Show Costs American consumers spent approximately billion in 1972 to and otherwise the human THIS IS about 8 percent more than was spent the previous year and provides evidence of a return to the industry's traditional pattern of Over the long the cosmetics-toiletries industry has on 8 to 10 percent This rate was temporarily interrupted in when a faltering economy and slackened consumer demand held growth for the industry to a subnormal 4 with the economy back on the record sales and are the order of the With further gains for the economy expected for cosmetics-toiletries may well set new records again this Many signs point toward continued growth for this One of the important is a favorable demographic The population in this country is expected to rise from present million to million by the year MOST Important Is the projection that the age group buyers of will then represent percent of the up from a recent total of Per-capita consumption will rise for another After a family's income reaches cosmetics expenditures increase much faster than even drug-medicine With the average family expected to become increasingly there should be a higher percentage of consumer spending on personal-care THE GREATER proportion of working women will also A. A Mm Am A Mm Am A boost since they spend more money on cosmetics than nonworking A continuing flow of new products should further stimulate Another plus factor is exploitation of foreign markets abroad represent a dominant part of total business for some Certain firms report that their sales and profits grow more rapidly in their overseas markets than they do at EVERY industry has its difficulties at one time or and the toiletries-cosmetics business is no exception in this Increased regulation is probably the industry's Number One concern at While the Congress left regulation of cosmetics in the hands of the Food and Drug with no change in existing cosmetics producers are k Mm Mm Mm Mm Mm Mm m Sm faced with more extensive control of their manufacturing and TOE WIDENING of is not likely to affect significantly the long-term expansion of the In addition to stimulation from the growth factors we have mentioned expansion of the industry should continue to be generally helped along by low capital costs and satisfactory labor Quite a number of investment issues of companies in the cosmetics-toiletries field are worth holding at this Among the concerns in this category are Avon and FOR A speculative play in this the Research Department of Babson's Reports currently recommends purchase of common traded on the New York Stock a share in founded to a share UJ the substantially into iTS Proposed |