A commonly used ingredient in hair and skin care products is dimethicone, also known as polymethylsiloxane. It has anti-foaming properties, and is a great oil-free alternative to moisturizers. In addition to being effective at reducing the appearance of wrinkles and hyperpigmentation, dimethicone is commonly used in hair conditioners. Dioic acid is a natural substance that is commonly found in vegetable oils and fats. Glycolic acid is a water-soluble form of alpha hydroxy acid (AHA) derived from sugar. It is the smallest of the AHAs, so it is the most effective in penetrating skin. It can unclog pores and increase cell turnover. This ingredient can be found in both topical and inhalation products. Glycolic acid helps brighten skin and stimulates collagen production, while also hydrating and exfoliating. Hydrogen peroxide is a mild disinfectant that is also effective in lightening dark spots on the skin. It also works on the hair by breaking down color-causing molecules.
The Americas functional cosmetics & skin care ingredients market was valued at US$ 53,492.15 Mn in 2021 and is forecast to reach a value of US$ 67,450.00Mn by 2030 at a CAGR of 3.36% between 2022 and 2030.
Cosmetic Care held dominant position in the Americas functional cosmetics & skin care ingredients market in 2021, accounting for 39% share in terms of volume, followed by Skin Care and Eye Care, respectively.
Figure 1. America’s Functional Cosmetics & Skin Care Ingredients Market Value Share (%), By Product Type, 2021
Growing demand for active ingredients from anti-aging products is primarily fuelling growth of the Americas functional cosmetics & skin care ingredients market. This rapidly growing demographic is sparking demand for anti-aging products to prevent wrinkles, sun damage, and other signs of diminishing youthfulness. With this increased demand, skin care manufacturers are responding by focusing research and development on active ingredient-based anti-aging products to appeal to this growing demographic.
Increasing launch of new product by key players to cater to growing demand is again anticipated to propel market growth. For instance, in 2021, Instaskincare launched Niacinamide 10% and Zinc 1% facial serum. The new formula is vegan and cruelty- free and offers benefits such as brightening effect and anti-aging qualities. The serum helps in reducing the visibility of enlarged sebaceous glands, improving skin hydration, and preventing discoloration that often occurs in treating dermatological acne. The Zinc contained in the preparation accelerates the skin regeneration process and shortens the wound healing time. It also treat some stages of rosacea and eczema.
|Base Year:||2021||Market Size in 2021:||US$ 53,492.15 Mn|
|Historical Data for:||2017 to 2021||Forecast Period:||2022 to 2030|
|Forecast Period 2021 to 2030 CAGR:||3.36 %||2030 Value Projection:||US$ 67,450.00 Mn|
Procter & Gamble, Beiersdorf AG, Loreal SA, Unilever PLC, The Estée Lauder Companies Inc., Shiseido Company Limited, Natura & Co., Kao Corporation, Colgate-Palmolive Company, and Johnson & Johnson Services Inc.
|Restraints & Challenges:||
Figure 2. America’s Functional Cosmetics & Skin Care Ingredients Market Value Share (%), By Material Type, 2021
Lack of proper regulation is leading to misleading claims. This is expected to hinder the market growth. For instance, Food and Drug Administration (FDA), the agency that administrates the requirements of Food, Drug, and Cosmetics Act, does not regulate the cosmeceuticals market. Although, few countries recognize cosmeceuticals as separate entities, there is a lack of unified regulation across the region. This is particularly evident in the case of developing countries, like Brazil, Argentina, Mexico etc., where there are multiple bodies, which have their own legislations for cosmetic products.
Presence of counterfeit products is also expected to restrict the market growth. The entry of counterfeit goods has become a significant threat to the market the counterfeit products that are available at very low prices than actual organized market player offerings, and are adversely affecting the sales and pricing strategy across the world, as this affects their profit margin.
Integration of probiotics in facial care segment is expected to bring bright market opportunities for the key players. For instance, in August 2021, TULA Skincare, the clean clinical skincare brand powered by probiotic extracts and superfoods, announced that it is expanding its North American footprint and launching into Sephora Canada. TULA will be available for purchase in the retailer’s full network of over 80 stores, including locations in Toronto, Vancouver and Montreal, and will offer an extended assortment available on Sephora.ca and on the Sephora app.
Changing lifestyle and growing purchasing power of consumers are other major factors expected to offer lucrative growth opportunities over the forecast period. Growing demand for high quality cosmetic products especially in North America is further projected to foster market growth.
Market Trends/Key Takeaways:
Shifting consumer preferences towards bio-based products is a major trend in the market and this expected to escalate the market growth in the near future. In order to reduce carbon footprint manufacturers are introducing bio-based products that can meet the growing demand from wide range of consumers.
Technological advancement create a major shift in the personal care segment. The market is growing at a rapid pace across emerging economies. Development in various personal care products along with the development in the applications are other major factors augmenting market growth.
Functional cosmetics & skin care ingredients are those substances that have multiple uses and are intended to enhance the look. These ingredients are commonly found in cosmetics and include avocado, hazelnut, soybean, evening primrose, DMAE, rosemary, wild mint, carrot oil, willow bark, and grape leaf extract.
Growing demand for active ingredient from anti-aging products and rising awareness regarding healthy skin are major factors propelling market growth. Moreover, integration of probiotics in skin care products is also anticipated to foster market growth. Furthermore, technological advancement is expected to play significant role in overall development of market.
On the other hand, presence of counterfeit products is expected to restrict the market growth.
Key features of the study: