U.S. Personal Care Contract Manufacturing Market Size, Share & Trends Analysis Report by Service (Manufacturing, Custom Formulation and R&D, Packaging), and Segment Forecasts, 2024-2030

The U.S. personal care contract manufacturing market size is anticipated to reach USD 5.22 billion by 2030, registering a CAGR of 7.8% from 2024 to 2030. The growing personal care products industry is an important factor contributing to the growth of the personal care contract manufacturing market in the U.S.

The personal care products are available with a deep product assortment and made with different formulations. The U.S. personal care product market has a presence of multiple brands offering different benefits to customers. To manufacture such a wide range of products demand for mass customization is high. In this scenario, an external contract manufacturer can easily manufacture products with different formulations. Hence to cater to the requirement of mass customization the demand for personal care contract manufacturers is expected to remain high over the forecast period.

In the U.S., personal care product companies are concentrating more on research & development and new product launches than on actual product manufacturing. This approach has been adopted by various brands to remain relevant in the highly competitive market. These operational choices enable these businesses to maximize their resource usage. Hence personal care product brands are undertaking outsourcing initiatives to focus more on innovation, marketing, and distribution. Because of this element, the personal care contract manufacturing market's overall growth in the U.S. is expected to rise throughout the forecast period.

Technological advancements have significantly transformed the landscape of the personal care contract manufacturing market, offering numerous benefits in terms of efficiency, quality, and innovation. Furthermore, technological advancements, particularly in automation, have revolutionized production processes in personal care contract manufacturing. Automated systems streamline tasks such as mixing, filling, and packaging, leading to increased efficiency, precision, and reduced labor costs. Hence with the rising technological advancements, the demand for personal care contract manufacturing is anticipated to remain high.

The demand for organic personal care products has been growing significantly. Hence the buyers are seeking contract manufacturers capable of manufacturing formulations with eco-friendly and ethically sourced ingredients. Companies focusing on sustainability in their manufacturing processes are more likely to develop the market. Hence buyers are interested in contract manufacturers capable of producing products with health benefits.

U.S. Personal Care Contract Manufacturing Market Report Highlights

• Based on service, the manufacturing segment dominated the market and accounted for a revenue share of 88.3% in 2023, as OEMs are focusing on outsourcing the production of personal care products by adopting a private label strategy
• Personal care contract manufacturers are using an Enterprise Resource Planning (ERP) system. This system has been effectively optimizing the manufacturing operations by managing the entire production lifecycle, from ingredient sourcing to product distribution, ensuring real-time visibility and data accuracy
• The contract manufacturers have developed technological compatibility to attain high-quality manufacturing, hence it’s very difficult for brands to switch to other contractors for the manufacturing of products. Due to this threat of substitutes has remained low for the market
• The rise of e-commerce has been a significant trend. With consumers purchasing the personal care products online, the sales of personal care products have been rising significantly. This factor is further propelling the personal care contract manufacturing market in the U.S