U.S. Personal Care Contract Manufacturing Market Size, Share & Trends Analysis Report By Service (Manufacturing, Custom Formulation And R&D, Packaging),- Industry Analysis, Size, Share, Growth, Trends, and Forecast 2024-2033

U.S. Personal Care Contract Manufacturing Market Size and Research

The U.S. personal care contract manufacturing market size was exhibited at USD 3.85 billion in 2023 and is projected to hit around USD 8.24 billion by 2033, growing at a CAGR of 7.9% during the forecast period 2024 to 2033.

Increasing demand for advanced beauty treatments and skin care products is driving the market. In addition, with major personal care companies channeling resources toward R&D and marketing initiatives, the outsourcing of production tasks such as manufacturing and packaging through contract manufacturers is expected to rise over the forecast period. The rising demand for skincare products, mainly from millennials, to delay signs of aging is expected to propel the personal care contract manufacturing market growth in the U.S.

Report Scope of U.S. Personal Care Contract Manufacturing Market

Personal care products are further divided into personal hygiene and cosmetic products. Personal hygiene products are the necessary items, while cosmetics are luxury goods solely used for beautification purposes. The introduction of new product formats and gender-specific products is expected to drive the demand for personal care products. Increasing use of hair sprays, styling mousses, and deodorants by male consumers, in addition to the heightened demand for lip colors, lip gloss, and other cosmetic products from female consumers, is expected to augment the market growth.

The high degree of competitiveness present in the personal care industry has resulted in encouraging companies to adopt strategies that are expected to aid them in gaining an increased market share by tapping new markets and increasing their penetration in the present market. This has resulted in companies employing their resources for R&D and promotional activities. Key market players are increasingly looking toward product innovation and new product development to manufacture user-friendly products to increase their market share. These factors are contributing to the development of the market.

The strong driver in this market is the consumer’s perception of organic products. Traditional cosmetics usually contain a high amount of petroleum-based compounds, as well as phthalates, oxybenzone, and parabens. Organic-based compositions are extracts of plants, products from microorganisms, and substances derived from these sources. The natural and organic cosmetic market is undergoing a shift due to changing consumer needs and perspectives.

Rising awareness about the harmful effects of petroleum-based ingredients and synthetic ingredients in personal care products is anticipated to boost the demand for natural and organic products. As a result, we can observe a trend toward natural and organic products and the ingredients used in cosmetic products. Hence the rise in demand for natural and organic cosmetics is considered an important market opportunity.

U.S. Personal Care Contract Manufacturing Market By Service Insights

Manufacturing segment dominated the market and accounted for a revenue share of 89.0% in 2023 and is expected to register the fastest CAGR during the forecast period. Manufacturing refers to third-party production of personal care products outsourced by OEMs such as P&G, Unilever, or any other company to the contract manufacturer. It also refers to products manufactured by the contractor under the label or brand of another firm.

The market is witnessing a shift toward clean and sustainable beauty, with personal care contract manufacturers incorporating eco-friendly practices, cruelty-free testing, and green packaging solutions. Furthermore, brands and consumers are increasingly seeking personalized products. Personal care contract manufacturers are adapting to this trend by offering customizable formulations and bespoke packaging. These aforementioned factors are anticipated to augment the demand for the manufacturing service segment in the coming years.

U.S. Personal Care Contract Manufacturing Market Recent Developments

• In August 2023, Eco Lips broadened its range of organic lip care products by introducing the first-ever OTC-certified organic medicated lip balm. This innovative product is designed to provide soothing relief and protection for painful fever blisters and cold sores. The inclusion strengthens confidence in Eco Lip's offerings as well as addresses consumer demand in this category.
  
  
• In April 2021, Eco Lips acquired Simply Soothing to introduce Bug Soother insect repellent to the market. This strategic acquisition was aimed at expediting the expansion of Bug Soother, a well-regarded natural bug repellent widely acknowledged by families across various states of the U.S.
  
  
• In January 2021, Bright International LLC acquired Bocchi Laboratories. By combining their respective strengths, Bright International LLC and Bocchi Laboratories are poised to create one of the most diverse and comprehensive full-service beauty & personal care platforms in the North American market. This strategic move expands the range of products and services offered by the combined entity as well as enhances its overall competitiveness and market positioning.

Some of the prominent players in the U.S. personal care contract manufacturing market include:

• NuWorld
• Biogenesis
• Bright International
• Fareva
• Intercos S.p.A.
• 220 Laboratories
• C-Care
• Accupack Midwest, Inc.
• Eco Lips, Inc.
• Verla International, Ltd

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the U.S. personal care contract manufacturing market

Service

• Manufacturing

• • Skin Care
  • Hair Care
  • Make-up & Color Cosmetics
  • Fragrances & deodorants
  • Others

• Custom Formulation and R&D

• • Skin Care
  • Hair Care
  • Make-up & Color Cosmetics
  • Fragrances & deodorants
  • Others

• Packaging

• • Skin Care
  • Hair Care
  • Make-up & Color Cosmetics
  • Fragrances & deodorants
  • Others