A new report released by Research and Markets—”Personal Care Contract Manufacturing Market Size, Share & Trends Analysis Report by Service (Manufacturing, Custom Formulation and R&D, Packaging), By Region (APAC, North America, Europe), And Segment Forecasts, 2019 - 2025”—predicts that the global personal care contract manufacturing market size is anticipated to reach $26.06 billion by 2025 registering a CAGR of 6.1%.
The report attributes the expected growth to rising demand for organic products. Based on service, the market is segmented into manufacturing, custom formulation, and packaging. Manufacturing led the global market in 2018.
Demand for custom formulation and R&D is expected to register a CAGR of 4.8% from 2019 to 2025. The manufacturing segment is further divided into skincare, hair care, makeup & color cosmetics, fragrances & deodorants, and others. The skincare segment is expected to dominate the market and is also projected to expand at the fastest CAGR of 6.7% over the forecast period. Rising demand for hair care across the globe is expected to have a positive impact on industry growth.
According to the data, major brands including P&G and Unilever have started in-house manufacturing of innovative products to protect their intellectual property and outsource mass manufacturing to the contract manufacturers, which is also expected to support market growth in the coming years.