The global personal care contract manufacturing market was valued at USD 21.2 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2030. A key factor driving this growth is the shift among major personal care brands from in-house production to a greater focus on research & development and marketing activities, thereby increasing reliance on contract manufacturing services. The personal care industry experienced a notable downturn in the first half of 2020 due to the COVID-19 pandemic, driven by reduced discretionary spending, rising unemployment, lockdown measures, and changes in consumer behavior. Nevertheless, the sector is recovering thanks to increased access to e-commerce platforms, widespread vaccination campaigns, economic stimulus measures, and improving consumer sentiment.
In the United States, the market for personal care contract manufacturing is expected to expand, driven by growing consumer demand for natural, organic, cruelty-free, and animal-free tested cosmetic products. The rising preference for innovative and sustainable packaging is also supporting this growth. Consumers in the U.S., both men and women, are particularly drawn to visually appealing and distinctive packaging, prompting manufacturers to invest in creative packaging solutions.
In recent years, there has been a noticeable increase in the use of cosmetic products among U.S. men as part of their daily routines, contributing to the broader growth of the cosmetics industry. This trend, along with continuous advancements in sustainable packaging and the increasing popularity of natural and organic products, is expected to further boost demand for personal care contract manufacturing in the U.S. throughout the forecast period.
The rising interest in skincare products, especially among millennials looking to prevent early signs of aging, is another significant growth driver in the U.S. market. Additionally, growing investment in R&D focused on specialty products with organic ingredients is fostering innovation. There is a rising demand for a variety of skincare masks—including clay, peel-off, and natural ingredient-based formulations—for purposes such as skin brightening, nourishment, and cleansing. This is largely attributed to factors like pollution, busy lifestyles, climate changes, and higher disposable incomes.
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Regional Insights
- Asia Pacific held the largest share of the global market in 2023, accounting for 37.8% of total revenue. The region’s growth is propelled by increased demand for personal care items like deodorants and shaving creams, particularly among younger consumers in emerging economies such as India and China.
- Europe is expected to record significant growth over the forecast period. Countries including Germany, Italy, France, Spain, and the UK are experiencing growing consumer interest in grooming and personal care, driven by a desire to foster positive self-image, which is fueling product demand.
- North America benefits from advanced technological infrastructure and robust R&D capabilities, which support high-precision, large-scale manufacturing of personal care products. Custom formulation demand is especially strong in this region, thanks to the presence of innovation centers and contract manufacturers offering integrated solutions.
- In the Middle East, factors such as population growth, rapid urbanization, and ongoing industrial development are expected to stimulate the personal care sector. Supportive government policies aimed at boosting industrial output are likely to encourage partnerships between personal care companies and local manufacturers for contract production, creating new opportunities during the forecast period.
Leading Companies in the Personal Care Contract Manufacturing Market:
- Albea
- Accupac
- Knowlton Development Corporation
- Vi-Jon
- MAESA
- HatchBeauty Brands, LLC
- Fareva
- Colep
- Intercos S.p.A
- Oxygen Development
- Voyant Beauty
- Mansfield-King
- NuWorld
- Biogenesis
- Bright International
- Eco Lips
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