Personal Care Contract Manufacturing Sector Analysis and Growth
Table Of Contents
The global personal care contract manufacturing market size is anticipated to reach USD 37.1 billion by 2030 and is anticipated to expand at a CAGR of 8.5% from 2024 to 2030, according to a new report by Grand View Research, Inc. 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 growth in online retail, coupled with expanding presence of international brands through the advent of multinational companies globally, is anticipated to have a positive impact on the 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 the 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.
The high degree of competitiveness present in 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.
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Personal Care Contract Manufacturing Market Report Highlights
In 2023, the manufacturing service segment held the largest share of 87.5% of the global revenue in 2023. Rising demand for hair care products globally, owing to the increasing aging of the population, is expected to have a positive impact on the market over the forecast period. The consumption of personal care products by the male population is witnessing growth owing to the increasing focus on personal grooming. This is expected to propel market growth over the forecast period
The packaging service segment registered the second largest CAGR from 2024-2030. Rising demand for flexible and innovative packaging in the personal care industry is expected to have a positive impact on the personal care contract manufacturing market over the forecast period. The packaging of personal care products adds aesthetic value to the product, which is one of the primary reasons for the purchasing decision of the consumers
Asia Pacific dominated the personal care contract manufacturing market in 2023. The Asia Pacific region is driven by the heightened demand for products such as deodorants, shaving creams, among younger population in emerging markets including India and China is expected to have major impact on market growth. In addition, the increasing old age population has propelled the use of personal care products and is expected to promote aerosol valves demand in anti-aging cosmetic products
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. Securing placement at CVS, the largest drugstore chain in the U.S., represents a significant milestone in the retail rollout of this product. The inclusion strengthens confidence in Eco Lip’s offerings as well as addressing consumer demand in this
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. Securing placement at CVS, the largest drugstore chain in the U.S., represents a significant milestone in the retail rollout of this product. The inclusion strengthens confidence in Eco Lip’s offerings as well as addresses consumer demand in this category.
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. The synergy between the two companies is likely to result in a powerhouse with the ability to cater to a wide array of consumer needs in the beauty and personal care sectors.
