Personal Care Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Personal Care Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Personal Care Packaging Market was valued at USD 27.31 billion in 2020, and it is expected to reach USD 35.47 billion by 2026, registering a CAGR of 4.66% during the period of 2021-2026. The spread of COVID-19 negatively impacted the market due to disruptions in the supply chain, resulting in extended factory closures globally. Logistically, it has been difficult for bottles, cartons, and pump makers to provide to personal care companies.

Key Highlights

• In most countries, the governments put the personal care industry under the essential commodity category, allowing them to function. Still, there is no clarity on the operation of ancillary units that make the foil, packaging material, printers, and utility consumables, like briquettes/gases (required to run boilers).
• Plastic in the form of primary containers, secondary flexible pouches, caps and closure, and the nozzle is one of the major packaging materials used by the cosmetic industry. The plastic tube is one of the major containers in the cosmetic industry as it is able to store liquid-solid and semi-solid materials and able dispense products in the controlled proportions.
• In order to cater to the increasing demand for tubes, various suppliers have come up with different collaborations and innovations in the market. For instance, in November 2021, Albéa Tubes, one of the major providers of plastic and laminate tubes for the cosmetic, skincare, personal care, and oral care markets, partnered with U.T.C.G and eXpackUSA to offer Made in America tubes made from post-consumer recycled (PCR) plastics to beauty and personal care businesses.
• Additionally, in November 2021, Dior chose the Tense Tube from cosmetic packaging supplier Cosmogen to business its Capture Totale Super Potent Eye Serum. The new product innovation from the LVMH-owned luxury label provides a fresh impact due to its ergonomic metal applicator, which fits the eye contour area while avoiding contact between the face and hands.
• The personal care product packaging market is seeing a significant slump in demand due to the global outbreak of COVID-19. Certain product categories maintained a stable product demand in the market. However, certain categories observed a decline in demand. For instance, during the home quarantine period, people started staying home and reduced traveling to work resulted in longer cycles of hair wash, impacting the shampoo demand.

Key Market TrendsHair Care is Expected to Hold Significant Share

• Haircare brands use packaging to their advantage, both in the salon and beyond. Haircare for the retail segment is highly competitive, and hair care brands are relying on packaging differentiation to forge a connection with consumers. Most hair care brands experiment with the interplay of matte and gloss printing techniques and are increasingly incorporating sensory elements into their packaging. The use of treatment oils for added heat styling protection, imparting shine, or decreasing frizz has led to the increased use of dropper packaging as a dosing and precision application method.
• Many Japanese beauty giants are keen to push forward their presence in Europe. For instance, Kao’s haircare brand based in Tokyo, Guhl, is tapping into rising demand for sustainable products. Guhl, a Kao-owned hair care player available in Germany, Austria, Switzerland, and the Netherlands, has launched a new sustainable packaging, meaning its shampoo bottles now consist of 50% recycled Polyethylene terephthalate (rPET). Moreover, the conditioner bottles used were made of 100% polypropylene (PP) and therefore were fully recyclable.
• Many hair care brands are entering partnerships to provide better packaging alternatives. Companies are increasingly engaging in refilling initiatives that encourage consumers to bring back their bottles and refill them at a subsidized price instead of purchasing the product independently. In October 2020, P&G Beauty announced its first-ever refillable aluminum bottle system to launch at-scale, with its Head & Shoulders, Pantene, Herbal Essences, and Aussie brands in Europe. The refill system uses a new reusable 100% aluminum bottle and recyclable refill pouch, made using 60% less plastic (per mL versus standard brand bottle). It is expected to pave the way in changing the way consumers buy, use and dispose of their shampoo bottles.
• McKernan Inc. offers a large selection of containers and closures for hair care products packaging. The company carries PET, HDPE, LPDE, PVC, and PP. These bottles range from smaller, travel, or sample sizes up to the larger, economy sizes seen with many shampoos and conditioners. Packaging through glass bottles is of great use with hair serums and oils. The company also carries a line of collapsible tubes and sets perfect for gel, moisturizing creams, conditioning treatments, hair serums, and styling waxes. Collapsible tubes are also used for permanent and temporary hair coloring applications and hair glitter.
• In November 2019, L’Oréal moved to a pouch package for hair care products. The company collaborated with ProAmpac to develop a unique and more sustainable, flexible package. For L’Oréal’s REDKEN Flash Lift Bonder, the supplier replaced a rigid container with an inner bag and twisted tie with a single flexible package that includes a distinctive pour spout. Moreover, Toni & Guy, an international chain of hairdressing salons, has developed new packaging designs to appeal to more ‘grown-up’ consumers. They relate closely to the brand’s salon and want reassurance for purchasing a genuine salon brand product.

Asia Pacific is Expected to Hold Significant Share

• The personal care market in China has been one of the fastest-growing sectors in the last few years, benefitting from an increasingly engaged consumer base, which is augmenting the growth of the market studied.
• According to China's National Bureau of Statistics (NBS), the retail sales of cosmetics in China amounted to CNY 30.99 billion in November 2021. It also states that the cosmetics industry witnessed a significant decrease in revenue during the first months of 2020 due to the Covid-19 pandemic, which affected consumer goods sales in general. However, due to China's effective pandemic management, the retail trade value quickly recovered. In addition, the changing attitude among men toward skincare fosters the booming of the men's cosmetics market in China.
• Consumer spending on cosmetics and personal care products continues to grow, which is facilitating the trend toward adopting processed, packaged, and expensive products. Skincare and decorative cosmetics are growing soundly, with facial care and medical skincare witnessing a robust demand. Moreover, growth potential is also provided by anti-aging products and those intended to protect against environmental pollution.
• According to Tmall Innovation Center, the young women of the post-90s generation have become the most crucial consumer group driving growth in China's cosmetic sector. The post-90s generation has independent consuming power, and a simultaneous surge of interest in beauty and skincare amongst this demographic has translated into significant growth. This is aiding the growth of the cosmetic packaging market in the country.
• The increase in demand for luxury products is anticipated to drive growth of pump bottles and droppers. The dropper maker Virospack believes in China's increasing potential as multiple domestic brands are beginning to position themselves into the premium care category.

Competitive Landscape

The personal care packaging market is highly fragmented, as many players are present across the key regions. The presence of several medium and small-scale manufacturers on a global and regional level is keeping the market at a high rivalry position. The market is witnessing various mergers and partnerships as well. Key players include Amcor PLC, AptarGroup Inc., Gerresheimer AG, Albea SA, Silgan Holdings Inc., etc.

• August 2021 - Personal care major Unilever developed sustainable black packaging made from layered post-consumer resin materials, which was previously treated as waste. The company had used a multilayer post-consumer resin design to achieve sustainable black plastic packaging suitable for personal care, beauty, cosmetics, home care, and food products. This innovation enables black plastic waste to be re-used in new packaging across these categories.
• April 2021 - THG plc, a prominent technology platform specializing in taking brands direct to consumers, has launched a new recycling initiative called recycle: me by THG (eco) that will allow users to submit all used beauty products back to THG to be recycled, regardless of brand. THG's recycle: me project was designed to ensure that plastic end-of-life of used beauty products is treated environmentally sustainable.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Albea SA
HCP Packaging Co. Ltd
RPC Group Plc (Berry Global Group)
Silgan Holdings Inc.
DS Smith PLC
Graham Packaging Company
Libo Cosmetics Company Ltd
AptarGroup Inc.
Amcor PLC
Cosmopak Ltd
Quadpack Industries SA
Rieke Packaging Systems Ltd
Gerresheimer AG
Raepak Ltd

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