Manufacturing : Reinvent or Risk Falling Behind
In a striking new report released recently, product innovation platform Atelier, in collaboration with Accenture, revealed that the global beauty industry is potentially forfeiting $86 billion in growth and innovation due to outdated supply chain and product development systems.
The report highlights that inefficiencies in manufacturing, regulatory compliance, and fragmented global supply chains are stalling innovation and delaying product launches. The old playbook—built on personal relationships, Excel sheets, and single-point production—is no longer just inefficient. It’s a liability.
According to Atelier CEO Nick Benson, these operational bottlenecks are not only increasing costs but also hindering brands from meeting fast-evolving consumer demands, especially in the age of Social Media driven trends.
Key findings include:
– A 20% decline in new product development since 2015.
– Over 50% beauty launches in 2024 were merely reformulations or extensions of existing lines.
– Brands are increasingly investing in “safe bets” rather than bold innovation due to resource constraints.
This revelation comes at a time when consumer appetite for novelty and sustainability is at an all-time high—making innovation not just a growth driver, but a necessity.
For over a decade, the beauty industry has wrestled with fragile, outdated manufacturing systems. Linear processes, fragmented sourcing, and dispersed decisions have created a supply chain house of cards—one that can’t keep pace with today’s volatile, high-stakes global market.
Innovation is being choked. Margins are being crushed. Future brand relevance is on the line.
The report calls for a radical modernization of development pipelines, urging brands to adopt integrated digital tools and agile manufacturing strategies to stay competitive.
Author : Sheela Iyer
sheela@cosmetech.co.in
Sheela Iyer is an observer of the Indian Cosmetics & personal care industry and the editor of ‘Cosmetech’. She regularly video interviews industry experts on Cosmetech TV and has her fortnightly podcast ‘Cosmetics Today’
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