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    Breaking News

    Contract Manufacturing To Climb 6%

    Outsourcing continues to make gains, says Grand View Research.

    Contract Manufacturing To Climb 6%
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    03.22.19
    Driven by all things indie, The global personal care contract manufacturing market size topped $17 billion in 2018 and is projected to 6.1% a year through 2025, according to Grand View Resarch. Rising demand for hair and skin care products is expected to propel the market growth over the forecast period. Demand for organic products, owing to rising awareness regarding the harmful effects of chemical products, is estimated to fuel the growth further.


    Skin care was the largest segment in 2018 and is estimated to witness the highest CAGR of 6.7% from 2019 to 2025. In addition, growing demand for organic and natural products owing to increasing concerns over long-term impact of chemicals is projected to propel segment growth over the forecast period.


    Hair care is expected to be the second-largest segment during the estimated period. The demand for hair care products was valued at USD 3.20 billion in 2018 and expected to grow significantly over the forecast years.Hair care segment further includes several products, such as shampoo, spray, hair coloring, and conditioners, and hair styling products. Moreover, the demand for grooming products for men is witnessing steady growth, which is estimated to drive the market growth.


    The make-up and color cosmetics segment is also expected to witness a significant growth on account of increasing product demand. The major brands including Unilever and P&G are outsourcing their mass manufactured products and are focusing on innovation, which is anticipated to help boost manufacturing of these products through contractors.
     

    Advent of innovative products, such as styling mousses, antiperspirants, lipglosses, and lip colors, is projected to drive market further. Rapidly expanding personal care industry across the globe is also expected to propel the demand for contract manufacturing in the coming years. Companies are enhancing their production capabilities to cater to the rising demand for personal care products, which, in turn, is likely to boost adoption of contract manufacturing over the next few years.


    Key industry participants include McBride PLC; Albea Beauty Holdings S.A. (Albea); Colep Portugal, S.A.; S&J International Enterprises Public Company Ltd.; Vi-Jon, Inc.; Formula Corp.; McBride PLC; VVF India Ltd.; Alkos Group; Beautech Industries Ltd.; KIK Custom Products, Inc.; HCP Packaging; and Knowlton Development Corporation (KDC). Major companies in the market are highly competitive and compete on the basis of product prices and regional expansion. Companies invest heavy amounts in R&D to enhance the production capacities to gain a competitive edge over others.

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