COSMETIC INGREDIENTS MARKET ANALYSIS

Cosmetic ingredients are the components used in the manufacturing of cosmetic products, such as sunscreen lotions, creams, moisturizers, eyeliners, lipsticks, body lotions, and others. Cosmetic ingredients include water, moisturizers, preservatives, emulsifiers, thickeners, lubricants, colors, and fragrances. Cosmetic ingredients can be prepared synthetically or can be extracted from natural resources such as plant-derived products. It gives anti-oxidant, anti-inflammatory, thickness, and moisturizing properties to cosmetic products. Moreover, it can also be used to enhance the texture and appearance of cosmetic products.

The global cosmetic ingredients market was valued at US$ 1,8881.32 Mn in 2022 and is predicted to reach US$ 2,9846.31 Mn by the end of 2030, exhibiting a CAGR of 5.29% during the forecast period (2023 to 2030).

Drivers

Rising demand for specialized skincare products

Rising demand for specialized skincare products is projected to fuel the market growth of cosmetic ingredients over the forecast period. For instance, in April 2019, Dow launched its personal care ingredient innovations at booth K80. This includes Dow’s first bio-based hair fixative, Maize Care Style Polymer, Planet savvy DOWSIL FA PEPS Silicone Acrylate, and EPITEX9 Polymer, the company‘s brand new hybrid film former. Therefore, the growing demand for a specialized skin care product is projected to foster the market growth of cosmetic ingredients.

Increasing launch of new cosmetic ingredients is expected to drive the market growth of cosmetic ingredients. For instance, in April 2018, BASF presented new ingredients for skin and hair care products that have been proven to help, protect, and rebalance the skin and to slow down the hair aging process. These products help the manufacturers of personal care products to respond to current market trends and meet the consumers’ demand for the products supporting their lifestyle. 

Figure 1. Cosmetic Ingredients Market Value Share (%), By Region, 2022

To learn more about this report, request sample copy

Among region,  Asia Pacific dominated the global cosmetic ingredients market in 2022, reporting to 39% market share in terms of revenue, followed by Europe and North America, respectively.   

Market Restraints

Strict regulations against the use of harmful chemical ingredients

Strict regulations against the use of harmful chemical ingredients is expected to hinder the market growth of cosmetic ingredients. For instance, in March 2019, California lawmakers introduced the landmark bill, noting that sale of cosmetic with toxic ingredients would be deemed illegal in the state. AB 495, the Toxic-Free Cosmetic Act, would be the first of its kind in the country. Therefore, introduction of such strict laws is expected to hinder the market growth of cosmetic ingredients.

Rising environmental concerns such as issues related to waste chemical compounds from cosmetic ingredients manufacturing facilities,  that are harmful to the environment, is expected to act as a restraint for setting-up new cosmetic ingredients manufacturing plants in the near future. For example, some cosmetic ingredients such as P-phenylenediamine, BHA and BHT that are widely used in cosmetic products, such as  hair color and lipsticks, are harmful to the marine ecosystem. This is expected to curb the market growth of cosmetic ingredients.

Global Cosmetic Ingredients Market - Impact of Coronavirus (Covid-19) Pandemic

As COVID-19 continues to spread swiftly around the world, it is impacting the global economy and is leading to socio-economic disruptions. Beauty and Personal Care industry has also witnessed a steep decline as well as a consumer behavioral shift towards safe and reliable products during the Covid 19 pandemic. Products with lower risk of contamination and longer shelf lives are expected to boost the market back to normalcy in Quarter 1of 2021.

 Market Trends

  Rising trend of using natural cosmetic ingredients, among manufacturers, is gaining traction in the market growth. For instance, in June 2019, BASF Care Creation introduced three new active ingredients for the beauty market, which uses the unique properties of the rambutan tree (Nephelium lappaceum), to offer unparalleled skin hydration and rejuvenation for today’s globally conscious consumers. Therefore, rising introduction of natural cosmetic ingredients is projected to fuel market growth over the forecast period.

Increasing number of merger and acquisitions by key market players around the globe for expanding their presence in the beauty market is projected to augment the market growth of cosmetic ingredients. For instance, in November 2019, Givaudan announced that it had signed an agreement to acquire the cosmetic business of Indena in order to strengthen Active Beauty’s global capabilities in botanically active cosmetic ingredients. This merger and acquisition is expected to foster market growth over the forecast period.

Market Opportunities

Growth of middle-class population in emerging economies, especially in the Asia Pacific, is expected to represent a lucrative opportunity to the cosmetic ingredients market. According to the European Commission, the size of the global middle class people increased from 1.8 billion in 2009 to about 3.5 billion people in 2017 that is more than half of the world population and this number is expected to grow to 4 billion by 2021 and reach 5.3 billion by 2030. Hence, this factor is projected to offer immense growth opportunities to the cosmetic ingredients market. Expanding e-commerce sale in emerging nations such as Brazil, South Africa, China, India, Mexico, Western European countries are projected to foster the market growth of cosmetic ingredients.

 Figure 2. Cosmetic Ingredients Market Value Share (%), By Application, 2022

To learn more about this report, request sample copy

Based on application, the market is segregated into skin care, hair care, makeup, fragrance, oral care, and others. In 2019, skin care segment dominated the global market for cosmetic ingredients in terms of revenue and contributed for 31.9% market share in the same year, followed by hair care and make up applications.

Recent Developments

• On December 15, 2022, The Eastman Company signed a partnership agreement with the environmental nongovernmental organization, SOS Mata Atlântica and Bracell, a soluble cellulose producer, to donate 15,000 seedlings in support of a program that is designed to help in restoring the Brazilian Atlantic Forest.
• On December 14, 2021, WACKER and Corden Pharma signed a development partnership in the field of Lipid Nanoparticle formulation. The companies announced that both would jointly develop know-how and processes for the manufacturing of Lipid Nanoparticles (LNPs), to be used to meet the growing market demand. LNPs are drug delivery systems used for nucleic acid therapeutics, consisting of special fats, which ensure that actives can safely enter the body in order to exert its biological effect.

Competitive Section

• BASF SE
• AkzoNobel N.V.
• Croda International Plc
• The Dow Chemical Company
• Eastman Chemical Company
• Clariant AG
• Wacker Chemie AG

End-Use Companies

• L'Oréal International
• Unilever
• The Estée Lauder Companies Inc.
• COTY Inc. (1/3)
• Colgate-Palmolive Company