Cosmetic ingredients are primarily used to produce formulation such as moisturizers, creams, lipsticks, oils, perfumes, eye and facial makeup, nail polish, cleansing shampoos, hair colors, deodorants, etc. Surfactant, polymers, emollients, botanical extracts, oleochemicals, preservatives, rheology modifiers, and emulsifiers & stabilizers are some of the types of cosmetic ingredients. They are used as cleansing agents & foamers, aroma, moisturizing, and specialty in cosmetic products. Some of the cosmetic product also contains drugs if it is certified by regulatory bodies then it is treated as cosmetic.
The global cosmetic ingredients market was valued at US$ 17,374.2 Mn in 2019 and is increasing at a CAGR of 4.0% during the forecast period (2020 to 2027).
The manufacturer is continuously launching premium beauty product in response to the rising demand for the premium cosmetic product among consumer, which in turn fueling the market growth of cosmetic ingredients. For instance, in November 2019, Veritas Farms, Inc. a vertically-integrated agribusiness engaged in the production of full-spectrum hemp extracts with naturally occurring cannabinoids, has announced the launch of its brand of premium cosmetic products, Veritas Beauty.
Increasing introduction of sweat-proof makeup is expected to augment the market growth of the cosmetic ingredient over the forecast period. For instance, in February 2018, Fitcover Australia has announced launched of the latest batch of sweat-proof makeup items and accessories. The company has recently introduced ‘Mineralize Active Foundation’; a super-fast and long-lasting blend of organic compounds. The product is popular among women who are exercise enthusiasts or have a hectic work schedule that demands frequent outdoor trips and a burst of brisk activities.
Strict regulatory barriers for cosmetic ingredients and products are expected to hamper the market growth over the forecast period. The U.S. Food and Drug Administration, Cosmetic Europe, Health Canada and Therapeutic Goods Administration (TGA) are some of the major regulatory bodies of the cosmetic industry. The manufacturer needs to produce cosmetic specific to a country’s regulations in order to obtain approval for distribution or sale with different regulators enacting different policies. For instance, antiperspirants, anti-dandruff shampoos, and mouthwashes are considered as therapeutic products in Australia but come under the banner of drugs in Canada and under cosmetic in the U.K.
Based on functionality, cleansing agents & foamers segment accounted for the largest market share of around 37%, in terms of revenue in 2019, followed by moisturizing and specialty. Whereas, specialty segment is predicted to record fastest growth in the global cosmetic ingredients market in terms of revenue during 2020 to 2027.
Increasing expansion of the production capacity of the cosmetic ingredients by the manufacturer is expected to foster market growth. For instance, in September 2015, Symrise AG opened a plant for the production of cosmetic ingredients, significantly increasing its capacities and improving its position in the market. The company has invested about US$ 16.0 million to build the plant and plans further facilities in Germany and the U.S. Therefore, rising expansion of cosmetic ingredients plants across the various region is expected to fuel the market growth over the forecast timeframe.
Rising demand for cosmetic specialty chemicals is projected to boost the market growth of cosmetic ingredients. For instance, in September 2019, Evonik launched new active ingredient ROVISOME Sensitive NG, a new solution for sensitive skin products. This launch helps to affirm advanced specialty chemical technologies that address tangible consumer needs in the skincare market. Therefore, the rising demand for specialty cosmetic chemicals is expected to fuel market growth over the forecast period.
Global Cosmetic Ingredients Market - Impact of Coronavirus (Covid-19) Pandemic
Manufacturing facilities across the globe have slowly resumed their operations after mid-2020 which helped in boosting the demand for cosmetic products across the globe.
Few Recent Developments
In March 2015, L'Oréal International acquired Cor & Ton in hair color and Niely Gold in hair care from Niely Cosmeticos to attract customers in Brazil
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