Personal Care Contract Manufacturing Market Size, Share, Growth, Trends, and Global Industry Analysis: By Service (Personal care contract manufacturing, Custom formulation and R&D, Packaging and Others) and By Region  

Personal Care Contract Manufacturing Market size was valued at US$ 19.96 billion in 2023 and is poised to grow at a CAGR of 6.3% over the forecast period 2024 to 2030. Rapidly expanding personal care industry across the globe, increasing demand for hair and skin care products, advanced beauty treatments and marketing strategies by manufacturers and rising disposable income of consumers are some key factors fostering the market growth. Increasing demand for organic products owing to harmful effects of chemical-based products is other factor contributing for the market growth. Huge spending on R&D and promotional activities provides huge growth opportunity for the market.

However, In-house manufacturing of cosmetics by private firms is hampering the market growth. Contract manufacture of personal care products is expected to grow as companies move their focus away from in-house production and toward R&D and other promotional efforts. Increased knowledge of the benefits of localising contract manufacturing, which reduces lead time, is a major factor influencing the fast-moving of personal care goods, hence favourably boosting market growth. Additionally, rising profitability for formulator companies as a result of lower logistical costs associated with contract manufacturing are projected to supplement service demand. Increasing demand for organic anti-aging products is likely to enhance product demand over the forecast period, owing to factors such as climate changes, stressed lifestyles, and busy work schedules. New manufacturers have entered the market as a result of rising consumer concerns about the authenticity of organic personal care products, which is projected to enhance demand for personal care contract manufacturing over the forecast period.