U.S. Personal Care Contract Manufacturing Market Size, Share & Trends Analysis Report By Service (Manufacturing, Custom Formulation And R&D, Packaging), And Segment Forecasts, 2024 - 2030

Market Size & Trends

The U.S. personal care contract manufacturing market size was estimated at USD 3.13 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 7.8% from 2024 to 2030. Increasing demand for advanced beauty treatments and skin care products is driving the market. In addition, with major personal care companies channeling resources toward R&D and marketing initiatives, the outsourcing of production tasks such as manufacturing and packaging through contract manufacturers is expected to rise over the forecast period. 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.

Personal care products are further divided into personal hygiene and cosmetic products. Personal hygiene products are the necessary items, while cosmetics are luxury goods solely used for beautification purposes. The introduction of new product formats and gender-specific products is expected to drive the demand for personal care products. Increasing use of hair sprays, styling mousses, and deodorants by male consumers, in addition to the heightened demand for lip colors, lip gloss, and other cosmetic products from female consumers, is expected to augment the market growth.

The high degree of competitiveness present in the personal care industry has resulted in encouraging companies to adopt strategies that are expected to aid them in gaining an increased market share by tapping new markets and increasing their penetration in the present market. This has resulted in companies employing their resources for R&D and promotional activities. Key market players are increasingly looking toward product innovation and new product development to manufacture user-friendly products to increase their market share. These factors are contributing to the development of the market.

The strong driver in this market is the consumer’s perception of organic products. Traditional cosmetics usually contain a high amount of petroleum-based compounds, as well as phthalates, oxybenzone, and parabens. Organic-based compositions are extracts of plants, products from microorganisms, and substances derived from these sources. The natural and organic cosmetic market is undergoing a shift due to changing consumer needs and perspectives.

Rising awareness about the harmful effects of petroleum-based ingredients and synthetic ingredients in personal care products is anticipated to boost the demand for natural and organic products. As a result, we can observe a trend toward natural and organic products and the ingredients used in cosmetic products. Hence the rise in demand for natural and organic cosmetics is considered an important market opportunity.

Market Concentration & Characteristics

Personal care contract manufacturing players adopt several strategies, including acquisitions, new product developments, and geographical expansions, to enhance their market penetration. For instance, in August 2023, Eco Lips broadened its range of organic lip care products by introducing the first-ever OTC-certified organic medicated lip balm. The inclusion of this product not only strengthens confidence in Eco Lip's offerings but also addresses consumer demand in this lip care category.

Market players also engage in new product developments and research & development activities by partnering with other players to offer the latest technologies and launch products that cater to the requirements of end-use industries. In addition, a higher level of market specialization can be observed due to the involvement of capital intensive infrastructures such as precise manufacturing type of machineries to manufacture personal care products.

The impact of regulations is expected to remain significantly important in the market. Market players in the U.S. personal care contract manufacturing industry are increasingly prioritizing sustainability by opting for carbon-efficient processes to manufacture personal care products. By embracing sustainable operations, manufacturers are able to not only contribute to environmental conservation but also improve their brand positioning and market penetration rate.

Service Insights

Manufacturing segment dominated the market and accounted for a revenue share of 88.3% in 2023 and is expected to register the fastest CAGR during the forecast period. Manufacturing refers to third-party production of personal care products outsourced by OEMs such as P&G, Unilever, or any other company to the contract manufacturer. It also refers to products manufactured by the contractor under the label or brand of another firm.

The market is witnessing a shift toward clean and sustainable beauty, with personal care contract manufacturers incorporating eco-friendly practices, cruelty-free testing, and green packaging solutions. Furthermore, brands and consumers are increasingly seeking personalized products. Personal care contract manufacturers are adapting to this trend by offering customizable formulations and bespoke packaging. These aforementioned factors are anticipated to augment the demand for the manufacturing service segment in the coming years.

Key Companies & Market Share Insights

Some of the key players operating in the market include Intercos S.p.A., 220 Laboratories, Verla International Ltd., Eco Lips, Inc., and Accupack Midwest, Inc.

• Intercos S.p.A., was established in 1972 and is headquartered in Italy. The company manufactures and supplies cosmetic products across the globe. The company is involved in the research, development, manufacturing, and marketing of cosmetics for well-known brands in the industry. The company’s product category includes makeup, skincare, and personal care products. The company specializes in color cosmetics, skin care, and personal care products, nail polish, and pencils. The company has 16 commercial offices and 16 production facilities located in Europe, North America, South America, and Asia. Due to these factors, the company is dominating the market.

• 220 Laboratories, was established in 1991 and is headquartered in California, U.S. The company is engaged in the manufacturing of uniquely formulated skin, hair, and body products. It is a manufacturer of specialty liquid products and aerosols that are used in the personal care industry. The company offers skincare, cosmetics, and hair products with the help of in-house microbiologists, chemists, and custom formulations that enable clients to meet the customer’s demands.

• Biogenesis, C-Care, Fareva, Bright International, NuWorld are some of the emerging market participants in the U.S. personal care contract manufacturing industry.

• Biogenesis was established in 1997 and is headquartered in Paterson, U.S. The company is an FDA-registered contract manufacturer of OTC (over-the-counter) preparations, skincare, and color cosmetics products. Its core capability is in skincare, specializing in products such as body care, anti-aging face care, color, acne, SPF products, beauty cosmetics, and body care. The company also offers complete procurement of raw materials and manufacturing and filling services by utilizing recent technology in its state-of-the-art laboratories. The company also provides flexible solutions for a speedy route to market for a significant range of products including powders, creams, liquids, ointments, and gels. As the company has a high product mix with close product consistency, the company is considered an emergent player.

• C-Care was established in 1995 and is headquartered in Maryland, U.S. The company is a CAG Holding company. It is a manufacturer and custom development of skin care, hair care and hair color, personal care products, and OTC products. The company has an in-house R&D lab, manufacturing plant, quality control testing lab for filling, bulk and ingredient storage, compounding, customer service, warehouse & logistics, to name a few of the company's services. It is a registered cGMP and FDA site. The company is one of the few contract manufacturers certified by the USDA's National Organic Program to create organic products. The business is ISO 22716-accredited and Ecovadis Platinum-rated. Due to these reasons, the company is considered an emerging player in the market.

Key U.S. Personal Care Contract Manufacturing Companies

• NuWorld

• Biogenesis

• Bright International

• Fareva

• Intercos S.p.A.

• 220 Laboratories

• C-Care

• Accupack Midwest, Inc.

• Eco Lips, Inc.

• Verla International, Ltd

Recent Developments

• In August 2023, Eco Lips broadened its range of organic lip care products by introducing the first-ever OTC-certified organic medicated lip balm. This innovative product is designed to provide soothing relief and protection for painful fever blisters and cold sores. The inclusion strengthens confidence in Eco Lip's offerings as well as addresses consumer demand in this category.

• In April 2021, Eco Lips acquired Simply Soothing to introduce Bug Soother insect repellent to the market. This strategic acquisition was aimed at expediting the expansion of Bug Soother, a well-regarded natural bug repellent widely acknowledged by families across various states of the U.S.

• In January 2021, Bright International LLC acquired Bocchi Laboratories. By combining their respective strengths, Bright International LLC and Bocchi Laboratories are poised to create one of the most diverse and comprehensive full-service beauty & personal care platforms in the North American market. This strategic move expands the range of products and services offered by the combined entity as well as enhances its overall competitiveness and market positioning.

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 of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. personal care contract manufacturing market report based on service:

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

  • 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