Personal Care Contract Manufacturing Market Size, Share & Trends Report

Personal Care Contract Manufacturing Market Size, Share & Trends Analysis Report By Service (Manufacturing, Packaging), By Region (APAC, North America, Europe, RoW), And Segment Forecasts, 2020 - 2027

  • Published Date: Feb, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-1-68038-572-4
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 122

Report Overview

The global personal care contract manufacturing market size was valued at USD 18.1 billion in 2019 and is expected to register a CAGR of 6.1% over the forecast period. The shifting focus of companies manufacturing personal care products from in-house production to R&D and other promotional activities is projected to boost the contract manufacturing of these products. Increasing awareness related to the advantages of localizing contract manufacturing, which reduces lead time, is a major factor affecting the fast-moving of personal care products thus impacting the market growth positively. Furthermore, increasing profits of formulator companies owing to reduction in logistics cost related to contract manufacturing is also likely to complement the service demand.

U.S. personal care contract manufacturing market size

The presence of a strong production base of personal care companies such as Estee Lauder, Johnson & Johnson, and Procter & Gamble in U.S., is anticipated to have a positive impact on the market in the country. Product launches by the companies engaged in production of personal care products are expected to further propel the demand for contract manufacturing and packaging in the U.S.

Increasing demand for organic anti-aging products owing to factors such as climatic changes, stressful lifestyles, and busy work schedules, is expected to boost the product demand over the forecast period. Rising consumer concerns regarding authenticity of organic products has resulted in new manufacturers entering the market, which is expected to boost the demand for personal care contract manufacturing over the forecast period.

Surging demand in the emerging markets of China, India, and Middle East on account of increasing awareness pertaining to self-grooming and hygiene along with rising disposable income is expected to propel the growth of personal care products in the contract manufacturing market. Government initiatives such as Skill India that support manufacturing industries by providing skilled labor at economic wages, are expected to boost the contract manufacturing market in this region.

Contract manufacturing is a highly competitive, difficult, and low-margin business that needs to be actively managed. Presence of a large number of contract manufacturers competing over low-profit margins to provide formulators with favorable deals, has led the business into a very narrow pass for being profitable. High investment costs coupled with low margins tune up the risk factor in the business, making it a big market restraint.

Service Insights

The production of make-up and color cosmetics is expected to expand at a CAGR of 6.0% in terms of revenue, from 2020 to 2027 owing to the increasing demand for the products in developed as well developing nations. Major brands, such as P&G and Unilever, are outsourcing their mass-manufactured products and are focusing on the production of innovative products, which is likely to boost the manufacturing of these products through contractors.

The hair care segment is expected to grow significantly over the forecast period and includes several products, such as shampoo, spray, hair colors, conditioners, and hair styling products. The demand for men’s grooming products is also witnessing growth owing to purchasing behavior and consumer preference pattern.

Global personal care contract manufacturing market share

The production services have a high demand owing to the marketing trend followed by the key players in the personal care industry, which has made these companies outsource the production activities to some extent. This, in turn, is expected to drive the demand for contract manufacturing in the market.

Rising demand for flexible and innovative packaging in the personal care industry is expected to have a positive impact on the personal care contract manufacturing market growth over the projected period. The demand for packaging is estimated to register a CAGR of 5.8% from 2020 to 2027 in terms of revenue, owing to its ability to add aesthetic value to the product.

Regional Insights

Asia Pacific is estimated to be fastest-growing regional market over the forecast period. Developed production industry in Japan, coupled with the availability of advanced infrastructure and advanced technology for R&D and custom formulation, is expected to drive the market.

Europe is estimated to be the second fastest-growing market for personal care products, accounting for a revenue share of 21.0% in 2019. Growing demand for personal care products, particularly in Germany, Italy, France, Spain, and U.K., owing to consumer inclination toward grooming is expected to drive the market.

Presence of well-established manufacturing industries in Germany, along with the market development personal care industry in Europe, is expected to drive the demand for contract manufacturing over the forecast period. The demand for custom formulation products is likely to grow due to rising concerns regarding advanced products thus leading to market growth. Packaging industry has also witnessed growth due to the growing trend of outsourcing services by the key companies in the region.

The demand for personal care contract manufacturing in Rest of World (RoW) is expected to witness a CAGR of 5.9%, in terms of revenue from 2020 to 2027 owing to the population growth, urbanization, and industrial growth in Middle East. Furthermore, supportive policies framed by the governments in this region are anticipated to augment the number of personal care manufacturers outsourcing their production.

Key Companies & Market Share Insights

Companies in the market compete on the basis of regional presence and prices. Global players such as McBride cater to their local market while also catering to the demand across all other regions. Major players in the industry are continuously investing in R&D projects to enhance the formulation capabilities and gain a competitive edge over other players.

Widespread distributions channels benefit the companies in catering to the global demand and provide optimum quality services to its customers. Micro-manufacturers in the industry, including ApolloCorp. Inc. and VVF India Ltd. operate by catering to the local customers by providing premium services to existing customers.

Personal Care Contract Manufacturing Market Report Scope 

Report Attribute

Details

Market size value in 2020

USD 19.21 billion

Revenue forecast in 2027

USD 29.27 billion

Growth Rate

CAGR of 6.1% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

Segments covered

Service, region

Regional scope

North America; Europe; Asia Pacific; Rest of World

Country scope

U.S.; U.K.; Germany; China; India; Japan

Key companies profiled

McBride; Colep; Albea; Knowlton Development Corporation (KDC); Fareva; KIK Custom Products Inc.; HCP Packaging

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global personal care contract manufacturing market report on the basis of service and region:

  • Service Outlook (Revenue, USD Million, 2016 - 2027)

    • Manufacturing

      • Skin Care

      • Hair Care

      • Make up & Color Cosmetics

      • Fragrances & Deodorants

      • Others

    • Custom Formulation and R&D

      • Skin Care

      • Hair Care

      • Make up & Color Cosmetics

      • Fragrances & Deodorants

      • Others

    • Packaging

      • Skin Care

      • Hair Care

      • Make up & Color Cosmetics

      • Fragrances & Deodorants

      • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • U.S.

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Rest of World

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