While there are approximately 115 significant marketers of cosmeceuticals in U.S. mass retail, there are about 500 active marketers in this segment. As a result, the cosmeceuticals industry is highly fragmented. Angie thought to herself, “I see the open door.”

Digging deeper, she found that a few players, including L’Oreal, Revlon, Proctor & Gamble, and Bonnie Bell, dominate the lip make up segment of the industry, controlling over 79% of the U.S. market. Moreover, there are only 19 active marketers that capture a significant amount of retail sales; all other marketers account for only 1.1% of sales within the lip market segment.

Viewed through a similar lens, the global competitive landscape presents a different picture; 40% of the market is controlled by five main players. They are L’Oreal, Proctor & Gamble, Estee Lauder, Avon, and Shiseido. These major players gained their significant market share mainly through strategic acquisitions. Angie recognizes that competing with such companies as L’Oreal and Proctor & Gamble will not be easy, but she believes she will be able to enter the U.S. market successfully – at least on a small scale at the beginning.