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Seven steps for formulating on a budget

With many consumers of cosmetics facing issues related to the cost of living, British distributor Aston Chemicals explains why reducing the cost of formulations is best tackled in a holistic way by analysing the whole development and manufacturing process to identify areas of potential cost saving

In times of financial hardship, consumers continue to purchase smaller, more affordable luxuries. This is known as the lipstick effect, a trend identified by Professor Juliet Schor in 1998 and later supported by claims from Estée Lauder’s Leonard Lauder, who noted that their lipstick sales had increased in line with recessions triggered by the 9/11 attacks and the 2008 financial crash.1,2

 The trend is also seen across eyeliner, mascara, and other relatively inexpensive treats,3 but not across personal care as a whole. Mintel have reported that 54% of consumers are reducing their spend on beauty products, and 25% are ‘trading down’ by buying cheaper versions of products and services.4 At the same time, the cost of raw materials, packaging and production is also increasing, leading many brands to reduce the costs of their formulation. 

Replacing expensive materials with cheaper alternatives is a popular way to reduce the cost, but this also comes at a price. Cheap alternatives are often less refined and may contain more impurities, which can wreak havoc with the stability of the formulation. For example, cheaper natural oils and butters may initially work well in existing formulations, but will oxidise more quickly than more refined products. This could cause discolouration, rancidity, and instability, leading to consumer complaints and, ultimately, damage to brand reputation. 

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Upcoming Events

in-cosmetics Korea 2023

Hall C, Coex, Seoul, South Korea
12 - 14 July 2023

IFSCC 2023

Barcelona International Convention Centre
4 - 7 September

in-cosmetics Latin America 2023

Expo Center Norte, Sao Paulo
27 - 28 September

Cosmetorium 2023

Palau de Congressos de Barcelona
18 - 19 October

SEPAWA 2023

Estrel Congress Center, Berlin
25 - 27 October

California Chapter Suppliers’ Day 2023

Long Beach Convention Center
25 - 26 October

Access the latest issue of Personal Care Magazine on your mobile device together with an archive of back issues.

Download the FREE Personal Care Magazine app from your device's App store

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