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The Personal Care Contract Manufacturing Market size is estimated to grow by USD 7.8 billion between 2023 and 2028, accelerating at a CAGR of 6.75%. The market experiences growth propelled by heightened consumer awareness regarding personal hygiene and the surge in demand for flexible and innovative packaging, particularly driven by the expanding cosmetic sector. However, challenges emerge due to high investment expenditures with inadequate returns, compounded by the shorter shelf life and non-recyclability of certain materials. Additionally, concerns regarding allergies triggered by specific chemicals necessitate product recalls, further impeding market growth. Despite these obstacles, there's a growing emphasis on sustainable practices and safer formulations to address environmental and health concerns. The market's trajectory hinges on addressing these challenges effectively while capitalizing on the increasing consumer inclination towards hygiene and the cosmetic industry's continuous expansion.
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The skin care segment will contribute a major share of the market, as the increasing penetration of multifunctional solutions, such as moisturizers, face creams, body wash, and oils, are expanding the market for skincare products. The segment showed a gradual increase in market share with USD 6.2 billion in 2018. Owing to increased disposable income, aggressive marketing, and the introduction of novel products by manufacturers, the urban customer preference for various skincare products has increased. As people become more aware of skin diseases and treatments, they begin to use skincare earlier, thereby contributing to the growth of the market industry.
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In recent times products like anti-aging creams, face creams, serums, eye creams, and other anti-aging treatments are in high demand. Pollution and hard water drive the demand for these products. Therefore, customers are more likely to invest in skincare treatments when they are younger. They invest a great deal of time and money in anti-aging products. Furthermore, beauty salons are now ubiquitous in most countries, such as the USA, India, and China. As shopping malls in major metropolitan areas stock beauty and skincare of major mainstream personal care brands, these nations offer a massive market for contract manufacturing of personal products. Therefore, all the discussed factors will drive the growth of the global market during the forecast period.
The manufacturing services segment led the growth of the industry, owing to increased demand for its products in both developed and developing countries. In 2017 manufacturing services segment was valued at 13.62 billion. Major brands such as Cosmetic Group USA Inc. and HK Kolmar Korea outsource their bulk products and focus on manufacturing new products that are expected to boost the production of these by contractors. The demand for hair care is also expected to increase as the aging population places more emphasis on personal care worldwide. Additionally, according to primary sources, more than 50% of male consumers worldwide consider their looks and appearance to be important, and more than 25% are constantly improving their appearance. Hence, all these factors drive the growth of the global market during the forecast period.
APAC is estimated to contribute 36% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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The Asia-Pacific region, including countries like China, India, and Vietnam, has a growing millennial population that presents substantial market opportunities for industry players. The younger generations in emerging nations such as India and China have an increasing demand for personal care like deodorants and shaving cream, which is expected to contribute significantly to the market's expansion. As consumers experience more hair-related issues, the demand for hair care is also growing, making it a lucrative and cost-effective solution. Moreover, there is a growing awareness of cosmetics such as face make-up, hairstyling, and coloring products, which is expected to further drive market growth. The demand for multifunctional products is also increasing as cost-conscious consumers look for products that provide hydration and skin protection, leading to innovation in the industry. Avon Products, Inc., Beiersdorf AG, L'Oreal Group, Procter and Gamble, The Estee Lauder Companies, Inc., and Unilever are some of the leading companies in the Asia-Pacific beauty and personal care products market. These factors are expected to drive the growth of the regional market during the forecast period.
Personal Care Contract Manufacturing (PCCM) Market: Overview The Personal Care Contract Manufacturing (PCCM) market is a significant sector in the beauty and personal care industry, focusing on the production of cosmetic items for various brands. The market caters to the demand for a wide range of products, including skincare, hair care, and specialty items. Key Trends: 1. Cruelty-free products and vegan beauty items are gaining popularity, driving the demand for PCCM services. 2. E-commerce platforms have significantly influenced the market, enabling brands to reach a broader audience. 3. The increasing focus on organic ingredients, plant-based extracts, and compliance standards is a key trend. 4. Skincare masks, serums, and other signs-of-aging solutions are in high demand due to environmental pollution and hectic lifestyles. Product Categories: 1. Skincare products: Facial cleansers, toners, moisturizers, sunscreens, and masks. 2. Hair care products: Shampoos, conditioners, and hair masks. 3. Body care products: Body washes, lotions, and soaps. 4. Specialty products: Fragrances, color cosmetics, and oral care. Major Players: 1. G&M Cosmetics 2. KIK Custom Products 3. Liquid product form Market Drivers: 1. Millennials' preference for personalized and eco-friendly products. 2. Fiscal stimulus packages and vaccination drives boosting consumer spending. 3. The increasing popularity of organic ingredients and specialty products. Challenges: 1. Ensuring compliance with various regulations and certifications. 2. Meeting the high demand for customized and innovative products. 3. Managing the supply chain and logistics efficiently.
Increasing awareness amongst consumers about personal hygiene is the key factor driving the market growth. A high standard of personal cleanliness can enhance one's sense of self-worth, self-assurance, and social, emotional, and psychological well-being. The primary force behind the growth of such products is the rising demand for feminine hygiene products. Additionally, government agencies have recently begun adopting initiatives and programs that emphasize the importance of using personal hygiene, particularly in areas with underdeveloped economies and social systems.
Furthermore, organizations like UNICEF advocate for increased funding for initiatives related to hygiene around the globe. This entails developing political leadership for personal cleanliness at all levels and recruiting well-known proponents and political leaders. Moreover, through innovative advertising strategies, awareness will also rise, further encouraging the use of hygiene goods. Therefore, such factors will boost the PCCM market growth during the forecast period.
Influence through social media and blogging will fuel global market growth. Social media is becoming a vital platform for personal care contract manufacturers to communicate and engage with customers. Brands have the opportunity to showcase and promote on social media platforms like Instagram, Facebook, and YouTube, as well as boost revenue from viral and trending posts. The importance of social media in helping consumers discover the trendiest personal care that meet their needs is changing consumer preferences.
After their products were pushed by influencers and gained popularity among the younger generation using these platforms, personal care contract makers experienced an increase in sales. Hence, social media trends affect customers' buying patterns and help businesses increase their visibility in the market for their products. Thus, the increasing influence of social media and blogging will drive the demand for personal care, which, in turn, will increase the growth of the global PCCM market during the forecast period.
High investment expenditures and poor returns are major challenges impeding market growth. Factors like high manufacturing and marketing costs for quality items and intense competition among manufacturers for specialized product categories are some of the major obstacles hindering the growth of the market. The ready availability of inferior, low-cost replacement parts is another factor that can affect a company's revenue generation. Supplier profit margins in the global PCCM market are very low as a large number of contract manufacturers compete with low-profit margins to offer favorable terms to various formulators.
Low-quality contract manufacturers masquerading as high quality, loss of control over the manufacturing process, and the threat of loss of intellectual property rights are projected to hamper the market growth. In addition, the high investment expenditures and poor returns ramp up the risk level for vendors in the global PCCM market, which is a substantial impediment to the expansion of the global market during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
KIK Custom Products Inc. - The company primarily focuses on manufacturing detergent and personal care products such as hospitality, household, pool, auto, and personal care products. The key offerings of the company include a wide range of products such as shampoos, conditioners, dry shampoos, color enhancers, and gels.
KDC One - The company primarily focuses on developing and manufacturing deodorants, body oils, shaving creams, shave butter, hair gels, home fragrance spray, and dish liquids products. The key offerings of the company include household cleaning products.
We also have detailed analyses of the market’s competitive landscape and offer information on 15 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
Personal Care Contract Manufacturing (PCCM) is a significant sector in the production of various cosmetic items, including skincare products, hair care products, and personal hygiene items. The market for PCCM has gained momentum due to the increasing demand for cruelty-free products, vegan beauty products, and organic ingredients. E-commerce platforms have played a crucial role in the growth of this industry, enabling easy access to consumers. The market is driven by various factors such as 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 on the rise. PCCM companies are focusing on product innovation and new product development to cater to evolving consumer preferences. Fiscal stimulus packages and vaccination drives have also contributed to the growth of the market. The market comprises various low-margin business segments, such as shampoos, conditioners, body washes, lotions, serums, creams, toothpaste, shaving cream, moisturizers, cosmetics, perfumes, and colognes. Both male and female consumers are increasingly turning to PCCM for their personal care needs. The market is highly competitive, with companies emphasizing advertising and branding to differentiate themselves. Overall, the PCCM market is expected to continue its growth trajectory in the coming years.
Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.75% |
Market growth 2024-2028 |
USD 7.8 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.44 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 36% |
Key countries |
US, China, India, Germany, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AIG Technologies, Albea Services SAS, ANJAC Health and Beauty, Beautech, Cosmetic Group USA Inc., CoValence laboratories, FAREVA SA, Formula Corp., KDC One, KIK Custom Products Inc., Kolmar Korea, McBride Plc, Nutrix International LLC, RCP Ranstadt GmbH, Sarvotham Care Ltd., Tropical Products, UNIVERSAL PACKAGING SYSTEMS Inc., Vi Jon LLC, VVF Ltd., and World Wide Packaging LLC |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecasting period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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