Growing demand

Visiongain forecasts [1] that the demand in emerging markets will boost unit volumes and that the premiumisation trend in developed markets will also contribute to deliver strong growth in the cosmetics packaging market, which will reach a value of 25.23 billion U.S. dollars (about 19.41 billion euros) in 2013.

“Premiumisation of cosmetics and the anti-aging trend in developed markets is expected to increase the value of the cosmetics packaging markets, as cosmetics packaging becomes more innovative and expensive. Strong growth is expected to emerge from emerging and developing markets where consumers increasingly demand more of non-essential cosmetics products,” Visiongain comments.

While the increase in premium packaging in cosmetics markets can be partly explained by the aging of developed societies, other consumer trends also drive growth: the environmental trend, which is heightening the demand for environmentally friendly materials, and the rise of male grooming that boost the demand for particularly facial skincare and hair care packaging. Innovative techniques and integrated applicators, which are used to excite consumers in the increasingly crowded cosmetics markets, also contribute to the rise.

As far as the growth in emerging markets is concerned, the demand for cosmetic products is driven by higher income levels and the ascension of the middle class and professional occupations. “Appearance is becoming more important, and as consumers grow wealthier they are able to afford products previously seen as unattainable luxuries,” says the market research firm.

Economic uncertainties

However, there are also impediments to the market growth. According to Visiongain, the main constraints of the cosmetics packaging market are the still-lingering effects of the global financial crisis and the doubts created by the current euro-zone problems. “Reduced consumer and producer confidence restricts cosmetics packaging growth as consumers reduce purchases,” the firm explains.

In such a context, some cosmetics packaging sectors are likely to maintain relatively good positions even during financial crises. “Products such as hair care or facial skincare are widely seen as essential, and will be in demand regardless of the economic conditions. However, the less essential product sectors, such as decorative cosmetics, nail care or fragrances, are likely to take the impact of any double-dips on the horizon,” analyses Visiongain.

Fluctuating raw material and energy prices are further factors potentially constraining the cosmetics packaging market growth, making cosmetics packaging more expensive and reducing profits.