When it comes to the cosmetics industry, packaging is more than just a finishing touch. The cosmetic packaging market in North America is valued at about $6.85 billion (2025), with projections to reach $8.29 billion by 2030.

That kind of growth signals a lot of opportunities. But it also comes with risks, especially when tariffs are putting pressure on pricing for beauty brands, their packaging partners and customers.

For US-based suppliers, those tariffs on imported components can drive costs up to 25%. In the long run, that’s not sustainable, but neither is relying solely on domestic sourcing and related costs.

The best strategy is diversification.

And it’s not just about where your packaging comes from. It’s about where and how you move it.

One e-commerce beauty brand Growth Catalyst Group worked with, identified 8% in cost avoidance simply by redesigning its fulfillment network, shifting away from costly coastal distribution hubs to a more balanced, demand-driven model.

By optimizing shipping routes and inventory locations, they not only saved money, but also reduced lead times and improved customer satisfaction.

A hybrid supply model is key, blending U.S. production with onshoring and nearshoring across countries like Mexico and Canada, while maintaining select global partnerships for innovation and scale. It’s the best way to manage cost, volatility, reduce risk, and stay nimble.

For both domestic and global suppliers, the smartest moves include supply chain mapping, flexible tooling, early and accurate forecasting (Sales and Operating Planning or S&OP), and strong communication with partners to stay ahead of disruption. Improving the overall financial health of the business improves the chances of success while adapting to tariffs and other external headwinds.

This approach becomes even more important as brands pursue more significant sustainability goals.

The U.S. market alone generated 7.9 billion units of rigid plastic packaging per year for beauty and personal care products in 2018. Since then, with consumers having more access to a larger variety of products, we can only imagine that the number has increased. Localizing parts of that production using recycled content and lower-carbon logistics is no longer a nice-to-have; it’s critical.

Tariffs are out of our hands, but resilience isn’t. By investing in regional networks optimizing materials, and designing smarter, brands and suppliers can respond not just defensively, but also creatively. This is how we can future-proof supply chains, meet consumer expectations, and keep beauty packaging…beautiful.

ABOUT THE AUTHOR

Manish Kapoor is a leading innovator in the world of supply chain and logistics. Back when he was at FedEx, he spearheaded the launch of FedEx’s Same-Day City service, reshaping the logistics landscape before Amazon Prime’s same-day model took off. He is now the CEO and founder of Growth Catalyst Group, a global leader in technology-driven supply chain solutions. 

Photo: Adobe Stock/ MAY (Generated with AI)