Personal Care Packaging Market Poised to Reach Nearly $21.4 billion by 2014
19 April 2010
Leatherhead UK, 19 April, 2010. Representing nearly 3% of the global packaging industry by value, the personal care packaging market is forecast to reach almost $21.4 billion by 2014, growing by a CAGR of 4.1% over 2009 estimates of $17.5 billion, according to a new study by Pira International.
Based on primary research and expert analysis, The Future of Personal Care Packaging provides a comprehensive overview of the global personal care packaging market. Offering an insight into the industry's supply chain and the key drivers and trends shaping it, the study quantifies the current and future packaging sales for personal care products and looks at market sizes, end-use markets and product sectors by region, and regional markets by packaging product sector, with five-year value-based forecasts up to 2014.
The study defines a personal care product as a substance or preparation intended to be placed in contact with the various external parts of the human body (epidermis, hair system, nails, lips and external genital organs), or with the teeth and the mucous membranes of the oral cavity with a view exclusively to or mainly to, cleaning them, perfuming them, changing their appearance and/or protecting them or keeping them in good condition. The various end-use sectors using personal care products and packaging include bath and shower, colour cosmetics, deodorants, depilatories, fragrances, hair care, men's grooming, oral care, skin care and sun care.
Pira International cites the key factors driving today's trends in personal care packaging as:
- Lifestyle
- Anti-ageing products
- Male grooming
- Fashion
- Luxury and super-premium
- Environmental
- Multifunctionality
- Health benefits
- Cost and economic factors
- Global events
According to the study, the two key market-defining trends in the personal care market are lifestyle and environment. With the increasing accessibility of global air travel, mobile telephones and internet-based technologies, the world is becoming a smaller place for the consumer. Products can be researched and purchased online via the internet, and delivered to the consumer's doorstep within a day or two, irrespective of the place of dispatch.
With lifestyle driving the need to create more agile, multifunctional and user-friendly packages, the supply chain model is also expected to evolve over time, with lot size reduction and compressed lead times becoming the norm in the aftermath of the global economic downturn. As consumers find more ways of spending their time and money, ease and speed of use together with multifunctionality will boost the development and sale of new products. This trend can also be linked to the inclusion of technologies such as electrics or electronics, as seen in the case of vibrating mascara brushes and vibrating razors. These technologies are attractive to manufacturers, delivering a competitive advantage through superior product benefits for the consumer.
With lifestyle choices, internet-based education and awareness are helping to promote environmental issues, consumers are becoming increasingly aware of their surroundings and the potential impact of packaging on the environment. According to Pira refill packaging formats are now emerging as the key contender to preserve existing resources, providing alternatives to conventional packaging formats like glass and metals, both of which consume vast amounts of energy in their manufacturing process. Seen as the new winning formula, refill formats are lightweight, cost less, are difficult to break or damage (when compared to formats like glass), and use less space when empty, both before filling and after use.
Pira International believes that environmental factors will drive the future agenda for all packaging companies: whether to gain competitive advantage, reduce costs, generate alternative, reusable and recyclable materials, or 'save the planet' as a result of genuine corporate social responsibility.
Over the last few years, the global personal care packaging market has witnessed annual growth rates in the region of 5%, and Pira forecasts similar growth rates in the years to come, driven by four key market regions - South America, Middle East and Africa, Eastern Europe and Asia-Pacific. Even though these markets are currently small in terms of sales volume, Pira believes their potential for their growth is high because of their huge population size. Even though growth rates are expected to remain relatively static (in the range of 1-2%) in the mature regions of North America and western Europe, the size of these markets is big in terms of revenue and sales volume, as a result of which even small gains could prove to be of significant value.
From a materials perspective, Pira predicts that rigid plastic packaging will continue to be the 'big seller' over the forecast period. Glass and flexible packaging have the greatest potential for growth, with metal packaging value likely to remain static with little or no growth expected. An environmentally friendly approach focused on the usage of plant-based material, and the continuous adoption of lightweighting and rightweighting processes is expected to spur demand for rigid plastic packaging over the next few years.
The Future of Personal Care Packaging is available now. For more information, please contact Stephen Hill on +44 (0) 1372 802025, or via e-mail on stephen.hill@pira-international.com
Press contact: For editorial queries, details of the study or an expanded article please contact: Rebecca Leigh +44(0)1372 802207 rebecca.leigh@pira-international.com
Pira International
Pira International - the worldwide authority on packaging, paper and print industry supply chains
Established in 1930, Pira provides strategic and technical consulting, testing, intelligence and events to help clients gain market insights, identify opportunities, evaluate product performance and manage compliance.