Personal Care Contract Manufacturing Market in India 2024 – 2028

Personal Care Contract Manufacturing Market in India 2024 – 2028

Market Insights:

As the personal care market expands in terms of both product diversity and global presence, contract manufacturing becomes a strategic avenue for brands to penetrate new markets without the necessity of establishing local manufacturing facilities. Specializing in particular product categories or technologies, contract manufacturers offer brands access to specialized expertise that may be difficult to cultivate internally. However, in markets saturated with a high number of contract manufacturers, intense competition may arise, potentially limiting overall growth prospects. Collaboration between governments and industry associations, trade bodies, and private enterprises may be pursued to tackle challenges and identify growth prospects within the personal care contract manufacturing sector. In terms of revenue, the personal care contract manufacturing market in India is expected to reach

INR 31.40 Bn by 2028, expanding at a Compound annual growth rate (CAGR) of ~16.06% during the 2024 – 2028 period.

Market drivers:

Recyclable packaging, particularly in the form of paper-based materials like cardboard, paperboard, and paper bags, is gaining popularity due to its eco-friendly characteristics. The expansion of the Personal Care Contract Manufacturing Market is driven by rising disposable incomes and rapid urbanization, leading to increased employment opportunities. The upsurge in disposable income allows individuals to enhance their lifestyle, elevate their standard of living, and allocate more resources to personal care products. Products addressing signs of aging, such as anti-wrinkle creams, face creams, serums, and eye creams, continue to enjoy widespread popularity. The escalating levels of pollution and increased exposure to hard water contribute to the growing demand for these skincare items. The depletion of collagen caused by pollution emerges as a significant factor in the development of wrinkles, leading to a heightened awareness of pollution's adverse effects on the skin.

Market Challenges:

The growth of the market faces challenges due to several factors. Cost-effectiveness, coupled with consumer preferences for higher-priced products and shorter shelf life, presents obstacles. Additionally, issues related to recyclability and limitations in sustainable packaging contribute to the challenges. Cross-contamination in recycling facilities and reduced strength in sustainable products further hinder market expansion. Moreover, raw material expenses, labor costs, and operational overheads emerge as pivotal factors exerting a significant impact on the overall manufacturing expenditure. Acquiring alternative materials or accelerating shipments to address disruptions frequently results in elevated costs, impacting the overall profitability of contract manufacturing. \