What is the Cosmetic Industry?

Many individuals think of cosmetics as the finished product, a tube of lipstick or a fragrance in a department store. If you break down the products, you will find that it takes a diverse range of expertise and talent to put together the final goods. Take a look at Image 2. to see the different areas of production that relate just to the manufacturing of a lipstick.  As you can see even a simple lipstick can be a source for many important sectors within an industry. The cosmetic industry is everything connected to the production and developed of cosmetic goods and materials.

Image 2. All the Cosmetic Sectors Found in a Tube of Lipstick

What is a Cluster?

What is a Cluster?
The success of a region within in the industry is not determined by the individual success of single company but as innovations that are produced by the entire regional industry as a whole. 
 
 
 
 
 
 
 
 

Image 3. Triple Helix Structure of Cluster.  Source: Ontario Government Cluster Resource, 2018
The cluster is a triple helix of collaboration between academia, corporate industry, and government.
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Benefits of a Cluster 

• The purpose of the collaboration is to give small and medium-sized companies a chance to gain resources and technological know-how to succeed in the industry. 
• Increased productivity: easier access to information and resources for product development.
• Faster Innovation: Collaboration in research and development
• New Business support and formation
• Access to local resources such as fresh raw materials (mining, agricultural and chemical distributors)
• Strong regional development will aid in attracting foreign investment.

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CLUSTER LIFESPAN
Latent cluster

• A number of companies emerge based on a new technology or an interconnected set of products
• Other actors begin to cooperate around a core activity and identify common opportunities through linkages
• The overall number of emerging companies is still relatively small and the linkages among the actors are too weak to fully constitute a cluster

Emerging cluster

• Lead or anchor companies or research institutes are spinning-off new companies
• New actors in the same or related activities emerge or are attracted to the region
• There are stronger linkages between companies
• Entrepreneurs may take initial steps to create formal or informal clusters

Established cluster

• The number of companies and supporting institutions have significantly increased
• The self-sustaining dynamic of start-ups, joint ventures, and spin-off companies
• Clustered companies' economic performance is superior when compared to other regions, which increases the concentration of industry in a smaller number of successful clusters

Transforming cluster

• In order to survive, the firms and organizations within a mature cluster must regularly re-evaluate their operations and re-orientate to their customers to avoid stagnation and decline
• The cluster may transform by making changes to products, methods, and markets, or it may transform into new other activities

Cluster Priorities

The Canadian Cosmetics Cluster will hope to are the following; 

• Unification of the cosmetic raw materials industry in Canada
• Promotion of Canadian raw material in Canada and worldwide
• Development of Innovation in various cosmetic sectors in Canada
• The application of existing and new raw materials into cosmetics that are  produced or cultivated in Canada
• Increasing knowledge through education in Cosmetic Science (specifically in Raw Material and Formulation) 
• Provide support and resources for small business to expand their production and export opportunities
• Encourage foreign companies to purchase Canadian raw materials, conduct research in Canada on raw material potential
• Promoting international clusters and their services
• Promote sustainability and ecologically conscious raw material development
• Creating International partnerships with companies all over the world. 
• Creating manufacturing opportunities for companies from our trade partners to take advantage of trade agreements such as CETA and CPTPP
• Encouraging Companies to set up Operations in Ontario as North America HQ
• Connecting suppliers, manufacturers, and buyers
• Organizing a Natural Raw Material CO-OP to create more purchasing potential for small-scale manufacturers
• The Cosmetic Notification Reform will be extremely beneficial to the Canadian Cosmetic Industry. It will make Canada one of the best places in the world for new cosmetic development, especially in Industry.