USD 21.2 Billion
Report ID:
SQMIG30L2263 |
Region:
Global |
Published Date: January, 2025
Pages:
189
|Tables:
93
|Figures:
73
Global Personal Care Contract Manufacturing Market size was valued at USD 21.2 Billion in 2023 and is poised to grow from USD 23.0 Billion in 2024 to USD 44.18 Billion by 2032, growing at a CAGR of 8.5% in the forecast period (2025-2032).
The personal care contract manufacturing market is experiencing significant growth because of the increasing demand for customized products in the personal care industry. Today consumers want personal care items that fulfil their specific preferences and needs. Contract manufacturers are meeting this demand by providing tailored solutions that align with individual customer requirements. For addressing varied consumer requirements, these manufacturers offer a vast range of services, such as product design, formulation, packaging, and labeling. The personal care contract manufacturing market growth is also increasing due to the rising focus on research and development. Contract manufacturers are making considerable investments in R&D initiatives for developing innovative products that can meet the evolving demands of consumers.
Contract manufacturers are also collaborating with various stakeholders in the personal care industry, like raw material suppliers, packaging manufacturers, and retailers, to provide better and efficient products to their customers. The practice of outsourcing manufacturing processes to contract manufacturers is also contributing to market expansion. Businesses are increasingly turning to contract manufacturing for minimizing expanses and improving operational efficiency. By outsourcing manufacturing to experts, companies can emphasis on their core competencies, like marketing and distribution. A significant driver of market growth is the availability of flexible manufacturing solutions from contract manufacturers, enabling businesses to adjust production levels in response to demand fluctuations.
Market snapshot - (2025-2032)
Global Market Size
USD 21.2 Billion
Largest Segment
Skincare
Fastest Growth
Haircare
Growth Rate
8.5% CAGR
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The global personal care contract manufacturing market is segmented into application, product type, service type, and region. Based on application, the market is segmented into skincare, haircare, make up & color cosmetic, and fragrance & deodorant. Based on product type, the market is segmented into liquid, cream and lotions, gel, oil, and others. Based on service type, the market is segmented into manufacturing, custom formulation and R&D, and packaging. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.
Based on application, the skincare segment is dominating with the largest personal care contract manufacturing market share. Specialized personal care contract manufacturers focusing on skincare play a crucial role in crafting an extensive array of products tailored for the improvement and maintenance of skin health. This encompasses diverse formulations such as cleansers, moisturizers, serums, masks, and specialized treatment items. For example, McBride is a private label and contract manufacturer of personal care and household products. It offers a wide range of skin care products, such as body lotions, creams, and facial skincare solutions. Furthermore, increasing investment in R&D on producing specialty formulations involving organic ingredients is also boosting the global personal care contract manufacturing market growth.
The haircare segment is expected to witness significant demand growth during the forecast period. Hair care is growing rapidly in the global personal care contract manufacturing market because it consists of a wide range of products tailored to meet varied consumer needs related to hair health, styling, and upkeep. Excessive pollution levels and temperature changes have resulted in the high usage of haircare products. The growing trend of personal grooming and high-end lifestyle has substantially fueled the consumption of hair care products even among men. For example, KIK Custom Products, a contract manufacturer specializing in a wide range of hair care items is collaborating with various brands. KIK Custom Products is engaged in formulating and producing various types of hair coloring products, which range from conventional hair dyes to specialized color treatment solutions. This highlights the focus of the market on catering to the increasing demands of consumers through strategic partnerships with contract manufacturers like KIK Custom Products.
Based on product form, the liquid segment is dominating the personal care contract manufacturing market. The convenience of using liquid formulations is one of the major factors boosting the segment growth. The growing demand for face wash, serums, exfoliators, and scrubs worldwide is also positively influencing the growth of the liquid segment. The rising usage of shampoo, body wash, and more such personal care products among men and women is boosting expansion of the liquid segment. Customized or personalized personal care products are gaining traction, and the growth momentum is expected to continue. Additionally, liquids often contain a higher percentage of active ingredients, making them more potent and effective. The packaging and distribution of liquid products are also more convenient and cost-effective compared to solid or semi-solid forms.
As per personal care contract manufacturing market analysis, the oil segment is expected to be the fastest growing segment. Oils have gained traction in recent years, especially in the natural and organic personal care segment, owing to their nourishing and rejuvenating properties. Oils possess several characteristics, such as moisturizing, antimicrobial, and anti-inflammatory, which are beneficial to consumers, leading to their high demand. Moreover, the increasing production of organic oil products will positively influence the segment growth. Manufacturers are also incorporating new properties in the oil-based products to attract more customers such as improved rheology, quick absorption, and non-greasy, which is positively impacting the growth of the segment. The other factors that impact the growth are associated with the rising disposable income of consumers, changing lifestyle choices, and increased awareness regarding appearance.
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Asia Pacific is dominating with the largest personal care contract manufacturing market share. The increased demand for items like deodorants and shaving cream among the younger population in emerging economies like India and China is projected to significantly impact market growth in the Asia Pacific region. Furthermore, with the rapid growth of aging population the usage of personal care products is constantly increasing the demand for aerosol valves in anti-aging cosmetics. Furthermore, in recent times, many global players in the personal care sector are moving their manufacturing bases to China and India for reducing their production prices making them affordable, which is also increasing the growth of the market. The expansion of contract manufacturing in this region has also been made possible by the region's governments' initiatives to provide technologically superior infrastructure for manufacturing facilities and low labor costs. Additionally, the contract manufacturers offer additional services, including effective personal care product distribution and sales, which expands their market.
The region of Europe is anticipated to witness the fastest growth during the personal care contract manufacturing market forecast period. Growing consumer preference for grooming to improve their self-esteem is fueling the demand for personal care products, leading to market growth. This increasing preference for personal care contract manufacturing market growth is especially witnessed in countries like Germany, Italy, France, Spain, and the U.K. In the last few years, Europe has led the global market for personal care contract manufacturing the demand for personal care products are constantly increasing with consumer awareness of well-being, healthy living, and high positive self-esteem. The market is anticipated to benefit from technological developments in the skincare industry and the creation and release of novel products. The demand for personal care contract manufacturers is expected to increase over the forecast period due to significant cosmetics manufacturers like L'Oréal Deutschland GmbH and Procter & Gamble Germany GmbH in the region.
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Rapid Expansion of Cosmetic Sector
Rising Popularity of Customized Personal Care Product
Increasing Complexity in Supply Chain
High Investment Expenses
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The competitive landscape of the personal care contract manufacturing industry is extremely fragmented. This is because the market has a mix of large multinational companies and smaller, specialized players. The prominent contract manufacturers are focusing on expanding their service offerings to include end-to-end solutions, from formulation and product development to packaging and distribution. This is enabling brands to streamline their operations and reduce time-to-market. Furthermore, many companies are investing in sustainable manufacturing processes and eco-friendly packaging solutions to meet the growing demand for green beauty products. The key strategies used by top companies consist of strategic partnerships with personal care brands to co-develop innovative products, along with mergers and acquisitions to increase their global footprint. Manufacturers are also improving their digital capabilities for providing more transparency and traceability in the supply chain, which is becoming increasingly important to both brands and consumers.
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the personal care contract manufacturing (PCCM) is a vital sector for the production of different cosmetic items, such as skincare products, hair care products, and personal hygiene items. The personal care contract manufacturing industry is growing because of the rising demand for cruelty-free products, vegan beauty products, and organic ingredients. Many e-commerce platforms are also playing a vital role in the growth of this industry, allowing easy access to consumers. The market is boosted by different factors like signs of aging, environmental pollution, hectic lifestyles, and the increasing popularity of specialty products. The demand for skincare masks, plant-based extracts, and organic components is also increasing. The PCCM companies are focusing on product innovation and new product development to cater to evolving consumer preferences, which is positively influencing market growth.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 21.2 Billion |
Market size value in 2032 | USD 44.18 Billion |
Growth Rate | 8.5% |
Base year | 2024 |
Forecast period | (2025-2032) |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Personal Care Contract Manufacturing Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Personal Care Contract Manufacturing Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Personal Care Contract Manufacturing Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Personal Care Contract Manufacturing Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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