Cosmetic Packaging Market Size, Share & COVID-19 Impact Analysis, By Material (Glass, Paper & Board, Plastic, Metal, and Others), By Application (Skin Care, Hair Care, Makeup, and Nail Care), and Regional Forecast, 2021-2028

The global cosmetic packaging market size was USD 29.81 billion in 2020 and is projected to grow from USD 30.98 billion in 2021 to USD 40.96 billion in 2028 at a CAGR of 4.1% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with packaging products witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 1.7% in 2020. The sudden incline in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Cosmetic Packaging plays a pivotal role in the marketing of various cosmetics products by drawing the consumer attention. Various graphical and packaging designs are a key to make the packaging appealing. This includes both primary as well as secondary packaging. Generally, paper & board-based packaging is used for secondary packaging purposes due to the ease of processing and scope of customization as per needs.

Declining Cosmetics Demand amid COVID-19 Pandemic to Affect Market Dynamics

COVID-19 has drastically shifted the dynamics of the global trade, supply and demand chain, and logistics. The pandemic has knocked the manufacturers from every sector. The pandemic has sped up the shifting of global economies to local economies. Rising unemployment rates, reduced flexible expenditure, social distancing and lockdown limitations have transformed consumer behavior. According to the business of Fashion and McKinsey and Company, the cosmetic retail revenue dropped by 32% in the initial stages of COVID-19 pandemic. The value chain disruption has significantly affected the market growth however, to survive with new restrictions, ease the impact of the global pandemic and adapt to the shifting preferences of consumers, companies are embracing new strategies. Manufacturers are planning to harness innovations and apply strategies that work to make fundamental and stable changes.

LATEST TRENDS

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Green Packaging Solutions to Witness Robust Adoption in Cosmetic Industry

The demand for eco-friendly Cosmetic Packaging solutions is substantially increasing with increasing consumer awareness toward the environment. Customers have become more conscious in choosing packaging and products that endorse eco-friendly or ‘green’ packaging solutions. As a result, green packaging is no longer a fringe to the industry and manufacturers are buckling up to increase the amount of green packaging solutions in this industry. This transformation is driven by the outrage amongst consumers, as the hazards of conventional packaging are being reported. Moreover, lawmakers are keen on the implementation of stringent environmental norms which is compelling packaging manufacturers to adopt and invent green packaging solution for various industries.

Increasing Consumption of Cosmetics Products is Bolstering Market Growth

The cosmetics industry is expanding rapidly across developed as well as developing countries. Rise in disposable incomes of consumers and shifting preference towards premium beauty and cosmetics products is a key trend worldwide. Consumers are increasingly choosing cosmetics with green, organic and cleaner ingredients. While cosmetics brands design better products, they are also branding their products smartly through innovative packaging to attract more and more consumers.

Digital transformation is creating lucrative opportunities as more consumers become aware about the different products availability in the market through social media and online platforms. Due to rapid digital transformation, the competition in the customized and specialized Cosmetic Packaging space is rapidly heating up. Emerging cosmetic brands are adopting innovative packaging solutions to expand their market presence and gain a competitive advantage over established players.

Necessity for Shelf-Life Extension of Cosmetics Products to Drive Innovations in Cosmetic Packaging

Most of the cosmetics products are temperature and sunlight sensitive, which create a necessity for efficient and smart packaging solutions for the cosmetic products, as per requirement without compromising with the design and attractiveness. Shelf-life of cosmetic products greatly depends on the material of packaging and the cosmetic formulation. Packaging material is chosen according to its formulation compatibility as well as customer needs. Typical shelf-life of cosmetic products vary between 1-3 years and it is important to prolong the shelf-life as these products. These products are transported over long distances and may remain in inventories and unsold in shops for a long period of time.

RESTRAINING FACTORS

Rising Environmental Concerns and Implementation of Stringent Norms to Hinder Market Growth

Plastics are the most widely used packaging material in this industry and most of it is dumped into landfills. According to EPA (United States Environmental Protection Agency), approximately 70% of the plastic waste generated by the cosmetics market is not recycled, leading its way to the landfills. Moreover, most of the primary packaging are made of single use plastic paper and a significant number amongst them are multilayered to make them look premium, which adds to the excessive wastage of plastics. Further, it was found that micro beads, small plastic particles that are added to exfoliate in rinse-off personal care products, causing serious damage to the marine environment and other water bodies.

As a result, in 2014 Personal Care Products Council (PCPC) announced phase-out of micro beads in the U.S. and same action was taken in Europe in 2015. As of today many countries have banned the use of micro beads in cosmetics. These countries include Taiwan, UK, France, Canada, New Zealand, Italy, Sweden, South Africa and many others. This showcases the increasing awareness on the usage of plastics in formulations as well as packaging across the world and changing consumer preferences

SEGMENTATION

By Material Analysis

Glass Packaging to Continue its Dominance in Terms of Revenue

Based on material, the global market is divided into glass, paper & board, plastic, metal and others. Glass packaging accounts for a significant share in the market owing to its relatively high cost as compared to other packaging materials and the high adoption in luxury packaging segment. Glass provides a premium look to the product and is also considered to be an eco-friendly packaging solution as it can be easily recycled. Furthermore, materials such as paper & board and metal are expected to witness slight high growth in terms of volumes and value over plastics, as a result of changing consumer preference. Paper & board based packaging is the fastest growing segment. Hot stamping and lamination added significantly to the luxury appeal offered by paper based secondary packaging.   

By Application Analysis

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Skin Care Products Consume the Highest Number of Cosmetic Packaging

Based on application, the global market is divided into skincare, hair care, makeup, and nail care. Skin care products account for a majority of the market on a global level due to high adoption of skin care products in Asia Pacific, Europe, and North America. However, in Latin America and the Middle East & Africa, this packaging is prominently used for make-up products. The increasing penetration of multi-purpose skin-care products, such as face creams, moisturizer, and others, drives the growth of Cosmetic Packaging in skin care application type. The adoption of hair care products is rapidly increasing in emerging economies, such as India and China, which is set to boost the market in hair care segment.  

REGIONAL INSIGHTS

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The market in Asia Pacific stood at USD 10.39 billion in 2020, with China accounting for more than three-fifth of the market. China is the second-largest cosmetics market after the U.S. Rapid increase in disposable income coupled with the rising number of young populations is expected to boost the consumption of cosmetic products in the country as well as region. Digital transformation is significantly fueling the market growth in the region as social-media influencers’ have better ways to reach out to young population and influence them on social media platforms. The growing environmental awareness amongst youth has also surged the adoption of sustainable and green packaging solutions such as wooden designer packaging (especially bamboo), paper & board and glass. However, the outbreak of COVID 19 pandemic is estimated to decline the market by 1.04% over the year 2019 in Asia Pacific region.

North America ranks second in the market, highly dominated by the U.S. The U.S. is the largest producer of cosmetics and its packaging. It exports high volumes of cosmetic products in most parts of the world. The producers in the region are also opting for green packaging solutions as well as natural products.

Similarly, consumers in the European region are also opting for sustainable packaging solutions. The consumers in the region are switching to post-consumer recycled (PCR) packaging and so the cosmetics manufacturers are in the front-line to adopt PCR plastic packaging in their products wherever possible. The outbreak of COVID 19 is expected to decline the market size in 2020.

The Middle East & Africa is also one of the important markets for this industry. Customers in the region consume high amount of products, particularly luxury products, driven by the high incomes in the developed countries of Middle East such as Saudi Arabia and the UAE.

Brazil ranks third in the global market after the U.S. & China, and leads the market in Latin America. Make-up application type accounts for major cosmetic packaging market share in the regional market due to high usage of make-up products in the region.

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 Latin America is expected to show growth by the end of the forecast period. Increasing awareness in consumers regarding health and hygiene is one of the key factors driving the growth in South America. The Middle East & Africa is anticipated to show considerable growth, owing to increasing demand from hospitality segment. Increasing tourism activities in the UAE, Kuwait, Oman, and Saudi Arabia are surging the demand for Cosmetic Packaging.

KEY INDUSTRY PLAYERS

Key Players Emphasize Production Capacity Expansions to Bolster Market Presence  

With increasing demand and utilization of highly versatile Cosmetic Packaging, leading brands such as Amcor, ALPLA Group, and Berlin Packaging are expanding their production capacity.

Key market players are accelerating R&D efforts to develop better-quality packaging solutions built to meet the specific requirements of the cosmetics industry. With evolving trends in beauty & cosmetics, companies are forming strategic alliances to further elevate R&D efforts and expand their presence in the rapidly growing market.

 LIST OF KEY COMPANIES PROFILED:

• Amcor (Switzerland)


• Sealed Air Corporation (U.S.)


• ALPLA Group (Austria)


• Aptar, Inc. (U.S.)


• HCP Packaging (China)


• Berry Global (U.S.)


• Berlin Packaging (U.S.)


• Bemis Company (U.S.)


• Albea SA (India)


• BIG SKY PACKAGING (U.S.)


• DS Smith (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• June 2021: Berry Global, a packaging solution providing company, partnered with RAW Elements USA to launch sugarcane-based tube for sunscreen, moisturizers, and hand sanitizer products.


• January 2021: Amcor, a global manufacturer of packaging, accelerated its leadership toward sustainable packaging solutions. The company is focused on improving the recyclability and reusability of packaging.

REPORT COVERAGE

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The global cosmetic packaging market report provides both qualitative & quantitative insights into the global market. Quantitative insights include the global market sizing in terms of value (USD billion) across each segment, sub-segment, and region profiled in the scope of the study. Also, the report covers market share analysis and growth rates of segment, sub-segment, and key countries across each region. Qualitative insight covers elaborative market analysis of drivers, restraints, growth opportunities, key trends related to the market. The competitive landscape section covers detailed company profiling of the key players operating in this market.

Cosmetic Packaging Market Scope & Segmentation