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.
Definition of Market/Industry:
cosmetic ingredients are the components that are used in the manufacturing of cosmetic products such as sunscreen lotions, creams, moisturizers, eyeliners, lipsticks, body lotions, etc. cosmetic ingredients include water, moisturizers, preservatives, emulsifiers, thickeners, lubricants, colors, and fragrances. Cosmetic ingredients can be prepared synthetically or can be extracted from natural sources such as plant-derived products. They are used to give anti-oxidant, anti-inflammatory, thickness, and moisturizing properties to cosmetic products. Moreover, they are also used to enhance the texture and appearance of cosmetic products.
The global cosmetic ingredients market was valued at US$ 16,722.1 Mn in 2018 and is predicted to reach US$ 23,835.5 Mn by the end of 2027, growing at a CAGR of 3.9% during the forecast period (2019 to 2027).
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 has launched its personal care ingredient innovations at booth K80. This includes Dow’s first bio-based hair fixative, MaizeCareStyle 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 augment the market growth of cosmetic ingredients. For instance, in April 2018, BASF presents 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 product helps the manufacturers of personal care products to respond to current market trends and meet the consumers’ demand for products supporting their lifestyle.
Figure 1. Global Cosmetic Ingredients Market Share, By Region, 2018
Asia Pacific region dominated the global cosmetic ingredients market in 2018, accounting for 36.2% share in terms of value, followed by Europe and North America.
Strict regulations against the use of harmful chemicals ingredients are expected to hinder the market growth of cosmetic ingredients. For instance, in March 2019, California lawmakers introduced the landmark bill, noting that sales 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, the introduction of such strict laws is expected to hinder the market growth of cosmetic ingredients.
Rising environmental concerns due to issues related to waste chemical compounds from cosmetic ingredients manufacturing facilities, which are harmful to the environment, is expected to act as a restraint for setting-up of new cosmetic ingredients manufacturing plants in the future. For example, some cosmetic ingredients such as P-phenylenediamine, BHA and BHT that are widely used in cosmetic products, like hair coloring and lipsticks, are harmful to the marine ecosystem. This is expected to curb the market growth of cosmetic ingredients.
Growth of middle-class people in emerging economies especially in the Asia Pacific is expected to represent a lucrative opportunity to the market of cosmetic ingredients. According to the European Commission, the size of the global middle class has increased from 1.8 billion in 2009 to about 3.5 billion people in 2017 — more than half of the world population and is expected to grow to some 4 billion by 2021 and reach 5.3 billion by 2030. Hence, this factor is projected to offer immense growth opportunity to the market of cosmetic ingredients.
Expanding e-commerce sale in emerging nations such as Brazil, South Africa, China, India and Mexico, North America and Western European countries are projected to foster the market growth of cosmetic ingredients. According to the Economic Times, Flipkart and Amazon has touched gross sales of $3.5-3.7 billion together over the last six days, a rise of 33% over last year. Amazon has recorded the highest share of transacting customers and purchases across all marketplaces in India especially in fashion and beauty categories.
Figure 2. Global Cosmetic Ingredients Market - Opportunity Analysis
Market Trends/Key Takeaway
The rising trend of using natural cosmetic ingredients among manufacturers is gaining traction in the market. For instance, in June 2019, BASF Care Creation has introduced three new active ingredients for the beauty market which make use of the unique properties of the rambutan tree (Nephelium lappaceum) to offer unparalleled skin hydration and rejuvenation for today’s globally conscious consumers. Therefore, the rising introduction of natural cosmetic ingredients is projected to fuel market growth.
The rising number of merger and acquisition 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 has signed an agreement to acquire the cosmetic business of Indena to strengthen Active Beauty’s global capabilities in botanical active cosmetic ingredients. Such a merger and acquisition is expected to foster market growth over the forecast period.
Figure 3. Global Cosmetic Ingredients Market Share, By Application, 2018
Based on application, the market is segregated into skin care, hair care, make up, fragrance, oral care, and others. In 2018, skin care products dominated the global market for cosmetic ingredients in terms of revenue and contributed for 31.9% in the same year, followed by hair care and make up applications.
- BASF SE
- AkzoNobel N.V.
- International Plc
- The Dow Chemical Company
- Eastman Chemical Company
- Clariant AG
- Wacker Chemie AG
- End-Use Companies
- L'Oréal International
- The Estée Lauder Companies Inc.
- COTY Inc. (1/3)
- Colgate-Palmolive Company
Few Recent Developments
- BASF SE
- In October 08, 2015, BASF SE expands its production capacity of emollients and waxes in China since the demand for these ingredients is increasing in the personal care market in the Asia Pacific
- In July 28, 2015, BASF SE and Solazyme, Inc. collaboratively launched Dehyton AO 45; a microalgae-derived betaine surfactant produced from renewable microalgae oil under. This new product can be used as a substitute for amidopropyl betaine in home and personal care products applications.
- In April 14, 2015, new micronized UV filter called Tinosorb A2B is developed by BASF SE that protects against both UVA and UVBII radiation, moreover, this product from BASF SE helps to reduce the risk of skin cancer and also acts as anti-aging. The product received EU approval in August, 2014 but presently pending for Therapeutic Goods Administration (TGA) approval to introduce in Australia.
- AkzoNobel N.V.
- In June 16, 2015, AkzoNobel N.V. and Evonik Industries AG announced a joint venture for expanding the production of chlorine/potassium hydroxide solution at AkzoNobel N.V.'s existing site in Ibbenbüren, Germany.