Bulk Packaging for Cosmetics Market

The global bulk packaging for cosmetics market is a very dynamic market and is expected to witness moderate growth over the forecast timeframe. The growth of global bulk packaging for cosmetics industry is influenced by the increase in aging population, the growth of the retail sector, and the changing consumer taste and preference. However, government norms against plastic packaging is expected to limit the market growth.

Consumer preferences and tastes are key factors affecting consumer purchasing decisions regarding cosmetic products. The sale of cosmetics play an important role in the consumer goods business across the globe. The rising affluence and the identified need for grooming and appearance, among individuals will spur the potential of the cosmetics market. The increasing purchasing power along with the focus on around the globe is expected to add to the product share over the projected timeframe.

The industry players focus on advancement in manufacturing technologies to create multi-functional cosmetic products, which is expected to boost the market growth. Proliferating disposable income, even in developing countries along with the rising inclination toward sun and skin care products will escalate the bulk packaging for cosmetics volume share. Increasing population, growing urbanization, and changing lifestyles have created a high demand for personal care and other packaged products. Furthermore, the shifting customer preferences toward anti-wrinkle cosmetics is supporting the bulk packaging for cosmetics market during the forecast period.

The increase in per capita disposable income has increased discretionary spending in developing countries.

The chart below shows the per capita disposable income growth in China:

Besides the growing per capita disposable income, the growth of bulk packaging for cosmetics market is expected to be driven by the growing use of e-commerce platforms. The rising demand for cosmetic products and the increasing consumption of such products will also drive market penetration. Moreover, liberalized foreign direct investment (FDI) policies, strong macro-economic indicators, and economic and industrial reforms are expected to add to the growth of the market for bulk packaging for cosmetics. Thus, the changing consumer taste and preference is expected to drive the growth of the global bulk packaging for cosmetics market during the forecast period

The cosmetics market is primarily dominated by large scale companies and their subsidiaries, driving over half of the entire industry's sales. International players focus on increasing their industry foothold by enhancing their distribution network. However, small and medium-sized enterprises are making their presence felt by implementing multiple strategies in innovative ways.

SMEs focus on gaining exposure for their products by targeting the larger market potential of the cosmetic industry. Industry players engage in high investment and installation of technologically advanced equipment including innovative handling and transport equipment in their manufacturing plants for improving operational efficiency. Multiple training programs in SMEs for employees to develop the working skills will accentuate the industry growth over the estimated period.

Increased government support for SMEs from countries including the U.S., Europe and India will provide positive opportunity for the market expansion. Europe Commission enacts ‘Enterprise Europe Network’ for catering support and information to SMEs in turn boosting their revenue generation. The Enterprise Europe Network consists over 600 partner companies with expertise in catering services for SMEs. Moreover, governments in countries including the US and countries in Europe involve in strategic partnerships such as transatlantic trade and investment partnership (TTIP) for increasing the participation of SMEs in trade activities. Such rise in trade is expected to lead to the high demand for bulk packaging products to aid in the transportation of goods. Thus, the untapped small and medium sized enterprises manufacturing and retailing cosmetics is expected to create an opportunity for the market players in the global bulk packaging for cosmetics market during the forecast period.

Government authorities introducing measures for environmental safety and concerns regarding the use of bulk packaging materials including plastics. The regulatory organizations enact required measures and obligate packaging manufacturers to limit the usage of certain materials in the products. For instance, the European Union (EU) introduced specific measures on the management of packaging waste in 1980. The increasing stringency of regulations on packaging material waste and recycling will restrict the industry growth over the forecast period.

The growing percentage of plastics in solid waste streams poses several environmental challenges. Plastic packaging pollutes the environment as it does not degrade easily, and poses difficulties during recycling, which harms human health and the entire ecosystem. According to European Union, the proposed rules mentioned in Directive 85/339/EEC were on the marketing, production, use, refilling and recycling of containers for human consumption along with the disposal of used containers. Several member states in the EU engage in implementing standards in the authorized areas to reduce the environmental hazards of packaging materials.

EU also adopted directive 94/62/EC for harmonizing national measures further preventing the impact of harmful packaging materials. This directive aims to provide increased level of environmental protection and ensures reduced hindrances in trade activities. In April 2015, the revision of packaging and packaging waste directive with the establishment of Directive (EU) 2015/720 has limited the consumption of plastic materials. Such regulations affect the packaging industry, which involves substantial use of plastics.

The U.S. federal government enacts packaging regulations to regulate food, drug, and cosmetic for ensuring consumer safety. Some of the regulations include California packaging regulation, Illinois packaging regulations, and New York packaging regulations. The government also introduces multiple programs to reduce the disposal and use of packaging materials. It also mandates minimum recycling requirements that will create a barrier for the product share in the region.

The U.S. Food and Drug Administration (FDA) also consists of Federal Food, Drug, and Cosmetic Act to restrict food contamination from packaging materials. Such measures have been implemented across the globe in several developed and recently in developing countries These regulations are expected to hamper the bulk packaging for cosmetics market growth due to the use of multiple plastic grades and waste management techniques during the packaging processes.