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The Personal Care Contract Manufacturing (PCCM) Market size is estimated to grow by USD 8.1 billion between 2022 and 2027 accelerating at a CAGR of 7.36%. The growth of the personal care contract manufacturing market share depends on several factors such as increasing awareness amongst consumers about personal hygiene, rising demand for flexible and innovative packaging, and growth and expansion of the cosmetic sector.
Although factors such as high investment expenditures and poor returns may negatively impact the market, current personal care contract manufacturing (PCCM) market opportunities such as increased online penetration, premiumization, and strategic alliance made by vendors for product innovations will ultimately boost the growth of the market.
This personal care contract manufacturing (PCCM) market research report extensively covers market segmentation by product type (skin care, hair care, make-up and cosmetics, and others), service (manufacturing, packaging, and custom formulation), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Global personal care contract manufacturing entails outsourcing a portion of the production process, such as making physical products or packaging operations. The technique allows cosmetic and personal care companies to eliminate disadvantages such as costly in-house production and manufacturing facility operations.
The personal care contract manufacturing (PCCM) 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.
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Increasing awareness amongst consumers about personal hygiene is the key factor driving the personal care contract manufacturing 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 products, 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 the global personal care contract manufacturing 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 their products 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 products 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 products, 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 the personal care contract manufacturing 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.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the personal care contract manufacturing (PCCM) 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 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 5.93 billion in 2017 and continued to grow by 2021. 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 products earlier, thereby contributing to the growth of the personal care contract manufacturing (PCCM) 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 products 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 personal care contract manufacturing (PCCM) 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 products by contractors. The demand for hair care products 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 personal care contract manufacturing (PCCM) market during the forecast period.
APAC is estimated to contribute 37% to the growth by 2027. 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 products 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 products is also growing, making it a lucrative and cost-effective solution. Moreover, there is a growing awareness of cosmetics products 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 personal care contract manufacturing (PCCM) market during the forecast period.
COVID-19 caused unprecedented changes in consumption patterns, which have had a direct impact on the market. However, industry participants have been quick to capitalize on the digitalization wave through a variety of strategies, including organizing social media live streams and implementing virtual product try-on. Increased collaboration between brands and retailers to produce interactive "live entertainment" also contributed to the increase in online shopping traffic. The shift towards digital retailing and reconstruction of the offline shopping experience, to factor in greater hygiene awareness measures for staff and consumers, are examples of changes set to become permanent in the immediate future. Therefore, the personal care contract manufacturing market will grow at a high rate during the forecast period.
The personal care contract manufacturing market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Personal Care Contract Manufacturing Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.36% |
Market growth 2023-2027 |
USD 8.1 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.21 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 37% |
Key countries |
US, Canada, China, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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., KIK Custom Products Inc., KDC One, Kolmar Korea, McBride Plc, Nutrix International LLC, RCP Ranstadt GmbH, Sarvotham Care Ltd., Tropical Products, UNIVERSAL PACKAGING SYSTEMS Inc., Vi Jon LLC, VVF Group, and World Wide Packaging LLC |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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