How outsourcing is helping to change the

How outsourcing is helping to change the face of the personal care market

By Rodney Steel, Chief Executive, BCMPA

Rodney Steel, Chief Executive of the BCMPA - the Association for Contract Manufacturing, Packing, Fulfilment & Logistics - discusses how outsourcing businesses are meeting the packaging challenges faced by today’s personal care and beauty sector brands.

urrent discussions about the performance of any part of the economy will invariably turn to the effects of the Coronavirus pandemic, and the personal care and beauty sector is no different. Nevertheless, at least part of the impact of the crisis has been to accelerate already existing trends such as the desire for sustainable packaging and products, growth in white label and private label manufacturing and the need to fulfil the surge in growth of online shopping.

A recent Mintel report estimated that online demand for beauty and grooming products increased by 24 percent annually to be worth over £1.9 billion. While this undoubtedly reflected the stay-athome message and closure of the high streets during the lockdowns, it was equally an indication of what was already a fundamental shift from the traditional retail environment.

In recent years, therefore, the personal care sector has had to become more fleet of foot to deal with the changing market and consumer demands and this is where outsourcing partners have increasingly been able to meet the needs of brand owners. From new product development and formulation to a comprehensive offering that also includes sourcing, procurement, packing and fulfilment, this is a process that can take a product from initial concept to the end-consumer. Whilst the Pandemic saw an increase in demand for hand sanitisers and other hygiene products, it also accelerated enquiries into the BCMPA from entrepreneurs and fledgling businesses who seem to have spent part of lockdown looking for fresh opportunities for new personal care and beauty products.

In both instances, speed-tomarket has been essential. BCMPA members offer both White Label goods, which are standard off-theshelf products that have already been formulated and tested, and Private Label products that are manufactured to a bespoke formulation and free up the customer to concentrate more on

the marketing and selling aspects of their business. In 2020, the BCMPA saw a 75 percent increase in enquiries for these services. “The growth in this sector has been great for our business with enquiries coming through daily,” confirms Paul Stanton, Sales Director at SMC Cosmetics. “We believe the high demand is due to e-commerce sales booming, making bringing new products to market easier than ever before.” “It has been hard to escape the demand for sanitising wipes, gels and more,” says Jeremy Freedman, Managing Director at Guardpack, the specialist sachet and wet wipe manufacturer. In terms of Private Label and White Label, our ability to run low quantities allows many of the smaller to medium sized cosmetic businesses to more easily, and cost-effectively, promote their brand.”

At the same time, the pandemic has not quelled the need for more environmentally friendly packaging solutions. Sustainable packaging is no longer just an option and businesses are taking a ‘reduce, reuse, refill, recover’ approach to deliver this. Examples include the removal of flexible plastics from multipacks and the use of recycled plastics or plant-based materials. “It is no surprise that sustainability has been the most prominent development we’ve seen in personal care and beauty packaging,” agrees Ruth Stanley, Co-pack Commercial Manager at DCS Group. Initiatives such as the UK Plastics Pact have accelerated investment from the large brands we partner with to use recycled content and embark upon planet-friendly innovation in their packaging. This has been critical in developing a circular economy for plastics in the UK, making sustainability a core part of today’s business ethos.”

Pack size reductions have also been adopted to minimise product wastage with the aim of delivering a reduction in the environmental impact on the supply chain, although in some cases this has led to an increase in packaging materials. In terms of the pandemic, small packs minimise sharing and contact between individuals. Guardpack reports significant demand for smaller packs, with “things becoming a lot more individualised” and growth in individual sachets for cosmetic sampling, which provides a costeffective route for customers to trial products.

DCS meanwhile says that refillable and reusable packaging have been a key NPD driver for many products including haircare, deodorants, face & body care. “Brands have created some attractive, ‘Instagram-worthy’ re-usable solutions, not only promoting their sustainability but equally as important, generating brand loyalty,” says Stanley. Nevertheless, demonstrating sustainability extends far beyond packaging and now has to be a vital part of a company’s entire offering. “It covers all aspects of our business, from ensuring our premises and control measures are run in the most effective manner, through to the purchase of our raw material and componentry,” confirms Stanton at SMC.

From the brand owner’s point of view, packaging that communicates its sustainability message on responsible beauty is bound to be a key factor in attracting consumers. Sustainability is just one of the ongoing challenges for businesses and several others are being driven by the continued unknowns of the true impact of Brexit and the dramatic increase in costs for global shipping. While the outsourcing sector will do all in its power to mitigate these challenges, the complexity of regulations and changes have made price increases virtually inevitable.

This has highlighted the importance of ‘buying British’ to many brands, both as a means to avoid complexities and rising prices and also to find the high standards of service they need. “We are seeing more and more clients, who have previously imported finished goods, contact us directly for the benefit of UK contract manufacturing,” concludes Freedman.

Indeed, it is this expertise and experience ‘close to home’ that will enable BCMPA members and the wider outsourcing sector to continue to meet the production and packaging demands for today’s fast-moving beauty and personal care trends.