The cosmetics and cosmeceutical industry depends largely on contract manufacturing for their production requirements. The scope of operations of this industry space is expanding with increase in demand of both high volume cosmetics and skin/hair care products and small pouch & trial-sized/travel packages, which is expected to be worth 1.5 lakh crores by 2025 in value. The greatest challenge of the contract manufacturers is to build infrastructure that can address growth in both these markets. Increasing cost of transportation, raw materials and more stringent regulations are the stumbling blocks in the way of running a large manufacturing facility. Besides, technological upgradation of these plants is also necessary to align with the market trends.