Market Segmentation
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. Personal care products range from toothpaste and shaving creams to make up, moisturizers, perfumes, and colognes. 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-glosses, and other cosmetic products from female consumers, is expected to augment the market growth. The key factors driving the cosmetics industry include increasing demand for advanced beauty treatments, skincare products, and product marketing strategies by manufacturers such as L‟Oréal, Unilever, and The Procter & Gamble Company. Changing consumer trends associated with increased digital disclosure, personalized shopping experience, and availability of abundant information are anticipated to drive the demand for personal care products. The growth in online retail coupled with expanding presence of international brands through the advent of multinational companies is anticipated to have a positive impact on the U.S. personal care market growth over the forecast period. Increasing innovation activities by various market players resulting in new product development are expected to boost market growth. Rapid growth of personal care industry is expected to propel the growth of the contract manufacturing market. The need for companies to cater to this rising demand for fast-moving personal care products such as shampoos, soaps, shower gels, and creams has made them enhance their production capabilities, which is projected to trigger a significant rate of adoption for contract manufacturing over the forecast period. In addition to the manufacturing services provided by contract manufacturers, the provision for custom formulations and packaging facilities offered by contract manufacturers is further expected to boost the personal care contract manufacturing market growth. Massive spending on R&D and promotional activities provides the market with enormous growth potential. However, private firms' in-house manufacturing of cosmetics is impeding market growth. Rising demand for wide varieties of clay masks, peel off masks, natural ingredients masks for skin brightening, nourishment, add beauty, and cleanse on account of the increasing environmental pollution, restless lifestyles, changing weather patterns, and high disposable income is expected to fuel the market growth. In addition, facial masks address various skin issues including wrinkles, sagging skin, pores, dry lines, and blemishes. The penetration of these masks among the increasing aging population in the country is expected to propel the growth of the U.S. personal care contract manufacturing market over the forecast period.
Contract manufacturing is a highly competitive, difficult, and low-margin business, which needs to be actively managed. The presence of a large number of contract manufacturers competing over low-profit margins to give various formulators a favorable deal has led the business into a very narrow pass for being profitable. Factors such as the presence of low-quality contract manufacturers disguising themselves as highquality, loss of control in the manufacturing process, and risk of losing intellectual property rights are anticipated to restrain the market growth. Furthermore, high investment cost coupled with low margins tunes up the risk factor in the business, thus, making it a significant restraint for the contract manufacturing market growth. In some cases, contract manufacturers are responsible for the procurement of raw materials as well as supplying market-ready products to formulators. This requires contract manufacturers to bear the price volatility for raw materials and other related costs for products and services that often witness price fluctuations. This result in high risk associated with contract manufacturing business unless the formulator agrees to share the risk of price fluctuations in the market.
Traditional cosmetics usually contain a high number of petroleum-based compounds, as well as phthalates, oxybenzone, and parabens. The use of petroleum-based ingredients in cosmetic products is not truly natural and organic. Organic-based composition are extracts of plant, product from microorganisms, and substances derived from these sources. One of the advantages of organic-based components is that they naturally help to protect, nourish, and hydrate the skin. Another significant advantage of sustainable, biodegradable, and organic ingredients is that they re-assure consumers about the authenticity, origin, and quality of these products. 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 towards natural and organic products and the ingredients used in cosmetic products. According to industry reports, countries saw 20% to 30% rise in online revenue for the beauty and cosmetic segment during the pandemic. Companies are also shifting their marketing strategy from traditional press releases to digital PR and working with influencers. The crisis led to strong acceleration of the digital transformation for the cosmetics industry and companies are focusing on digital media, content, and services which enrich customer experiences. Rising consumer concerns about ensuring the authenticity of organic products have been encouraging new manufacturers to enter the market. This is expected to fuel the demand for personal care product contract manufacturing in U.S. over the forecast period.
This section will provide insights into the contents included in this u.s. personal care contract manufacturing market report and help gain clarity on the structure of the report to assist readers in navigating smoothly.
Industry overview
Industry trends
Market drivers and restraints
Market size
Growth prospects
Porter’s analysis
PESTEL analysis
Key market opportunities prioritized
Competitive landscape
Company overview
Financial performance
Product benchmarking
Latest strategic developments
Market size, estimates, and forecast from 2018 to 2030
Market estimates and forecast for product segments up to 2030
Regional market size and forecast for product segments up to 2030
Market estimates and forecast for application segments up to 2030
Regional market size and forecast for application segments up to 2030
Company financial performance