U.S. Personal Care Contract Manufacturing Market Size, Share & Trends Analysis Report By Service (Manufacturing, Custom Formulation And R&D, Packaging), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The U.S. personal care contract manufacturing market size was estimated at USD 2,958.0 million in 2022 and is anticipated to grow at a compounded annual growth rate (CAGR) of 7.4% from 2023 to 2030. The shifting focus of significant companies producing personal care products from in-house production to R&D and other promotional activities is projected to boost the contract manufacturing of these products. This factor is projected to contribute to the growth of the personal care contract manufacturing industry in the U.S. The rapid rise in the number of daily COVID-19 cases in the U.S. had significantly impacted the demand for cosmetics and other personal care products. In addition, policies implemented by the U.S. government regarding restrictions on movement have resulted in significant disruptions in the supply chain of personal care products. However, the availability and easy accessibility of e-commerce platforms during the lockdown period have balanced the disruptions caused by the last-mile supply of customer needs.

The personal care industry witnessed a significant decline in the first two quarters of 2020 due to the outbreak of COVID-19. According to consumer surveys, the willingness of consumers to spend on beauty products following the pandemic had declined compared to earlier and beauty products were majorly sold in brick-and-mortar stores.

Surging demand in the U.S. on account of increasing awareness about self-grooming and hygiene coupled with rising disposable income is expected to drive the demand for personal care products, thereby fueling the growth of the contract manufacturing market. The rising demand for skincare products, mainly from millennials, to delay signs of aging is expected to propel the personal care contract manufacturing market growth in the U.S.

The government of the U.S. has framed supporting policies for promoting substantial manufacturing and packaging for personal care products. The Personal Care Products Safety Act, introduced in 2019, aids in strengthening the efforts of the FDA to regulate ingredients in the personal care market, thereby protecting the health of consumers. This, in turn, is expected to augment the demand for the U.S. PCCM market.

One of the strong drivers in this market is the consumer’s perception of organic products. Consumers perceive organic products as they are more effective as compared to non-organic products. Natural and organic products are produced by the usage of natural ingredients. For example, ground coffee skin scrubs, seaweed snail slime, and bee venom in skincare. Furthermore, the rising demand for botanical products with the inclusion of natural antioxidants is anticipated to boost the demand for natural and organic products.

Service Insights

The manufacturing segment dominated the market and accounted for 88.1% of the total revenue share in 2022. Manufacturing of make-up and color cosmetics is expected to witness growth on account of rising awareness about their benefits and increased product demand from working professionals. Major brands including P&G and Unilever are outsourcing mass-manufactured products and focusing on the production of innovative products, which is expected to fuel the growth of the contract manufacturing market.

Rising demand for hair care products in the U.S., owing to the increasing aging of the population, is expected to have a positive impact on the market over the forecast period. The consumption of personal care products by the male population is witnessing growth owing to the increasing focus on personal grooming. This is expected to propel the market growth over the forecast period.

Rising demand for organic and natural personal care products is expected to compel the formulators for R&D and custom formulation of products. This, in turn, is likely to have a positive impact on the market over the forecast period. The companies are rigorously trying to innovate new products owing to the changing tastes & preferences of the consumers, thereby investing majorly in research & development and custom formulation.

The packaging service segment is expected to a CAGR of 5.7% over the forecast period. 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 over the forecast period. The packaging of personal care products adds aesthetic value to the product, which is one of the primary reasons for the purchasing decision of the consumers.

Key Companies & Market Share Insights

The companies in the personal care contract manufacturing market are highly competitive and compete on the basis of prices and regional expansion. The companies provide high-performance products with customized solutions in terms of services.

The players give a competitive edge to their competitors based on various factors like product prices, product performance, product formulation, raw materials used for product manufacturing, packaging, reputation, and availability. The companies employ various strategies to stay on top of the market such as new product launches, R&D investments, distribution network expansion, and mergers & acquisitions. Some prominent players in the U.S. personal care contract manufacturing market include:

• NuWorld

• Biogenesis

• Bright International

• Fareva

• Intercos S.p.A.

• 220 Laboratories

• C - CARE

• Accupack Midwest, Inc.

• Eco Lips, Inc.

• Verla International, Ltd.

U.S. Personal Care Contract Manufacturing Market Report Scope

U.S. Personal Care Contract Manufacturing Market Report Segmentation

This report forecasts revenue growth at country level and provides an analysis on the industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the U.S. personal care contract manufacturing market report on the basis of service:

• Service Outlook (Revenue, USD Million; 2018 - 2030)

  • Manufacturing

  • Custom Formulation And R&D

  • Packaging