Personal Care Contract Manufacturing Market Size, Share & Trends Analysis Report By Service (Manufacturing, Custom Formulation and R&D, Packaging), By Region (APAC, North America, Europe), And Segment Forecasts, 2019 - 2025

Industry Insights

The global Personal Care Contract Manufacturing market size was valued at USD 17.17 billion in 2018 and is projected to propel at a CAGR of 6.1% by 2025. Rising demand for hair and skin care products is expected to propel the market growth over the forecast period. Demand for organic products, owing to rising awareness regarding the harmful effects of chemical products, is estimated to fuel the growth further.

Advent of innovative products, such as styling mousses, antiperspirants, lip-glosses, and lip colors, is projected to drive market further. Rapidly expanding personal care industry across the globe is also expected to propel the demand for contract manufacturing in the coming years. Companies are enhancing their production capabilities to cater to the rising demand for personal care products, which, in turn, is likely to boost adoption of contract manufacturing over the next few years.

Moreover, companies are focusing on business expansion in emerging markets while strengthening their presence in the existing markets to gain an increased share in the global industry. This has led companies to employ their resources for R&D and promotional activities. Key manufacturers are also investing heavily in product innovation and development. U.S. accounted for the largest share of the North America market in 2018.

Presence of robust manufacturing companies, such as Johnson & Johnson, Estee Lauder, and Procter & Gamble, in U.S. is anticipated to have a positive impact on the personal care market. Product launches by these companies are expected to propel the demand for contract manufacturing and packaging over the forecast period.

Service Insights

On the basis of service, the market has been segmented into manufacturing, custom formulation, packaging, and others. Manufacturing was the largest segment in 2018 and is expected to register the highest CAGR of 6.2% from 2019 to 2025. The custom formulation and R&D segment is also likely to witness a steady growth. Rising demand for organic and natural personal care products is expected to compel manufacturers for R&D and custom formulation of the product.

This will have a positive impact on the industry growth. Companies are focusing on product innovation to meet the changing consumer preferences, which also results in high investments in R&D and custom formulation. Packaging is estimated to be the second-largest segment in the next few years. Increasing demand for innovative and flexible packaging in the personal care industry is expected to propel the segment expansion.

Manufacturing Service Insights

On the basis of manufacturing service, the market has been divided into skin care, make up & color cosmetics, hair care, fragrances & deodorants, and others. Skin care was the largest segment in 2018 and is estimated to witness the highest CAGR of 6.7% from 2019 to 2025. In addition, growing demand for organic and natural products owing to increasing concerns over long-term impact of chemicals is projected to propel segment growth over the forecast period.

Hair care is expected to be the second-largest segment during the estimated period. The demand for hair care products was valued at USD 3.20 billion in 2018 and expected to grow significantly over the forecast years.Hair care segment further includes several products, such as shampoo, spray, hair coloring, and conditioners, and hair styling products. Moreover, the demand for grooming products for men is witnessing steady growth, which is estimated to drive the market growth.

The make-up and color cosmetics segment is also expected to witness a significant growth on account of increasing product demand. The major brands including Unilever and P&G are outsourcing their mass manufactured products and are focusing on innovation, which is anticipated to help boost manufacturing of these products through contractors.

Regional Insights

Asia Pacific is estimated to be the largest and fastest-growing regional market over the forecast years. This growth can be attributed to the fact that most of the international companies in the market are shifting their manufacturing bases to emerging economies, such as India and China, to reduce their production costs. Low labor cost coupled with government initiatives to provide technologically-advanced infrastructure for manufacturing facilities has facilitated the growth of contract manufacturing in the region.

Europe was the second largest region, in terms of revenue, with 20.97% market share in 2018 and is anticipated to witness healthy growth with a CAGR of 6.0% over the forecast period. North America exhibits a robust growth on account of constant innovations, in terms of products that are manufactured using advanced technology.

Personal Care Contract Manufacturing Market Share Insights

Key industry participants include McBride PLC; Albea Beauty Holdings S.A. (Albea); Colep Portugal, S.A.; S&J International Enterprises Public Company Ltd.; Vi-Jon, Inc.; Formula Corp.; McBride PLC; VVF India Ltd.; Alkos Group; Beautech Industries Ltd.; KIK Custom Products, Inc.; HCP Packaging; and Knowlton Development Corporation (KDC). Major companies in the market are highly competitive and compete on the basis of product prices and regional expansion. Companies invest heavy amounts in R&D to enhance the production capacities to gain a competitive edge over others.

Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global personal care contract manufacturing market on the basis of service and region:

• Service Outlook (Revenue, USD Million, 2015 - 2025)

  • Manufacturing

    • Skin Care

    • Hair Care

    • Make-up & Color Cosmetics

    • Fragrances & Deodorants

    • Others

  • Custom Formulation and R&D

  • Packaging

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Rest of World