Schwan Cosmetics: a centenarian in top shape! 

Schwan Cosmetics will celebrate its centennial next year. During the last fiscal year spanning 2024 and 2025, the Group’s global revenue exceeded 369 million euros, even posting 6.4% growth at the end of the third quarter of the current fiscal year. These have been two “strong” years for the company, which claims to have invented the world’s first cosmetic pencil in 1927 and to be the most recognized global leader in the formulation and manufacture of pencils and sticks. Two years of investment not only in sustainability but also in innovation, with the launch, among other things, of its patented “Meta-Ink” formula in its “PrimeLiner” packaging and the acquisition of a new production machine. On the industrial front, executives announced plans to expand production capacity in Mexico “to build,” they say, “a more integrated network with our U.S. site, transferring expertise and technology to serve the region more effectively.” In Europe, they explain that they are “prioritizing resilience by expanding their base of local suppliers and their in-house manufacturing capabilities. In China, continued investments in local production allow us to operate safely and at a steady pace in this region.” An update with Tomas Espinosa, CEO.

The packaging sector faces challenges, particularly regarding plastics. Is this a complicated situation to manage?

Tomas Espinosa:  With a global volume of over 600 million cosmetic pencils per year, we are aware of our responsibility to lead the industry toward more sustainable packaging. While high-quality materials remain essential for safety and performance, it is clear that we must rapidly reduce our reliance on virgin fossil-based plastics. Our approach is, of course, based on material innovation. For example, our new FLX technology allows us to transition our core portfolio to styrene- and ABS-free materials and prepare for future recycling streams. In addition, we have designed our latest mechanical pencils to incorporate up to 92% recycled materials, while our ProBarrel uses bio-based industrial byproducts, reducing the carbon footprint by nearly 60%. These efforts are yielding measurable results: in the last fiscal year alone, we saved 22 tons of virgin plastic.

We have already increased the share of sustainable alternatives in our portfolio to 71%, with a goal of 93% by fiscal year 2025–2026. We call this “subtle sustainability.” It allows brands to meet both consumer demand and future regulations through responsible choices, while maintaining the exceptional quality for which Schwan Cosmetics is renowned. We enable our clients to easily adopt a sustainable approach without ever compromising on excellence.

Schwan Cosmetics has experienced solid growth in recent years. What are your strategic priorities and plans for the future?

Tomas Espinosa: Our growth is the result of the transformation we have undertaken from a traditional manufacturer to a strategic partner for beauty brands. Looking ahead, our ambition is to further strengthen our position as a technology leader in the color cosmetics sector while expanding our presence, particularly in Asia. We aim to grow organically through our existing operations, as well as through M&A opportunities, to accelerate our regional footprint and technological edge. Our legacy is defined by creating products that become industry benchmarks. Throughout our history, we have helped our partners develop and launch numerous iconic products that have shaped the beauty market for decades. This ability to transform a vision into a global bestseller remains our greatest strength today.

Today, we manage a vertical and regionalized supply chain, with over 3,000 employees across eight sites in the Americas, Europe, and China. This “local-to-local” approach allows us to remain agile and offer our customers local supply chains, which also translates to shorter time-to-market and a more sustainable solution.

Tariffs and volatile energy prices are accelerating this natural transition toward regionalization. Beyond trade barriers, factors such as exchange rate volatility, demands for rapid time-to-market, and increasing regulatory complexity are forcing the industry to rethink its global supply chain strategies. Over the past five years, it has become clear just how vulnerable long-distance supply chains are to external shocks.

To address this, we have strategically shifted toward vertical integration across three distinct supply chain streams: the Americas, Europe, and China.

In North America, we are expanding our production capabilities in Mexico to build a more integrated network with our U.S. site, transferring expertise and technology to serve the region more effectively. In Europe, we have prioritized resilience by expanding our base of local suppliers and our in-house manufacturing capabilities. Additionally, we are investing in on-site solar power plants to reduce our dependence on external energy markets. In China, our ongoing investments in local production enable us to operate safely and at a sustained pace in this region.

This setup offers a decisive advantage by ensuring confidence and business continuity. Our clients recognize that maintaining high safety stock levels to cope with uncertainty entails significant costs and the risk of product obsolescence. By relocating production to where demand exists, we reduce these risks and overall costs while minimizing overproduction and unnecessary transportation. Ultimately, we enable beauty brands to remain agile and maintain rapid time-to-market, ensuring that their bold ambitions are not compromised by global uncertainty.

Furthermore, over the past two years, we have made significant investments in sustainability and technological excellence to combine high-performance products with environmental responsibility. One of our flagship achievements is our €7 million solar power plant in Germany, which covers up to 100% of our daytime electricity needs; a similar approach is being implemented at our solar power plants in the Czech Republic and Mexico. This investment is part of a comprehensive sustainability strategy encompassing social responsibility and ethical supply chain management. These combined efforts have earned us the EcoVadis Platinum rating, ranking us among the top 1% of global companies.

On the technological front, one of the highlights was the launch of our patented “META-INK” formula in PrimeLiner packaging. We invested in a new production machine for PrimeLiner, which ensures maximum performance and formula stability. This platform is a game-changer in the rapidly growing liquid eyeliner market. By using a unified, high-performance formula base, we enable brands to develop custom shades in just a few days. To ensure that innovations like these reach the market faster, we have also strengthened integration between R&D and marketing to optimize our agility.

Looking ahead to 2026, we see a shift toward highly segmented consumer needs, favoring individuality over standardized, one-size-fits-all solutions. Amid growing competitive and regulatory pressures, we will continue to develop our “local for the local market” supply chain to remain the most reliable partner for our customers. The expansion of our production in Mexico is a key example of this, as it allows us to serve the North American market with greater speed and flexibility. Our goal is to empower brands to adapt quickly to an omnichannel world while meeting the highest expectations for performance and social responsibility.

The environment is obviously a key factor and lies at the heart of your innovations!

Tomas Espinosa: Environmental responsibility is obviously a central pillar of our strategy, always guided by the motto: “Pushing boundaries for a better future, together.” Our strength lies in combining large-scale production with sustainability standards validated by independent organizations.

We are among the few players in our sector to have committed to the Science Based Targets initiative, with the goal of achieving carbon neutrality by 2050. Achievements such as our EcoVadis Platinum certification rank us among the world’s best. Our strategy focuses on a holistic product evolution centered on circular design.

We consider the entire life cycle by optimizing packaging for recycling while increasing the content of naturally derived ingredients in our formulations to at least 75%. To ensure sustainable growth, we are making significant investments in on-site solar power plants. We are also committed to a “zero waste to landfill” policy. We enable our customers to join us in adopting a sustainable approach without ever compromising on excellence.
Recently, we launched a series of innovative products that underscore this commitment to sustainability, adaptive beauty, and sensory experiences.

With our SURVIVE lip tint formula, we’ve captured the trend for long-lasting, highly hydrating lip products and created a true market-leading product that is on track to sell over 15 million units in the current fiscal year alone. By combining a minimalist, glycerin-rich formula with innovative felt-tip applicators, we offer brands a product that delivers both deep hydration and a unique, playful experience.

The same goes for “META-INK,” the high-performance liquid eyeliner integrated into our PrimeLiner packaging, which clearly sets a new industry standard for customization. Its unique formula offers unmatched color intensity and a virtually infinite color range, allowing brands to respond to trends with maximum speed and precision. Our “FLX” technology, a solution for a smooth transition to styrene-free packaging for mechanical pencils, advances our mission to reduce plastic through improved recyclability.

We’re also addressing specific consumer shifts, such as the “No-Tox” trend, with our “LIPLIFT” formula—a velvety lip pencil designed for a blurred, voluminous look. It offers a non-invasive, skincare-focused plumping effect that directly addresses the demand for high-performance alternatives to cosmetic procedures. Our latest “ACE1” eyeshadow stick addresses the growing craze for intuitive beauty with a premium “butterglide” application.

Looking ahead, our Research and Development team is focusing on adaptive formulas, new application systems, and the development of “skintelligence” in color cosmetics by bridging the gap between makeup and skincare for holistic benefits.