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The cosmetic ingredients market size is estimated to grow at a CAGR of 7.08% between 2022 and 2027. The market size is forecast to increase by USD 4,888.02 million. The growth of the market depends on several factors, including the growing demand for natural and organic cosmetic ingredients, the rising popularity of multifunctional cosmetics, and new ingredient development.
This cosmetic ingredients 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, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand for natural and organic cosmetic ingredients is the key driver for the growth of the global cosmetic ingredients market. In the last few years, there has been rapid growth in the demand for natural and organic cosmetics that contain little to no chemicals. However, skincare and hair care cosmetics manufactured using synthetic ingredients are highly effective over the short term. Established players in the global cosmetic ingredients market, such as BASF SE and Croda International Plc, are placing major emphasis on expanding their portfolio of natural ingredients.
Moreover, due to the increasing awareness about the benefits of natural cosmetic ingredients, several cosmetics vendors have started offering a range of skincare and hair care products that contain natural and organic ingredients. For example, in June 2021, SOBiO etic, launched its organic beauty product line in the US. The company has been making more investments in developing healthier and organic products. Beiersdorf Global AG offers a range of cosmetics under the brand NIVEA have 95% natural origin products, which are free from synthetic ingredients such as parabens, silicones, colorants, and mineral oil. Altogether, this shift toward natural and organic cosmetics is expected to grow the market during the forecast period.
The growing prominence of clean labeling in cosmetic formulations is the primary trend in the global cosmetic ingredients market. Clean labeling in the cosmetics sector refers to the minimal use of synthetic ingredients in cosmetics. The adoption of artificial and synthetic ingredients is reduced due to the clean labeling in cosmetics over the last few years. Similarly, manufacturers are developing organic and sustainable means to make ingredients, and cosmetic companies are rising emphasizing the use of natural ingredients to promote clean labeling in cosmetics.
Moreover, major vendors in the global cosmetic ingredients market, such as Koninklijke DSM NV and BASF SE, are rising their focus on the expansion of their portfolio of clean-label cosmetic ingredients. For example, in April 2019, BASF SE launched Euperlan OP White an eco-friendly, biodegradable, wax-based alternative to synthetic polymer opacifiers. Hence, the rising prominence of clean labeling in cosmetics and cosmetic ingredients is expected to further encourage R&D activity among vendors for the development of eco-friendly alternatives to artificial and synthetic ingredients during the forecast period.
The threat of toxic ingredients found in counterfeit cosmetics is the key challenge to the growth of the global cosmetic ingredients market. Significant growth in the sales of skin care and hair care cosmetics through online retail channels such as Amazon, Walmart, and eBay has shown the availability fake of cosmetic products. These fake products generally replicate the packaging features of established brands and are sold at lower prices through online retail channels, especially in China and India.
Moreover, cosmetic vendors do not ensure safety checks for their ingredients and final products and do not adhere to any health regulations and certification procedures. Toxic ingredients such as lead, arsenic, copper, mercury, beryllium, cyanide, paint strippers, and aluminum are contained in Counterfeit cosmetics products. Because of these toxic ingredients, they can cause severe health issues such as nervous disorders, reproductivity complications, and toxicity within organs such as the liver and kidneys, leading to organ failure and cancer. Altogether, the threat of toxic, unregulated ingredients used in counterfeit cosmetics is expected to impede market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Cosmetic Ingredients Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Ashland Inc.: The company offers cosmetic ingredients such as Antaron, Benecel, and Vital ET.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
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 4,028.14 million 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.
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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 during the forecast period. The region shows a steady surge in demand for natural and organic cosmetics over the last few years. Consumers in the region are aware of the adverse effects of synthetic ingredients such as preservatives and emollients used in cosmetic products and are rising shifting toward cosmetics formulated with organic and sustainable ingredients. In addition, manufacturers and major players generally partner with local distributors in the region to ensure easy access to the market. In APAC, the Association of Southeast Asian Nations (ASEAN) Cosmetic Directive regulates various aspects, such as ingredient formulation and labeling requirements of cosmetics sold in board member countries such as Indonesia, Thailand, Singapore, Malaysia, and the Philippines. The rising demand of consumers to spend on organic cosmetics, and the availability of a wide range of cosmetics are expected to drive market growth in APAC during the forecast period.
In 2020, the outbreak of COVID-19, followed by the imposition of lockdowns, hampered the logistics and supply chain operations of market vendors in the region. However, with measures to control the spread of the disease coupled with the lifting of lockdown restrictions, the regional market resumed operations in 2021. Such factors will drive the growth of the regional market during the forecast period.
The cosmetic ingredients market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Cosmetic Ingredients Market Scope |
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Report Coverage |
Details |
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Page number |
190 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.08% |
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Market growth 2023-2027 |
USD 4,888.02 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.75 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 40% |
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Key countries |
US, Singapore, South Korea, Japan, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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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 |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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