U.S. Personal Care Contract Manufacturing Market Size, Share & Trends Report

U.S. Personal Care Contract Manufacturing Market Size, Share & Trends Analysis Report By Service (Manufacturing, Custom Formulation and R&D, Packaging) And Segment Forecasts, 2019 - 2025

  • Published Date: Nov, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-4-68038-119-1
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 66

Industry Insights

The U.S. personal care contract manufacturing market size was valued at USD 2.62 billion in 2018 and is expected to register a CAGR of 6.0% during the forecast period. Increasing demand for skincare and haircare products in the country is anticipated to drive the market. In addition, augmenting demand for organic products owing to the awareness regarding the harmful effects of chemical skincare products is likely to complement the growth.

Increasing awareness regarding the benefits of localization of contract manufacturing such as a reduction in the lead time, which is the most crucial factor for fast-moving personal care products, is expected to positively impact the market growth. In addition, reduced logistics cost associated with contract manufacturing is anticipated to augment the demand for services in the country.

U.S. personal care contract manufacturing market

Product launches by the major manufacturing companies in U.S. such as Estee Lauder, Johnson & Johnson, and Procter & Gamble is expected to augment the demand for personal care contract manufacturing and packaging over the forecast period. For instance, in May 2017, Procter & Gamble launched nine new variants of Herbal Essences bio: renew, which is expected to result in market development for itself, thus increasing the share of the company and boosting contract manufacturing of the products.

The microencapsulation technology used for the manufacturing of hair care tablets is gaining popularity in the industry. Microencapsulation enables the addition of health-promoting additives in food products without altering their functionality. In addition, it helps in masking the flavor and offers protection against nutritional loss of food ingredients, which is likely to drive the demand over the forecast period.

The major market players such as Unilever and P&G have initiated in-house production of innovative products for the protection of their intellectual property and are outsourcing mass production to the contract manufacturers, which is expected to drive the market growth. In addition, macroeconomic factors such as the rising disposable income of consumers are expected to result in an increasing demand for cosmetics and personal care products in U.S. over the forecast period.

The threat of substitutes in the U.S. personal care contract manufacturing market is low on account of the long-term agreements signed between contract manufacturers and formulators, which restrains the formulators to outsource its production to other market players. In addition, the technological compatibility developed by a contract manufacturer specifically to attain the quality standards restrain the formulators to switch to different suppliers, maintaining the consistency of quality.

Service Insights

The manufacturing service is estimated to witness a CAGR of 6.1%, in terms of revenue, from 2019 to 2025, owing to the rising focus of key market players over branding and other promotional activities, while outsourcing their production. In addition, rising demand for controlling product cost price and lead-time, which is critical in the fast-moving consumer goods industry is expected to augment the segment growth.

Manufacturing of the make-up and color cosmetics is expected to witness growth on account of the increasing demand for the products in the country. In addition, the men’s grooming products including hair color are witnessing growth owing to changing consumer buying behavior coupled with the increased availability of specific personal care products for men.

U.S. personal care contract manufacturing market

Packaging of personal care products adds to their aesthetic value, which is one the primary factors determining the purchasing decision of consumers. The packaging service segment accounted for around 8.6% of revenue share in 2018 on account of the innovation in packaging technology, particularly in the personal care aerosol products.

Rising demand for skincare products particularly from the millennials, to delay the signs of aging is expected to propel the growth. In addition, increasing R&D expenditure toward producing specialty formulations involving organic ingredients is expected to propel the growth over the forecast period.

U.S. Personal Care Contract Manufacturing Market Share Insights

The major market players include Fareva, Dalli, Colep, and HCP Packaging. There are several local players including Nutrix USA; A.I.G. Technologies, Inc.; and Sensible Organics manufacturing products for brands, such as Calvin Klein, Proctor & Gamble, Beiersdorf, Johnson & Johnson, and Oriflame, among others.

Growing investment by the U.S. government in the manufacturing sector in the emerging economies is expected to attract major market contributors, such as McBride and Formula Corp. These companies strive to acquire new markets and maintaining current contracts. These companies position their services in the new emerging market to acquire a long-term contract.

Report Scope:

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million and CAGR from 2019 to 2025

Country scope

U.S.

Report coverage

Revenue forecast, competitive landscape, growth factors and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the U.S. personal care contract manufacturing market report on the basis of services:

  • Service Outlook (Revenue, USD Million, 2014 - 2025)

    • Manufacturing

      • Skin Care

      • Hair Care

      • Make-up & Color Cosmetics

      • Fragrances & Deodorants

      • Others

    • Custom Formulation and R&D

    • Packaging

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