Personal Care Contract Manufacturing Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 8.11 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Personal Care Contract Manufacturing Market Analysis
The personal care contract manufacturing market was estimated at USD 19.47 billion in the previous year. The market is expected to reach USD 31.33 billion over the forecast period, registering a CAGR of 8.11% during the forecast period. The improving life quality, positive effects of beauty and personal care on self-esteem and social connection, and the consistent consumer tendency towards premium and luxury cosmetic items are all expected to fuel market expansion over the forecast period.
- Contract manufacturers recently grew in popularity in the personal care industry. Due to the advent of new brands and formulations, shifting buying behaviors, and social media, the market rapidly expanded in recent years.
- Contract manufacturers are becoming increasingly important in the personal care industry. The business rapidly expanded in recent years because of the flood of new brands and formulations, shifting shopping patterns, and the rise of social media. Contract manufacturers benefited from the changing dynamics of the personal care business, especially the popularity of private brands. They enable their clients to produce locally in areas where they need to own capacities.
- Due to many indie businesses' success, their role in the supply chain recently grew. Numerous start-ups were founded on their competence in brand marketing, and they had to rely on contract manufacturers for formulation development. These sparked a significant shift in the value chain, finally shifting the choice of ingredients from personal care markets to contract manufacturers.
- High investment costs and low returns impede expanding the personal care contract manufacturing business. High production and marketing expenses for high-quality items, as well as fierce competition among manufacturers for specialized product categories, are some of the key impediments to market expansion. Although factors such as high investment expenditures and poor returns may hurt the market, current personal care contract manufacturing market opportunities, such as increased online penetration of cosmetics and personal care products, significantly bolstered the market growth.
- The COVID-19 crisis accelerated existing market trends, such as expanding the global middle class and adopting e-commerce. Consumers worldwide started demonstrating the demand for self-care, mainly after the COVID-19 outbreak. There is also the possibility of deeper collaboration, particularly among brands and retailers, via data sharing and inventory pooling.
Personal Care Contract Manufacturing Market Trends
Skin Care Segment to Dominate the Market
- The demand for skincare products, especially from millennials, is on the rise, driven by various factors such as the desire to delay the signs of aging, increasing awareness of skincare routines, and the influence of social media. This growing demand directly impacts the demand for such products in the market, aiding skincare manufacturing.
- For instance, according to research by the NPD Group in 2023, millennials spend an average of USD 135 on skincare products each year compared to USD 80 from Gen Xers and the USD 65 baby boomers spend, representing a difference in spending by millennials on skin care.
- Millennials' focus on skincare led to an increased emphasis on developing specialized formulations that cater to their specific needs and preferences. It includes products that incorporate organic and natural ingredients, as millennials prioritize sustainability and clean beauty. Consequently, contract manufacturers in the skincare industry are investing more in research and development to meet these demands.
- Skincare spending in all age groups increased in the recent past. Skin care product manufacturers are forced to outsource to contract manufacturers. According to Happi Magazine, in November 2022, 211 contract manufacturers for skin care products were in the United States. Skincare spending experienced growth and needs specific solutions for the face. In addition, Face cleansers generated sales for USD 1754.22 million in the facial skin care category, while USD 1130.9 billion was spent on facial anti-aging goods (Happi Magazine).
- The development of new and gender-specific products is a key driver of demand in the industry. Male consumers, for example, are increasingly seeking grooming products such as skin care, hair sprays, styling mousses, and deodorants tailored to their specific needs. This shift in consumer behavior increased the demand for contract manufacturers to produce these male-oriented personal care products.
- Overall, skin care products are gaining traction in both males and females. It also pressured the manufacturers to create gender-specific products causing them to shift from in-house manufacturing to contract manufacturing to scale up and reduce product costs.
North America to Hold Major Share in the Market
- North America comprises the analysis of the United States and Canada. Consumers in North America are increasingly seeking personalized and unique personal care products. Contract manufacturers offer flexibility in formulation and packaging options, enabling brands to meet these demands. The ability to create custom products, such as organic, natural, or eco-friendly formulations, will drive market growth.
- The personal care and cosmetics industries are experiencing tremendous demand. Pure, natural, and organic substances significantly surpassed the use of chemicals due to people's growing concern about the products they use. Productions of makeup and color cosmetics are anticipated to increase due to growing consumer demand and enhanced knowledge of its benefits among working professionals. Major companies like P&G and Unilever are outsourcing mass-produced goods to concentrate on developing novel products. It is anticipated to drive the expansion of the contract manufacturing market.
- Throughout the projected period, it is anticipated that increasing aging in the United States population and rising demand for hair care products will favorably affect the market. The male population uses more personal care products due to the increased attention paid to personal grooming. Contract manufacturers specializing in developing and producing effective and innovative skincare solutions will experience heightened demand. Incorporating advanced ingredients, such as peptides, retinol, and antioxidants, will be crucial to cater to this market segment.
- Rapid technological advancements and changing consumer preferences necessitate continuous research and development efforts by personal care contract manufacturers. Innovations in product formulations, active ingredients, and delivery systems are crucial to stay ahead in the competitive landscape. Contract manufacturers investing in R&D capabilities will gain a competitive edge.
- Canada's growing focus on health and wellness increased the demand for personal care products promoting well-being. Contract manufacturers specializing in manufacturing products catering to specific health concerns, such as natural skincare, vegan formulations, or products with functional ingredients, will experience heightened demand.
- North America's personal care contract manufacturing market is poised for substantial growth in the coming years. Factors such as the growing demand for natural and organic products, regulatory compliance, customization, product innovation, cost efficiency and scalability, sustainability, collaborations and partnerships, digital transformation, and health and wellness trends will shape the market dynamics.
Personal Care Contract Manufacturing Industry Overview
The Personal Care Contract Manufacturing Market remains highly competitive, with major global and regional players fighting for market share. Personal care contract manufacturing companies include KIK Custom Products Inc., Sensible Organics, Colep Consumer Products, PLZ Corp, and Voyant Beauty. Renowned corporations are pursuing mergers and acquisitions to strengthen their market dominance. Through this technique, renowned corporations constantly seek to expand their local manufacturing facilities and market presence. Also, global companies are forming strategic partnerships to extend their foothold in the market.
- June 2023- Albéa Tubes and Oriflame collaborated again with the launch of the Duologi range. The new range offers two conditioners: ' Rich Crème Conditioner ' and. ' Light Crème Conditioner,' presented in a metallic PBL tube, without aluminum in the skirt, combined with a low-profile PP capsule. Albéa's (Re) Flex 2 technology is recognized as fully compatible with the European rigid high-density polyethylene (HDPE) recycling stream. The range is designed for sustainable development objectives. The need for product innovation, customization, cost-effectiveness, regulatory compliance, and time-to-market advantages drives the growing demand for contract manufacturing in hair care solutions. Collaborating with contract manufacturers allows brands to meet consumer expectations, capitalize on market opportunities, and deliver high-quality hair care products to a diverse and evolving consumer base.
- January 2023- Vista Cosmetics, a well-known contract manufacturer and supplier of personal care, skin care, dental care, and vegan goods, with cutting-edge infrastructures in place to satisfy the demands of private label and third-party contract production, announced that the firm extensively supports sulfate-free personal care products. The company believes in sustainable beauty, and this attitude applies to raw materials used to make the final products.
Personal Care Contract Manufacturing Market Leaders
-
McBride PLC
-
ALBEA SA
-
Colep Consumer Products
-
PLZ Corp
-
Voyant Beauty
*Disclaimer: Major Players sorted in no particular order
Personal Care Contract Manufacturing Market News
- April 2023: TruArcPartners, a private equity fund, invested in Trademark Cosmetics (TCI) to pursue continuous expansion and support brand partner success through organic initiatives and strategic mergers and acquisitions (M&A). TCI's formulation and production capabilities and strong customer-service focus proved important in its growth and will be the primary driver for future progress and expansion.
- February 2023: BASF created healthy beauty through R&D innovation and sustainable lifestyles. Themed around "Sustainable technology perfects healthy beauty," BASF showcased its innovative personal care solutions at the "2023 Personal Care and Homecare Ingredients" (PCHi). Apart from sunscreen, cleansing, and skincare products that mark the defining feature of BASF, new arrivals, Postbiolift, and Phytocine,- impress visitors at the trade show. BASF relies on an extensive network of contracted services to manufacture its chemicals. It is committed to building lasting relationships with companies that share its commitment to safety, sustainability, and lean manufacturing.
Personal Care Contract Manufacturing Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
-
4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitutes
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Assessment of Post COVID-19 Personal Care Contract Manufacturing Market
- 4.4 Industry Value Chain Analysis
5. MARKET DYNAMICS
-
5.1 Market Drivers
- 5.1.1 Evolution of Service Offerings has Enabled Organizations to Increasingly Rely on Contract Manufacturers for their Production Needs While they Focus on R&D and Promotion
- 5.1.2 Localization of Contract Manufacturing in Personal Care Helps in Gaining Lead Time & Cost Advantages
-
5.2 Market Challenges
- 5.2.1 Stringent Regulatory Concerns and Concern Regarding Counterfeit Products
-
5.3 Market Opportunities
- 5.3.1 Consumers' Inclination Towards Organic and Natural Products Aids the Market Growth
- 5.3.2 Rising Demand for Customized Personal Care Products and Rapid Adoption by the Contract Manufacturers
6. MARKET SEGMENTATION
-
6.1 By Service Type
- 6.1.1 R&D and Formulation
- 6.1.2 Manufacturing
- 6.1.3 Packaging & Allied Services
-
6.2 By Product Type
- 6.2.1 Skin care
- 6.2.2 Hair care
- 6.2.3 Make-up & Cosmetics
- 6.2.4 Other Product Types
-
6.3 By Geography
- 6.3.1 North America
- 6.3.2 Europe
- 6.3.3 Asia Pacific
- 6.3.3.1 China
- 6.3.3.2 India
- 6.3.3.3 ASEAN
- 6.3.3.4 Rest of Asia Pacific
- 6.3.4 Rest of the World
7. COMPETITIVE LANDSCAPE
-
7.1 Company Profiles
- 7.1.1 McBride PLC
- 7.1.2 ALBEA SA
- 7.1.3 Colep Consumer Products
- 7.1.4 PLZ Corp
- 7.1.5 Voyant Beauty
- 7.1.6 FORMULA CORP
- 7.1.7 Intercos SPA
- 7.1.8 Powerpack Cosmetics
- 7.1.9 Hair Styling Applications SpA
- 7.1.10 Clarion Cosmetics
- 7.1.11 CoValence Laboratories
- 7.1.12 Fareva Group
- 7.1.13 HCT Group
- 7.1.14 Vistta Cosmetics
- *List Not Exhaustive
8. FUTURE OF THE MARKET
Personal Care Contract Manufacturing Industry Segmentation
Contract manufacturing is when a company outsources the production of specific components or products to another company over a specific timeframe. Personal care manufacturing means producing or manufacturing personal care products like this. The study tracks and analyzes the demand for outsourcing manufacturing, formulation and research, packaging, and other activities within the personal care industry based on the current trends and market dynamics. The market numbers are derived by tracking the revenue generated by players operating in the market who are providing contract manufacturing products and services. The study provides a detailed breakdown of the various product and service types.
The Personal Care Contract Manufacturing Market is segmented by service type (R&D and formulation, manufacturing, and packaging & allied services), product type (skincare, haircare, make-up and cosmetics, and other product types), and geography (North America, Europe, Asia-Pacific (China, India, ASEAN, and rest of Asia-Pacific), and rest of the world). The market sizes and forecasts are in value (USD) for all the segments.
| By Service Type | R&D and Formulation | |
| Manufacturing | ||
| Packaging & Allied Services | ||
| By Product Type | Skin care | |
| Hair care | ||
| Make-up & Cosmetics | ||
| Other Product Types | ||
| By Geography | North America | |
| Europe | ||
| Asia Pacific | China | |
| India | ||
| ASEAN | ||
| Rest of Asia Pacific | ||
| Rest of the World |
Personal Care Contract Manufacturing Market Research FAQs
What is the current Personal Care Contract Manufacturing Market size?
The Personal Care Contract Manufacturing Market is projected to register a CAGR of 8.11% during the forecast period (2024-2029)
Who are the key players in Personal Care Contract Manufacturing Market?
McBride PLC, ALBEA SA, Colep Consumer Products, PLZ Corp and Voyant Beauty are the major companies operating in the Personal Care Contract Manufacturing Market.
Which is the fastest growing region in Personal Care Contract Manufacturing Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Personal Care Contract Manufacturing Market?
In 2024, the North America accounts for the largest market share in Personal Care Contract Manufacturing Market.
What years does this Personal Care Contract Manufacturing Market cover?
The report covers the Personal Care Contract Manufacturing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Personal Care Contract Manufacturing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Personal Care Contract Manufacturing Industry Report
Statistics for the 2024 Personal Care Contract Manufacturing market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Personal Care Contract Manufacturing analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
