The Global Cosmetic Ingredients Market was valued at USD 32.55 Billion in 2022 and is projected to reach a value of USD 48.09 Billion by 2030. The Global Market is anticipated to grow to exhibit a CAGR (Compound Annual Growth Rate) of 5.00% over the forecast period.
The major drivers of the market are the increasing demand for natural and organic cosmetics, rising per capita expenditure on personal care, and the growing awareness about the benefits of using cosmetics. The rising demand for natural and organic cosmetics is a major driver of the cosmetic ingredients market. Consumers are becoming more aware of the harmful effects of synthetic chemicals used in cosmetics and are therefore demanding products that are made from natural ingredients. This trend is especially strong in developed countries such as the US, Canada, and Germany, where consumers are willing to pay premium prices for natural and organic cosmetics. The increasing per capita expenditure on personal care is another key driver of the cosmetic ingredients market. As people become more conscious about their appearance, they are spending more money on products that will help them look their best. In addition, the growing middle class in emerging economies such as China and India is leading to an increase in disposable incomes, which is further fueling the demand for cosmetics. Finally, the growing awareness about the benefits of using cosmetics is also driving the growth of the cosmetic ingredients market. Cosmetics not only improve appearance but also have several other benefits such as protecting skin from UV rays and keeping it hydrated. As people become more aware of these benefits, they are increasingly using cosmetics daily, which is boosting the demand for cosmetic ingredients.
Over the past few years, there has been an increasing focus on enhancing and modifying the textual features of various ingredients that are used in personal care as well as cosmetics industries. This has led to a rise in the demand for cosmetic ingredients, thereby driving the growth of the cosmetic ingredients market. The rising demand for natural and organic products is one of the major factors driving the growth of the cosmetic ingredients market. In order to meet the growing demand for natural and organic products, manufacturers are focusing on developing innovative products using botanical extracts. For instance, L'Oréal Group recently launched an innovative product named Hair Color made with botanical extracts. This product is rich in antioxidants and provides protection against ultraviolet radiation. The need for novel ingredients that offer multiple benefits is another key factor driving the growth of the cosmetic ingredients market. Manufacturers are investing in research and development activities to develop such innovative ingredients. For instance, BASF SE launched a new product named Perfection Ultime multi-benefit serum, which provides eight benefits such as skin smoothing, brightening, and firming. Such products are expected to boost the demand for cosmetic ingredients over the forecast period. The increasing focus on personal appearance among consumers is another key factor driving the growth of the cosmetic ingredients market. Consumers are becoming more aware of their personal appearance and are willing to spend on products that can help them improve their looks.
Cosmetic Ingredients Market Size, 2022 To 2030 (USD Billion)
The rising consumer awareness pertaining to the benefits of cosmetic ingredients is resulting in the increasing market share of Cosmetic Ingredients. Consumers are now more interested in the content of their cosmetics and its effect on their skin. As a result, manufacturers are now formulating products with greater focus on natural and organic ingredients. The use of natural and organic ingredients in cosmetics has been on the rise in recent years as consumers become increasingly interested in the effects of these products on their skin. Organic cosmetics are made with ingredients that have been grown without the use of synthetic pesticides or fertilizers, while natural cosmetics are made with ingredients that occur naturally in the environment. There are several reasons why consumers are drawn to natural and organic ingredients in their cosmetics. Firstly, these ingredients are often seen as being gentler and more effective than synthetic alternatives. Secondly, natural and organic ingredients tend to be more environmentally friendly than synthetic ingredients. Finally, many consumers believe that natural and organic ingredients offer better value for money than synthetic alternatives. As a result of this trend, the market share of cosmetic ingredient suppliers that specialize in natural and organic ingredients has been rising in recent years. This trend is expected to continue as consumers become increasingly aware of the benefits of these types of ingredients.
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The cosmetic ingredients market is growing rapidly, however there are restraints which are holding back its full potential. The main restraint of the cosmetic ingredients market is the high cost of raw materials. This is a particular problem for small and medium-sized enterprises who may not have the negotiating power to get lower prices from suppliers. The high cost of raw materials means that many companies are only able to produce low-cost products, which limits the growth potential of the market. Another issue facing the cosmetic ingredients market is regulation. In many countries, there are strict regulations in place governing the use of certain ingredients in cosmetics. This can make it difficult for companies to develop new products using innovative ingredients, as they may not be able to get approval from authorities. Finally, another restraint on the cosmetic ingredients market is consumer preference. Many consumers prefer natural or organic products over those made with synthetic ingredients. This preference can limit the growth of segments of the market, as some consumers will not purchase products containing certain synthetic materials.
Top Market Trends
● A dynamic component of cosmetics, surfactants are available in a variety of forms and find widespread application in a variety of skin care, hair care, and men's grooming products, amongst other categories. Because natural and organic cosmetics are the current trend in the global cosmetics market, several cosmetics manufacturing companies are currently using green surfactants or plant-based surfactants for "clean label" of cosmetics. This is because "green" surfactants are more environmentally friendly than traditional surfactants.
● Green surfactants derived from palm oil and coconut oil are currently making their way into the sector of components for cosmetics. Additionally, green surfactants contribute significantly to the substantial revenue growth of the non-ionic surfactant sub-segment.
● Additionally, conditioning polymers are most frequently found in shampoos and other hair care products where they serve the purpose of conditioning the hair. When compared to the rise of the other product categories, this is a further factor that is contributing to the expansion of the polymer market. On the European market for cosmetics ingredients, items in the cosmetics industry that contain ingredients such as emollient, polymer, and oleochemical are experiencing significant levels of demand.
● It is predicted that the conditioning polymer will continue to be the most popular type of polymer throughout the duration of the forecast period, accounting for growth of more than 5% during the duration of the forecast period.
The market is segmented based on Ingredient Type, End Use, and Region. Based on Ingredient Type, the market is segmented into Synthetic Chemical Ingredients, Natural/Herbal Ingredients, Specialty Ingredients, Oleochemical, Botanical Extract, Rheology Modifier, Preservatives, Emulsifier & Stabilizer, and Others (Vitamins, Minerals and Protein). Based on End Use, the market is segmented into Fragrance, Hair Care, Skin Care, Make-up, Oral Care, and Eye Care. On the basis of Region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
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Based on Type
The global cosmetic ingredients market is segmented based on ingredient type, and the specialty ingredients segment dominated the market in 2021 with a share of more than 40%. Specialty ingredients are those that offer unique benefits and are used in small quantities to formulate products with desired characteristics. They include botanical extracts, vitamins, minerals, amino acids, nucleotides, and enzymes. Specialty ingredients are often used in cosmeceuticals, which are products that have medicinal or drug-like benefits in addition to their cosmetic properties. Cosmeceuticals are a rapidly growing segment of the beauty industry, and they require highly concentrated active ingredients to achieve their desired results. Some of the most popular specialty ingredients used in cosmetics include retinol (vitamin A), hyaluronic acid, glycolic acid, coenzyme Q10, and green tea extract. These ingredients are known for their anti-aging, skin-repairing, and antioxidant properties. Consumers are increasingly aware of the benefits of these ingredients and are willing to pay premium prices for products that contain them. While the specialty ingredients segment dominates the cosmetic ingredients market, it is important to note that commodity ingredients (such as emollients and surfactants) still play an important role in formulations. Commodity ingredients make up most of product’s volume but only a small fraction of its cost.
In the cosmetic ingredients market, the UV-Absorber subsegment dominated the Specialty Ingredients segment with a share of 37.5%. The high demand for sun protection products is driving the growth of this subsegment. Titanium dioxide and zinc oxide are the most used UV-Absorbers in cosmetics. The second largest segment in the cosmetic ingredients market is the Fragrance Ingredients segment, which accounted for a share of 28.1%. This segment is expected to grow at a CAGR of 5.4% from 2019 to 2025. The increasing demand for personal care and hair care products is driving the growth of this segment. The third largest segment in the cosmetic ingredients market is the Conditioning Agents segment, which accounted for a share of 12.8%. This segment is expected to grow at a CAGR of 4.6% from 2019 to 2025. The growing demand for hair care and skin care products is driving the growth of this segment.
Based on End Use
The skincare segment dominates the global cosmetic ingredients market, accounting for a 63.5% share in 2021. This is followed by the haircare segment (13%), which is expected to grow at a CAGR of 5.8% during the forecast period. The makeup segment holds a relatively small share of the market but is expected to see strong growth due to increasing demand for premium makeup products.
Sales of skincare products have surged in recent years, driven by an increase in awareness of the importance of skincare and the growing popularity of natural and organic products. The rise of new product categories such as sheet masks and BB/CC creams has also contributed to sales growth. In 2021, skincare sales accounted for 63.5% of the global cosmetic ingredients market and are expected to grow at a CAGR of 5.3% during the forecast period from 2019 to 2025.
The skin care segment dominated the cosmetic ingredients market in 2019 and is projected to grow at the highest CAGR during the forecast period. The primary factors that are expected to drive the growth of the skin care segment include rising consumer awareness about beauty and personal care, growing middle-class population, and increased spending on personal appearance globally. Furthermore, rising demand for eco-friendly and organic cosmetic product formulations is anticipated to propel market growth over the next five years. The hair care segment is expected to witness significant growth over the forecast period owing to increasing consumer awareness about hair care products, availability of a wide range of hair care products, and growing disposable income. Moreover, the trend of using natural ingredients in hair care products is expected to fuel market growth over the next five years. Make-up segments such as lipsticks, nail colors, eye make-up, foundation creams & powders are estimated to grow at a considerable rate during the forecast period due to changing lifestyles and preferences of consumers. In addition, easy availability of a wide range of make-up products through various distribution channels is projected to fuel market growth over the next five years.
Based on Region
The global cosmetic ingredients market was segmented into North America, Europe, Asia Pacific, and the Rest of the World. Europe dominated the cosmetic ingredients market based on region in 2019. The region is expected to maintain its leading position during the forecast period. This is attributed to the presence of a large number of cosmetics manufacturers in the region. Moreover, the rising demand for premium and luxury cosmetics is expected to drive the growth of the market in Europe. North America was the second largest cosmetic ingredients market in 2019. The US and Canada are major contributors to the market growth in North America. The growing popularity of natural and organic cosmetics among consumers is fuelling the growth of this market in North America. The Asia Pacific cosmetic ingredients market is expected to witness robust growth during the forecast period. The Increasing disposable incomes and changing lifestyle habits are fuelling the demand for premium and luxury cosmetics products in emerging economies such as China, India, South Korea, and Japan.
In recent years, Europe has been dominating the cosmetic ingredients market based on region. This is due to a number of factors, such as the strong presence of major cosmetic companies in the region, the favourable regulatory environment for the cosmetics industry, and the high demand for innovative and premium products from European consumers. As the home to some of the world's largest and most successful cosmetic companies, including L'Oréal, Groupe Rocher, and Coty, Europe has a strong presence in the global cosmetics industry. These companies have access to extensive research and development resources and are able to bring innovative products to market quickly. In addition, they benefit from a favourable regulatory environment in Europe that encourages investment in research and development and supports the marketing of new products. European consumers are also increasingly demanding premium and innovative cosmetic products. They are willing to pay more for products that offer superior quality and performance. This has resulted in strong growth for premium cosmetic brands in Europe and has helped to drive up overall sales of cosmetic ingredients in the region.
There are several factors that contribute to North America's position as the second largest region segment in the global cosmetic ingredients market. Firstly, the region has a large and affluent population that is increasingly focused on appearance and beauty. Secondly, there is a growing trend for minimally invasive and non-invasive cosmetic procedures, which requires fewer ingredients and is therefore less expensive. Lastly, the availability of high-quality cosmetic ingredients and products is another key factor driving growth in the North American market. Manufacturers in the region are investing heavily in research and development to develop innovative new ingredients and products that meet the needs of consumers.
The key players in the Global Cosmetic Ingredients Market include- BASF SE (Germany), Akzo Nobel N.V. (Netherlands), Croda International PLC (UK), The Dow Chemical Company (US), Eastman Chemical Company (US), Loréal International (France), Unilever (UK), The Estée Lauder Companies Inc. (US), COTY Inc. (France), Colgate-Palmolive Company (US) and others.
Some of the key advancements in the market include
● Emollients and waxes are in high demand in the personal care industry across Asia and the Pacific, thus BASF SE decided to expand its manufacturing capacity in China on October 8, 2015. This was done in response to the growing demand for these components in the region.
● Dehyton AO 45 is a microalgae-derived betaine surfactant that is manufactured from renewable microalgae oil. It was jointly launched by BASF SE and Solazyme, Inc. on July 28, 2015. In applications involving home and personal care goods, this novel substance can be utilized in place of amidopropyl betaine as a suitable replacement.
● Tinosorb A2B is a novel micronized UV filter that was developed by BASF SE on April 14, 2015. This filter protects against radiation from both UVA and UVBII wavelengths. Additionally, this product from BASF SE helps to minimize the risk of developing skin cancer and also has an anti-aging effect. In August 2014, the product was granted permission by the European Union (EU), although it is still waiting for authorization to be introduced in Australia from the Therapeutic Goods Administration (TGA).
● A joint venture between AkzoNobel N.V. and Evonik Industries AG was announced on June 16, 2015, with the goal of increasing production of chlorine/potassium hydroxide solution at an existing facility owned by AkzoNobel N.V. located in Ibbenbüren, Germany.
Segmentation of the Global Cosmetic Ingredients Market
- Ingredient Type (Synthetic Chemical Ingredients, Natural/Herbal Ingredients, Specialty Ingredients, Oleochemical, Botanical Extract, Rheology Modifier, Preservatives, Emulsifier & Stabilizer, Others (Vitamins, Minerals & Protein))
- End Use (Fragrance, Hair Care, Skin Care, Make-up, Oral Care, Eye Care)
- Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa)
|Regions & Countries Covered
- North America - (U.S., Canada, Mexico)
- Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
- Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
- Latin America - (Brazil, Argentina, Rest Of Latin America)
- Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
- BASF SE (Germany)
- Akzo Nobel N.V. (Netherlands)
- Croda International PLC (UK)
- The Dow Chemical Company (US)
- Eastman Chemical Company (US)
- Loréal International (France)
- Unilever (UK)
- The Estée Lauder Companies Inc. (US)
- COTY Inc. (France)
- Colgate-Palmolive Company (US)
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