NielsenIQ estimates 7% of beauty products sold in the United States are manufactured domestically. President Donald Trump’s institution of a 10% tariff on goods from China, the largest single manufacturing source of beauty products bought by Americans, opens up the potential for more beauty products to be made in the U.S. It also raises the prospects of higher prices, and NielsenIQ projects tariffs will push up prices of beauty products 10% to 20%.
Given the evolving trade dynamics, for the latest edition of our ongoing series posing questions relevant to indie beauty, we asked 18 beauty manufacturers, brands and consultants the following: Do you believe there will be greater beauty manufacturing in the U.S.? If so, what percentage of beauty products can be made domestically in the next year, two years or five years? Do you agree with NielsenIQ’s assessment that beauty product prices will increase 10% to 20%? How much do you think beauty product prices will change?
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Miriam Mandel Director Research and Innovation, Inkbox One of the coolest things about the beauty industry is how global it is. Manufacturing innovation, packaging, ingredients and design come from different parts of the world and keep the industry moving forward. Shifting all production to the U.S. just isn’t practical or affordable.
Even with a 10% tariff on Chinese imports, U.S. manufacturing costs will likely still be higher due to labor and infrastructure expenses. While some brands may explore increasing their local manufacturing, I don't see domestic production growing beyond 10% to 15% over the next five years. Brands will likely diversify manufacturing to places like Mexico, Vietnam and Thailand as well, but it will take time to navigate new suppliers and adjust supply chain and logistics.
While NielsenIQ predicts beauty prices could jump 10% to 20%, brands that plan ahead and think strategically can navigate these shifts without the sticker shock. Through packaging tweaks, formula adjustments and smart supplier partnerships, a more realistic increase is probably 5% to 10%.
It's about strategy, not stress! Brands need to plan carefully and diversify gradually. Smart moves now will smooth out the bumps ahead.
- Kyle LaFond Founder, Natural Contract Manufacturing and American Provenance
As stated, only an estimated 7% of all beauty products sold in the United States are made domestically. Additionally, only an estimated 3% of clothing sold in the United States is manufactured here. These numbers should be eye-opening and cause for concern for all Americans.
Somewhere along the line, foreign manufacturers gained an enormous advantage in the global market. You can finger-point all you want, but we've needed to address this issue for years under administrations run by both political parties.
The newly proposed tariffs on goods from China is one strategy to address this issue. Unfortunately, this will lead to a lot of market uncertainty and destabilization early on. However, over time domestic manufacturing will become more attractive to brands of all sizes. I think it's reasonable to anticipate that we will see moderate growth in U.S. beauty manufacturing. I'm optimistic and hope that we can top 10% over the next several years.
Tariffs almost always lead to higher prices. There will not be any exceptions in the beauty industry. I agree that we will experience moderate price increases across the board.
From a personal perspective, we've already seen a slight increase in inbound calls from potential partners looking to onshore or nearshore their production. The brands calling on us are trying to get ahead of the market and lock in competitive pricing while we still have capacity to add clients. Brands that are being proactive will have the advantage.
I think we will see an increase in both the number and variety of domestic manufacturing companies in the United States, providing more options and strengthening our economy over time. Unfortunately, the cost of doing business in the U.S. is simply higher compared to countries located overseas.
- Richie Rubin EVP, Garcoa
These tariffs are merely a distraction that do not address the root cause of the competitiveness or lack thereof of American manufacturing. The reality is that the playing field is not level, and other countries do a much better job of creating subsidies for foreign companies that improve their ability to automate and reduce cost. International governments also create vehicles that reduce the cost of innovation.
Unfortunately, domestic manufacturers are forced to pursue these initiatives on their own at very high costs. The U.S. would be much better served if the federal government focused its efforts on creating a third industrial revolution that drives down the cost of domestic production and innovation.
As it pertains to onshoring, there are a number of regulatory hurdles that companies must navigate. Companies will need to decide if the cost of regulatory exceeds the price of tariffs. While I do anticipate that some brands will look to move production to domestic manufacturers, I think the numbers will be lower than we anticipate.
The reality is that the cost of labor in the United States is still greater than the cost of tariffs. I also want to add that tariffs, at their core, are inflationary. We do anticipate cost increases that fall in line with the total cost of tariffs.
- Christina Mahar Founder, Craft Beauty Lab
The general economic consensus is that domestic beauty manufacturing will increase from its current 7% to 10% to 12% over the next three years. While this is still a small percentage of total beauty manufacturing, it represents 40% to 70% growth for U.S. beauty manufacturing.
This means that, within the next three years, most existing U.S. facilities will be operating at capacity, with more demand for their services than supply.
Tariffs are just one slice of the bigger global economic shifts that will continue movement of manufacturing from overseas to the U.S. and Mexico. The U.S. does not currently have cradle-to-grave manufacturing. This means that tariffs will impact brands importing products and brands manufacturing in the U.S. as they absorb tariffs on components used in their products.
Will Prices Go Up?
On the manufacturing side, high demand combined with tariffs on components, which will still be primarily coming from China, the ongoing expense of full compliance with MoCRA and continuing wage increases are a recipe for prices to go up. Brands are dealing with all these same expense pressures. Both manufacturers and brands are reluctant to continue raising prices, but the bottom line is it costs more to make products than it used to.
How Can Brands Avoid Major Price Increases?
- Talking through strategies with your manufacture can help tremendously. Most brands will end up employing a multifaceted strategy that includes:
- Small incremental price increases over the next few years.
- “Right sizing” some products (i.e., move to modestly smaller sizes).
- Discontinuing unprofitable products.
- Moving to less expensive packaging or less overall packaging (combining an eco-message with cost reductions).
- Absorbing some price increases on higher margin products.
- Working with their manufacturer to understand if they have extra steps or issues with their current products that increase their costs and finding ways to address that.
The Big Picture Long-Term Outlook
Buckle up: If global relations and economic interests continue the same trajectory they are currently on, this will eventually equal a much larger percentage of U.S. beauty manufacturing being located within the U.S. and Mexico, but the path to this is bumpy and every sector of the industry needs to be planning for major and ongoing supply chain disruptions. Demand for U.S. manufacturing will continue to outpace capacity unless you are a brand that can build your own facility or invest in partial ownership of an existing facility.
How Can Smaller Brands Win In This Environment?
The advantage that small brands have is their ability to adapt more quickly and be more flexible than the larger brands.
- Educate yourself about supply chain and global economic issues.
- Start building a culture that is willing to quickly adapt if you must substitute packaging periodically or an ingredient to continue supplying the product.
- As the availability of components becomes more volatile, consider dynamic pricing from batch to batch if you are a direct-to-consumer brand and make this part of your marketing.
- Think about ways to strengthen the relationship you have with your manufacturer. As demand increases over the next three years, manufacturers will be dropping clients. You want to make sure that the relationship you have with your manufacturer is win/win. A great question to ask them now and not two years from now is, what makes this partnership a win-win for you?
- Look for opportunity: Some brands will not be at prepared to handle these shifts and this will create opportunities where distributors, retailers and customers are actively looking for other options.
- Imran Hoque VP, Sales and Marketing, New Look Cosmetics
A widespread shift in beauty manufacturing to the U.S. is unlikely due to higher production costs, particularly in the mass-market segment where affordability is a key selling point. However, masstige, prestige and luxury beauty brands may be more inclined to invest in domestic production as their consumers often prioritize quality, exclusivity and brand values over cost. These higher-end segments can also better absorb increased production expenses without severely impacting consumer demand.
While there may be a shift out of China, that does not automatically equate to an increase in domestic manufacturing. Beauty manufacturing is a global industry, with emerging and well-established manufacturing hubs like France, Italy, South Korea, Singapore, Japan and other countries providing alternatives. Many brands seeking supply chain diversification from China may instead turn to these established manufacturing hubs rather than absorbing the higher costs associated with U.S.-based production.
During the previous round of tariffs, we noted an influx of inquiries as brands explored a China plus-one strategy seeking additional sourcing options outside China. However, this rarely resulted in an actual shift to domestic production. Instead, brands often opted to either shift the cost of tariffs to consumers or diversify supply chains to other low-cost manufacturing regions.
Will Beauty Product Prices Rise 10% To 20%?
Immediate price increases are likely. Having the advantage of experience from the last round of tariffs, manufacturers will implement cost increases immediately. A positioning game is being played as savvy brands attempt to lock in pricing for 2025 with suppliers before the impact of tariffs is fully realized.
Cosmetic manufacturers that have survived the impacts of COVID and the last round of tariffs know that the cost of goods, including raw materials, packaging and production labor, is set to rise. As a result, manufacturers will not wait to gauge the impact. They will raise prices immediately. The cumulative effect will be a rise in finished goods prices in all segments.
While a 10% to 20% price increase is a reasonable expectation, the actual impact may vary by product category. Mass-market beauty brands might absorb some costs to remain competitive, keeping price increases closer to 5% to 10% as low-income consumers are expected to curb spending on beauty products. Conversely, premium and niche brands may see larger price hikes due to their reliance on specialized ingredients and packaging materials.
Final Thoughts
The landscape of U.S. beauty manufacturing is poised for change, but the shift will not be immediate. While tariffs incentivize domestic production, challenges such as cost and supply chain reconfiguration must be addressed. In the coming years, we can expect incremental growth in U.S.-based beauty manufacturing, but reaching 20% or higher will require strategic investment and policy support. Meanwhile, beauty consumers should brace for at least moderate price increases as brands navigate these evolving trade policies.
- CHRISTINE STAPLES CEO, Cohere Beauty
I believe there will be an increase in beauty manufacturing in the U.S., keeping in mind that hard goods like electronics and plastic tools may never onshore at scale. We at Cohere Beauty only produce liquid and dry beauty products in the U.S., and I do expect modest increases in the onshoring of these types of products to the U.S.
The extent of this will depend on more than trade dynamics. It’s a very complicated value chain. A few factors involved in the decision to onshore liquid beauty products include ingredient origin, packaging and logistics costs, government policies, technological advancements (e.g., AI and automation), and consumer preferences.
Most mass brands that are similar to what we formulate and manufacture in the U.S. will be hyper-focused on reducing the landed cost of products balanced with better oversight of sourcing, ethical production and ingredient transparency. While full-scale reshoring of these mass-market beauty products may take longer, niche and prestige brands will likely lead the charge in U.S.-based manufacturing in the coming years.
In the long run, the barrier to entry for beauty care formulation and manufacturing will continue to rise, driven by advancing innovation and the new standards set by MoCRA.
Ultimately, Cohere Beauty is here to serve as a partner to our brands through these evolving trade dynamics. We are constantly collaborating and staying in conversation with our brands about how these changes will affect them individually and helping them ideate solutions to the challenges they present.
It's hard to know what will happen [with prices] across the value chain and various products. In short, the answer is, yes, prices will increase. However, where companies in the U.S. and in the rest of the world will absorb margin losses and/or find operational efficiencies is unknown.
[Price increases are] highly category dependent (hard versus soft goods). By my own estimations, I would expect anywhere from an increase of 6% to 20%. At Cohere Beauty, we are continuously working on scenarios and models to understand the impact to our business and the market.
- Megan Cox Founder and CEO, Genie Supply
I chose to open lab and manufacturing facility Genie Supply after working China-side behind the scenes for three years. My observation was that the U.S. lacked the beauty manufacturing infrastructure to support onshoring, but that consumers and, therefore, brands were demanding it. So, this topic is near and dear to my heart and always top of mind.
In general, the brands that are thinking ahead will choose to begin the process of onshoring, nothing that Trump's history with tariffs is volatile. He may increase them at any time or could drop them completely, so diversification is always the smartest choice. This will be very difficult for large brands and will include significant costs, but for small and medium size brands, they may still have the flexibility to make such large supply chain decisions quickly.
A tech transfer typically takes two to six months, with production taking another three to six, so brands that want to onshore should begin the discovery process quickly, tempering their timelines against current inventory reserves. The actual cost of onshoring will depend on the number of products, type of products and size of production runs, but COG increases will be sharp percentage-wise, if not dollar-wise. Brands that sell indirectly through retailers will need to pass this on to consumers or shrink products as retailers demand high margins.
As for products imported from China, let's be clear: We do not have the infrastructure in the U.S. to replace China as the primary supplier of beauty packaging. That cost will remain regardless of onshoring the formulation/filling.
A 10% tariff could directly translate to a 10% increase in MSRP, but it's unlikely. Brands will more than likely either add on a bit more or hedge their bets by increasing MSRP further to account for any other increases in costs beyond just the initial tariffs. To account for all changes, brands should make 25% to 30%, but this would be too shocking to consumers.
In general, I would estimate we'll see about 20% product shrinkflation (e.g., a 10-oz. size becomes 8 ounces), coupled with a very minor (5% to 10%) increase in MSRP.
- David Chung Founder and CEO, iLABS, Morae Packaging and The Rootist
Currently, luxury beauty brands are manufactured predominantly in the U.S., Europe, Japan and Korea. Many mass-market beauty brands are produced in China and other South Asian countries. I do agree with NeilsenIQ’s assessment for mass-market and lower-priced finished goods. Mass beauty brands will look to other countries with fewer tariffs, moving away from China, but it will take time.
My research and development center, Innovation Labs (iLABS), has facilities in both Mahwah, New Jersey and Incheon, South Korea to offer turnkey OTC sunscreen, skincare, haircare, body care, fragrance and wellness finished goods at competitive prices. Our two locations allow us to compete in the global market while being less affected by tariff fluctuations. If brands have not yet considered markets outside of China, they should do so immediately.
I believe the market price will be increased for the consumer by up to 10% to 20%. However, I predict the price increase will affect mass goods more (15% to 20%) than luxury goods (10% to 15%).
This cost is due to increased import costs on ingredients or packaging components and materials as well as supply chain disruptions that require reformulations, which can also add more lead time. I own Morae Packaging, a glass factory and plastic injection mold facility in South Korea and offices in Mahwah, New Jersey, to offer packaging materials and components at competitive prices.
- Lipika Hegde Head of Innovation, Vanity Country Club
Trade policies will certainly prompt many beauty brands to reassess their operational setup. However, whether this will lead to increased production in the U.S. remains uncertain. A significant number of beauty brands rely on China, especially for packaging, due to its cost efficiency and innovation and shifting away from these suppliers could substantially raise overall product costs. These increased costs may ultimately be passed on to brands and, in turn, to consumers.
Some brands may explore alternative markets such as South Korea and Japan, where trade policies may be more favorable and help keep costs lower. In my experience, manufacturing, filling, assembling and sourcing packaging within the U.S. tends to be more expensive than producing a full product in China, even if the final assembly of the finished product takes place in the U.S. or if only the packaging is sourced from China.
If tariffs remain high, we may see some brands restructuring their supply chains and investing in a stronger domestic operational framework. However, this shift would take time and significant effort, making it more of a long-term transition, especially if incentives are introduced for brands manufacturing entirely in the U.S. Even if a brand decides to manufacture elsewhere, transferring production to a new facility is a complex, time-consuming process that requires ensuring the final product maintains the same quality, performance and consumer experience.
In the short term, as costs rise, some brands may look to optimize their packaging, while others may absorb a portion of the additional expenses. This evolving landscape presents a strong opportunity for U.S. manufacturers to offer greater flexibility, competitive pricing and solutions to brands navigating these changes.
- Magdalena Bembenek Founder and CEO, Knockout Brands
The introduction of tariffs will undoubtedly impact the beauty industry, but the extent of its effect will vary across market segments. Larger, well-established brands have the resources to mitigate cost pressures by optimizing logistics, packaging and raw material sourcing. In contrast, smaller and emerging brands, many of which rely heavily on overseas production, will face greater challenges in absorbing these costs, potentially leading to a reduction in new brand launches and an increase in market exits.
While NielsenIQ estimates a 10& to 20% price increase across the industry, I anticipate a more nuanced outcome. Some brands may strategically absorb a portion of the costs to maintain their price positioning, while others will pass them directly to consumers. Additionally, major retailers will push back against substantial price hikes, leveraging their negotiating power to keep price inflation in check. As a result, price increases will likely vary by category and brand strategy rather than being a uniform industry-wide change.
The prospect of increased domestic manufacturing is plausible, but will not be immediate or without challenges. Shifting production to the U.S. requires significant investment in tooling, warehousing, and logistics infrastructure. Additionally, labor shortages in skilled manufacturing roles may drive up wages, further complicating cost structures. Even with onshoring efforts, the reliance on imported raw materials, packaging and specialized components will persist, meaning that some supply chain vulnerabilities and tariff implications will remain.
Over the next five years, I expect a measured increase in domestic beauty manufacturing, particularly among brands that prioritize supply chain stability, IP protection and regulatory oversight. However, scaling domestic production to a meaningful percentage of the market will take time, and the shift may disproportionately benefit larger and more established players while making it more difficult for smaller and/or new brands to compete.
- Matt Bell CEO, Elevation Labs
Given the volatility on tariffs, we do expect more brands to choose to manufacture their products in the U.S. to have more certainty on availability and pricing. It is hard to predict where tariffs will go, and it does take time to transfer manufacturing sites, so I am expecting brands will start that process now to get ahead of the curve.
We saw this in 2018, and those that moved quickly on domestic sourcing benefitted. I can’t speak for the whole industry, but we have capacity and are willing to invest to ensure we stay ahead of demand.
We are also actively working to mitigate any pricing impact from tariffs with our suppliers while reducing our costs, so brands and consumers see as little impact as possible. Experts are predicting tariffs will increase beauty product costs, but the brands and manufacturers that get ahead of it will be more competitive and win in the market. Another key way to manage price pressure is innovation, so we are continuing to invest in innovation to ensure our customers are providing the best value in market.
- Loren Scott Founder, Health and Beauty Partners
With the new 10% tariff on Chinese imports, there’s definitely a lot of buzz about bringing beauty manufacturing back to the U.S. But will we see a massive shift? Not in the short term.
Right now, only about 7% of beauty products sold in the U.S. are made here, and that’s mostly due to higher labor costs, regulatory hurdles and raw material limitations. While some brands will explore local production, especially indie and clean beauty brands that can leverage “Made in the USA” as a premium selling point, China is still deeply entrenched in beauty supply chains.
It’s not just about manufacturing. They supply packaging, raw materials and specialized processing at a scale the U.S. simply doesn’t match right now.
Where’s The Growth Going To Happen?
- Over the next one to two years: We might see a 2% to 5% increase as more brands test the waters with U.S. production.
- In the next 5 years: There could be a 5% to 10% jump, thanks to advancements in automation, AI-driven formulation and biotech ingredients that could make domestic production more cost-effective.
That said, rather than moving everything stateside, a lot of brands will spread out production to other Asian markets like South Korea, Vietnam and India to work around tariffs without taking on U.S. manufacturing costs.
Will Beauty Prices Jump 10% To 20%?
Yes, prices are going up, but not across the board. NielsenIQ’s estimate of 10% to 20% price increases makes sense for some categories, but not all.
Why Prices Are Rising:
- Tariffs are being passed down the line: Brands relying on China will have to adjust pricing.
- Raw materials and shipping costs are still high: Tariffs aside, global supply chain issues are already driving up costs.
- Premiumization: Some brands will use price hikes to position themselves as higher end, justifying the cost with sustainability, biotech ingredients and local production.
Why It Won’t Be Universal:
- Brands are finding workarounds: Many are shifting sourcing to Vietnam, India and South Korea to avoid the worst tariff impacts.
- Retailers like Target and Amazon won’t let prices skyrocket: They’ll push back by doubling down on private-label and mass-market options.
- Price sensitivity matters: A 20% hike on a $100 luxury serum is manageable, but on a $10 drugstore product? That’s a tougher sell.
What To Expect By Segment:
- Drugstore and mass market: Expect a 5% to 12% increase—modest, but noticeable.
- Prestige and indie beauty: Likely 10% to 20% increases, but these brands will frame it as a shift toward cleaner, more ethical or locally made formulations.
- Luxury beauty: We’re talking 15% to 25% hikes, but luxury shoppers are already conditioned to accept premium pricing.
We’ll see some growth in U.S. beauty manufacturing, but not a full-blown reshoring movement. Costs are still too high, and the infrastructure isn’t there yet. Prices will rise, but not uniformly. Mass-market beauty will work to keep prices competitive, while indie, prestige and luxury brands will use the changes to reposition themselves at a higher price point.
- Lorne Lucree Founder, Quiet Coyote
Given how tight the supply chain is in China of packaging, raw materials and manufacturing, moving one piece to the U.S. for most brands will probably provide more downside than benefits.
For example, when I think of somebody like a Zuru Edge who is killing it right now with Daise, Laura Polko and Monday, they have an entirely vertically integrated supply chain setup overseas and just invested in a 27,000-square-foot facility with onsite packaging and finished goods production to enable a margin that can support their masstige price points. I'm guessing reworking that is probably not worth the effort for the cost benefit it might provide, and they can make up for the tariffs elsewhere.
Pricing wise, we know consumers have reached their limit with price increases, so that isn't really an option for brands. However, I don't think beauty brands ever took their prices down from the COVID hikes, so I have to think they are better positioned to handle these tariff fluctuations. Granted, I'm speaking about the beauty brands that did the diligence to push back on their supply chain partners once things settled down to negotiate pricing back down. Those that didn't are in for a rougher go of it.
- Laura Horne VP of Sales and Marketing, FP Labs and Federal Package
As an organization, we typically look to source materials domestically first. However, there are some unique materials that need to be sourced outside of the U.S. Depending on how NielsenIQ defines “manufactured in the USA,” there could be many products that are currently manufactured in the U.S., but do not make this claim due to where key ingredients within their products might be sourced.
That being said, logic would say that with a 10% tariff being imposed, prices will more than likely go up at least 10% in the market as many brands are already working on extremely thin margins.
Within the last few months, we have seen a significant increase in brands based outside of the U.S. looking for contract manufacturers that are U.S.-based to produce their products. When asked what is driving the change, brands are looking to get ahead of any potential tariffs.
This is a great time for the U.S. beauty business to evaluate if they are executing in the most efficient and effective ways and lean into the potential growth. As a contract manufacturer, we are using this as an opportunity to look for new ways to innovate in our product offering in what raw materials we use, in how efficient we can make our manufacturing process, and in how we can win new business.
While I do think the U.S. will see a 5% to 10% increase in U.S.-based beauty manufacturing, the largest inhibitor will be whether or not the infrastructure and efficiencies are in place to offset the cost increase from the tariffs. Many brands could look to move their manufacturing to countries with lower labor rates, driving efficiencies in supply chain, and potentially adjusting pricing strategies.
- Anushka Nadkarni Product Development and Innovation Lead, Bentley Labs
The shift toward domestic beauty manufacturing seems inevitable, especially with increasing tariffs and supply chain disruptions pushing brands to rethink their sourcing strategies. A 5% price growth in the first year and up to 20% in five years seems like a reasonable projection given the current trends.
The price increase due to tariffs is definitely going to impact consumer behavior. While beauty has historically been resilient in economic downturns, there’s a limit to how much consumers will absorb before altering their purchasing habits.
The key question is whether they’ll trade down to more affordable brands, buy less frequently or embrace domestically made products despite the higher price points. I’d expect indie and mid-tier brands to be hit the hardest, while prestige might see less of an impact due to its perceived value.
- Alli Reed Founder, Sespia Labs and Stratia
More than the current tariffs themselves, I think the uncertainty around future tariffs will push some beauty brands to move to U.S. manufacturing. We don’t know which countries are next on the tariff hit list, so the only safe bet is within the U.S. That said, manufacturing infrastructure takes many years to develop, and we simply don’t have the capacity to move all or even most manufacturing stateside.
Take plastic injection molding, the process that makes plastic packaging components for beauty products. The U.S. accounted for about 6% of global production in 2023, and U.S.-based components cost at least 2X to 3X more compared to their Asian counterparts. Whether brands pay the tariffs or switch to domestic production, consumers will see prices rise regardless.
- Mary Berry Founder, Cosmos Labs
With ongoing tariffs and supply chain challenges, more beauty brands are looking to manufacture in the U.S. While it won’t happen overnight, we’re already seeing steady growth, and that trend will likely continue as companies invest in local suppliers and production capabilities.
Prices are expected to rise due to higher costs for materials, labor and logistics. Exactly how much will depend on the product and sourcing, but it’s safe to say the industry will feel the impact. Over time, as more manufacturing shifts to the U.S., we could see better cost stability.
At our facility, we’re expanding to meet this demand and help brands make the transition smoothly.
- Ellen Lennon SVP, Partnerships, The Goodkind Co.
Whether or not price increases occur due to tariffs really depends on the underlying brand, their position in the market and their existing underlying unit economics. So, making broad statements about how much prices will go up across beauty is a bit nonsensical.
Some brands will definitely use it as an opportunity to increase prices if they command a strong position within the prestige market. However, others may view it as an opportunity to hold prices constant and look to grab share, if they benefit from existing high gross product margins.
Other brands with slimmer margins in the mass market may be forced to pass some of it along, risking lower volumes along the way. And others will do something in between. All of which is to say we will see many different outcomes, which will play out over a relatively long-time horizon based on the time it takes for such tariffs to be absorbed into various individual brand supply chains.
In terms of a trend toward domestic production, obviously that’s something that has already been in motion for quite some time. However, relocating finished goods production to the U.S. isn't a straightforward solution. While the U.S. boasts many excellent manufacturers and formulators, the reality is that the majority of components and packaging are sourced from countries like China, Canada and elsewhere globally. It's not just about formulation and production, it's also about the origin of these components.
There are certainly numerous viable options for contract manufacturing domestically, and we expect that trend to continue, but the shift isn't simple. Changing contract manufacturers demands a significant investment of time and resources, and it’s unclear when or if component production will shift domestically as that will require substantial new investment by packaging manufacturers.
If you have a question you’d like Beauty Independent to ask beauty manufacturers, brands and consultants, please send it to editor@beautyindependent.com.
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