Phenoxyethanol is a preservative used widely across the personal care industry in order to combat the Gram-negative bacteria but is weak against molds and yeast. It has massive use in cosmetic products and is classified into phenoxyethanol P25 and phenoxyethanol
P5. Some of the other end-users of the phenoxyethanol preservatives are dyes & inks, home care, metalworking, chemical, aquaculture, and pharmaceuticals.
The global phenoxyethanol preservatives market is projected to surpass US$ 210 million by the end of 2027, in terms of revenue, growing at CAGR of 5.9% during the forecast period (2020 to 2027).
Growing demand for household cleaners such as stain removers, dishwashing liquids, fabric softener, etc. is expected to foster the market growth of phenoxyethanol preservatives. Phenoxyethanol preservatives plays very important role in the liquid detergents and cleaners as it helps in the prevention of spoilage during storage and extends the shelf-life of the cleaners. Thus, high demand for cleaners around the globe is expected to propel the market growth of phenoxyethanol preservatives.
An increasing number of young consumer base along with the growing number of the working women is expected to bolster the demand for cosmetic products. Increasing disposable income and improving lifestyle of the consumers is also playing an important role in the growth of the phenoxyethanol preservatives. Growing domestic production of cosmetic and personal care products is further anticipated to foster the market growth of phenoxyethanol preservatives.
Regionally, Asia-pacific dominated the global phenoxyethanol preservatives market in 2019, reporting 42% market share in terms of revenue, followed by North America and Europe, respectively.
Figure 1. Global Phenoxyethanol Preservatives Market, Revenue Share (%), By Region, 2019
Growing demand for natural and organic preservative is hampering the demand for synthetic preservatives such as phenoxyethanol. This is attributed to growing awareness regarding the health benefits of organic and natural preservatives. This is expected to hinder the market growth.
The time-consuming and expensive approval process for the use of synthetic preservatives is projected to hinder the market growth of the phenoxyethanol preservatives over the forecast period.
|Base Year:||2019||Market Size in 2019:||US$ 130.0 Mn|
|Historical Data for:||2016 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||5.9%||2027 Value Projection:||US$ 210.0 Mn|
BASF SE, BOC Sciences, The Dow Chemical Company, Finetech Industry Limited, Haihang Industry Co., Ltd., Health Chemicals Co., Ltd., Jinan Haohua Industry Co., Ltd., Kraft Chemical Company, Inc., Procter & Gamble Co. (P&G), Penta Manufacturing Company, LLC, Spectrum Chemical Mfg. Corp., and StruChem Co., Ltd.
|Restraints & Challenges:||
Increasing use of phenoxyethanol as an active pharmaceutical ingredient (API) in the pharmaceutical industry for the manufacturing of drugs is expected to offer lucrative opportunities to the market. Phenoxyethanol has antimicrobial properties that help in eliminating the gram-positive and negative bacteria, yeast, and mold effectively. Thus, growth in the pharmaceutical industry is expected to propel the market growth of phenoxyethanol preservatives.
Rising demand for wet wipes and tissue is expected to offer substantial market opportunities for the phenoxyethanol market. Growing populations coupled with the increasing innovation in the launch of the cosmetic product is also expected to foster the market growth of phenoxyethanol market. Moreover, growing awareness regarding personal hygiene among consumers is further expected to spur the market growth of phenoxyethanol preservatives.
Figure 2. Global Phenoxyethanol Preservatives Market – Opportunity Analysis
The increasing trend of online shopping due to the growing digital engagement of consumers as well as manufacturers that enable easy access to products through e-commerce channels is increasing sale of cosmetic products. According to the U.S. Department of Commerce, Consumers spent US$ 601.75 billion online with U.S. merchants in 2019, up 14.9% from US$ 523.64 billion in 2018. Thus, a growing online shopping trend is expected to accelerate the market growth of phenoxyethanol preservatives.
Increasing replacement of parabens with phenoxyethanol is a major trend in the market. This is attributed to the growing demand for safe and paraben-free cosmetic products. Moreover, increasing investment by manufacturer on R&D to develop better efficacy phenoxyethanol preservative blends for various cosmetic products is further anticipated to accelerate the market growth of phenoxyethanol preservatives over the forecast period.
Figure 3. Global Phenoxyethanol Preservatives Market, Revenue Share (%), By Application, in 2019
On the basis of application, home & personal care the global phenoxyethanol preservatives market in 2019 with around 45% of market share in terms of revenue, followed by dyes & inks and pharmaceuticals, respectively.
Global Phenoxyethanol Preservatives Market - Impact of Coronavirus (Covid-19) Pandemic
According to Coherent Market Insights’ analysis, the global demand for specialty chemicals declined by over 5% in the month of May 2020 amid COVID-19 crisis. The demand for chemical intermediates used in mining, foundry, and paints industry has shown a major decline in the past few months, however, specialty chemicals utilized in pharmaceutical industry are expected to witness a significant growth in Asia Pacific in the near future. This in turn is expected to foster the growth of the market till 2021.
Key players are operating in the global phenoxyethanol preservatives market are BASF SE, BOC Sciences, The Dow Chemical Company, Finetech Industry Limited, Haihang Industry Co., Ltd., Health Chemicals Co., Ltd., Jinan Haohua Industry Co., Ltd., Kraft Chemical Company, Inc., Procter & Gamble Co. (P&G), Penta Manufacturing Company, LLC, Spectrum Chemical Mfg. Corp., and StruChem Co., Ltd.
Phenoxyethanol is a clear liquid which is used in formulation of cosmetic products such as sunscreen and skin creams. In addition to this, phenoxyethanol preservatives are used in various applications such as drugs, cosmetics and pharmaceuticals products for enhancing the shelf life of cosmetics and personal care products.
The global phenoxyethanol preservatives market has witnessed significant growth in recent past years, owing to the rising demand for personal care and cosmetics products. The surge in demand for active pharmaceutical ingredients (API) in pharmaceutical industry is expected to foster the demand for phenoxyethanol preservatives in the next few years.
Major players in the global next-generation packaging market are increasing their investment on innovative product launchings, research & development and marketing & promotional activities to capitalize on emerging trends in various end-use industries such as healthcare, personal care, cosmetics and others. This scenario is expected to fuel the market during the forecast period.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective.