Personal Care Contract Manufacturing Market Segmentation and Competitive Analysis Report 2024-2030

The global personal care contract manufacturing market size was valued at USD 21.2 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 8.5% from 2024 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 Personal Care Contract Manufacturing Market

The personal care contract manufacturing market in the U.S. is expected to witness growth due to the increasing consumer demand for cosmetic items that are natural or organic, cruelty-free, and not tested on animals. The desire for creative and eco-friendly packaging designs is also anticipated to contribute to this growth. Both men and women in the U.S. are attracted to the design and exclusive packaging of cosmetic products, prompting manufacturers to place greater emphasis on the use of innovative packaging solutions for their products.

Furthermore, presently, men in the U.S. are using cosmetic products more frequently in their daily routine than the previous years. This is leading to the expansion of the cosmetics industry in the country. Ongoing innovations related to the development of eco-friendly packaging products and the surging preference of consumers for natural and organic personal care products are further anticipated to fuel the demand for personal care product contract manufacturing in the U.S. over the forecast period.

The increasing demand for skincare products, particularly among millennials seeking to delay signs of aging, is anticipated to drive the personal care contract manufacturing market in the U.S. Moreover, the market is expected to benefit from the rising research & development expenditure dedicated to formulating specialty products with organic ingredients. The demand for a diverse range of skincare masks, such as clay masks, peel-off masks, and those with natural ingredients for purposes like skin brightening, nourishment, and cleansing, is on the rise. This heightened demand is attributed to factors such as environmental pollution, hectic lifestyles, changing weather conditions, and increased disposable income.

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. For instance, in February 2021, G&M Cosmetics launched baby care and vegan beauty products. With the acquisition of P'URE Papayacare skincare, the company entered the vegan beauty space. Since then, the brand has grown to include 15 vegan-approved and certified products. These factors will drive demand for personal care products in the U.S, which will drive demand for the personal care contract manufacturing market as the personal care contract manufacturers provide them with high-quality products at a lesser cost and lesser time.

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

• The global aroma chemicals market size was valued at USD 5.65 billion in 2023 and is expected to expand at a CAGR of 4.8% from 2024 to 2030. 

• The Europe personal care contract manufacturing market size was estimated at USD 4.4 billion in 2023 and is projected to grow at a CAGR of 7.3% from 2024 to 2030.

Personal Care Contract Manufacturing Market Segmentation

Grand View Research has segmented the personal care contract manufacturing market report based on services, product, product form and region.

Services Outlook (Revenue, USD Billion; 2018 - 2030)

• Manufacturing