Professionals 224 Users Online

Europe Cosmetic CDMO Market

Europe Market Study on Cosmetic CDMO: PMR Foresees Various Opportunities Ahead, Analysing the Rising Consumer Demand for Personalized Skincare Solutions, Growing Trend of Outsourcing Manufacturing Processes by Cosmetic Brands, and Emphasis on Innovation and Product Differentiation

A Detailed Analysis of the Europe Cosmetic CDMO Market Based on Increasing Demand for Custom Formulations, Innovative Product Developments, and Outsourcing Trend in Beauty and Personal Care

Europe Cosmetic CDMO Market Outlook

The Europe cosmetic CDMO market is forecast to expand at a CAGR of 4.7% and thereby increase from a value of US$4 Bn in 2023, to US$5.8 Bn by the end of 2031.


Key Insights

Europe Cosmetic CDMO Market (2023E)

US$4.0 Bn

Projected Market Value (2031F)

US$5.8 Bn

 Market Growth Rate (CAGR 2023 to 2031)


Historical Market Growth Rate (CAGR 2018 to 2023)


Sample Report

FREE Report Sample is Available

In-depth report coverage is now just a few seconds away

Download PDF Get FREE Report Sample

Market Introduction and Definition

The Europe cosmetic contract development and manufacturing organization (CDMO) market represent a vital sector within the healthcare industry, catering specifically to the dynamic and ever-evolving needs of the beauty and personal care market. As consumers increasingly prioritize personalized skincare solutions and demand innovative products, cosmetic brands are turning to CDMOs for their expertise and resources. These organizations offer a range of services, including formulation development, manufacturing, packaging, and quality assurance, allowing cosmetic companies to outsource these critical functions while focusing on branding and marketing.

One of the key features driving the growth of the Europe cosmetic CDMO market is its ability to provide flexible and scalable solutions tailored to the unique requirements of each client. With a deep understanding of regulatory compliance and industry trends, CDMOs enable cosmetic brands to bring new products to market efficiently and cost-effectively. Additionally, CDMOs often possess advanced technology and research capabilities, allowing for the development of cutting-edge formulations that meet the increasingly sophisticated demands of consumers. Given the significance of skincare and beauty products in the daily lives of consumers, the Europe cosmetic CDMO market plays a crucial role in driving innovation, ensuring product quality, and meeting the diverse needs of the healthcare industry.

What are the Key Services Offered by CDMOs in the Europe Cosmetic CDMO Market?

CDMOs in the Europe cosmetic CDMO market offer comprehensive services tailored to the needs of cosmetic brands. They assist clients in developing contracts for manufacturing agreements, providing a framework for collaboration, and ensuring clear expectations. Furthermore, CDMOs excel in formulation development, leveraging their expertise to create innovative and effective skincare, haircare, and makeup formulations that meet client specifications and market demands.

Pilot studies conducted by CDMOs enable brands to test new formulations on a small scale before proceeding to full-scale manufacturing, minimizing risks, and optimizing product development processes. Contract manufacturing services encompass bulk preparation, scale-up, and production of cosmetic products, allowing brands to outsource manufacturing tasks while focusing on marketing and distribution.

Additionally, CDMOs offer safety testing to ensure product compliance with regulatory standards and consumer safety. Filling and packaging services include the use of various containers such as jars, bottles, tubes, and roll-ons, providing brands with options to suit their product formats and packaging preferences. Overall, the comprehensive services offered by CDMOs in the Europe cosmetic CDMO market enable brands to efficiently bring high-quality cosmetic products to market while minimizing costs and risks.

Custom Report Cover

Make This Report Your Own

Take Advantage of Intelligence Tailored to your Business Objective

> Get a Customized Version

Market Growth Drivers

Rising Demand for Customized Skincare Solutions

The surge in consumer preference for personalized skincare solutions is a significant driver fueling the growth of the Europe Cosmetic CDMO Market. Modern consumers seek products tailored to their specific skin types, concerns, and preferences, driving cosmetic brands to innovate and diversify their product offerings. CDMOs play a crucial role in this landscape by offering formulation development services that cater to individualized skincare needs.

Through collaborative partnerships with cosmetic brands, CDMOs leverage their expertise in ingredient selection, formulation optimization, and product testing to create bespoke skincare solutions. This trend not only fosters consumer satisfaction but also enables brands to differentiate themselves in a competitive market, driving increased demand for CDMO services. As customization continues to shape the beauty industry, the Europe cosmetic CDMO market is poised for sustained growth by meeting the evolving needs of both brands and consumers.

Outsourcing Trends in Beauty Industry

The growing trend of outsourcing manufacturing processes is another key driver propelling the expansion of the Europe cosmetic CDMO market. Cosmetic brands are increasingly relying on CDMOs to streamline their operations, reduce production costs, and improve efficiency. By outsourcing manufacturing to specialized CDMOs, brands can access state-of-the-art facilities, advanced technology, and specialized expertise without the need for significant capital investment. This allows brands to focus on core competencies such as branding, marketing, and product innovation while entrusting manufacturing tasks to experienced partners.

Additionally, outsourcing manufacturing provides brands with the flexibility to scale production according to demand fluctuations, thereby optimizing resource allocation and minimizing inventory risk. As the beauty industry continues to evolve, outsourcing manufacturing to CDMOs emerges as a strategic imperative for cosmetic brands seeking agility, cost-effectiveness, and operational excellence, driving sustained growth in the Europe cosmetic CDMO market.

Market Research Methodology

Market Research Methodology

-Perfect through Years of Diligence

Check Research Methodology

Market Restraints

Regulatory Compliance Challenges

One significant growth restraint facing the Europe cosmetic CDMO market is regulatory compliance challenges. The beauty and personal care industry is subject to stringent regulations regarding product safety, ingredient labeling, and manufacturing standards. CDMOs must navigate a complex landscape of regulatory requirements imposed by authorities such as the European Union's Cosmetics Regulation (EC) No 1223/2009. Compliance with these regulations requires significant resources, expertise, and ongoing monitoring to ensure adherence to evolving standards.

Failure to comply with regulatory requirements can result in costly penalties, product recalls, and damage to brand reputation. Consequently, navigating regulatory complexities poses a significant barrier to entry for new players in the Europe cosmetic CDMO market and imposes additional compliance burdens on existing firms, potentially hindering market growth.

Intense Competition, and Pricing Pressure

Intense competition and pricing pressure represent another significant growth restraint for the Europe cosmetic CDMO market. The market is characterized by a multitude of CDMOs competing for contracts from cosmetic brands, leading to pricing pressure and margin erosion. As cosmetic brands seek to optimize costs and maximize value from their outsourcing partnerships, they often engage in rigorous negotiation processes with CDMOs, driving down prices and squeezing profit margins. Additionally, the proliferation of CDMOs in the market intensifies competition, making it challenging for individual firms to differentiate themselves based on pricing alone.

Consequently, CDMOs face the dual challenge of maintaining profitability while delivering high-quality services and meeting client expectations. The combination of intense competition and pricing pressure poses a significant barrier to revenue growth and profitability for players in the Europe cosmetic CDMO market, constraining overall market expansion.

Sales Team

Sales Team
Client Partner

Let's Connect

Connect me to identify winning opportunities

Ask An Expert
I'm Available


Rising Consumer Inclination Towards Sustainable and Ethical Products

One prominent opportunity in the Europe cosmetic CDMO market is the growing demand for sustainable and ethical products. With increasing awareness of environmental issues and ethical considerations, consumers are actively seeking beauty products that are produced with minimal environmental impact and adhere to ethical sourcing practices. This presents an opportunity for CDMOs to differentiate themselves by offering formulation development and manufacturing capabilities focused on sustainability and ethical sourcing.

CDMOs can collaborate with cosmetic brands to develop eco-friendly formulations using renewable ingredients, reduce packaging waste through innovative packaging solutions, and implement sustainable manufacturing processes such as energy-efficient production and waste reduction initiatives. By aligning with consumer values and market trends, CDMOs can capitalize on the rising demand for sustainable and ethical beauty products, positioning themselves as preferred partners for brands seeking to enhance their sustainability credentials and meet the evolving preferences of environmentally conscious consumers.

Expanding Market for Natural and Clean Beauty Products

Another significant opportunity in the Europe cosmetic CDMO market is the expanding market for natural and clean beauty products. Consumers are increasingly gravitating towards skincare and cosmetic products formulated with natural and clean ingredients, free from potentially harmful chemicals and synthetic additives. This trend presents an opportunity for CDMOs to leverage their formulation expertise to develop and manufacture natural and clean beauty products for cosmetic brands.

CDMOs can collaborate with brands to formulate products using plant-based ingredients, botanical extracts, and other naturally derived components, catering to the growing demand for clean and transparent formulations. By investing in research and development capabilities focused on natural ingredients and clean beauty formulations, CDMOs can capitalize on the expanding market for natural and clean beauty products, positioning themselves as valuable partners for brands seeking to tap into this lucrative segment of the beauty industry.

Analyst's Overview

The overall growth outlook of the Europe cosmetic CDMO market remains robust, driven by several factors contributing to the expansion and evolution of the beauty and personal care industry. With increasing consumer demand for personalized skincare solutions, innovative product formulations, and sustainable, ethical beauty products, CDMOs are poised to play a pivotal role in meeting these evolving needs. The market benefits from the growing trend of outsourcing manufacturing processes by cosmetic brands, as they seek to leverage the expertise and resources of CDMOs to streamline operations, reduce costs, and access advanced technology and research capabilities.

Furthermore, the Europe cosmetic CDMO market stands to benefit from the expanding market for natural and clean beauty products, as well as the rising popularity of cosmeceuticals and skincare products with anti-aging and therapeutic properties. CDMOs that can adapt to these shifting consumer preferences and market trends by offering tailored formulation development, manufacturing, and packaging solutions will be well-positioned to capitalize on emerging opportunities and sustain growth. Additionally, the increasing focus on regulatory compliance and quality assurance presents avenues for CDMOs to differentiate themselves by providing reliable, compliant services that instill trust and confidence in their clients. Overall, with the convergence of these factors, the Europe cosmetic CDMO market is poised for continued expansion and innovation in the foreseeable future.

Supply-side Dynamics

The Europe cosmetic CDMO market is influenced by several key supply dynamics that shape its landscape and drive its growth. One critical factor is the availability of skilled labor and expertise in formulation development, manufacturing, and quality assurance within the region. Access to a talented workforce enables CDMOs to deliver high-quality services and innovative solutions to their clients, fostering trust and long-term partnerships.

Another significant aspect of the supply dynamics is the infrastructure and technological capabilities of CDMOs. State-of-the-art facilities equipped with advanced manufacturing equipment and technology enable CDMOs to meet the evolving needs of cosmetic brands and adapt to changing market trends swiftly. Additionally, CDMOs with a robust supply chain network can source raw materials efficiently, optimize production processes, and ensure timely delivery of finished products to clients.

Furthermore, the regulatory environment plays a crucial role in shaping supply dynamics in the Europe cosmetic CDMO market. CDMOs must adhere to strict regulatory standards and quality control measures to ensure compliance with regulations governing the production and distribution of cosmetic products. A thorough understanding of regulatory requirements and a commitment to maintaining compliance are essential for CDMOs to operate successfully in the market.

Market Segmentation

Which are the Most Popular Product Type Categories?

Skincare, and Hair Care Products Surge Ahead

CDMOs in Europe produce a wide range of skincare products, including moisturizers, serums, cleansers, toners, and anti-aging creams. These products cater to various skin types and concerns, such as hydration, acne, and aging. Haircare items like shampoos, conditioners, hair masks, and styling products are also manufactured by CDMOs in Europe. These products address different hair types and concerns, such as dryness, damage, and frizz control.

CDMOs produce color cosmetics like foundations, concealers, blushes, eyeshadows, lipsticks, and mascaras. These products come in a diverse range of shades and formulations to suit different skin tones and preferences. CDMOs in Europe manufacture fragrances, including perfumes, colognes, body mists, and scented lotions. These products offer a variety of aromatic experiences, from floral and fruity to woody and oriental scents.

Personal care items such as body washes, body lotions, deodorants, and oral care products are also manufactured by CDMOs in Europe. These products focus on hygiene, freshness, and overall wellbeing. With the increasing demand for natural and organic cosmetics, CDMOs in Europe produce formulations using plant-based ingredients, essential oils, and other natural extracts. These products appeal to consumers seeking clean and sustainable beauty options. Some CDMOs offer customized formulations and specialty products tailored to specific client needs or niche markets. These may include products for sensitive skin, vegan formulations, or products targeting specific skincare concerns like hyperpigmentation or eczema.

What are the Significant Forms of Cosmetic Products Manufactured by CDMOs in Europe’s Cosmetic CDMO Market?

Powders, and Lotions Hold Significant Market Shares

CDMOs in the Europe cosmetic CDMO market produce cosmetic products in a wide range of forms to accommodate different application preferences and consumer needs. Solid forms and powders include products such as pressed powders, loose powders, and solid perfumes, offering convenience and portability for on-the-go usage. Lotions are lightweight, fluid formulations that provide hydration and nourishment to the skin without leaving a greasy residue, making them suitable for daily use on the body and face. Creams are thicker, more emollient formulations that offer intensive moisturization and are ideal for dry or mature skin types.

Additionally, CDMOs manufacture other formulations such as gels, sprays, and syrups, which offer unique textures and application methods for specific skincare, haircare, and makeup products. These diverse product forms allow cosmetic brands to cater to different consumer preferences and market segments, offering versatility in terms of product usage and packaging options. By leveraging their formulation expertise and manufacturing capabilities, CDMOs in the Europe cosmetic CDMO market enable brands to develop and manufacture innovative cosmetic products that meet the evolving needs and preferences of consumers.

Top Countries in Europe CDMO Market

Italy’s Sizeable Contribution to the European Cosmetic CDMO Market

Italy, renowned for its rich history in cosmetics and skincare, holds a significant position in the European Cosmetic CDMO Market. The country boasts a thriving cosmetic industry characterized by a diverse range of products, innovative formulations, and renowned brands. Italy's cosmetic sector benefits from a legacy of expertise in beauty and personal care, with a strong emphasis on quality, innovation, and aesthetics. Italian cosmetic manufacturers are known for their commitment to research and development, continuously striving to create cutting-edge formulations that address evolving consumer needs and preferences.

This culture of innovation and creativity extends to the contract development and manufacturing sector, where Italian CDMOs play a vital role in supporting the growth and competitiveness of the European cosmetic CDMO market. Italian CDMOs leverage their expertise in formulation development, manufacturing, and packaging to offer high-quality services to cosmetic brands across Europe and beyond. With a focus on craftsmanship, quality assurance, and regulatory compliance, Italian CDMOs contribute to the success of cosmetic brands by providing tailored solutions that meet the highest standards of excellence. Additionally, Italy's strategic location within Europe facilitates collaboration and trade within the region, further enhancing its significance in the European cosmetic CDMO market. Italy's vibrant cosmetic industry and its thriving ecosystem of CDMOs play a crucial role in driving innovation, growth, and competitiveness in the European beauty and personal care market.

Competitive Intelligence and Business Strategy

In the competitive landscape of the Europe cosmetic CDMO market, several significant companies stand out as industry leaders, driving innovation, and shaping market trends. Companies such as Fareva, Albea, and Intercos Group are among the prominent players in the region, offering a comprehensive range of contract development and manufacturing services to cosmetic brands. These market leaders differentiate themselves through various unique competitive strategies, including investment in research and development, strategic partnerships with cosmetic brands, and geographical expansion to tap into new markets.

Additionally, companies may focus on offering specialized expertise in niche segments such as natural and organic cosmetics or cosmeceuticals, catering to the growing demand for these products among consumers. The key competitive advantages for market leaders lie in their ability to deliver high-quality products, innovation, and value-added services while maintaining cost efficiency and regulatory compliance.

Over the long term, the competitive landscape of the Europe cosmetic CDMO market is expected to evolve as companies continue to invest in technology, expand their service offerings, and adapt to changing consumer preferences and regulatory requirements. Market leaders will likely consolidate their positions through strategic acquisitions, partnerships, and investments in research and development, further solidifying their dominance in the industry.

Key Recent Developments

Expansion of Production Facilities:

Several major cosmetic Contract Development and Manufacturing Organizations (CDMOs) in Europe have recently announced significant expansions of their production facilities. This includes investment in new state-of-the-art equipment and technologies to enhance manufacturing capabilities and meet growing demand for cosmetic products. With increased production capacity, these CDMOs are poised to attract more clients and capture a larger share of the market.

Impact on Market:

The expansion of production facilities among European cosmetic CDMOs is likely to lead to heightened competition and improved service offerings. Clients seeking manufacturing partners will benefit from increased flexibility, faster turnaround times, and access to cutting-edge technologies. This expansion will also contribute to the overall growth and dynamism of the European cosmetic CDMO market, positioning it as a leader in innovative and high-quality cosmetic manufacturing solutions.

Strategic Collaborations and Partnerships:

Cosmetic CDMOs in Europe are actively engaging in strategic collaborations and partnerships with other companies across the cosmetics industry value chain. These partnerships involve joint research and development initiatives, technology sharing agreements, and strategic alliances aimed at leveraging complementary strengths and capabilities. By pooling resources and expertise, companies can accelerate product development cycles, drive innovation, and enhance market competitiveness.

Impact on Market:

The formation of strategic collaborations and partnerships within the European cosmetic CDMO market fosters a collaborative ecosystem that promotes innovation and efficiency. Clients stand to benefit from access to a broader range of specialized services and capabilities, resulting in enhanced product offerings and accelerated time-to-market. Moreover, these partnerships strengthen the position of European cosmetic CDMOs in the marketplace by fostering synergies and creating opportunities for expansion into new geographic regions and market segments.

Emphasis on Sustainability and Green Technologies:

In response to increasing consumer demand for sustainable and eco-friendly cosmetic products, many CDMOs in Europe are placing a greater emphasis on sustainability and green technologies in their manufacturing processes. This includes the adoption of renewable energy sources, eco-friendly packaging solutions, and the development of biodegradable formulations. By aligning with sustainability goals, cosmetic CDMOs can cater to the preferences of environmentally conscious consumers and differentiate themselves in the market.

Impact on Market:

The integration of sustainability initiatives and green technologies into the operations of European cosmetic CDMOs reflects a growing industry trend towards environmental responsibility and corporate stewardship. Companies that prioritize sustainability are likely to attract environmentally conscious clients and gain a competitive edge in the market. Additionally, as regulatory frameworks around sustainability continue to evolve, CDMOs with robust environmental practices will be better positioned to navigate compliance requirements and capitalize on emerging opportunities in the cosmetics market.

Europe Cosmetic CDMO Market Report Scope



Forecast Period

2023 to 2031

Historical Data Available for

2018 to 2023

Market Analysis

US$ Million for Value

Key Countries Covered

  • Italy

Key Market Segments Covered

  • By Service Type
  • By Product
  • By Form
  • By Country

Key Companies Profiled

  • Catalent, Inc
  • Pierre Fabre group
  • Biofarma Srl C.F.
  • FINE FOODS & PHARMACEUTICALS N.T.M. S.p.A.(Euro Cosmetics) )
  • Merck KGaA
  • C.O.C. Farmaceutici Srl
  • Cosmoproject
  • Farcoderma S.p.A.
  • IRA Istituto Ricerche Applicate S.p.A
  • Biogei Cosmetici srl
  • O.F.I. Officina Farmaceutica Italiana
  • Eley s.r.l
  • S.I.P.R.E.S.
  • Cleys

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & Pricing

Available upon request

Europe Cosmetic CDMO Market Segmentation

By Service Type

  • Contract Development
  • Formulation Development
  • Pilot Studies
  • Contract Manufacturing
  • Bulk Preparation & Scale up
  • Safety Testing
  • Filling & Packaging
  • Close Jar
  • Bottles
  • Tubes
  • Roll-ons

By Product

  • Hair Products
  • Skin Products
  • Lip Products
  • Eye Products
  • Body Hygiene
  • Oral Hygiene

By Form

  • Solid Form & Powder
  • Lotions
  • Creams
  • Others - Gels, Sprays, Syrup

By Country

  • Italy

- Companies Covered in This Report -

  • Catalent, Inc
  • Pierre Fabre group
  • Biofarma Srl C.F.
  • FINE FOODS & PHARMACEUTICALS N.T.M. S.p.A.(Euro Cosmetics) )
  • Merck KGaA
  • C.O.C. Farmaceutici Srl
  • Cosmoproject
  • Farcoderma S.p.A.
  • IRA Istituto Ricerche Applicate S.p.A
  • Biogei Cosmetici srl
  • O.F.I. Officina Farmaceutica Italiana
  • Eley s.r.l
  • S.I.P.R.E.S.
  • Cleys

- Frequently Asked Questions -

European Cosmetic CDMOs provide a range of services including formulation development, manufacturing, packaging, and regulatory support to cosmetics companies.

Outsourcing to a CDMO in Europe allows cosmetic businesses to access specialized expertise, reduce time-to-market, minimize capital investment, and focus on core competencies.

Cosmetic products manufactured by CDMOs in Europe must comply with regulations such as the EU Cosmetic Regulation (EC) No 1223/2009, ensuring safety, efficacy, and proper labeling.

European Cosmetic CDMOs adhere to Good Manufacturing Practices (GMP) and often hold certifications such as ISO 22716, demonstrating compliance with strict quality and safety standards.

Lead times vary depending on factors like formulation complexity and volume, but European Cosmetic CDMOs generally offer competitive lead times ranging from a few weeks to a few months.

This site uses cookies, including third-party cookies, that help us to provide and improve our services. Privacy Policy
Google translate