Europe Personal Care Contract Manufacturing Market (2024 - 2030)

Market Size & Trends

The Europe personal care contract manufacturing market size was estimated at USD 4.4 billion in 2023 and is projected to grow at a CAGR of 7.3% from 2024 to 2030. This growth is attributed to the consumer inclination towards grooming to instill positive self-esteem. In addition, growing awareness among consumers of overall well-being and following a healthy lifestyle has resulted in increased demand for personal care products. Furthermore, technological advancements in skincare and the introduction of innovative products also contribute to market growth in the region.

The Europe personal care contract manufacturing market accounted for a revenue share of 20.8% of the global personal care contract manufacturing market revenue in 2023. The market growth is further driven by the rising demand for customized products as consumers are increasingly seeking custom-made formulations.

Service Insights

The manufacturing services dominated the market and accounted for the largest share of 87.4% in 2023. This growth is due to the increasing need for tailored personal care items and advancements in technology, which enable contract manufacturers to offer adaptability, scalability, cost-effectiveness, and compliance with regulations. Furthermore, this setup enables personal care brands to concentrate on developing, promoting, and selling products while applying the knowledge of contract manufacturers, thus fostering market growth.

The packaging services segment also accounted for a considerable market share in 2023 owing to the increasing demand for innovative and attractive packaging. Consumers are drawn to well-designed packaging that enhances the aesthetic appeal of personal care products. Furthermore, contract manufacturers with proficiency in packaging can help brands create eye-catching and differentiated products, which is further expected to drive the segment’s growth.

Product Form Insights

The liquid product form segment accounted for a significant market share in 2023. This segment includes shampoos, conditioners, body washes, lotions, and serums. The segment's growth is driven by the growing demand for customized and specialized liquid personal care products that cater to diverse consumer needs in the beauty and skincare industry.

The creams & lotions segment also accounted for a significant revenue share in 2023. These products are tailored for skin care and to address issues, such as anti-aging, hydration, acne control, and skin brightening.

Product Insights

The skincare products segment led the market and accounted for the largest revenue share of 35.2% in 2023. This growth is attributed to the rising demand for natural and organic products, regulatory compliance, customization, product innovation, and cost-effectiveness. Furthermore, social media influence, increasing consciousness about skincare routines, and millennials' focus on skincare have led to significant spending on skincare products, further driving the segment’s growth.

The hair care products segment also witnessed substantial growth in 2023 owing to the increased demand for premium- and high-quality products, particularly among men. This is driven by the rising consciousness among male consumers about grooming and self-care and the growing popularity of hair styling products and hair colors.

Country Insights

Germany Personal Care Contract Manufacturing Market Trends

The personal care contract manufacturing market in Germany accounted for the largest revenue share of 28.3% in 2023. This growth is attributed to significant cost benefits for contract manufacturers and packaging service providers due to the substantial cosmetics and personal care market in the country, coupled with cordial trade relations within the European Union. Furthermore, the focus on branding and promotional activities by key players leads to outsourcing production, custom formulation, and packaging, driving demand for contract manufacturing services

France Personal Care Contract Manufacturing Market Trends

The personal care contract manufacturing market in France witnessed significant growth in 2023 owing to the increasing demand for modified and natural personal care products. To meet the varying demands of consumers. In addition, the rising demand for premium and professional products, particularly in the skincare and hair care segments, contributes to the domestic market growth.

Key Europe Personal Care Contract Manufacturing Company Insights

Key players in the market include McBride Plc and RCP Ranstadt GmbH.

• McBride Plc is a leading global manufacturer and distributor of household and personal care products, with significant operations in Europe and Asia Pacific. The company currently employs approximately 4,400 people worldwide

• RCP Ranstadt GmbH is a prominent player in the industry. It offers a range of products, including single-use items like wet wipes and sachets, as well as mixing and manufacturing services for various products, such as dietary supplements and detergents

Skinlys and Albea are other participants in the Europe personal care contract manufacturing market.

• Skinlys offers comprehensive product development services, including custom formulations and innovative packaging solutions, to meet its clients' unique needs. The company also maintains an extensive portfolio of high-quality, adaptable formulas for skincare and makeup products

Recent Developments

• In October 2023, McBride Plc announced that it had selected RISE with SAP to enhance customer experience, optimize manufacturing operations, and drive overall business success. The project aims to enhance efficiency, adapt quickly to customer demands, and produce at higher volumes

Europe Personal Care Contract Manufacturing Market