Mitsui advances position in US beauty market with Dermaceutical Laboratories acquisition
22 Aug 2023 --- Japan-headquartered Mitsui & Co. is acquiring all the shares in cosmetics contract manufacturer Dermaceutical Laboratories. The US-based company is an original design manufacturer (ODM) that develops and manufactures skin care and color cosmetics solutions and products for US companies and global brands.
Mitsui plans to position Dermaceutical Laboratories as the core of its beauty and personal care business in the Americas region. Further, it will bring novel concepts, functional materials and technologies from Japan. Financial details of the acquisition have not been disclosed.
Boosting Americas region
Mitsui will leverage raw material procurement capabilities and draw synergies with its existing beauty and personal care business assets to boost its business in the industry, especially targeting the Americas overall.
Mitsui USA’s Japanese Beauty Team is leading developments in J-beauty.
Mitsui underscores that the US market is backed by an increasing purchasing power of Millennials and Gen Zers, who comprise approximately 42% of the “economically productive section of the population.”
The US is also witnessing the emergence of new brands. Thus, Mitsui expects that together with a young purchasing power, the beauty and personal care market and demand for ODM services will continue to rise.
“While engaging in these activities and utilizing its extensive business assets and global networks, Mitsui will contribute to the enhancement of people’s quality of life through its consumer products business – personal care and hygiene products, including cosmetics,” says the company.
In related news, Mitsui invested in Kao’s subsidiary TBP Importação e Comércio de Cosméticos – striking a strategic partnership in the company’s skin care business in Brazil last February. Mitsui was to subscribe to new quotas in the subsidiary with the goal of expanding the business in the country.
Mitsui USA leverages Japanese beauty
Currently, Mitsui USA’s Japanese Beauty Team is leading developments in J-beauty. The team uses effective and high-quality beauty and personal care materials from Japan to tailor them to US beauty brands.
Completed formulas under its portfolio include Age Defence SPF Protection, Waterless Beauty, Microbiome and Holistic Wellness.
The three types of patented technology feature 3-Phase Emulsion which does not use surfactants; Freeze Dried Actives, which do not use preservatives and can be rehydrated by consumers; and Alpha Gen, which creates a skin structure similar to ceramides.
Mitsui underscores that the US market is backed by an increasing purchasing power of Millennials and Gen Zers.
Trends spotted by Dermaceutical Laboratories
Dermaceutical Laboratories have spotted a new wave of trends and have developed solutions in response. It obtains information from a team of beauty shoppers across Asia and Europe, celebrity makeup artists and influencers.
They will soon launch 100% Clean Mineral Sunscreens that are lightweight and translucent, replacing chemical sunscreens, available in skin care makeup formulas such as “extra-fine fluid, non-aerosol spray, loose powder, tinted moisturizer and foundation.”
Looking beyond the simple moisturizer and face oil, the chemists are factoring in the specificities and complexities of the skin. They are using its exclusive Activity Preservation Technology to preserve the performance of retinol, vitamin C and essential actives.
Lastly, the Dermaceutical Laboratories focus on diversity by improving skin tone color matching. “DLAB has developed a proprietary process that expedites shade development and improves shade matching accuracy.”
By Venya Patel
