Plastics to lead cosmetic packaging market past US$31 bln to 2020

27-Dec-16

Cosmetic industry is highly consumer centric, in terms of perceived value and aesthetic appeal and thus packaging of these products impact the market sales. Most of the packaging for cosmetic products is done with plastic, glass, and metal, while other paper is also used for packaging cosmetic products. Plastic packaging leads the cosmetic packaging market while glass packaging has a dominant share in fragrance market, a subset of Cosmetic packaging market.

The Global Cosmetic Packaging Market was worth US$24.3 bln in 2014 and is projected to reach US$31.4 bln by 2020, at a compound annual growth rate of 4.4%. North America has a market share of 30% while APAC will witness the fastest growth during the forecasted period, as per Morodor Intelligence.
Factors like growing beauty consciousness in the consumers, expanding product lines for cosmetic products based on affordability, e-retailing are driving the market, while economic factors like recession are a constraint for the high end market. With cosmetics being FMCG products, retailers have a great impact in identifying the brands that provide aesthetic appeal to the customers and placing the same in their limited shelf space. As such, perception of packaging by manufacturing companies has shifted from being a non-core activity to becoming an extension of their arm. With changing market dynamics of Cosmetic industry by bringing in new products, packaging companies are going for innovations in designing, and technological use to stay competitive.