Market Size of Personal Care Contract Manufacturing Industry
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 |
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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 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 | ||||||
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Rest of the World |
Personal Care Contract Manufacturing Market Size Summary
The personal care contract manufacturing market is experiencing significant growth, driven by evolving consumer preferences and the increasing demand for personalized and premium beauty products. The rise of social media and the popularity of private brands have accelerated the expansion of contract manufacturers, who play a crucial role in enabling brands to produce locally and meet the diverse needs of consumers. The market is characterized by a shift towards organic and natural ingredients, as consumers, particularly millennials, prioritize sustainability and clean beauty. This trend has led to increased investment in research and development by contract manufacturers to create specialized formulations that cater to specific consumer demands, such as anti-aging and gender-specific products.
In North America, the demand for personalized and unique personal care products is on the rise, with consumers seeking custom formulations that align with their values and preferences. The market is poised for substantial growth, driven by factors such as the increasing demand for natural and organic products, regulatory compliance, and product innovation. Contract manufacturers are leveraging these opportunities to expand their capabilities and enhance their market presence through strategic partnerships and collaborations. The competitive landscape is marked by major global and regional players, with companies pursuing mergers and acquisitions to strengthen their market position and capitalize on emerging trends. As the market continues to evolve, contract manufacturers are expected to play a pivotal role in shaping the future of the personal care industry by offering innovative solutions that meet the changing needs of consumers.
Personal Care Contract Manufacturing Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitutes
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1.2.5 Intensity of Competitive Rivalry
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1.3 Assessment of Post COVID-19 Personal Care Contract Manufacturing Market
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1.4 Industry Value Chain Analysis
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2. MARKET SEGMENTATION
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2.1 By Service Type
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2.1.1 R&D and Formulation
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2.1.2 Manufacturing
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2.1.3 Packaging & Allied Services
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2.2 By Product Type
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2.2.1 Skin care
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2.2.2 Hair care
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2.2.3 Make-up & Cosmetics
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2.2.4 Other Product Types
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2.3 By Geography
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2.3.1 North America
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2.3.2 Europe
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2.3.3 Asia Pacific
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2.3.3.1 China
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2.3.3.2 India
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2.3.3.3 ASEAN
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2.3.3.4 Rest of Asia Pacific
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2.3.4 Rest of the World
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Personal Care Contract Manufacturing Market Size 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.