Personal Care CMO and CDMO Market Size, Share and Trends 2024 to 2034

Personal Care CMO and CDMO Market Size and Forecast 2024 to 2034

The global personal care CMO and CDMO market size is worth around USD 28.02 billion in 2024 and is anticipated to reach around USD 44.86 billion by 2034, growing at a CAGR of 4.82% from 2024 to 2034. The growing demand for cosmetics and personal care is the key factor driving the market's growth. Cosmetic brands are seeking new contract manufacturing models, and innovations in cosmetics manufacturing can fuel market growth further.

Personal Care CMO and CDMO Market Key Takeaways

• Asia Pacific led the personal care CMO And CDMO market with the largest market share of 50% in 2023.
• North America is expected to grow at a CAGR of 4.90% over the projected period.
• By service, the manufacturing segment dominated the market in 2023.
• By service, the documentation segment is expected to grow at a significant CAGR of 5.12% over the forecast period.
• By product category, the skincare segment accounted for the largest market share of 51% in 2023.
• By product category, the makeup & color cosmetics segment is projected to grow at a notable CAGR of 4.90% during the projected period.
• By form, the creams and lotions segment recorded the highest market share of 46% in 2023.
• By form, the liquids and suspensions segment is estimated to expand at a CAGR of 5.10% over the studied period.

Asia Pacific Personal Care CMO and CDMO Market Size and Growth 2024 to 2034

The Asia Pacific personal care CMO and CDMO market size is exhibited at USD 14.01 billion in 2024 and is projected to surpass around USD 22.65 billion by 2034, growing at a CAGR of 4.90% from 2024 to 2034.

Asia Pacific led the personal care CMO and CDMO market in 2023. The dominance of the region can be attributed to the increasing cosmetic production, innovation, and strong cost-efficiency provided by key players in nations such as China and India. Furthermore, increasing demand for different product categories and ongoing technological expertise and innovation in the region boosted the region's market growth.

North America is expected to witness lucrative growth over the projected period. The growth of the region can be driven by the strong presence of established production companies and increasing advancement in personal care products. However, the expansion of retail chains for cosmetics products is also a significant factor fuelling the market expansion in the region.

• In July 2024, luxury skincare brand La Mer launches a new night cream boasting a star ingredient. The Rejuvenating Night Cream contains MRA-3, a new sea-borne skin renewal complex that La Mer describes as a retinol alternative.

Market Overview

In the personal care field, CMOs and CDMOs are the key organizations that offer outsourced services to various businesses desiring to manufacture and package personal care goods. Manufacturing and packaging of a wide range of personal care products such as haircare, oral care, skincare, and cosmetics are the special areas for a CMO. Also, by utilizing an integrated strategy, organizations can simplify the whole manufacturing process and create high-quality products by using the CDMO's experience.

Beauty Cosmetics and Skincare Imports by Country (2023)

Personal Care CMO and CDMO Market Growth Factors

• Increasing demand for personal care products that can improve skin texture and appearance is expected to boost personal care CMO And CDMO market growth soon.
• A growing number of cosmetic brands and the wide demand for different ingredient-based cosmetics can propel market growth further.
• Low operational costs and high return on investment make CMO & CDMO the primary choice in the personal care industry, which will likely contribute to market expansion.

Role of Artificial Intelligence in the Personal Care CMO and CDMO Market 

Artificial Intelligence (AI) is transforming the way consumers deal with cosmetics. With access to a wide range of data and insights, AI tools can optimize formulas, help identify trends, and suggest completely new products specific to customers' demands. Furthermore, Through AI-powered skin care applications, users can get individualized skin assessment and diagnosis applications that can analyze the skin, detect skin-related issues, and then advise skincare routines and products to the end user.

• In April 2024, The Este Lauder Companies (ELC) and Microsoft Corp. declared the design of an AI Innovation Lab to strengthen prestige beauty as an evolution of their global strategic relationship. Using innovative generative AI capabilities in Microsoft Azure OpenAI Service, the companies will work together to develop advanced beauty solutions.
• In July 2024, South Korean cosmetics company AmorePacific launched its new AI beauty lab, where robots custom-mix face products and cutting-edge technology suggest the most suitable lipstick colors. Customers appreciate the customized service, which uses AI-generated reports to process skin conditions and match products accurately to individual skin tones.

Market Scope

Market Dynamics

Driver

Increasing demand for skincare products

The demand for sunscreen lotions face care creams, and face serums are increasing rapidly, along with the growing trend of using organic and natural skincare solutions. Additionally, this growth is supported by the rising awareness of the benefits of various skin care products and the increasing popularity of online purchases. Also, major market players are seeking external resources and expertise to streamline their operations and improve product development; hence, the demand for CMO and CDMO services is expanding in the personal care CMO and CDMO market.

• In October 2024, Eucerin, a key player in dermatological skincare, officially unveiled Nykaa, one of India's top beauty and wellness platforms. This milestone enables the continuation of a successful and visionary collaboration between Nykaa and Beiersdorf, Eucerin's parent company.
• In August 2024, Neutrogena launches a new survey on aging and beauty problems in India. The survey found that 95% of Indian women are increasingly seeking anti-aging solutions. Neutrogena has also collaborated with Nykaa to launch a new product line to solve the concerns it brought up.

Restraint

Threat over intellectual property protection

Intellectual property protection threats act as a substantial barrier to a partnership between cosmetic companies' CMOs and CDMOs. Personal care products often depend on manufacturing processes, proprietary formulations, and branding strategies, which makes IP protection important for protecting innovations in the personal care CMO and CDMO market. However, collaborating with CMOs and CDMOs involves the sharing of confidential data, raising concerns of probable IP theft or leakage.

Opportunity

Growing demand for ingredient-based cosmetics

The rising utilization of ingredient-based cosmetics is the major trend in the personal care CMO And CDMO market.  The need for skincare products with natural ingredients is rising due to factors such as changing weather conditions, environmental pollution, and raised disposable income. Furthermore, ingredient-based cosmetics contain a wide range of ingredients like fragrances, emulsifiers, antioxidants, and hyaluronic acid, which not only improve the texture of the skin but also give a natural glow to it, which can provide anti-aging care.

• In July 2024, Ekkio Capital underlies Sweetch to disrupt biotech beauty ingredients. The company has further just created a new beauty ingredient company that empathizes with natural and sustainable technologies.
• In June 2024, Skin care brand Paula's Choice unveiled its Beautypedia platform on its Southeast Asian websites to offer information and education about cosmetic ingredients.

Services Insights

The manufacturing segment dominated the personal care CMO And CDMO market in 2023. The dominance of the segment can be attributed to the growing need for streamlined production processes, enhanced cosmetic formulations, and a growing product portfolio. Additionally, the Adoption of plant-based ingredients and increasing product launches can contribute to the segment's expansion soon. The expanding cosmetic brands launched by entrepreneurs and celebrities have also led to increasing requirements for outsourcing.

The documentation segment is expected to grow at a significant rate over the forecast period. This growth can be credited to rising regulatory compliance, quality control, and product safety throughout the product's life. According to the regulation, every personal care product in the market must have a dossier called PIF, which has safety data about the product. The files are not meant to be registered or submitted, but the other legal requirements should be well documented and fulfilled.

Product Category Insights

The skincare segment led the personal care CMO And CDMO market in 2023 by holding the largest market share. This is due to rising interest in self-care products and health-promoting practices, which have led to this surge. These products have a substantial ability to address an extensive range of skin-related problems, including pimples, acne, and others. Furthermore, the active ingredients in this skincare product can repair damaged skin and rejuvenate new cells, coupled with strengthening the skin barrier.

• In June 2024, Isha Ambani-led Reliance Retails beauty venture Tira collaborated with angel investor Mira Rajput Kapoor to unveil a skincare brand under its private label portfolio, Kapoor shared with ETRetail.

The makeup & color cosmetics segment is expected to show significant growth during the projected period. The growth of the segment can be driven by a surge in product innovations and ongoing upgrades in color cosmetics and makeup products. Also, social media influencers showcase their makeup looks, which has helped stimulate the use of color cosmetics. Additionally, Health-conscious consumers are seeking hybrid products that blend skincare advantages with color cosmetics, which can create new trends in the personal care CMO and CDMO market.

• In July 2024, Body Cupid, the head company of the personal care brand Wow Skin Science, was involved in the cosmetics category with the launch of a new brand, Color Cupid. Curated and designed for younger people, Color Cupid features nearly 40 stock-keeping units (SKUs) such as lipsticks, kajal, eyeliners, foundation, primer, makeup remover, BB cream, and more.
• In April 2024, Honasa Consumer declares its new venture, Staze, a color cosmetic line addition to Honasa's portfolio. With its innovative take on color cosmetics, Staze sets a new standard for high-performance, long-lasting, multi-purpose makeup created to cater to the dynamic needs of new-age consumers.

Form Insights

In 2023, the creams & lotions segment dominated the personal care CMO And CDMO market. The dominance of the segment can be linked to the rising requirement for cost-effective products and increasing emphasis on skin appearance and hydration. In addition, there is a growing trend towards gender-specific skincare products. For example, the male skincare market is expanding because men are becoming more aware of the benefits of skincare and searching for products that are specific to their needs.

• In December 2023, Selena Gomez expanded her brand by stepping into a new category: body care. The products include body lotion hand cream, body and hair mist, and an aromatherapy pen.

The liquids & suspensions segment is estimated to grow at significant rate over the studied period. This is because of substantial advancements in liquid formulation along with the growing focus on innovations by market players. Moreover, the growth in web penetration globally has added to the expansion of the segment. Changing lifestyles and fashion preferences are further creating lucrative growth opportunities for the personal care CMO and CDMO market.

Personal Care CMO and CDMO Market Companies

• Nutrix International LLC
• Swiss American CDMO
• Universal Packaging Systems, Inc. Dba PakLab
• Suzhou Ante Cosmetics Co., Ltd
• Arizona Natural Resources Inc.
• Opal Cosmetics
• Concentrated Aloe Corporation (CAC)
• Ausmetics
• Intercos S.P.A
• BPI Labs
• Cosmetic Solutions
• SBLC Cosmetics
• Akums Drugs and Pharmaceuticals Ltd.
• Maxima Solutions
• New Look Cosmetics
• Radical Cosmetics
• Dermatech Labs

Recent Developments

• In September 2023, Crafted introduced the personal care brand YourCrafted. Off-the-shelf personal care products are now mostly sold by the firm YourCrafted.
• In March 2023, Pelham Group introduced a low-MOQ turnkey creation platform. The new tool offers formulas that let firms maintain their flexibility while developing new products.

Segments Covered in the Report

By Services

• Formulations
• Documentation
• Manufacturing
• Packaging
• Logistics
• Others

By Product Category

• Skincare
• Hair & Body Care
• Makeup & Color Cosmetics
• Others

By Form  

• Creams & Lotions
• Gels
• Liquids & Suspensions
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa