Cosmetic ingredients are the components used in the manufacturing of cosmetic products, such as sunscreen lotions, creams, moisturizers, eyeliners, lipsticks, body lotions, and others. Cosmetic ingredients include water, moisturizers, preservatives, emulsifiers, thickeners, lubricants, colors, and fragrances. Cosmetic ingredients can be prepared synthetically or can be extracted from natural resources such as plant-derived products. It gives anti-oxidant, anti-inflammatory, thickness, and moisturizing properties to cosmetic products. Moreover, it can also be used to enhance the texture and appearance of cosmetic products.
The global cosmetic ingredients market was valued at US$ 1,8881.32 Mn in 2022 and is predicted to reach US$ 2,9846.31 Mn by the end of 2030, exhibiting a CAGR of 5.29% during the forecast period (2023 to 2030).
Drivers
Rising demand for specialized skincare products
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 launched its personal care ingredient innovations at booth K80. This includes Dow’s first bio-based hair fixative, Maize Care Style 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 drive the market growth of cosmetic ingredients. For instance, in April 2018, BASF presented 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 products help the manufacturers of personal care products to respond to current market trends and meet the consumers’ demand for the products supporting their lifestyle.
Figure 1. Cosmetic Ingredients Market Value Share (%), By Region, 2022
Among region, Asia Pacific dominated the global cosmetic ingredients market in 2022, reporting to 39% market share in terms of revenue, followed by Europe and North America, respectively.
Market Restraints
Strict regulations against the use of harmful chemical ingredients
Strict regulations against the use of harmful chemical ingredients is expected to hinder the market growth of cosmetic ingredients. For instance, in March 2019, California lawmakers introduced the landmark bill, noting that sale of 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, introduction of such strict laws is expected to hinder the market growth of cosmetic ingredients.
Rising environmental concerns such as issues related to waste chemical compounds from cosmetic ingredients manufacturing facilities, that are harmful to the environment, is expected to act as a restraint for setting-up new cosmetic ingredients manufacturing plants in the near future. For example, some cosmetic ingredients such as P-phenylenediamine, BHA and BHT that are widely used in cosmetic products, such as hair color and lipsticks, are harmful to the marine ecosystem. This is expected to curb the market growth of cosmetic ingredients.
Global Cosmetic Ingredients Market - Impact of Coronavirus (Covid-19) Pandemic
As COVID-19 continues to spread swiftly around the world, it is impacting the global economy and is leading to socio-economic disruptions. Beauty and Personal Care industry has also witnessed a steep decline as well as a consumer behavioral shift towards safe and reliable products during the Covid 19 pandemic. Products with lower risk of contamination and longer shelf lives are expected to boost the market back to normalcy in Quarter 1of 2021.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2022 | Market Size in 2022: | US$ 1,8881.32 Mn |
| Historical Data for: | 2017-2020 | Estimated Year: | 2023 |
| Forecast Period 2023 to 2030 CAGR: | 5.29 % | Forecast Period: | 2023-2030 |
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| Companies covered: |
BASF SE, AkzoNobel N.V., Croda International Plc, The Dow Chemical Company, Eastman Chemical Company, Clariant AG, Wacker Chemie AG, |
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Market Trends
Rising trend of using natural cosmetic ingredients, among manufacturers, is gaining traction in the market growth. For instance, in June 2019, BASF Care Creation introduced three new active ingredients for the beauty market, which uses the unique properties of the rambutan tree (Nephelium lappaceum), to offer unparalleled skin hydration and rejuvenation for today’s globally conscious consumers. Therefore, rising introduction of natural cosmetic ingredients is projected to fuel market growth over the forecast period.
Increasing number of merger and acquisitions by key market players 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 had signed an agreement to acquire the cosmetic business of Indena in order to strengthen Active Beauty’s global capabilities in botanically active cosmetic ingredients. This merger and acquisition is expected to foster market growth over the forecast period.
Market Opportunities
Growth of middle-class population in emerging economies, especially in the Asia Pacific, is expected to represent a lucrative opportunity to the cosmetic ingredients market. According to the European Commission, the size of the global middle class people increased from 1.8 billion in 2009 to about 3.5 billion people in 2017 that is more than half of the world population and this number is expected to grow to 4 billion by 2021 and reach 5.3 billion by 2030. Hence, this factor is projected to offer immense growth opportunities to the cosmetic ingredients market. Expanding e-commerce sale in emerging nations such as Brazil, South Africa, China, India, Mexico, Western European countries are projected to foster the market growth of cosmetic ingredients.
Figure 2. Cosmetic Ingredients Market Value Share (%), By Application, 2022
Based on application, the market is segregated into skin care, hair care, makeup, fragrance, oral care, and others. In 2019, skin care segment dominated the global market for cosmetic ingredients in terms of revenue and contributed for 31.9% market share in the same year, followed by hair care and make up applications.
Recent Developments
Competitive Section
End-Use Companies
Cosmetic ingredients are elements which are used in the manufacturing of cosmetic products such as creams, perfumes, moisturizers, and other products. The key ingredients present in cosmetic products include thickeners, moisturizers, preservatives, fragrances, water, and colors. The cosmetic ingredients are segregated into two categories i.e. synthetic and natural ingredients and are used in skin care, hair care, make up, fragrance, oral care, and cosmetic products.
Market Dynamics
Key features of the study:
Detailed Segmentation:
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