22 years focusing on research and production of natural herbal efficacy cosmetics

23 Years of Whitening and Anti-aging Cosmetics Source Factory

OEM/ODM Processing

E-commerce, Wechat business, influencers, direct sales teams, physical supermarkets, beauty chain institutions, foreign trade companies, global one-stop brand customized processing product solution service platform

19th Year

Wealth Hotline:

13902401468

Home page

Why do so many cosmetic brands go under each year? What are the underlying reasons?

Release Date:

2026-04-08 12:51

Why do so many cosmetic brands go under each year? What are the underlying reasons?

Every year, many cosmetics brands go under. What are the main reasons? First, intense market competition and a highly saturated industry have attracted a flood of new entrants, making the playing field increasingly crowded. Leading brands, with their strong financial resources, advanced technology, and robust distribution networks, capture the lion’s share of the market, leaving very little room for smaller players to survive. Second, consumer preferences are changing rapidly—today’s “ingredient-focused” consumers are on the rise—and expectations for product efficacy are continually rising. Consumers are paying closer attention to ingredient safety and real-world results. Brands that fail to meet these efficacy demands are gradually weeded out by the market. Third, there are issues within the brands themselves: some cut costs by lax oversight in raw-material sourcing and manufacturing processes, resulting in quality problems such as allergic reactions or product spoilage, which severely damage the brand’s reputation and word-of-mouth. In addition, over-reliance on a single sales channel—for example, depending solely on livestreaming or offline stores—can create serious problems when channel-driven growth opportunities fade, directly hurting sales. Despite so many cosmetic brands going under, countless others keep entering the market. Do you know why?

Cosmetics,Brand,Cosmetics industry

During the peak season for cosmetics franchising, our factory will provide full support across the board—whether on the product front, traffic generation, marketing, or training.

Lately, many e-commerce business owners have been sending me private messages, asking how to select products that can help them stand out from the competition.

During the peak season for cosmetics franchising, our factory will provide full support across the board—whether on the product front, traffic generation, marketing, or training.

Lately, many e-commerce business owners have been sending me private messages, asking how to select products that can help them stand out from the competition.

Related News

On-Site Footage from Guangzhou’s Original Cosmetics Factory: A Glimpse Inside a State-of-the-Art Whitening and Anti-Aging Production Facility, Showcasing Mingyu Cosmetics’ 22 Years of Cutting-Edge Skincare Expertise

Hello everyone, my name is Huang Guixiang. I was born in the 1960s in Yiyang, Hunan Province, and I run a cosmetics factory in Guangzhou. Today, I’d like to take you on a tour.

Mingyu Cosmetics was awarded 'Most Investment Value Brand Enterprise of the Year 2024' at the 24th Century Grand Interview Brand Figures Annual Ceremony.

2026 Guangzhou OEM Manufacturer of Functional Skincare Cosmetics: Mother’s Day Gift | Gentle Anti-Wrinkle Care to Preserve Mom’s Timeless Beauty

Get a free customized solution immediately

Professional cosmetics OEM manager will tailor and provide a full range of contract manufacturing

2853375291@qq.com

Contact Information

Wealth Hotline:13902401468
Processing Hotline:13825199612

Business Contact Address: Room 416, Baiyun Shiguang, Baiyun District, Guangzhou
New Factory Address: Building 4, No. 19, Lixin 9th Road, Zengcheng District, Guangzhou

Follow Mingyu WeChat Official Account

Business License