The global personal care contract manufacturing market size is anticipated to reach at USD 26.06 billion by 2025 registering a CAGR of 6.1%, according to a new report by Grand View Research, Inc. increasing demand for organic products owing to harmful effects of chemical-based products is expected to fuel the market growth over the forecast period. Based on service, the market is segmented into manufacturing, custom formulation, and packaging. Manufacturing led the global market in 2018.
Demand for custom formulation and R&D is expected to register a CAGR of 4.8% from 2019 to 2025. The manufacturing segment is further divided into skin care, hair care, make up & color cosmetics, fragrances & deodorants, and others. Skin care segment is expected to dominate the market and is also projected to expand at the fastest CAGR of 6.7% over the forecast period. Rising demand for hair care across the globe is expected to have a positive impact on the industry growth.
Major brands including P&G and Unilever have started in-house manufacturing of innovative products to protect their intellectual property and outsource mass manufacturing to the contract manufacturers, which is also expected to support the market growth in the coming years. Prominent companies have undertaken several strategies to increase their market share. These strategies include business expansion in new markets. This has led the companies to employ their resources for R&D and promotional activities. The companies are also focusing on commercialization of personal care products through marketing and branding. Hence, the companies are moving towards contract manufacturing.
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Further key findings from the study suggest:
U.S. is among the largest consumer of the personal care contract manufacturing market
Presence of manufacturing companies of personal care products, such as Estee Lauder, Johnson & Johnson, and Procter & Gamble, in U.S. is anticipated to have a positive impact on the market
The market in Germany was valued at USD 601.6 million in 2018 and is projected to witness significant growth in future due to the presence of a well-established manufacturing industry
Moreover, rapidly developing personal care industry in Europe is expected to drive the demand for contract manufacturing further
APAC is projected to witness the fastest growth with China being the leading market. Key factor driving the China market includes high demand for domestically-manufactured cosmetic products in the country
Grand View Research has segmented the global personal care contract manufacturing market on the basis of service and region:
Personal Care Contract Manufacturing Service Outlook (Revenue, USD Million, 2015 - 2025)
Make-up & Color Cosmetics
Fragrances & Deodorants
Custom Formulation and R&D
Personal Care Contract Manufacturing Regional Outlook (Revenue, USD Million, 2015 - 2025)
Rest of World
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