SOURCE: Freedonia Group, Inc.

August 16, 2005 14:35 ET

Cosmetic & Toiletry Container Demand to Reach 24.7 Billion Units in 2009

CLEVELAND, OH -- (MARKET WIRE) -- August 16, 2005 -- US demand for cosmetic and toiletry containers is projected to increase 2.6 percent per year to 24.7 billion units in 2009. In dollar terms, sales will climb 4.7 percent yearly to $3.8 billion. Container advances will reflect healthy prospects for cosmetic and toiletry product shipments coupled with favorable population age distribution trends and the ongoing development of nontraditional distribution channels. Growth will also be fueled by a steady rate of new product introductions with improved performance features and/or appearance-enhancing attributes. These and other trends are presented in "Cosmetic & Toiletry Chemicals," a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.

Among material types, plastic will register the fastest growth through 2009 in both units and value, with demand projected to increase 3.1 percent per annum. Plastic will continue to increase its stronghold in cosmetic and toiletry packaging based on a combination of favorable cost and performance characteristics. Expansion will arise primarily from new product introductions and relaunches of existing products that use new packaging designs. Technological and resin advances offering improvements in container aesthetics and performance will enable plastics to further penetrate prestige applications.

While below-average prospects are anticipated for paperboard, glass and metal cosmetic and toiletry containers as a result of market maturity and competitive drawbacks, areas of opportunity will exist for each. Rapidly expanding segments such as tooth whiteners and wipes will provide some upward momentum for paperboard containers despite ongoing source reduction efforts aimed at holding down the use of secondary packaging. While a weak outlook for glass containers will be the result of inroads by resins, glass will continue to hold its niche in cosmetic (e.g., nail enamel) and fragrance uses. In the metal segment, aluminum containers will log above-average gains.

Hair care, skin care and oral hygiene were the three largest markets in 2004, together accounting for over two-thirds of unit demand. Through 2009, the fastest growth is anticipated in the skin care and liquid soap markets. Skin care product container demand will benefit from healthy expansion in the over-45 population, which will continue to fuel robust sales of skin creams and lotions as well as non-drying skin cleansers.

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