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Impact of Coronavirus (Covid-19) Pandemic on the Cosmetic Ingredients Industry

The coronavirus (COVID-19) pandemic situation has increased sales of personal hygiene and cleansing products such as soaps and skin care products. According to Coherent Market Insights (CMI) and L’Oreal S.A.’s quarterly report published in April 2020, brands such as Kiehl’s, Lancôme, and Helena Rubinstein, which have a large proportion of skincare products outperformed the company’s other luxury brands in the first quarter of 2020. Thus, the skin care segment including commodity brands, and focusing on the personal hygiene and cleansing are expected to driving parameters for the increase in demand for cosmetic ingredients such as antimicrobials, surfactants, emollient, emulsifiers, thickeners, anti-oxidants, and humectants.

COVID-19 has changed the consumer buying pattern and have made consumer conservative, leading to decline in their spending for non-essentials products. Nationwide lockdown, and social distancing measures implemented by leading countries such as India, U.K., Italy, Spain, Russia, Malaysia, Singapore, and Saudi Arabia, has negatively impacted the demand for fragrances and color cosmetics, in these countries. Sales of cosmetics business segment of Kao Corporation decreased by 11.4% in the first quarter of 2020 compared to the first quarter of 2019. Revlon, Inc., a cosmetics company, saw decrease in sales by 18.1% in the first quarter of 2020 as compared to first quarter of 2019. According to Coherent Market Insights (CMI), the premium cosmetics market was valued at US$ 69,768.2 Mn in 2018 and is expected to decrease to US$ 60,110.1 Mn by 2020. A significant decrease in sales of premium cosmetics is expected to certainly impact the demand for colorants, fragrances, emulsifiers, preservatives, and thickeners. Cosmetic Ingredients Market is expected to grow at a pace of 3.7%, post pandemic, as against the previously estimated growth of 4.5% during the forecast period (2020 – 2027), as per CMI analysis.

Comparative Analysis - 1

Pre-Covid-19 Vs Post Covid-19 - Market Estimates, 2020 – 2021 (US$ Bn)

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Source: Coherent Market Insights

Comparative Analysis - 2

Top Gainers Vs Top Losers

Marginal Growth
  • Emollients
  • Rheology Control Agents
High Gainers
  • Antimicrobials
  • Surfactants
Marginal Loss
  • Hair Styling Polymers
  • UV Absorbers
High Losers
  • Color Cosmetic Ingredients
  • Fragrances
Source: Coherent Market Insights
Expected recovery : Q2 2021
Coherent Experts Corner
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Tejes Shah

Team Lead CMFE Research

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Abhishek Baheti

Consultant Level 1 CMFE Research

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  • Antimicrobial category is expected to benefit the most during the COVID-19 pandemic.
  • Decrease in demand for ingredients for use in luxury cosmetics and men skin care products.

Impact Analysis of Covid-19

The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.

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