Personal Care Contract Manufacturing Market Worth $29.2 Billion By 2027
The global personal care contract manufacturing market size is expected to reach USD 29.2 billion by 2027, registering a CAGR of 6.1% over the forecast period, according to a new report by Grand View Research, Inc. Rising demand for organic products due to increased awareness of harmful effects of chemical-based products is likely to boost the market growth.
Increasing disposable income coupled with rising consumer awareness on personal hygiene, is expected to drive the market. Furthermore, increasing demand for natural and organic products on account of rising concerns regarding the long-term impact of chemicals on human health is expected to augment the product demand over the projected period.
The skincare products are manufactured for several skin conditions and skin types owing to which, manufacturers tend to provide a wider product portfolio based on consumer’s personal preference. Thus, increasing demand for skincare products, especially from the millennials, is likely to drive the market.
Major players in the market are continuously investing in R&D projects to enhance the formulation capabilities to gain a competitive edge over other players. Widespread distribution channels benefit these significant players in catering to the global market and provide optimum quality services to its customers.
Further key findings from the report suggest:
- The demand for fragrances and deodorants in the manufacturing service segment is estimated to reach USD 3.6 billion by 2027, owing to increasing demand for premium products and rising consumer preference for spray-on antiperspirants
- The packaging service segment accounted for 8.4% of the global revenue in 2019, on account of its ability to increase aesthetic value of the product, thereby influencing customer’s purchasing decision significantly
- Germany is estimated to register a CAGR of 6.0% in terms of revenue from 2020 to 2027, on account of increasing demand for products such as lip-gloss and nail paints
- Asia Pacific is expected to reach USD 8.7 billion by 2027, owing to the presence of low-price high-quality packaging coupled with logistics, distribution, and sales provided by contract manufacturers
- Market players focusing on regional expansion and contracts in the high demand countries of Asia Pacific and North America to obtain a competitive edge over its competitors
- Some of the key players in the personal care contract manufacturing market are McBride PLC; Albea Beauty Holdings S.A.; Colep Portugal, S.A.; Vi-Jon, Inc.; and Formula Corp.