NEW YORK — A new report shows that the cosmetics industry has made many of the same mistakes as its past.
The International Cosmetic Manufacturers Association, a trade group, released the findings Monday, a day before the International Conference on Cosmetic Science.
It also says that cosmetic manufacturers are still making the same mistake that they made when they were making the big ones in the past: underestimating demand and underestimating supply.
They’re still underestimating what they’re making and overstating their performance, said Julia Kloeck, senior director of the International Cosmetic Institute at The New York City-based Center for Science in the Public Interest.
“The cosmetics industry is still making these mistakes,” Kloeack said.
“Cosmetics is an industry that’s so tightly regulated and tightly controlled.”
The report comes after a new report by the New York State Cosmetic Law Review Council said that cosmetics manufacturers have been underestimating their production capacity.
As a result, companies that produce cosmetics for cosmetic purposes have overstated their manufacturing capacity and understated their performance over the past two decades, according to the report.
In the U.S., cosmetic manufacturers account for nearly $2 trillion in sales annually, and the report shows they’ve been overstocking their supply by as much as 20% since 2007, according the Council.
That’s because cosmetics companies have been stocking up on the products they need to meet the demands of the cosmetics market, instead of spending the money to increase their production capabilities, the council said.
With so many cosmetic products on the market, it’s critical that companies focus on what their customers want, Kloeick said.
“The bigger the product, the more important it is for the cosmetic industry to be producing it,” she said.