Personal Care Contract Manufacturing Market Growth Is Driven By Improving Consumer Demand Till 2030

Personal Care Contract Manufacturing Industry Overview

The global personal care contract manufacturing market size was estimated at USD 18.80 billion in 2021 and is anticipated to expand at a compound annual growth rate (CAGR) of 8.1% from 2022 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. The personal care industry witnessed a significant decline in the first two quarters of 2020 due to the COVID-19 pandemic. Factors such as reduced discretionary spending, rising unemployment rates, lockdown restrictions, and altered consumer behavior have reduced the consumption of personal care products. However, easy accessibility of e-commerce platforms, swift vaccination drives, fiscal stimulus packages, and improving consumer demand are expected to drive industry growth.

Gather more insights about the market drivers, restrains and growth of the Global Personal Care Contract Manufacturing Market

It is worth mentioning that the U.S. was one of the worst-hit countries due to COVID-19, with personal care players switching to manufacturing hand sanitizers to meet demand. The personal care industry which saw a decline in 2020 is expected to see a rise on account of vaccine rollouts, ease of restrictions, increasing consumer spending, and fostering partnerships among key players for innovative products.

The rising awareness about the side effects resulting from the use of skincare, hair care, and cosmetic products made of chemical components has impacted the rise in demand for organic products in personal care, thereby increasing the growth of the PCCM market of these products.

U.S. personal care contract manufacturing market size, by service, 2020 - 2030 (USD Billion)

The increase in the millennial trend and its impact on their followers to buy the products advertised by the millennials has impacted the growth of personal care contract manufacturing. Furthermore, the increase in social media beauty specialist retailers and e-commerce websites has provided huge opportunities for the sales of personal care products.

Contract manufacturing is a highly competitive, difficult, and low-margin business, which needs to be actively managed. The presence of a vast number of contract manufacturers, striving over low-profit margin to offer the formulators a favorable deal, has steered the business into a very narrow pass for being profitable. High investment costs, coupled with low margins, also tune up the risk factor in the business, making it a big restraint for industry growth.

Browse through Grand View Research's Personal Care & Cosmetics Industry Related Reports

  • Hair And Scalp Care Market - The global hair and scalp care market size was valued at USD 80.81 billion in 2020 and is expected to expand at a CAGR of 6.6% from 2021 to 2028. Growing concerns among consumers and the availability of new, more effective, and safer hair care products have led to a significant increase in the use of these products, which, in turn, boosted the market growth.
  • Skin Care Products Market - The global skin care products market size was valued at USD 130.50 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 4.6% from 2022 to 2030. Escalating demand for face creams, sunscreens, and body lotions across the globe is expected to have a positive impact on the market growth over the forecast period.

Market Share Insights

January 2020: Silgan Holdings Inc., a key manufacturer of rigid packaging for consumer goods items, declared signing US$ 900 million offer towards the acquisition of Albea's dispensing company

Key Companies profiled:

Some prominent players in the global Personal Care Contract Manufacturing market include

  • Cosmetic Group USA, Inc.
  • McBride
  • Knowlton Development Corporation
  • HCT Group
  • KIK custom products
  • PakLab
  • Fareva
  • Albea
  • SeaCliff Beauty Packaging &Laboratories
  • WWP Beauty

Order a free sample PDF of the Personal Care Contract Manufacturing Market Intelligence Study, published by Grand View Research.

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