The global market for cosmetics packaging is set to grow at in excess of 5% every year for the next five years, according to the latest market report on the category.
According to the report, entitled Cosmetic Packaging Market, and published by Markets and Markets, the category is set to grow at a CAGR of 5.4% between the years 2013 and 2018, giving it a market value of $32.4bn.
In line with this growth in packaged products, the market for production machinery is also expected to grow along a similar trajectory, with the report estimating that this part of the market will be worth $2.5bn by 2018.
Anti-aging drives demand for packaging in Asia Pacific
On a geographic basis, the market is expected to grow fastest in the Asia Pacific region, where the report notes that future growth is likely to be driven by women over the age of 30 who are looking for anti-ageing treatments, specifically in the skin whitening category.
The report highlights that higher growth will also be seen in the European and North America markets, as these regions are expected to show more and more signs of recovery from the prolonged economic downturn experienced since 2009.
Growth has been seen throughout the Asia Pacific region, but the strongest surge in the anti-ageing category has been seen in China, where an increasing middle class spending power has translated into women upgrading their skin care routines with more sophisticated products.
Although the growth has slowed in China over the past year or so, market analysts believe that the foundations for further growth in the next five years are still in place.
The same applies to the fast-growing markets of Brazil and India, where a more pronounced slow down has been experienced over the past year, but where future growth in demand for cosmetics packaging is still expected to be strong.
Packaging providers struggling to meet demands for diversity
One issue that the report drives home is that packaging manufacturers are struggling to meet demands for diversity and the fast pace of product roll-outs.
The cosmetics sector has always been fast-paced and trends driven, but as competition in the market has continued to heat up, this is often leading packaging players struggling to tap into the resources to meet the demand for the increased product roll-out.
Likewise, with respect to the types of packaging consumers are looking for, the report stresses that plastic remains the material of choice, while consumer preferences, product characteristics and material characteristics remain the defining elements in the development of the packaging.
The report covers the market according to material type – glass, metal and paper, the various applications, which includes hair care, nail care, skin care and make-up, by packaging machinery category, with categories including filling, unscramble, sealing, as well as the principal world geographic regions.