Personal Care Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Personal Care Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Personal Care Packaging market is registering a CAGR of 4.66% during the period. The spread of COVID-19 negatively impacted the market due to disruptions in the supply chain, resulting in extended factory closures globally. It has been difficult for bottlers, carton makers, and pump manufacturers to supply personal care companies logistically.

• In most countries, the governments put the personal care industry under the "essential commodity" category, allowing it to function. Still, there needs to be more clarity on the operation of ancillary units that make the foil, packaging material, printers, and utility consumables like briquettes and gasses (required to run boilers).
• Plastic, in the form of primary containers, secondary flexible pouches, caps, and closures, as well as the nozzle, is one of the primary packaging materials used by the cosmetic industry. The plastic tube is one of the most significant containers in the cosmetic industry, as it can store liquid-solid and semi-solid materials and dispense products in controlled proportions.
• Various suppliers have come up with different collaborations and innovations in the market to cater to the increasing demand for tubes. For instance, in November 2021, Albéa Tubes, one of the significant 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 market its Capture Totale Super Potent Eye Serum. The new product from the luxury brand owned by LVMH has a fresh look because it has an ergonomic metal applicator that fits the eye contour area without touching the face or hands.

The personal care product packaging market saw a significant slump in demand due to the global outbreak of COVID-19. Specific product categories maintained stable product demand in the market. However, particular types observed a decline in demand. For instance, during the home quarantine period, people started staying home and reduced traveling to work, resulting in longer hair wash cycles and impacting the demand for shampoo.

• 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 eager to push forward their presence in Europe. For instance, Kao’s haircare brand, Guhl, based in Tokyo, is tapping into the 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 polyethene terephthalate (rPET). Moreover, the conditioner bottles used were made of 100% polypropylene (PP) and were therefore 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. 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 that use 60% less plastic per mL than a standard brand bottle. It is expected to pave the way for 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 product packaging. The company carries PET, HDPE, LDPE, 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 in 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.

• The increasing awareness of a healthier lifestyle among individuals for a healthy and hygienic living has contributed to the increase in per capita expenditure on household products (including personal care products) across Asia. China is one of the world's hotspots and fastest-changing beauty markets, introducing industry-leading innovations and setting trends globally.
• The personal care market in China has been one of the fastest-growing sectors in the last few years, benefiting 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 generally affected consumer goods sales. However, retail trade value quickly recovered due to China's effective pandemic management. In addition, the changing attitude among men toward skincare fosters the booming men's cosmetics market in China.
• Consumer spending on cosmetics and personal care products continues to grow, facilitating the trend toward adopting processed, packaged, and expensive products. Skincare and decorative cosmetics are growing soundly, with facial care and medical skincare witnessing robust demand. Moreover, growth potential is also provided by anti-aging products and those intended to protect against environmental pollution.
• According to the Tmall Innovation Center, the young women of the new generation have become the most crucial consumer group driving growth in China's cosmetic sector. The new generation has independent consuming power, and this demographic's simultaneous surge in interest in beauty and skincare has translated into significant growth. This is aiding the development of the cosmetic packaging market in the country.
• The increase in demand for luxury products is anticipated to drive the growth of pump bottles and droppers. Virospack, a company that makes droppers, thinks that China's potential is growing because more and more Chinese brands are starting to position themselves in the premium care category.

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 keeps the market at a high rival 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.

In December 2022, Amcor Packaging Solutions announced the opening of its new state-of-the-art manufacturing plant in Huizhou, China. With an investment of almost USD 100 million, the 590,000-square-foot plant is the largest flexible packaging plant by production capacity in China, further strengthening Amcor’s ability to meet growing customer demand throughout Asia Pacific. The new facility is expected to employ more than 550 people, producing flexible packaging solutions for food and personal-care products.

In April 2022, natural beauty company Olive Natural Skincare is set to introduce new, almost fully recyclable packaging. Recently, the company announced that its business operations were certified zero-carbon by the independent agency Ekos in New Zealand. The Ekos Zero Carbon certification ensures that the process has measured and offset 100% of its CO2 emissions.

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