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The cosmetic ingredients market size is forecast to increase by USD 4.89 billion, at a CAGR of 7.08% between 2022 and 2027. The market's growth hinges on various factors, notably the surging demand for natural and organic cosmetic ingredients, reflecting a consumer shift towards more sustainable and environmentally friendly beauty solutions. Additionally, the escalating preference for multifunctional cosmetics amplifies market expansion, as consumers seek products that offer multiple benefits in a single application, streamlining their skincare routines. Furthermore, continuous ingredient development plays a pivotal role, as beauty companies strive to innovate and introduce novel ingredients that meet evolving consumer needs and preferences. These trends collectively contribute to the robust growth trajectory of the market, shaping the future landscape of the beauty industry.
This market report extensively covers market segmentation by Type (surfactants, emollients film-formers and moisturizers, single-use additives, carriers powders and colorants, and others), Application (hair care and skin care, perfumes and fragrance, color cosmetics, and others), and Geography (APAC, North America, Europe, South America, and Middle East and Africa).
The market is driven by diverse factors such as body lotions, eyeliners, and lipsticks, which represent the ever-expanding array of cosmetic products. Emulsifiers and lubricants play crucial roles in product formulations, ensuring desired textures and application ease. With an increasing demand for products derived from natural sources, ingredients with anti-oxidant and anti-inflammatory properties are gaining traction in the market. Consumers are gravitating towards green cosmetics and clean label cosmetic goods, reflecting growing concerns about the presence of dangerous chemicals in traditional formulations. Urbanization has further propelled the demand for natural cosmetic ingredients across various segments including skincare products, body care products, and oral care products such as toothpaste.
The surfactants segment is estimated to witness significant growth during the forecast period. Surfactants refer to ingredients that are used to reduce surface tension in liquid solutions. Cleansing, solubilization, and conditioning, among others, is the key application of surfactants. Surfactants are generally comprised of hydrophilic and lipophilic components which mainly help in breaking down impurities related to oil and fat in the skin.
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The surfactants segment was the largest segment and was valued at USD 4.02 billion in 2017. Acyl isethionates, alkyl polygamy codes, sodium laureth sulfate, ammonium laureth sulfate, disodium lauryl sulfosuccinate, cocamphocarboxyglycinate, cocamide propyl betaine, and alpha-olefin sulfonate are common surfactants used in cosmetics. There has been a growing demand for naturally sourced surfactants derived from plants and vegetables due to the rising awareness related to the implications of synthetic surfactants in cosmetics over the long term. Hence, the surfactant segment is expected to show considerable expansion in market revenue during the forecast period.
Based on the application, the hair care and skin care segment holds the largest market share. The growing consumer awareness about the adverse health implications of synthetic cosmetic ingredients over a prolonged period has aided the rise in the popularity of naturally sourced, organic cosmetic ingredients such as plant oils, mineral oils, and triglycerides. Manufacturers of cosmetic brands are increasingly shifting from synthetic chemical ingredients to vegan, organic, and naturally sourced ingredients for product formulation. For instance, Alima Pure offers a range of skincare cosmetics that are primarily mineral-based and use minimal quantities of synthetic ingredients during product formulation. The company promotes its skin care cosmetics as free of toxins, irritants, or synthetic preservatives.
Several companies, such as Ashland Inc., BASF SE, Clariant International Ltd., Koninklijke DSM NV, Evonik Industries AG, Nouryon Chemicals Holding BV, and Solvay SA, offer a diverse range of cosmetic ingredients for hair care and skin care applications. These companies are increasingly investing in R and D and innovations to develop new functional cosmetic ingredients.
APAC is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market growth and forecasting during the forecast period.
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In recent years, the APAC region has seen a rising demand for natural and organic cosmetics as consumers become more aware of the harmful effects of synthetic ingredients. This shift is prompting companies to invest in sustainable ingredient development, leveraging the region's abundance of naturally sourced elements. Collaborations with local distributors ensure compliance with strict regulatory standards like the ASEAN Cosmetic Directive. The demand for specialty cosmetics offering pollution protection is also on the rise. With increased per capita income and consumer willingness to invest in organics, along with diverse cosmetic offerings, the APAC market is poised for growth.
Cosmetics are naturally sourced or chemically synthesized products that are designed to improve or enhance the physical appearance. These improvements and enhancements may be achieved through various properties such as body cleansing, skin protection, skin nourishment, hair conditioning, and moisturizing. Cosmetic ingredients are naturally available or synthetically developed; common cosmetic ingredients include water, emulsification agents, preservatives, thickeners, moisturizers, colorants, and fragrances.
The market is driven by a surge in demand for skincare products and body care products globally. Trends indicate a preference for natural sources and clean label cosmetic goods due to increasing awareness about the harmful effects of dangerous chemicals. Emphasis on anti-oxidant and anti-inflammatory properties in cosmetic ingredients reflects a growing focus on holistic wellness. However, challenges persist in meeting consumer expectations regarding texture and efficacy while ensuring sustainability. Moreover, rapid urbanization poses logistical challenges in sourcing and distributing natural cosmetic ingredients, driving the need for innovative solutions in the cosmetics industry. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The rising popularity of multifunctional cosmetics is a key factor propelling the growth of the market. The demand for multifunctional ingredients in BPC (Beauty and Personal Care) cosmetics has surged, especially in emerging economies like India, Vietnam, and Thailand. Consumers value multifunctional products for their cost-effectiveness. For instance, Lucas Meyer Cosmetics offers versatile balms suitable for face, skin, and lip care, boasting anti-aging and blemish removal properties. To meet this demand, companies like BASF SE and Clariant International Ltd. are investing in R&D for multifunctional cosmetic ingredients.
Examples of such ingredients include:
The rising preference for multifunctional cosmetics continues propelling the market growth.
Rising emphasis on health and wellness in cosmetic formulations is a key trend shaping the market. In the market, companies increasingly prioritize organic beauty and well-being as integral to skincare, responding to changing lifestyles and heightened stress-related health concerns among consumers. Notably, Clariant International Ltd. has devoted substantial R&D efforts to develop products aligning with skin well-being and its biological rhythm.
For instance, their sustainable face serum, hand mask, and skin oil, derived from mulberry plant roots, combat skin damage resulting from disruptions to the circadian rhythm. B-Circadin, a plant-based extract, synchronizes the skin's circadian cycle, enhancing detoxification, skin tone, and reducing puffiness and dark circles. This focus on well-being is expected to foster innovative cosmetic ingredient formulations in the forecast period.
Growing consumer awareness about the health implications of synthetic ingredients is a key challenge hindering market growth. Health worries regarding synthetic ingredients in skincare and haircare products have constrained the market's growth. Concerns encompass a spectrum of side effects caused by extended usage of synthetic elements like benzoyl peroxide, triclosan, parabens, sulfates, fragrances, and more. For instance:
As a response, companies explore natural alternatives, hiking R&D and production costs. The resulting safety concerns curtail synthetic ingredient adoption, negatively impacting market growth in the forecast period.
Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
Lonza Group Ltd.- The company offers cosmetic ingredients such as H2OBioEV Bioactive.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Alfa Chemicals Ltd., Ashland Inc., Aston Chemicals Ltd., BASF SE, Clariant International Ltd., Croda International Plc, Dow Chemical Co., Eastman Chemical Co., Evonik Industries AG, Givaudan SA, J M Huber Corp., Koninklijke DSM NV, Lonza Group Ltd., Lucas Meyer Cosmetics, Nouryon Chemicals Holding BV, Pharmacos India, Solvay SA, Symrise AG, The Estee Lauder Companies Inc., and Wacker Chemie AG
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market thrives on a plethora of components such as pigments, antioxidants, and anti-inflammatory agents that cater to various skincare and beauty needs. Ingredients like propylene glycol and methyl ensure product stability and texture, while vitamins, fatty acids, and plant extracts offer nourishment and rejuvenation. With an emphasis on safety, consumers seek formulations with extended shelf life and without hazardous effects like those associated with cancer or periodontal disease. From face washes to sunscreens, and serums to face masks, ingredients like retinol, alpha hydroxy acids, and kojic acid address a myriad of skin problems including acne, hair loss, and premature greying, driving the demand for herbal or natural cosmetic products.
Market Scope |
|
Report Coverage |
Details |
Page number |
190 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.08% |
Market growth 2023-2027 |
USD 4.89 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.75 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 40% |
Key countries |
US, Singapore, South Korea, Japan, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alfa Chemicals Ltd., Ashland Inc., Aston Chemicals Ltd., BASF SE, Clariant International Ltd., Croda International Plc, Dow Chemical Co., Eastman Chemical Co., Evonik Industries AG, Givaudan SA, J M Huber Corp., Koninklijke DSM NV, Lonza Group Ltd., Lucas Meyer Cosmetics, Nouryon Chemicals Holding BV, Pharmacos India, Solvay SA, Symrise AG, The Estee Lauder Companies Inc., and Wacker Chemie AG |
Market dynamics |
Parent market growth analysis, Market forecasting, Market growth inducers and obstacles , market research and growth , Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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