APAC Personal Care Chemicals Market - Forecast(2023 - 2028)

APAC Personal Care Chemicals Market Overview

APAC Personal Care Chemicals Market size is expected to be valued at US$5.1 billion by the end of the year 2026 and is set to grow at a CAGR of 4.7% during the forecast period from 2021-2026. The growing population in countries like China, India and South Korea, coupled with the changing lifestyle, especially among the younger generation is driving the growth of personal care products in the region which is further driving the APAC personal care chemicals market. The increase in the population of millennials demographic cohort of people aged between 25 to 35 in countries like South Korea, India and China is contributing to the increase in demand for personal care products which is eventually driving the APAC personal care chemicals market. Personal care chemicals are antimicrobial in nature and consists of chelating agents, which makes the products water-proof. Other chemicals such as rheology modifiers which helps in maintaining the viscosity and acrylates copolymers aid in easing the irritation of the skin is one of the significant factors driving the APAC personal care chemicals market.

COVID-19 impact

During the Covid-19 pandemic, the APAC personal care chemicals market witnessed a drastic decrease in growth in terms of production, sales, marketing and distribution. Many key-use industries faced heavy losses due to the global economic lockdown which led to a series of market shutdowns. Various restrictions relating to export and import in countries across the globe owing to the pandemic also majorly impacted the APAC personal care chemicals market. However, the APAC personal care chemicals market saw a considerable amount of growth during the year end of 2020 and is set to improve further during the year 2021.

APAC personal care chemicals Market Report Coverage

The report: “APAC personal care chemicals Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the APAC personal care chemicals Industry.

By Source: Natural Ingredients and Synthetic Ingredients.
By Ingredient Type: Emollients, Conditioning Polymers, Rheology Modifiers, Emulsifiers, Surfactants, Anti-Microbial, UV Absorbers, Acrylates, Opacifiers and Others.
By Application: Hair Care Products (Shampoo, Conditioner, Hair Gels and Hair Oils), Skin Care Products (Face Cream, Anti-Aging Cream, Sun Protection Cream and Body Lotions), Oral Care Products (Toothpaste, Mouthwashes, Multifunctional Products and Others), Cosmetics (Lipsticks, Eye Shadows, Foundations and Blushes and Others) and Others.
By Country: China, Japan, India, South Korea, Australia, New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC.

Key Takeaways

• China held the largest share in the APAC personal care chemicals market owing to the increase in the demand for cosmetics and other personal care products in the region coupled with the increase in the population in the region.
• The increase in the awareness about personal image and physical grooming is one of the significant factors driving the personal care products market which in turn is driving the APAC personal care chemicals market.
• The increase in demand for multifunctional products is also driving the innovation and growth of the APAC personal care chemicals market.
• Amid the Covid-19 pandemic, the APAC personal care chemicals market witnessed a decline in growth in the beginning of the year 2020, but is set to grow in the coming months of the year 2021.

FIGURE: APAC Personal Care Chemicals Market Revenue, 2020-2026 (US$ Billion)

APAC Personal Care Chemicals Market Segment Analysis – By Source

Synthetic Ingredients held the largest share of 53% in the APAC personal care chemicals market in the year 2020. The increase in demand for skin care products is one of the main factors driving the synthetic ingredients segment in the APAC personal care chemicals market. The increase in demand for skin products with antimicrobial and anti-ageing properties is driving the demand for synthetic ingredients in the APAC personal care chemicals market. This is driving the demand for synthetic ingredients segment in the APAC personal care chemicals market.

APAC Personal Care Chemicals Market Segment Analysis – By Ingredient Type

Surfactants held the largest share of 32% in the APAC personal care chemicals market in the year 2020. Surfactants are extensively used in the production of skin-care products, hair care products and other personal care products. The increase in demand for anti-ageing and antimicrobial properties in the skin care products and other personal care products is driving the demand for surfactants in the APAC personal care chemicals market. Surfactants consist of chemicals such as chelating agents and rheology modifiers help in enhancing the cleansing properties and foaming properties of the products. This is majorly driving the surfactants segment in the APAC personal care chemicals market.

APAC Personal Care Chemicals Market Segment Analysis – By Application

Skin care segment held the largest share of 38% in the APAC personal care chemicals market in the year 2020. The increase in the demand for anti-aging creams and skin care products among the middle-aged and older population in the region is driving the demand for skin care segment in the APAC personal care chemicals market. According to the recent data available in the reports published by Cosmetic Europe, the total sales of cosmetics of the Asian countries, Japan, India, China and South Korea amounted to US$122.91 billion in the year 2019. This is contributing to the increase in the demand for skin care segment in the APAC personal care chemicals market.

APAC Personal Care Chemicals Market Segment Analysis – By Country

China held the largest share of 45% in the APAC personal care chemicals market in the year 2020. The increase in the awareness for personal image among the young population coupled with the increase in the demand for cosmetics is driving the personal care chemicals market in China. The increase in demand for cosmetics owing to the growing awareness about self-grooming and image development is one of the major factors driving the personal care chemicals market in the region. According to Cosmetics China, the online retail value of sales of cosmetic products was valued at US$27.92 in the year 2019. According to the Korean National Statistical Office, cosmetics online shopping transactions grew by 25% year-on-year to US$10.5 billion in 2019. According to Ministry of Economy and Industry (Foreign Trade Administration), the market size of body care in India is set to increase by 36% and hair care by 5%. This is highly driving the personal care chemicals market in China.

APAC Personal Care Chemicals Market Drivers

Increasing demand for bio chemicals in cosmetics

Biotechnology uses microorganisms and enzymes for obtaining specific products through the process of fermentation and genetic engineering techniques. Some of the examples of such products are active ingredients, such as hyaluronic acid, resveratrol, kojic acid and some enzymes which are used in skin anti-aging products. Bio cosmetics do not contain aggressive chemicals or oil preservatives or alcohol and therefore is being preferred mostly by the customers. This is majorly driving the APAC personal care chemicals market.

Increasing awareness about personal image

The increase in awareness about one’s personal image and maintaining physical appearances is one of the significant factors driving the APAC personal care chemicals market. The growing consciousness about personal appearance and body grooming is increasing the demand for personal care products such as skin care and hair care products in the Asia-Pacific region. According to Cosmetics Europe, the personal care association in Europe, the cosmetics market of the major countries of Asia Pacific region amounted to US$123.34 billion in the year 2019. The cosmetics market of the Asia Pacific region was the largest cosmetic market followed by Europe. This is highly driving the APAC personal care chemicals market.

Increasing demand for multifunctional products

The increase in the demand for multipurpose and multifunctional products/cosmetics is driving the innovation and growth of the APAC personal care chemicals market. Consumers in the APAC region is starting to prefer products which has multipurpose, which also come at a lesser price. This is highly driving the need for a proper and apt ingredient or chemical which will facilitate the multipurpose of the product. For an instance, customers in the Asia-Pacific region prefer skin products that delivers both hydration and skin glow rather than two separate products. This is driving the APAC personal care chemicals market.

APAC Personal Care Chemicals Market Challenges

Rules and regulations laid by regulatory bodies on the manufacture and usage of cosmetics

Certain rules and regulations regarding the manufacture and export & import of cosmetics in the countries of Asia-Pacific region is one of the biggest challenges for the APAC personal care chemicals market. The products need to be tested and approved by a regulatory body and if not found in accordance with the standards it will be sent back for re-designing. For instance, National Medical Products Administration (NMPA), a regulatory body for cosmetics in China, has laid down many rules and regulations regarding the production and sales of cosmetics, such as all imported cosmetics needs to go through a scrutiny by the NMPA, the products needs to tested by the NMPA before the public release, preparing labels according to the NMPA standards and others which is one of the major challenges for the APAC personal care chemicals market.

Awareness about chemical substances used in cosmetics, leading to use of natural substitutes

According to a recent green beauty survey conducted by Kari Gran Skin Care LLC, a cosmetics company, it was found that consumers between the age of 35-54 are increasingly going green with a large majority of that focus group stating that natural products are better and preferred by them. Even 73% of the millennial group stated that they prefer cleaner-all-natural products. Therefore, the substitution of natural substance over cosmetic products is one of the major challenge restricting the growth of the APAC personal care chemicals market.

APAC Personal Care Chemicals Market Industry Outlook

Collaborations, partnerships, facility expansion, production expansion, investments, acquisitions and mergers are some of the key strategies adopted by players. Some of the key companies of the market include APAC Personal Care Chemicals Market. Major players in the APAC Personal Care Chemicals Market are Procter & Gamble, Beiersdorf AG, Revlon Inc., Unilever, L'Oréal S.A., Avon Products Inc., The Estée Lauder Companies Inc., Azelis Holding S.A., Oriflame Holding AG, Biotique and Kao Corporation among others.

Acquisitions/Technology Launches

In April, 2020 Azelis Holding S.A., a specialty Chemicals Company, specialising in personal care chemicals acquired CosBond, specialising in personal care, headquartered in Hong Kong. This acquisition will strengthen the position of Azelis in the Chinese personal care market.

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