Cosmetic Dyes Market - Forecast(2023 - 2028)

Cosmetic Dyes Market Overview

The cosmetic Dyes Market size is forecast to reach US$453.3 million by 2027, after growing at a CAGR of 5.8% during the forecast period 2022-2027. Cosmetic dyes are color additives that are used as a coloring agent in various cosmetic products such as facial makeup, nail products, eye make-up, toiletries, and another type of products. Lip products are types of cosmetic additives that are soluble. Color plays an important role in the marketing of a cosmetic product. Cosmetics containing natural ingredients such as aloe vera, tea extract, lime content, black sugar, and others are reviving the cosmetic dyes market share. To improve the sales of cosmetic products companies are capitalizing on rising consumer interest in medicated cosmetics, skin-friendly color cosmetic products, and have started investing in natural ingredient products. Additionally, consumers changing behavior towards healthier lifestyles is another major driving factor of natural cosmetics. This is supplementing the growth of the global cosmetic dyes market size.

COVID-19 Impact

The COVID-19 pandemic has challenged the cosmetic dyes industry drastically in 2020. In comparison to other industries, the cosmetic dyes market hurt overall growth. Since the beginning of 2020, the global economy has been experiencing a downturn with the outbreak of the COVID-19 pandemic. The outbreak of COVID-19 is anticipated to have a significant effect on the production and distribution of cosmetic dyes. Governments of several countries have imposed strict lockdowns to curb the spread of the COVID-19 pandemic. Many manufacturing companies are either shut down or running low on production capacity. A decrease in industrial activities due to the pandemic has been adversely impacting the global cosmetic dyes market. According to Baird in 2020 beauty service category lost around US$5 billion in revenue every month due to the closure of a beauty salon. Thus, hampering the market growth of the cosmetic dyes industry.

Report Coverage

The report: “Cosmetic Dyes Market Report – Forecast (“2022-2027”), by Industry ARC, covers an in-depth analysis of the following segments of the Cosmetic Dyes Industry Outlook.

By Type: Natural and Synthetic.
By Technology: Water-based, Solvent-based and Oil-based.
By Form: Liquid and Powder.
By Application: Facial Makeup, Nail Products, Eye Makeup, Lip Products, Hair Care Products, and Others.
By Geography: North America (U.S, Canada, and Mexico), Europe (UK, France, Germany, Italy, Spain, Russia, Netherlands, Belgium, and Rest of Europe), APAC (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America), and RoW (Middle East and Africa).

Key Takeaways

• The global cosmetic dyes market size will increase due to high demand for applications in lip products, hair care products, and others during the forecast period.
• The Asia Pacific region holds a dominant market share in the global cosmetic dyes industry due to the high rise of importance of personal grooming among working women with higher incomes is boosting the demand for cosmetic dyes in this region.
• The demand for natural cosmetic dyes is increasing due to the rise in demand for skin-friendly, herbal and other products in the coming years.

Figure: Asia-Pacific Textile Dyes Market Revenue, 2021-2027 (US$ Billion) 

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Cosmetic Dyes Market Segment Analysis- By Type

Synthetic cosmetic dyes held the largest share of over around 68% in the cosmetic dyes market in 2021. Synthetic cosmetic dyes are widely utilized across all cosmetic products such as lipsticks, facial makeup, nail products, and eye makeup application. Synthetic cosmetic dyes exhibit better stability properties and impart a more intense colour. Furthermore, the manufacturing cost of synthetic cosmetic dyes is lower than that of natural cosmetic dyes due to the availability of raw materials. The cosmetic dyes market is witnessing significant growth due to the increasing demand for cosmetic & personal care products such as nail products, lip products, eye makeup, facial makeup, hair colour products, and toiletries among others. According to the Common Thread Collective article, the beauty and personal care industry is expected to capture US$784.6 billion by 2025, and the beauty industry is expected to capture US$118 billion by 2025.

Cosmetic Dyes Market Segment Analysis- By Application Type

Hair color dyes held the largest share of over around 20% in the cosmetic dyes market in 2021. Hair color products are the largest and fastest-growing application segment of cosmetic dyes. Hair coloring products can be defined as products that are being used by people for covering grey hair and because colored hair is regarded as more fashionable. People follow different fashion trends and they try to inculcate some refreshing look in their lifestyle for that purpose they opt for hair color. The hair coloring industry is growing as people are willing to experiment with their natural hair color. According to Godrej company in 2021, Hair Colours recorded a steady sales growth of 25%, driven by an uptick in overall category growth. Godrej Expert Easy 5 Minute Shampoo Hair Colour which uses cosmetic dyes in its formulation is one of the bestselling products of the company. Thus, the use of these cosmetic dyes in hair color, soaps, and eye makeup, will continue to drive the market demand for the cosmetic dyes industry.

Cosmetic Dyes Segment Analysis – By Geography

Europe dominated the cosmetic dyes market in 2021 with a market share of around 46%, followed by North America and the Asia Pacific. In terms of consumption, Europe is the leading region of the global cosmetic dyes market. The rise in disposable income, due to improving economic conditions, and the rise in importance of personal grooming among working women with higher incomes are boosting the demand for cosmetic dyes in the region. The rise in demand for premium cosmetic products, such as oil-based lipsticks and serums, among the rising geriatric population is fueling the demand for cosmetic dyes in North America and Europe. According to the data published by Cosmetics Europe in 2020, the largest national markets for cosmetics and personal care products within Europe are Germany (US$16 billion), and France (US$13.1 billion). The rise in disposable income, due to improving economic conditions, and the rise in importance of beauty products and their safety among working women with higher incomes are boosting the demand for cosmetic dyes in the European region. Thus, the rise in demand from European regions will continue to drive the market for the cosmetic dyes industry. 

Cosmetic Dyes Market Drivers

Growing demand from the skincare industry

Ever-evolving lifestyle is an important factor driving the global cosmetic dyes market. Rapid changing climatic conditions in various regions are influencing the increasing need for skin and sun care cosmetic products amongst customers. An increase in awareness about the quality of facial cosmetic products such as wrinkle treatment and premium lotions, among the young as well as geriatric population, is another factor boosting the global cosmetic dyes market. Color additives plays an important role in making creams and shampoos more appealing to the customers. Thus, creating more market opportunities for the cosmetics dyes industry. According to Loreal Paris annual report 2020, 42% of the business segment comes from skincare products followed by haircare products which contribute to 22% of the business segment. Moreover, the company recorded sales of US$33.43 billion in 2020. Thus, the use of cosmetics dyes in skincare products will continue to drive the global market for the cosmetics dyes industry.

Growing demand for natural cosmetics

Cosmetics containing natural ingredients such as aloe vera, tea extract, lime content, black sugar, and similar others are reviving the growth of the cosmetics market. Nowadays women opt for natural products which can be applied on daily basis without creating dull and dry skin. cosmetic products are capitalizing on rising consumer interest in medicated cosmetics, skin-friendly colour cosmetic products and have started investing in natural ingredient products. Additionally, consumers changing behaviour towards healthier lifestyles is another major driving factor of natural cosmetics. This is supplementing the growth of the global cosmetic dyes market size. Thus, the demand of this technology will continue to drive the market for the dyestuff industry. According to Cosmetics Europe the European cosmetics and personal care market valued at US$87.6 billion at a retail sales price in 2020, the largest market for cosmetic products in the world. Thus, the use of natural dyes in cosmetics will continue to drive the market for the cosmetics dyes industry.

Cosmetic Dyes Market Challenges

Government Regulation

Almost all cosmetic products are made up of pigments and dyes. The pigment and dyes industry is currently witnessing a downturn due to stringent government regulations and environmental policies. Bans and regulatory impositions have been introduced on the usage of a wide range of pigments and dyes such as cadmium, lead sulfochromate yellow, and lead chromate molybdate sulfate red. The European Union (EU) has imposed strict restraints on the use of cadmium pigments, lead (Pb) & its compounds, dyes & pigments containing CMR 1 or 2 classified aromatic amines due to their adverse effect on human health. Thus, the use of these dyes in cosmetics has been strictly evaluated by the Federal Food, Drug, and Cosmetic Act of 1938. Which has helped in enforcing the regulations that monitor the safety of colour additives used in the cosmetics industry. Thus, strict government regulations are hampering the market growth for the cosmetic dyes industry. 

Cosmetic Dyes Market Industry Outlook

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the market. Cosmetic dyes market top 10 companies include:

1. Sensient Cosmetic Technologies
2. Neelikon
3. Pylam
4. Dysta
5. Clariant
6. Koel Colours
7. Goldmann Group
8. Chromatech
9. Kolorjet Chemicals Pvt Ltd.
10. Matrix Pharma Chemicals

Recent Developments

• In July 2021, Sun Chemical has launched two new color travel effect pigments, Reflecks™ MD Midnight Cherry and Reflecks™ MD Midnight Sapphire, to join its Reflecks™ MultiDimensions product family
• In May 2021, Aakash Chemicals & Dye-Stuffs, a supplier of colorants and specialty ingredients headquartered in Glendale Heights, Illinois, has rebranded as Vivify Specialty Ingredients. Vivify is an industry leader in colorants and specialty ingredients, serving customers across multiple consumer and industrial end markets. Thus, this rebranding will boost the market opportunity for the cosmetic dyes industry.
• In October 2020, Clariant launches aqueous pigment dispersions with a new preservation system which features the new state-of-the-art preservation system. The company has proactively optimized its Cosmenyl 100 range to meet the latest regulatory requirements under the European Cosmetics Regulation 1223/2009. Thus, the use of cosmetic dyes in the pigments will boost the market growth of cosmetic dyes. 
  
  

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