NAICS 325620 Quarterly Industry Report
Toilet Preparation Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 325620Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 325620 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the toilet preparation manufacturing sector, drawing on data from the U.S. Census Bureau[5] and FDA[9] cosmetic manufacturing regulatory statistics. Additional data is drawn from Bureau of Labor Statistics[10].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 325620 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the toilet preparation manufacturing industry.
Industry Definition & Overview
Toilet Preparation Manufacturing (NAICS 325620) encompasses establishments primarily engaged in preparing, blending, compounding, and packaging toilet preparations including perfumes, colognes, shaving preparations, hair care products, skin care lotions and creams, sunscreen products, cosmetics and makeup, deodorants, and other personal care formulations. According to the U.S. Census Bureau[5], approximately 671 companies operate within this classification, employing nearly 50,000 workers with annual revenue exceeding $43 billion in manufacturing facilities that formulate, fill, and package personal care and beauty products distributed through retail, professional salon, and direct-to-consumer channels.
The industry produces products across multiple categories including color cosmetics, skin care treatments, hair care and styling products, fragrance and body care, men's grooming, sun protection, and oral hygiene preparations. Industry International Trade Administration[6] reports U.S. toilet preparation exports exceeding $10.3 billion and imports of $9.9 billion, reflecting the global nature of beauty and personal care product supply chains. The Bureau of Labor Statistics[7] identifies production roles including cosmetic blending operators, emulsion processing technicians, filling and packaging line operators managing high-speed equipment, quality control chemists performing stability and microbiological testing, and formulation scientists developing new product chemistries for skin care, hair care, and color cosmetic applications.
Per the SBA Office of Advocacy[8], the industry includes multinational beauty conglomerates alongside a growing number of smaller indie brands, contract manufacturers, and private-label producers. Direct-to-consumer distribution through e-commerce channels has lowered barriers to entry for smaller brands, creating a dynamic competitive environment where innovation in ingredients, packaging, and marketing drives growth for emerging personal care companies.
What's Included in This Industry
- Valuation multiples benchmarked to personal care and cosmetics manufacturing operations
- Revenue and EBITDA trends for domestic toilet preparation production
- SBA lending data and financing terms for NAICS 325620 businesses
- Comparable transaction data from recent beauty brand and personal care company acquisitions
- Industry risk factors including ingredient regulations, brand competition, and consumer trend shifts
- Workforce composition and labor cost benchmarks for cosmetic manufacturing operations
- Regional market analysis covering beauty product manufacturing clusters
- Capital expenditure benchmarks for emulsion processing and filling equipment
- Growth projections tied to clean beauty, e-commerce distribution, and premium skin care demand
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Chemical Manufacturing | 325 |
| Industry Group | Soap, Cleaning Compound, and Toilet Preparation Manufacturing | 3256 |
| NAICS Industry | Toilet Preparation Manufacturing | 32562 |
| National Industry | Toilet Preparation Manufacturing | 325620 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 325613 | Surface Active Agent Manufacturing | Surface active agent manufacturers producing surfactants consumed as primary functional cleansing and emulsifying ingredients in shampoos, body washes, and facial cleanser formulations |
| 325611 | Soap and Other Detergent Manufacturing | Soap manufacturers sharing personal care product distribution channels, packaging technologies, and consumer marketing infrastructure with toilet preparation producers |
| 325612 | Polish and Other Sanitation Good Manufacturing | Polish and sanitation product manufacturers sharing aerosol filling capabilities and consumer packaged goods distribution channels with personal care product makers |
| 325199 | All Other Basic Organic Chemical Manufacturing | Basic organic chemical manufacturers producing emollients, essential oils, fragrances, and specialty chemical ingredients consumed in personal care product formulations |
| 424210 | Drugs and Druggists' Sundries Merchant Wholesalers | Drug and sundries wholesalers distributing personal care and beauty products from manufacturers to retail pharmacies, mass merchandisers, and specialty beauty retailers |
| 456110 | Pharmacies and Drug Retailers | Pharmacy and drug stores retailing personal care products, cosmetics, and beauty preparations as core merchandise categories alongside health and wellness products |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 23.4% | 261 |
| 2 | New Jersey | 7.3% | 82 |
| 3 | Florida | 7.3% | 82 |
| 4 | Texas | 6.4% | 71 |
| 5 | New York | 5.8% | 65 |
| 6 | Illinois | 4.6% | 51 |
| 7 | Pennsylvania | 3.2% | 36 |
| 8 | Washington | 2.9% | 32 |
| 9 | Georgia | 2.7% | 30 |
| 10 | Utah | 2.4% | 27 |
% Of Establishments
0%
23%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
112
Total SBA Loans
$56.0M
Total Loan Volume
$500K
Average Loan Size
11 yrs
Average Loan Term
9.46%
Average Interest Rate
816
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Toilet preparation manufacturers evaluating SBA financing must consider qualification under the SBA size standards[11] for NAICS 325620, which set the threshold at 1,250 employees for small business classification. The SBA 7(a) loan program[12] supports smaller beauty brands, contract cosmetic manufacturers, and private-label producers acquiring businesses or financing working capital for ingredient inventory, while the CDC/504 loan program[13] provides long-term fixed-rate financing for emulsion processing equipment, filling lines, clean room facilities, and packaging automation. Lenders evaluate brand equity or contract manufacturing agreement stability, customer concentration among retailers, and FDA regulatory compliance when structuring personal care manufacturing loans.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Truist Bank | 8 | $24.5M | $3.1M |
| 2 | Bank of America, National Association | 32 | $9.1M | $284K |
| 3 | Peapack Private Bank and Trust | 8 | $8.0M | $1.0M |
| 4 | JPMorgan Chase Bank, National Association | 16 | $7.3M | $455K |
| 5 | KeyBank National Association | 16 | $2.4M | $150K |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for a personal care manufacturer?
Toilet preparation manufacturers typically trade at 8x to 15x EBITDA, with branded beauty companies commanding premium multiples and contract manufacturers at the lower end. Per U.S. Census Bureau[5] data, brand equity, product innovation pipeline, and distribution channel strength drive wide valuation ranges across the industry.
What SBA loan options are available for personal care manufacturing businesses?
The SBA[11] sets the small business threshold at 1,250 employees for NAICS 325620. Smaller beauty brands and contract manufacturers typically qualify, with 7(a) loans supporting acquisitions and 504 loans financing manufacturing equipment investments.
What FDA requirements affect cosmetics manufacturers?
The FDA[9] regulates cosmetics under the Federal Food, Drug, and Cosmetic Act and the Modernization of Cosmetics Regulation Act, requiring product safety substantiation, ingredient labeling compliance, facility registration, and adverse event reporting for all cosmetic products distributed in interstate commerce.
How is the clean beauty trend affecting manufacturers?
Consumer demand for products free from parabens, sulfates, synthetic fragrances, and other targeted ingredients has driven reformulation across the industry. Per the FDA[9], ingredient transparency requirements and state-level cosmetic ingredient restrictions are creating new compliance obligations for manufacturers.
What are the growth drivers for toilet preparation manufacturing?
Premium skin care, men's grooming, sun protection, and natural and organic beauty represent the fastest-growing segments. Per the International Trade Administration[6], strong U.S. exports of beauty products exceeding $10 billion annually reflect global demand for American-made personal care innovations.
How has e-commerce changed personal care manufacturing?
Direct-to-consumer distribution through digital channels has lowered barriers to entry for emerging beauty brands, enabling smaller manufacturers to reach consumers without traditional retail partnerships. According to the U.S. Census Bureau[5], e-commerce personal care product sales have grown significantly, shifting competitive dynamics toward brand building and digital marketing.
What workforce challenges do personal care manufacturers face?
The Bureau of Labor Statistics[7] reports that cosmetic chemists, formulation scientists, and packaging engineers are in strong demand across personal care manufacturing. Competition from pharmaceutical, food, and specialty chemical companies for trained scientists creates persistent recruitment challenges.
How does contract manufacturing affect the beauty industry?
Many indie brands and established companies outsource production to contract manufacturers who provide formulation development, filling, packaging, and regulatory compliance services. Per the FDA[9], contract manufacturers must maintain the same cGMP and safety standards as brand-owner facilities.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]International Trade Administration trade.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]SBA Office of Advocacy advocacy.sba.gov
- [9]FDA fda.gov
- [10]Bureau of Labor Statistics bls.gov
- [11]SBA size standards sba.gov
- [12]SBA 7(a) loan program sba.gov
- [13]CDC/504 loan program sba.gov
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