Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Cosmetic packaging is packaging of cosmetic products and also helps in brand positioning. Packaging materials are produced from paper, plastic, metal, and glass. Cosmetic packaging is done in different packaging forms such as tubes, bottles, jars, pumps & dispensers, and sachets.
The global cosmetics packaging market was estimated to be valued more than US$ 27,295.80 million in terms of revenue in 2019 and is forecast to exhibit a CAGR of 3.44% during the forecast period (2020 to 2027).
The growing importance of packaging for cosmetic brand differentiation is expected to foster the market growth of cosmetic packaging. Key manufacturers of the cosmetics and personal care industry are majorly focusing on marketing for enhancing brand visibility by using packaging as a 'key differentiator' from their competitors.
Regionally, Asia Pacific was dominant in the global cosmetics packaging market in 2019, reporting 33% market share in terms of revenue, followed by Europe and North America, respectively.
Figure 1. Global Cosmetics Packaging Market, Revenue Share (%), By Region, 2019
A consolidated supplier base is a key factor restricting the market growth. Sourcing of raw material has been a major concern for most cosmetic packaging manufacturers, especially in the case of metal and glass. Moreover, number of suppliers are comparatively less than plastic suppliers for cosmetic packaging. Thus, raw materials are sourced at higher prices, posing challenges for the company to package the product at a low cost and maintain overall profitability. This factor is expected to hinder market growth.
Cosmetics Packaging Market Report Coverage
||Market Size in 2019:
||US$ 27,295.80 Mn
|Historical Data for:
||2017 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 34,941.78 Mn
- North America: U.S., Canada
- Latin America: Mexico, Brazil, Argentina, Columbia, and Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
- Asia Pacific: China, India, Japan, and Rest of Asia Pacific
- Middle East & Africa: GCC, South Africa, and Rest of Middle East & Africa
- By Material Type: Glass, Paper, Plastic, Metal, and Others
- By Container Type: Jars, Tubes, Bottles, Pumps & Dispensers, Sachets, and Others
- By Application: Skin Care, Hair Care, Makeup, and Nail Care
- By Declared Capacity: Type 1 (Bellow 50 ml), Type 2 (50 ml – 100 ml), Type 3 (100 ml – 150 ml), Type 4 (150 ml – 200 ml), and Type 5 (Above 200 ml)
Aptar Group, Inc., RPC Group Plc, Gerresheimer AG, Amcor Limited, Albea S.A., Libo Cosmetics Company, Ltd, Quadpack Industries, HCP Packaging, Fusion Packaging, and ABC Packaging Ltd.
- Brand Differentiation through Packaging
- Rising Awareness for Anti-aging Products Among the Female Population
|Restraints & Challenges:
- Consolidated Supplier Base
Most cosmetic packaging manufacturers are targeting their consumer base in emerging economies such as Nigeria, Brazil, Indonesia, and ASEAN countries. Southeast Asia is a potential market for cosmetics, due to its economic stability and improving lifestyles of the consumers. For instance, according to the World Bank, per capita increased from USD 2,005 in 2018 to USD 2,099 in 2019. Such factors are expected to boost the growth of the cosmetic industry in Asia Pacific during the forecast period.
Figure 2. Global Cosmetics Packaging Market, Opportunity Analysis
3D printing is a new trend and is rapidly adopted by cosmetic packaging players around the globe. Several key manufacturers are introducing 3D printing for cosmetic packaging in their product offerings. The use of 3D printing offers an aesthetic look to the cosmetic products and is mostly used for fragrances and shampoo packages. Thus, its added advantage of giving aesthetic look to the product is projected to foster the market growth of the cosmetic packaging.
Figure 3. Global Cosmetics Packaging Market Revenue Share (%), By Material Type, in 2019
Based on material type, the plastic segment is estimated to be dominant in the global cosmetic packaging market in 2020, accounting for 56% share in terms of revenue, followed by paper and glass, respectively. The low cost of plastic is the primary factor driving the growth of the plastic segment.
Figure 4. Global Cosmetics Packaging Market – Value Chain Analysis
Global Cosmetics Packaging Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 has changed the consumer buying pattern with cuts on spending on non-essentials. Owing to nationwide lockdowns and social distancing measures implemented in countries such as the U.K., Italy, Spain, Russia, Malaysia, Singapore, and India, demand for cosmetics has declined. For instance, sales of the cosmetics business of Kao Corporation decreased by 11.4% in the first quarter of 2020 compared to the first quarter of 2019 as reported by Kao Corporation in April 2020. Revlon Inc., a cosmetics company, witnessed a decrease in sales by 18.1% in the first quarter of 2020 as compared to the first quarter of 2019 as reported by the company in May 2020. A significant decrease in sales of cosmetics is expected to negatively hamper growth of the cosmetics packaging market.
Key players operating in the global cosmetics packaging market are Aptar Group, Inc., RPC Group Plc., Gerresheimer AG, Amcor Limited, Albea S.A., Libo Cosmetics Company, Ltd, Quadpack Industries, HCP Packaging, Fusion Packaging, and ABC Packaging Ltd.
Few Recent Developments
- In March 2019, Mana Products expanded its operations with new production facility in New York
- In September 2018, Albea S.A. redefined the creative services offered by The Studio 360 and included market trends, products, and packaging design, graphic design, animations etc. in its services. This enabled the company to provide solutions to its customers (cosmetic brands) who want to launch their product range fast.