Personal Care Contract Manufacturing - Market Insights, Competitive Landscape, and Market Forecast - 2032

Personal Care Contract Manufacturing Market by Offering (Products [Tubes, Jars & Bottles, Spray, and Others] and Services), Formulation (Liquids, Powders, Aerosols, Creams, and Others), Application (Skin Care, Hair Care, and Others), and Geography (North America, Europe, Asia-Pacific, and Rest of the World) is expected to grow at a steady CAGR forecast till 2032 owing to the growing spending on personal care and cosmetic products and the increasing collaborations and partnerships among key players to develop innovative personal care products.

The personal care contract manufacturing market was valued at USD 22.71 billion in 2024, growing at a CAGR of 8.25% during the forecast period from 2025 to 2032 to reach USD 42.72 billion by 2032. The growing demand for personal care and cosmetic products is a key driver behind the rising need for personal care contract manufacturing. This surge is largely fueled by increasing per capita income, which has boosted consumer spending on beauty and personal care items. Additionally, rising government initiatives aimed at promoting the adoption of natural and organic products are further encouraging market growth. Moreover, increasing collaborations and partnerships among major industry players to develop innovative and cutting-edge personal care solutions are contributing to this upward trend. Together, these factors are expected to fuel robust and steady growth in the personal care contract manufacturing market throughout the forecast period from 2025 to 2032.

Personal Care Contract Manufacturing Market Dynamics:

According to data from the Netherlands Ministry of Foreign Affairs (2025), per capita spending on cosmetics in Europe reached EUR 169 in 2023, reflecting growing consumer investment in beauty and personal care products. Supporting this trend, the German Cosmetic, Toiletry, Perfumery and Detergent Association (IKW) reported a 7.0% increase in domestic sales of beauty care products in Germany in 2024, reaching EUR 16.9 billion. Notably, decorative cosmetics such as lipsticks, concealers, and mascaras recorded a 10.1% growth, while oral and dental care products saw a 9.2% increase in sales.

A similar trend is observed in Asia. According to the Government of China (2024), total retail sales of consumer goods, including hygiene and personal care products, reached 3.77 trillion yuan in July 2024, an increase of 2.7% year-over-year. This indicates sustained demand for personal and cosmetic products, particularly among middle-income and urban populations.

Rising consumer spending is fueling demand for diverse and innovative product offerings, pushing brands to collaborate with contract manufacturers. These partnerships enable scalable and cost-efficient production, faster time-to-market, and customized product development, driving the market growth.

This demand is further supported by growing disposable income levels globally. As reported by the UK's Office for National Statistics (2025), the mean disposable household income rose from GBP 32,400 in 2022 to GBP 35,200 in 2023. Similarly, data from the Australian Bureau of Statistics (2024) shows an increase in mean per capita disposable income from AUD 71,479 in 2022 to AUD 71,774 in 2023. Higher disposable incomes are enabling consumers to spend more on premium, organic, and specialized personal care products, particularly in skincare, haircare, and cosmetics.

To meet this evolving demand, key industry players are investing in advanced technologies that enhance the efficiency and sustainability of personal care contract manufacturing. For instance, in April 2024, Nouryon launched Structure® M3, a new biodegradable co-surfactant for personal care formulations. This innovation addresses the growing consumer preference for natural, mild ingredients while enhancing product performance across a range of applications.

However, the complications and other safety concerns, such as allergic reactions and irritation from beauty products, and the chances of contamination, among others, are some of the key constraints that may limit the growth of the personal care contract manufacturing market.

Personal Care Contract Manufacturing Market Segment Analysis:

Personal Care Contract Manufacturing Market by Offering (Products [Tubes, Jars & Bottles, Spray, and Others] and Services), Formulation (Liquids, Powders, Aerosols, Creams, and Others), Application (Skin Care, Hair Care, and Others), and Geography (North America, Europe, Asia-Pacific, and Rest of the World)

In the application segment of the personal care contract manufacturing market, the skin care category is estimated to account for the largest market share in 2024. This growth is primarily driven by rising consumer spending on skincare and the increasing demand for targeted, high-performance skincare products.

The expansion of this category is further fueled by a strong shift toward clean-label, vegan, and dermatologically safe formulations. Consumers are increasingly prioritizing products made with safe, transparent, and ethically sourced ingredients, prompting brands to turn to expert contract manufacturers who can meet stringent regulatory and formulation standards.

Moreover, the rapid pace of skincare trends such as skin cycling, probiotic skincare, and microbiome-friendly products requires brands to shorten their product development and launch timelines. Contract manufacturers enable this agility by offering ready-to-use infrastructure, advanced R&D laboratories, and scalable production capabilities.

Personal care contract manufacturing plays a pivotal role in the end-to-end development of skincare products by offering specialized expertise across formulation, production, and regulatory compliance. These manufacturers support custom formulation development by integrating key active ingredients such as hyaluronic acid, retinol, niacinamide, peptides, and ceramides, which are essential for addressing a wide range of skin concerns. They also incorporate trending components like adaptogens, fermented botanicals, and natural oils, enabling the creation of products tailored to specific skin types, concerns like acne, aging, and sensitivity, as well as varying regional climate needs. In addition to formulation, contract manufacturers ensure that skincare products meet complex ingredient and labeling regulations across global markets. This includes handling essential processes such as documentation, stability testing, microbial assessments, and safety evaluations, all of which are crucial to ensuring product efficacy, consumer safety, and market readiness.

An example of this industry shift is seen in October 2022, when Voyant Beauty launched Atelier by Voyant Beauty, a dedicated business unit designed to support fast-growing indie skincare brands through comprehensive contract manufacturing services. This initiative provides tailored solutions, including product formulation, small-batch production, and supply chain support, enabling emerging brands to scale quickly without compromising quality or compliance.

Thus, the factors mentioned above are likely to boost the market segment and thereby increase the overall market of personal care contract manufacturing across the globe.

North America is expected to dominate the overall personal care contract manufacturing market:

North America is projected to hold the largest share of the personal care contract manufacturing market in 2024, primarily due to rising consumer spending on personal care and cosmetic products, increasing disposable income, and growing demand for innovative and high-quality personal care solutions. Additionally, the region is witnessing a surge in collaborations and partnerships among key industry players aimed at developing advanced and diverse product offerings. These factors collectively establish North America as the leading region in the global personal care contract manufacturing market.

According to Statistique Canada (2023), Canadian households spent an average of $689 on personal care products in 2021, with notable spending across skincare, makeup, and fragrances. This rising consumer expenditure reflects a growing preference for diverse and innovative personal care offerings, prompting brands to partner with contract manufacturers for efficient, scalable production. Such collaborations enable faster product launches and customization without the need for significant upfront investment, thus accelerating market growth.

Additionally, as reported by the Federal Reserve Bank (2024), the annual personal disposable income in the United States increased from USD 20,546.8 in 2023 to USD 21,633.6 in 2024. Rising disposable income across North America empowers consumers to spend more on premium and specialized personal care products, particularly in skincare, haircare, and cosmetics is further fueling demand and encouraging brands to leverage contract manufacturing to expand and diversify their offerings. These factors are significantly driving the growth of the personal care contract manufacturing market in North America.

Moreover, key players are enhancing their service portfolios to meet evolving brand needs. For instance, in February 2024, Aptar Beauty launched Turnkey Solutions by Aptar™, an integrated service that combines advanced formulations, in-house lab capabilities, and a network of expert partners with Aptar’s proven filling and distribution expertise in delivering end-to-end support for personal care product development.

Therefore, the combination of a rising demand for personal care products with a rise in consumer spending on cosmetic products is expected to significantly propel the growth of the personal care contract manufacturing market in North America from 2025 to 2032.

Personal Care Contract Manufacturing Market Key Players:

Some of the key market players operating in the personal care contract manufacturing market include Albea Group, McBride, Colep Consumer Products, PLZ Corp., Voyant Beauty, Formula Corp., INTERCOS S.P.A., H.S.A. Hair Styling Applications S.p.A., Clarion Cosmetics, COMECER S.p.A., Novo Nordisk A/S, Siegfried Holding AG, Aenova Group, SED Pharma, 3P innovation Ltd., FUJIFILM Holdings Corporation, BRAM-COR SPA, and groninger & Co. GmbH, Danaher Corporation, Syntegon Technology GmbH, and others.

Recent Developmental Activities in the Personal Care Contract Manufacturing Market:

• In October 2024, Evonik and Kolmar Cosmetics (Wuxi) Co., Ltd. officially entered into a strategic partnership agreement in Wuxi, China. This collaboration is focused on driving innovation in raw materials by developing sustainable ingredients, advanced sun care solutions, color cosmetics, and high-performance active ingredients. The partnership also emphasizes novel formulation research, aiming to enhance product development capabilities and support the growing demand for innovative and eco-friendly personal care solutions.
• In November 2023, Solevo and Sensient Beauty formed a strategic partnership to advance cosmetic manufacturing in Côte d’Ivoire. This collaboration highlights both companies’ commitment to providing customers with exclusive access to a wide range of high-quality dyes and specialty ingredients. Cosmetic manufacturers in the region can now rely on Solevo and Sensient Beauty to meet their most demanding ingredient and dye requirements.

Key takeaways from the personal care contract manufacturing market report study

• Market size analysis for the current personal care contract manufacturing market size (2024), and market forecast for 8 years (2025 to 2032)
• Top key product/technology developments, mergers, acquisitions, partnerships, and joint ventures happened over the last 3 years.
• Key companies dominating the personal care contract manufacturing market.
• Various opportunities available for the other competitors in the personal care contract manufacturing market space.
• What are the top-performing segments in 2024? How these segments will perform in 2032?
• Which are the top-performing regions and countries in the current personal care contract manufacturing market scenario?
• Which are the regions and countries where companies should have concentrated on opportunities for personal care contract manufacturing market growth in the future?

Target audience who can benefit from this personal care contract manufacturing market report study

• Personal care contract manufacturing product providers
• Research organizations and consulting companies
• Personal care contract manufacturing-related organizations, associations, forums, and other alliances
• Government and corporate offices
• Start-up companies, venture capitalists, and private equity firms
• Distributors and traders dealing in personal care contract manufacturing
• Various end-users who want to know more about the personal care contract manufacturing market and the latest technological developments in the personal care contract manufacturing market.

Frequently Asked Questions for the Personal Care Contract Manufacturing Market:

1. What is personal care contract manufacturing?

• Personal care contract manufacturing is the outsourcing of product development and production to third-party manufacturers for personal care items like skincare, haircare, and cosmetics. These manufacturers handle formulation, production, packaging, and compliance, enabling brands to launch products efficiently without owning manufacturing facilities.

2. What is the market for personal care contract manufacturing?

• The personal care contract manufacturing market was valued at USD 22.71 billion in 2024, growing at a CAGR of 8.25% during the forecast period from 2025 to 2032 to reach USD 42.72 billion by 2032.

3. What are the drivers for the personal care contract manufacturing market?

• The demand for personal care contract manufacturing is largely fuelled by increasing per capita income, which has boosted consumer spending on beauty and personal care items. Moreover, increasing collaborations and partnerships among major industry players to develop innovative and cutting-edge personal care solutions are contributing to this upward trend. Together, these factors are expected to fuel robust and steady growth in the personal care contract manufacturing market throughout the forecast period from 2025 to 2032.

4. Who are the key players operating in the personal care contract manufacturing market?

• Some of the key market players operating in the personal care contract manufacturing market include Albea Group, McBride, Colep Consumer Products, PLZ Corp., Voyant Beauty, Formula Corp., INTERCOS S.P.A., H.S.A. Hair Styling Applications S.p.A., Clarion Cosmetics, COMECER S.p.A., Novo Nordisk A/S, Siegfried Holding AG, Aenova Group, SED Pharma, 3P innovation Ltd., FUJIFILM Holdings Corporation, BRAM-COR SPA, and groninger & Co. GmbH, Danaher Corporation, Syntegon Technology GmbH, and others.

5. Which region has the highest share in the personal care contract manufacturing market?

• North America is projected to hold the largest share of the personal care contract manufacturing market in 2024, primarily due to rising consumer spending on personal care and cosmetic products, increasing disposable income, and growing demand for innovative and high-quality personal care solutions. Additionally, the region is witnessing a surge in collaborations and partnerships among key industry players aimed at developing advanced and diverse product offerings. These factors collectively establish North America as the leading region in the global personal care contract manufacturing market.

This product will be delivered within 2 business days.