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Cosmetic Ingredients Market - Forecast(2023 - 2028)
Cosmetic Ingredients Market Overview
The Cosmetic Ingredients Market size
is estimated to reach US$23.6 billion by 2027 after growing at a CAGR of 4.1%
during the forecast period 2022-2027. Cosmetics ingredients are synthetic or
natural-based ingredients consisting of preservative, emulsifiers, thickener,
emollient and color additives which when added to cosmetics products, perform cleansing,
bleaching, moisturizing and other function. Their presence in anti-oxidant and
anti-inflammatory properties of the cosmetic ingredients is having a
significant influence on the growth of the Cosmetic Ingredients Market.
Improvement in living standards coupled with rapid urbanization has increased
cosmetics product demand, leading to their high consumption in major countries.
According to the annual report of Shiseido, in 2021, the overall annual
cosmetics sales of the company increased by 7% in America. In addition, to
growing consumption, new product launches and initiatives to promote oral care
products are also driving the growth of the cosmetic ingredients industry.
However, stringent government regarding synthetic/ chemical ingredients used in
cosmetic products can hamper the demand and usage of the ingredients, thereby
negatively impacting the market growth and the Cosmetic Ingredients Market size.
Cosmetic Ingredients Market Report Coverage
The “Cosmetic Ingredients Market Report – Forecast
(2022 – 2027)” by IndustryARC, covers an in-depth analysis of the following
segments in the Cosmetic Ingredients Industry.
Key Takeaways
- Asia-Pacific dominates the Cosmetic Ingredients industry owing to the growing demand for skin care and body care cosmetic products in the region, which is having a significant influence on the market demand for cosmetic ingredients in the region.
- Initiatives to promote the adoption and usage of oral care products will propel the production level for such products, thereby increasing the usage of cosmetic ingredients in them, which will positively impact the cosmetic ingredients industry outlook.
- Government regulation to limit synthetic cosmetic ingredients usage due to their negative health effects can hamper the growth of the Cosmetic Ingredients Market as well as the Cosmetic Ingredients Market size during the forecast period.
Figure: Cosmetic Ingredients Market Revenue Share by Geography, 2021 (%)
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Cosmetic Ingredients Market Segment Analysis – by Ingredient Type
The
natural ingredient held the largest share in the Cosmetic Ingredients Market share in 2021 and is projected to grow at a CAGR of 4.3% during the forecast
period 2022-2027. Natural cosmetic ingredients such as plant extracts and
starch are rich in antioxidants, fatty acid and vitamins which are easily
absorbed by the skin and unlike synthetic ingredients, they provide more
longevity to cosmetic products and does not create any health issues. Owing
to their high performance and environment-friendly nature, the natural
ingredients have high applicability as emulsifiers, emollients and preservatives.
The rapid growth in the consumption of cosmetics coupled with the high demand
for earth-friendly ingredients has accelerated the demand and usage of natural
ingredients in the cosmetics & personal care sector, thereby contributing
to the segment growth in the Cosmetic Ingredients Market.
Cosmetic Ingredients Market Segment Analysis – by End-use Industry
Skincare
held the largest share in the Cosmetic Ingredients Market share in 2021 and is
projected to grow at a CAGR of 4.6% during the forecast period 2022-2027.
Cosmetic Ingredients have high applicability as emollients in skin care products
due to their moisturizing, bleaching and cleansing functions as well as their
ability to prevent the formation of dark skin spots and fungal infection on the
skin. The rapid improvement in consumers’ living standards and disposable
income, has increased their consciousness of physical appearance, increasing
consumption of skincare products. According to the quarterly reports of Proctor &
Gamble, in Q4 of 2021, the skin care product sales of the company increased by
11% in comparison to the Q4 of 2020. Furthermore,
according to the quarterly reports of Unilever, in the first half of 2022, the
sales of beauty & personal care products consisting of skin cleansing
products, increased by 7.5% in comparison to sales volume in the first half of
2021. With such growing consumption of skin care products, the demand and usage
of cosmetics ingredients are also anticipated to increase, thereby contributing
to the Cosmetic Ingredients Market growth during the forecast period.
Cosmetic Ingredients Market Segment Analysis – by Geography
Asia-Pacific held the largest share in the Cosmetics Ingredients market share in 2021 up to 40% during the forecast period 2022-2027. Consumption of beauty care products especially skincare has shown a significant increase in the region, owing to the rapid development in the consumer lifestyle and growing awareness of natural cosmetics. For instance, according to the Quarterly Report of Shiseido, in the First Half of 2022, the sales of cosmetics products of the company for men and women, saw a 9% increase in Asia-Pacific in comparison to the first half sales volume in 2021. Furthermore, according to the statement given by L’Oréal, in Q1 of 2022, the company’s sales of active cosmetic products saw a 13.4% increase in China in comparison to Q1 of 2021. The growing consumption of cosmetic products in the major Asia-Pacific countries such as China is driving the market demand for cosmetic ingredients as emulsifiers and preservatives in the region, thereby stimulating the growth of the Cosmetic Ingredients Market during the forecast period.
Cosmetic Ingredients Market Drivers
New Product Launches:
Rapid
urbanization and growing consumer awareness regarding natural ingredients have
made cosmetics-making companies come up with a new product range that could
cater to such needs of consumers. For instance, according to the statements
of Quench Botanic, the company in May 2022, has launched four new skincare
products featuring Birch juice as the main ingredient. Also, according to the
statement of sun-care brand Dune, in June 2022, the company launched its facial
sunscreen product Mug Guard which improves the looks of face lines and face
discoloration. Furthermore, according to the statements given by Olay, in April
2020, the company launched three new body-washing products featuring the
vitamin B3 complex. Such product launches will create an effective usage of natural
cosmetic ingredients in the cosmetics & personal sector for developing various
product ranges in skincare and body care, thereby boosting the growth of the cosmetic
ingredients industry during the forecast period.
Initiatives to promote Oral Care Products:
Cosmetic Ingredients besides skincare and body care,
have high applicability in oral care products such as toothpaste and gel for their
cleansing functions. The growing incidence of periodontal disease has made
companies undertake initiatives, to promote and as well as to provide easy
access to oral care products. For instance, in January 2021, Proctor &
Gamble launched an initiative in which the company aims to enable 2 billion
people to adopt healthy oral care habits. Furthermore, in May 2021, EPL and Unilever
partnered together in a sustainable initiative that would enable people to have
easy access to Unilever’s oral care products. The initiatives will create a
surge in the demand as well as in the production of oral care products, thereby
propelling the usage of cosmetic ingredients in their production, which will
positively impact the growth of the cosmetic ingredients industry during the
forecast period.
Cosmetic Ingredients Market Challenge
Stringent Government Regulations:
Synthetic
or chemical cosmetic ingredients such as methyl, propylene
glycol and sodium lauryl sulfate though are considered highly toxic to
human skin and can cause cancer as well as a chapped skin condition. To prevent
such negative skin effects certain regulations have been imposed by government
organizations. For instance, the Australian Government’s National
Industrial Chemicals Notification and Assessment Scheme limit chemical usage in
cosmetics. Also, the EU’s Cosmetic Directive bans certain synthetic cosmetic
ingredients to be used in cosmetics. Such regulations can hamper synthetic
ingredients usage in cosmetics & personal care products which are
anticipated to pose a challenge in the growth of the cosmetic ingredients
industry, thereby negatively affecting the Cosmetic Ingredients Market size
during the forecast period
Cosmetic Ingredients Industry Outlook
Technology launches, acquisitions and R&D
activities are key strategies adopted by players in the Cosmetic Ingredients Market. The top 10 companies in Cosmetic Ingredients Market are:
- Clariant AG
- Solvay S.A.
- Croda International PLC
- BASF SE
- Dow Chemical Company
- Eastman Chemical Company
- Estee Lauder Company
- Ashland Global Specialty Chemicals
- Lonza Group Ltd.
- Wacker Chemie AG
Recent Developments
- In April 2022, Sharon Laboratories Ltd., signed an agreement to acquire the cosmetic ingredients unit of Gorla Minore of B&C S.p.A and such acquisition provides cosmetic ingredients product expansion opportunity to Sharon Laboratories.
- In October 2021, Evonik acquired Botanica and the acquisition comes as a move to increase the presence of Evonik Care Solutions in the personal care and active Cosmetic Ingredients Market.
- In April 2021, BASF SE launched Scared Patch which is an active skin care product that provides excellent skin moisturizing and will help the manufacturers to develop effective skin care products that promote emotional well-being while addressing common signs of sensitive skin.
Relevant Reports
Report Code – CMR 44359
Report Code - CMR 0760
Report Code – CMR 99249
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