U.S. cosmetic and toiletry container demand is projected to increase 2.4% annually through 2005 to over 20-billion-units at a value of US$3 billion, according to a study by business research firm Freedonia.

According to the report, the folding carton industry will benefit from strong growth in hair coloring and skin care products, which require secondary packaging to contain multiple components.

The high-end image for fragrances and cosmetics and a shift in population toward the over 45 segment will drive demand for high valued-added creams and lotions — typically packaged in glass jars with folding carton containers.