PHENOXYETHANOL MARKET ANALYSIS

Phenoxyethanol is used as a preservative in various personal care products. Phenoxyethanol is also known as glycol ether or phenol ether. In fragrances, perfumes, cleansers, and soaps, phenoxyethanol is used as stabilizer, preservative, or antibacterial in order to prevent products from losing their effectiveness or spoilage. Phenoxyethanol is used as a fixative for cosmetics, perfumes, and soaps. It is also used as preservative in cleaning & furnishing home care products, pharmaceutical products, ink, toner, and colorant products.

Global phenoxyethanol market was valued at US$ 167.5 Million in 2021 in terms of revenue, exhibiting a CAGR of 5.9% during the forecast period (2022 to 2030).

Drivers

Increasing demand for phenoxyethanol from personal care & cosmetics industry is expected to boost growth of the global phenoxyethanol market over the forecast period. Phenoxyethanol is largely used as a fragrance component in cosmetics, home care, and personal care products (color cosmetics, wipes, skin and hair care products, detergents, and cleaners). It has aromatic properties that can optimize the scent of any skin product. For instance, according to Scientific Committee on Consumer Safety’s report ‘Opinion On Phenoxyethanol’ published by European Commission in 2016, the volume of 2-phenoxyethanol used as a fragrance ingredient in all finished consumer product categories is in the range of 100-1,000 metric tons annually, worldwide.

Among region, Asia Pacific held dominant position in the global phenoxyethanol market with revenue share of 33.1% in 2021, and is projected to maintain its dominance over the forecast period. This is owing to increasing disposable income in the region, which is expected to result in high expenditure on personal care and cosmetics products.

Figure 1. Global Phenoxyethanol Market Value Share (%), By Region, 2021

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Market Restraints

Adverse effects of phenoxyethanol on human health is expected to act as a major factor hindering growth of the market during the forecast period.  

Market Trends

Rising demand for personal care products is expected to boost the market growth of phenoxyethanol market. Phenoxyethanol is also added as a preservative in personal care products, in order to prevent bacterial attack and is used in aqueous cleaning and stain removing homecare products. Benefits offered by phenoxyethanol in home care, personal care, and cosmetics products are expected to increase demand for phenoxyethanol, thereby driving growth of the market. 

Figure 2. Global Phenoxyethanol Market Value Share (%), By Application 2021

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Among applications, the home & personal care segment accounted for the largest revenue share of 31.8% in the global phenoxyethanol market in 2021, and is expected to maintain its dominance over the forecast period. Phenoxyethanol is used in home and personal care products. Home and personal care industry is witnessing significant growth worldwide, which in turn is expected to propel growth of the phenoxyethanol market. Additionally, significant growth of the personal care products industry worldwide is expected to increase demand for phenoxyethanol.

Recent Developments

• In July 2022, Specialty chemicals company, LANXESS completed the acquisition of the microbial control business unit of the U.S. group International Flavours & Fragrances Inc. (IFF). Through this acquisition, LANXESS added two production sites to its network in St. Charles, Louisiana, and Institute, West Virginia, both in the U.S. The new business will be integrated into the material protection products business unit of LANXESS. The acquisition will strengthens LANXESS position in the industrial preservatives business.
• In July 2021, Rossari Biotech, a speciality chemicals manufacturer announced the acquisition of Tristar Intermediates. The acquisition provides Rossari to enhance the product portfolio, and help to provide stronger presence international markets and access to newer technologies. Moreover, Rossari Biotech will occupy Tristar Intermediate’s business spans in preservatives, aroma chemicals, and home and personal care additives with high-tech distillation facilities. 
• In March 2020, Clariant expands the personal care industry’s increasingly-limited preservation options for both traditional and natural formulations with the launch of next generation preservation booster Velsan Flex. The 93% RCI (Renewable Carbon Index) innovation is highly versatile and effective in combination with all preservative types, enabling a reduction of typical preservative by as much as 50% while still achieving safe antimicrobial protection for cosmetics.

Competitive Section

Major players operating in the global phenoxyethanol market include DowDuPont Inc., BASF SE, Clariant AG, Air Liquide Group (Schulke & Mayr), Ashland Global Holdings Inc., Lonza Group Ltd., Penta International Corporation, Galaxy Surfactants, and Akema Fine Chemicals.