The global cosmetic ingredients market size reached USD 1.80 billion in 2023 and is projected to surpass around USD 2.71 billion by 2032 with a CAGR of 4.65% during the forecast period 2023 to 2032.
Key Points
- In 2022, Asia Pacific held the largest market share of 33.12% in cosmetic ingredients market.
- By ingredient type, the surfactant segment dominated the market with a share of 25.2% in 2022.
- By ingredient type, the powders segment is observed to expand at the fastest CAGR of 4.79% between 2023 to 2032.
- By ingredient function, the emulsifier segment held the largest share of 29.0% in 2022.
- By ingredient function, the emollient segment is expected to grow at a CAGR of 4.86% during the forecast period.
- By application, the facial makeup segment held the largest share of 23.7% in 2022.
- By application, the nail products segment is expected to expand at a CAGR of 4.82% during the forecast period.
Cosmetic components include preservatives, emulsifiers, thickeners, emollients, emulsifiers, emollients, emollients, emollients, and color additives that, when added to cosmetic goods, perform washing, bleaching, moisturizing, and other functions. The inclusion of these compounds in cosmetic ingredients’ anti-oxidant and anti-inflammatory characteristics is significantly influencing the market’s expansion. The demand for cosmetics products has expanded due to rising living standards and fast urbanization, which has resulted in high consumption in developed nations.
Growing interest in clean-label cosmetic products has led to the development of environmentally friendly green cosmetics. In order to meet consumer needs, producers of cosmetic ingredients work arduously to create new goods and components and invest heavily in research and development. Over the next five to six years, the demand for goods created with organic ingredients is expected to be strongest in Asia Pacific, which will also considerably fuel growth of the global cosmetics ingredients market.a
Regional snapshots
The biggest market share was held by the Asia-Pacific in the cosmetic ingredients market during the forecast period. Due to the region’s increasing demand for skin care and body care cosmetic products, which has a big impact on the market for cosmetic components there, Asia-Pacific currently dominates the cosmetic ingredients sector. Initiatives to encourage the adoption and use of oral care products will increase their production level and, as a result, their use of cosmetic ingredients, which will have a favorable effect on the prognosis for the cosmetic ingredients sector.
Cosmetic Ingredients Market Report highlights
Ingredient Type Outlook
The Cosmetic Ingredients Market categorizes ingredients into several types crucial for formulating effective cosmetic products. Emollients, such as natural oils and butters like shea and cocoa butter, are essential for moisturizing and softening the skin. Surfactants, including sulfates and betaines, play a vital role in cleansing products by reducing surface tension between water and oils. Emulsifiers like glyceryl stearate ensure stability in creams and lotions by blending water and oil-based ingredients. Preservatives such as parabens and phenoxyethanol prevent microbial growth, extending product shelf life. Antioxidants like vitamins C and E protect formulations from oxidation, maintaining their efficacy over time.
Product Type Outlook
The Cosmetic Ingredients Market offers a diverse array of product types tailored to specific cosmetic applications. Skin care ingredients, such as hyaluronic acid and peptides, are key in anti-aging creams and moisturizers, enhancing hydration and firmness. Hair care ingredients like keratin and botanical extracts nourish and strengthen hair in shampoos and conditioners. Color cosmetics ingredients, including pigments and dyes, provide vibrant hues in foundations and lipsticks. Fragrance ingredients, such as essential oils and aroma chemicals, create appealing scents for perfumes and body sprays, enhancing consumer experience.
Functionality Outlook
Cosmetic ingredients are categorized by their functionalities that contribute to product efficacy and consumer benefits. Moisturizing agents like glycerin and ceramides improve skin hydration and barrier function, combating dryness and maintaining skin health. Anti-aging agents such as peptides and antioxidants promote collagen production, reducing fine lines and wrinkles for youthful-looking skin. Cleansing agents like surfactants effectively remove dirt and oil from skin and hair, ensuring thorough cleansing without stripping natural oils. UV filters such as titanium dioxide protect against sun damage by absorbing or reflecting harmful UV rays, preventing premature aging and sunburn.
End Use Outlook
The Cosmetic Ingredients Market serves various end-use applications across personal care, professional cosmetics, cosmeceuticals, and specialty cosmetics. Personal care products encompass skincare, hair care, and hygiene items, utilizing a wide range of ingredients to meet everyday consumer needs. Professional cosmetics include advanced formulations for salons and spas, offering specialized treatments like chemical peels and intensive skincare therapies. Cosmeceuticals combine cosmetic and pharmaceutical properties to address specific skin concerns, such as acne or sensitive skin. Specialty cosmetics cater to niche markets with preferences for organic, vegan, or halal-certified products, reflecting evolving consumer preferences and ethical considerations in cosmetics.
Market dynamics
Drivers
Over the course of the forecast period, increasing demand for specialized skincare products is anticipated to drive the market growth for cosmetic ingredients. For instance, Dow introduced its personal care ingredient developments at booth K80 in April 2019. This includes EPITEX9 Polymer, the company’s innovative hybrid film former, Dow’s first bio-based hair fixative, MaizeCareStyle Polymer, and eco-friendly DOWSIL FA PEPS Silicone Acrylate. As a result, it is anticipated that the market for cosmetic ingredients would rise due to the increasing need for specialist skin care products.
Rapid urbanization and rising customer interest in natural ingredients have led cosmetics manufacturers to develop new product lines that can meet these consumer needs. For instance, according to the company’s announcements, Quench Botanic, four new skincare products with Birch juice as the primary component were introduced in May 2022. Additionally, according to a statement from the sun-care firm Dune, Mug Guard, a facial sunscreen that reduces the appearance of wrinkles and skin discoloration, was introduced in June 2022. Additionally, according to claims made by Olay, the business introduced three new body-washing products in April 2020 that contain the vitamin B3 complex. Such product launches will facilitate the efficient use of natural cosmetic ingredients in the cosmetics and personal care sector for creating a variety of product ranges in skincare and body care, supporting the expansion of the cosmetic ingredients market over the forecast period.
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Restraints
The market growth of cosmetic ingredients is anticipated to be hampered by strict laws against the use of dangerous chemical ingredients. For instance, California lawmakers submitted a historic bill in March 2019 stating that the sale of cosmetics containing harmful substances would be considered unlawful in the state. The Toxic-Free Cosmetic Act (AB 495) would be a first for the nation. Therefore, it is anticipated that the establishment of such stringent restrictions will impede the market expansion of cosmetic ingredients.
Opportunities
It is anticipated that the expansion of the middle class in emerging economies, particularly in Asia Pacific, will create a lucrative potential for the market for cosmetic ingredients. The global middle class already comprises more than half of the world’s population, up from 1.8 billion in 2009, according to the European Commission, and is projected to grow to 4 billion people by 2021 and 5.3 billion people by 2030. As a result, this aspect is anticipated to provide the market for cosmetic ingredients with enormous growth potential.
Challenges
The synthetic or chemical cosmetic components that are particularly hazardous to human skin, such sodium lauryl sulphate, propylene glycol, and methyl, can result in both cancer and chapped skin. A few rules have been set by government agencies to stop these harmful skin consequences.
Recent Developments
- In October 2023, Clariant approved the acquisition of Lucas Meyer Cosmetics, a top high-value cosmetics and personal care ingredients manufacturer.
- In October 2023, BASF invested in capacity growth for cosmetic ingredients in Düsseldorf to manufacture emollient specialities at its Düsseldorf site aimed at skin and sun protection products.
- In July 2023, Indchem International, a significant worldwide supplier of cosmetic chemicals for the beauty industry, and Berkem, a French bio-based chemistry firm, inked a distribution deal for Berkem’s cosmetic ingredients in India.
- In July 2023, by sharing shares with Shiseido through a third party, CHITOSE Group raised USD 7 million. CHITOSE aims to expedite the advancement of circular manufacturing utilizing microalgae in the cosmetics sector through its relationship with Shiseido, a significant and leading company in the industry.
Cosmetic Ingredients Market Companies
- Symrise AG
- Givaudan
- BASF
- Croda International Plc
- EVONIK INDUSTRIES AG
- Lonza Ltd.
- CLARIANT
- Dow
- The Lubrizol Corporation
- Ashland
- ZSCHIMMER & SCHWARZ CHEMIE GMBH
- Gattefosse
- Nouryon
