PUBLISHER: The Business Research Company | PRODUCT CODE: 1664597
PUBLISHER: The Business Research Company | PRODUCT CODE: 1664597
Personal care contract manufacturing involves a business arrangement where two companies collaborate to produce components or goods for personal care products within a specified period.
The main product types encompassed in personal care contract manufacturing include skincare, hair care, makeup and cosmetics, and other product variations. Skincare products refer to items used on the skin to prevent issues such as acne, dark spots, and early signs of aging. The services provided in personal care contract manufacturing include research and development, formulation, manufacturing, packaging, and related services. The formulations encompass liquids, creams, lotions, oils, and gels.
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The personal care contract manufacturing market size has grown strongly in recent years. It will grow from $22.86 billion in 2024 to $24.91 billion in 2025 at a compound annual growth rate (CAGR) of 8.9%. The growth in the historic period can be attributed to outsourcing trends in the beauty industry, cost efficiency and economies of scale, focus on core competencies, market expansion and globalization.
The personal care contract manufacturing market size is expected to see strong growth in the next few years. It will grow to $35.9 billion in 2029 at a compound annual growth rate (CAGR) of 9.6%. The growth in the forecast period can be attributed to growing focus on clean beauty formulations, rise in demand for personalized beauty products, technological integration in manufacturing processes, expansion of online and direct-to-consumer channels, global market access and supply chain resilience. Major trends in the forecast period include wellness-oriented formulations, regulatory compliance and transparency emphasis, innovative packaging solutions, global market expansion strategies, men's grooming product demand.
The personal care contract manufacturing market is anticipated to experience growth, driven by the expanding cosmetic industry. The cosmetic industry involves the production and sale of products intended to enhance a person's aesthetic or physical appearance. The growth in this sector is facilitated by personal care contract manufacturing, which provides an outsourcing option for cosmetic production. As of January 2022, the cosmetics and healthcare market in the UK was rapidly expanding, surpassing many other retail sectors and reaching a valuation of $33.1 billion. This growth in the cosmetic industry serves as a driving force for the personal care contract manufacturing market.
The increasing demand for customization is anticipated to drive the growth of the personal care contract manufacturing market in the future. Customization involves tailoring products to meet the specific needs or preferences of individuals or groups. Personal care contract manufacturing (PCCM) serves as a valuable tool for brands looking to create personalized personal care products, allowing them to outsource production to specialized manufacturers that offer a wide range of customization options. For example, in November 2023, a press report by the Global Wellness Institution, a US-based organization, noted that the global wellness economy reached $5.6 trillion in 2022, nearly 14% higher than its size two years prior, with projections of an 8.6% average annual growth rate, leading to an expected $8.5 trillion by 2027. Thus, the rising demand for customization is propelling the personal care contract manufacturing market forward.
Product innovation stands out as a prominent trend in the personal care contract manufacturing market, with major companies focusing on developing innovative products to enhance their market position. In March 2022, Colgate-Palmolive Company launched Total Plaque Pro-Release toothpaste, utilizing Smart Foam Technology for continuous, day-and-night antibacterial defense against plaque bacteria. This innovation, featuring stannous fluoride, addresses oral hygiene needs effectively.
Innovations such as non-stop shops are gaining traction among major companies in the personal care contract manufacturing market, providing a competitive edge. Crafted, a UK-based mini contract manufacturing hub, introduced YourCrafted in September 2023, a platform enabling customers to create their personal care brand easily. With YourCrafted, customers can choose from a variety of tested personal care products, customize them with branding and packaging, and create their unique brand.
In August 2023, Mitsui & Co., Ltd., a Japan-based trading company, acquired Dermaceutical Laboratories Limited Liability Company for an undisclosed amount. This acquisition is intended to strengthen Mitsui & Co., Ltd.'s strategic position in key markets, diversify its portfolio, and harness synergies for growth. Dermaceutical Laboratories Limited Liability Company is a US-based manufacturer specializing in skincare products, pharmaceuticals, and cosmetic formulations.
Major companies operating in the personal care contract manufacturing market include VVF Limited, A.I.G. Technologies Inc., Sarvotham Care Limited, Nutrix International LLC, Formula Corporation, Mansfield-King LLC, Tropical Products Inc., Sensible Organics Inc., Apollo Health and Beauty Care Inc., McBride plc, KIK Consumer Products Inc., Fareva Group, Skinlys, Tokiwa Cosmetics Corporation, Wormser Corporation, Bradford Soap Works Inc., Albea SA, Colep Portugal SA, PLZ Aeroscience Corporation, Voyant Beauty Holdings LLC
Asia-Pacific was the largest region in the personal care contract manufacturing market in 2024. Europe is expected to be the fastest-growing region in the personal care contract manufacturing market report during the forecast period. The regions covered in the personal care contract manufacturing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the personal care contract manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The personal care contract manufacturing market consists of revenues earned by entities by providing personal care contract manufacturing services such as formulation development, product manufacturing and packaging. The market value includes the value of related goods sold by the service provider or included within the service offering. The Information technology market also includes sales of body care, oral care, sun care, and perfumes which are used in providing personal care contract manufacturing services. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Personal Care Contract Manufacturing Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on personal care contract manufacturing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for personal care contract manufacturing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The personal care contract manufacturing market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.