The global personal care contract manufacturing market size is projected to be worth USD 37.11 billion by 2030, progressing at a CAGR of 8.1% from 2022 to 2030. The growing demand for personal care and cosmetic products from consumers, on account of the various skin and health benefits they offer, has resulted in a steady increase in research and production capabilities by manufacturers. This is expected to be a significant factor driving the growth of the contract manufacturing industry in this area. Companies are shifting towards R&D as well as other types of promotional activities from in-house production, which is expected to boost the contract manufacturing of such products in the coming years.
Personal care contract manufacturing involves the outsourcing of a segment of production activities, such as packaging operations or manufacturing of products, among others. This aids companies in the cosmetics and personal care space to remove obstacles such as costly in-house production as well as manufacturing facility operations. There has been a steady rise in demand for organic and natural products by consumers, on account of the widely-acknowledged harms of their synthetic counterparts, which is expected to force a shift towards novel products and portfolios by manufacturers. Many of these personal care products are part of fast-moving consumer goods, which witness high sales, especially in rapidly developing economies such as India, China, and Brazil. As such, the industry is expected to expand on a substantial scale through 2030.
Consumers are steadily moving towards trends that constitute personalized shopping experiences, increased transparency when it comes to packaging, and improved digital disclosure. This again is expected to positively impact the growth of the PCCM industry during the forecast period. Manufacturers, on their part, are trying to ensure that their products are innovative and effective while being available on a wide scale. With more and more commercialization options for personal care items being explored via branding and marketing, it is expected that the demand for contract manufacturers should witness healthy growth in the near future.
The COVID-19 pandemic led to a significant impact on the personal care industry, as there was a substantial decline in revenue in the first half of 2020, as supply chain issues and lockdown restrictions, along with restrictive spending, led to a noticeable drop in demand for these products. While sales of products through offline channels dropped during this period, there has been healthy growth in the use of online channels for buying products, which has helped in keeping the market steady during the pandemic phase. Another aspect that has helped in advancing the industry is the rising awareness regarding personal hygiene products. Governments across the globe have undertaken initiatives to propagate the benefits of these products to the public, which has driven their demand, and thus production. This is another factor aiding the growth of the personal care contract manufacturing market.
Personal Care Contract Manufacturing Market Report Key Takeaways
- There has been significant growth in demand for personal care products, especially among millennials and the working professional demographic, which has compelled manufacturers to broaden their portfolios and launch products with novel formulations. This is expected to help the industry to advance during the forecast period
- With regard to the service offered, the industry has been broadly classified into manufacturing, custom formulation, and packaging. Each of these services caters to skin care products, hair care products, fragrances and deodorants, and make-up and color cosmetics, among others
- The manufacturing service segment dominated the market with the largest revenue share of 87.2% in 2021, aided by an increase in demand for personal care and cosmetics products in developing and developed nations. Established companies have started to outsource their mass-manufactured items while focusing on the development of innovative products, which is expected to enable production via contractors
- The packaging segment held the second-largest share of 8.2% in the global market in 2021. The packaging aspect for a product has become vital to convey the product’s aesthetic values and USP, which helps in improving customer perception of the product and generating sales
- Asia Pacific held a significant revenue share of 37.1% in the global market in 2021, aided by the availability of high-quality economical packaging services, as well as logistics and sales provided by contract manufacturers. The region also has a large youth population, which is associated with a high demand for deodorants, shaving creams, and skin care & hair care products
- The market in Europe is projected to advance at 7.0% CAGR during the assessment period, as regional consumers are highly conscious of their overall appearance, and thus consider grooming vital. Germany is poised to advance at 8.4% CAGR through 2030, aided by the rising demand for facial products such as nail paints and lip gloss among women in the economy
- Companies involved in the personal care contract manufacturing industry focus on geographical expansion, particularly in promising regions such as the Asia Pacific and North America, in order to drive their growth. Factors such as product price and performance, formulation, raw materials, availability, and reputation all play a significant part in providing a competitive edge to a company
Personal Care Contract Manufacturing Market Segments
- Personal Care Contract Manufacturing Service Outlook (Revenue, USD Million, 2017 - 2030)
- Manufacturing
- Skin Care
- Hair Care
- Make-up & Color Cosmetics
- Fragrances & Deodorants
- Others
- Custom Formulation
- Skin Care
- Hair Care
- Make-up & Color Cosmetics
- Fragrances & Deodorants
- Others
- Packaging
- Skin Care
- Hair Care
- Make-up & Color Cosmetics
- Fragrances & Deodorants
- Others
- Personal Care Contract Manufacturing Regional Outlook (Revenue, USD Million, 2017 - 2030)
- North America
- Europe
- Germany
- France
- Italy
- Spain
- U.K.
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Central & South America
- Middle East & Africa
- List of Key Players in the Personal Care Contract Manufacturing Market
- Cosmetic Group USA, Inc.
- McBride
- Knowlton Development Corporation
- HCT Group
- KIK custom products
- PakLab
- Fareva
- Albea
- SeaCliff Beauty Packaging &Laboratories
- WWP Beauty
