It is estimated that over 1,000 cosmetics manufacturers operate in Japan, including foreign companies. This number includes small-scale manufacturers that do not appear in some statistics. One of the most distinctive features of the Japanese cosmetics industry, not seen in the European or American markets, is the overwhelming presence of domestic manufacturers that command the lion's share of the market. Both large and small cosmetics companies manufacture and market a large variety of unique products in their respective areas of strength. Products become outdated quickly and companies need to improve existing products and launch new ones in rapid succession.
Manufacturers thus compete vigorously with one another to develop new products.
Many of Japan's cosmetics companies are family operations, and do not disclose their business details or financial status.