are being experienced? Or are you tentative about making a big move out of fear of breaking what’s been working thus far? If you are in the second group, let’s see how tantalizing this blog post can be for changing your mind. My mission begins now!
When talking about successful and profitable industries, the cosmetics (beauty, skincare, and personal care) segment is a large part of the conversation. Its market saw worldwide revenues that exceeded 100 billion USD in 2023, and it has projections to see a 24% increase by 2028.
In spite of this undeniable popularity, the role technology plays behind these achievements is less talked about than in sectors like energy, automotive, or pharma, for example.
Why is that?
Did the industry stop evolving and innovating?
Not exactly. In fact, an opposite effect has been predominant since cosmetics first emerged on the market.
The cosmetics segment embraces tech upgrades and updates with enthusiasm to meet the changing needs and preferences of consumers. Manufacturers know new techniques help them dive deeper into the design, development, testing, and supply chain phases of their products, speeding up execution times without compromising quality. In return, brands improve their resources to launch appealing creations that cater to the hearts of their customer base.
This reliable dynamic has prevailed over time. Yet, past technological changes in the cosmetics field have not felt as dramatic as those taking place now.
Three main reasons fuel the new stage for cosmetics:
First, the traditional methods of producing and testing cosmetics were facing some limitations in the cost, environmental, ethical, and regulatory departments.
Second, as customers gain more access to information (thanks to the Internet), they request more transparency in what’s in and how products are being made. They look for organic options that are ethically sourced, environmentally friendly, cruelty-free, and inclusive.
Third, the arrival of Industry 4.0 technologies upped the way manufacturing production lines used to run. And introduced new ways to design, make, test, and bring products to the customer.
Being part of the automation niche, I want to bring attention to what modern technologies offer in the cosmetic field. So those businesses that are still weighing whether or not to take the leap feel more empowered to make a decision.
Here are the top technologies making the biggest splash in cosmetics and also driving revenue growth:
Additive manufacturing (AM)
Cosmetic companies are teaming up with AM specialists to create products that fit like a glove around the customer’s shape and size.
What else does AM offer to the cosmetics industry? Enlisting AM in cosmetics operations is a good call to reduce waste and environmental impact. The technology promotes lower material and energy requirements than traditional manufacturing methods.
L’Oréal is an AM pioneer in the industry. They started 3D printing partnerships to produce personalized patches for the delivery of active ingredients to the skin. And rely on other AM technologies for product packaging purposes. The results have been so overwhelmingly positive that in 2018, L’Oréal created a division to promote the development of in-house 3D printing.
Artificial intelligence (AI)
In the cosmetic industry, AI offers an unprecedented advantage. Study the customer and create personalized feedback based on their likelihood and preferences. Moreover, when brought to the R&D and manufacturing departments, this wizard-like technology enables the optimization of processes, marketing strategies, and customer service using advanced data analysis.
Many cosmetic titans have started to capitalize on the benefits of AI:
To improve customer interaction, Sephora launched an AI-powered virtual assistant that helps them find the right makeup products based on their skin type, tone, etc. Additionally, the company made the Virtual Artist tool available to create and try a gazillion shades of lipstick, eyeshadows, and more using facial recognition and augmented reality (AR).
With Perso, in 2020, L’Oréal unveiled a 3-in-1 smart device (paired with a mobile app) programmed to screen the customer’s skin, compile environmental information from the location, and formulate customized skincare, foundation, and lipstick.
A smart perfume by Ninu came in 2021. The 100-fragrance one-bottle marvel uses a micro-precision extracting system to spray the perfume in different ratios and volumes. According to Ninu, only high-quality and environmentally friendly materials—vegan, phthalate, paraben, and sulfate-free—were used.
You might love or hate ChatGPT, but how do you feel about Ula Beauty and Haut.AI’s SkinGPT? Here’s an AI-enabled skin simulation platform where users can upload their photos and predict their skin transformation over time based on the use of specific care products.
AI has been used to predict how sensitizing cosmetic ingredients might act once applied. The ongoing research looks at physicochemical properties and then compares the results with data from past studies involving animals and “omics.”
Production automation (with innovative instrumentation)
Adding modern automation and instrumentation solutions to cosmetics production (continuous or batch processes) is a trend on the rise for these many benefits:
Exceed 98% accuracy in filling, dosing, and mixing operations.
Enhance inline measurement with optimal control of critical parameters, such as viscosity, pH, and density.
Improve on-site calibration and process availability while attaining full compliance.
Match raw material, energy, and utility consumption to actual process and production demands.
Optimize inventory and supply chain management with real-time monitoring, tracking, and alerts for agile decision-making.
Robots have become a welcome commodity in production automation.
Istanbul-based Erkul Cosmetics switched to FANUC robots to increase output in their eyeliner manufacturing lines. Now, in the blink of an eye (pun intended), they make 90 eyeliners per minute—a whopping 30% increase—and former quality issues remain in the past.
Italian manufacturer Cosmint added Comau NJ-40 articulated robots to pick, clean, rotate, and deliver custom-printed plastic bottles at the superhero rate of 150 pieces per minute.
Powder filling, lipstick assembly, and blister packaging machines are also gaining popularity in cosmetics manufacturing.
Parting thoughts
AM, AI, and production automation are new manufacturing technologies that offer cosmetics the chance to attain:
Higher output.
Faster time to market.
Less waste generation.
Improved quality control and compliance.
Tightened grip on what goes on in your process and supply chain.
Thrilling ways to engage with customers and create buzz about products.
Grip on the competition.
As standalone solutions, these technologies translate into cost savings and growing profitability opportunities for manufacturers. However, they come at the expense of a not so tiny investment in infrastructure (hardware, cloud computing, automation devices, etc.) and other dilemmas. For instance, the lack of a regulatory framework to address customer safety, privacy, and consent regarding data collection and management. As well as ownership, protection, and regulation of the intellectual property generated.
So should you bring new technologies to your cosmetics business?
If you are seeking to create innovative and personalized products that boost production and distribution processes, reduce costs, waste, and environmental impact, and enhance marketing and customer service strategies, moving ahead might be the right call for you. Just run your technical and financial analyses beforehand and stay alert to the hurdles that may come, so you can protect your brand image and social responsibility.
That’s it from me.
I’m Raul Verdusco, CEO and founder of Verdusco Consulting.
For any inquiries or support, reach out to me at raul@verduscoconsulting.com. We offer you automation engineers who can help you nail the right solutions for your manufacturing plant and projects.
