Glycolic Acid Market - Forecast(2023 - 2028)

Glycolic Acid Market Overview

The Glycolic Acid Market size is estimated to reach US$825 million by 2027, after growing at a CAGR of 7.2% during the forecast period 2022-2027. Glycolic acid is an alpha hydroxy acid, which is colorless, odorless, non-volatile and soluble in water. It was first formed with the treatment of hippuric acid with nitrogen dioxide and nitric acid. It can be prepared with the reaction of chloroacetic acid with sodium hydroxide. The glycolic acid has flourishing applications in personal care & cosmetics for face care products, body care, hair care and others owing to superior exfoliation, cleansing, moisturizing and others. The rising demand in cosmetic and personal care production is thereby acting as a driving factor in the glycolic acid industry. In addition, growing traction for environment-friendly cleaning options is fueling its demand in the household and Industrial cleaning sectors. The covid-19 pandemic created a major disruption in the glycolic acid industry due to factors such as production halt, demand and supply chain disruption, logistics restrictions and other lockdown restrictions. However, significant recovery in major end-use sectors such as personal care & cosmetics, medical & pharmaceutical and others are boosting the demand for glycolic acid. Thus, the glycolic acid industry is anticipated to grow rapidly and contribute to the growing glycolic acid market size during the forecast period.

Glycolic Acid Market Report Coverage

The “Glycolic Acid Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Glycolic Acid Industry.

Key Takeaways

• Asia-Pacific dominates the Glycolic Acid Market, owing to growth factors such as the growing beauty & personal care sector, rapid medical & pharmaceutical growth and urbanization, thereby boosting growth in this region.
• The flourishing personal care industry across the world is propelling the demand for glycolic acid for various applications in hair care products, gels, creams and others, thereby contributing to the growth in the glycolic acid market size.
• The demand for glycolic acid is flourishing in the medical & pharmaceuticals sector for treating various skin diseases, tissue engineering and others, thereby fueling the growth scope.
• However, the strict mandatory regulations and compliance with glycolic acid act as a challenging factor in the Glycolic Acid industry.

Figure: Glycolic Acid Market Revenue Share, By Geography, 2021 (%)

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Glycolic Acid Market Segment Analysis – by Grade

The cosmetic grade segment held a significant Glycolic Acid market share in 2021 and is projected to grow at a CAGR of 7.1% during the forecast period 2022-2027. The growth scope for the cosmetic grade is high over technical, medical and industrial due to wide utilization of cosmetic grade glycolic acid in skin care, hair care, oral care and others, owing to superior features such as anti-aging, high purity, transparency, exfoliating, benefits from hyperpigmentation and others. The glycolic acid was first produced using hippuric acid with nitrogen dioxide and nitric acid. In addition, the rapid utilization of glycolic acid in skin care products, premium cosmetics and others is fuelling its growth. Thus, owing to superior benefits and applicability in the personal care sector, the demand for cosmetic grades is spiking, thereby the cosmetic grade segment is projected to grow rapidly during the forecast period.

Glycolic Acid Market Segment Analysis – by End-use Industry

The personal care & beauty segment held a significant Glycolic Acid Market share in 2021 and is expected to grow at a CAGR of 7.4% during the forecast period 2022-2027. Glycolic Acid has major demand in the beauty & personal care sector for a wide range of applications in hair creams, moisturizers, gels, acne creams and others owing to its superior properties such as disinfecting, exfoliating features and anti-aging uses. The personal care & beauty industry is exponentially growing owing to growth factors such as the rise in luxury and premium beauty production, demand for color cosmetics and lifestyle trends and urbanization. For instance, according to the Personal Care Association, Germany was the largest cosmetic market in Europe with US$13.79 billion, France with US$12.17 billion and Italy with US$10.75 billion in 2021. According to the L’OREAL Annual Report 2021, the beauty sector of L’OREAL rose by 8.2% in the year 2021, after a sharp decline of 8% in 2020. With the rapid increase in personal care & beauty items production, the applications of glycolic acid in lotions, sun creams, hair creams and others are anticipated to grow, which, in turn, is projected to boost its growth scope for the personal care & beauty industry in the glycolic acid market during the forecast period.

Glycolic Acid Market Segment Analysis – by Geography

Asia-Pacific held the largest Glycolic Acid Market share in 2021 up to 45%. The lucrative growth for glycolic acid in this region is influenced by the flourished personal care & beauty sector, rising medical & pharmaceutical sector and fast-paced urbanization. The personal care & beauty industry is rapidly growing in APAC owing to growth factors such rise in luxury and premium beauty production, the presence of large cosmetic manufacturers, demand for color cosmetics and lifestyle trends. For instance, according to the International Trade Administration (ITA), the beauty and personal care sector in Thailand increased from US$6.2 billion in 2018 to US$8.0 billion in 2022, marking a projected growth rate of 7.8% from 2019 to 2022. According to the International Trade Administration, household spending on cosmetics & personal care in China is expected to grow by 6.3% by 2025. According to the India Brand Equity Foundation (IBEF), the personal care sector in India is projected to reach US$20 billion by 2025. With the robust expansion of beauty and personal care products, the applicability of glycolic acid in beauty and health products, acne treatment creams, hair creams and others is rising, which, in turn, is anticipated to boost its growth in the Asia-Pacific region during the forecast period.

Glycolic Acid Market Drivers

Bolstering Growth of Medical & Pharmaceutical Industry:

Glycolic Acid has major applications in the medical & pharmaceutical sector for the treatment of skin conditions, controlled drug delivery, tissue engineering, hyperpigmentation medications, acne scars and. The medical & pharmaceutical industry is significantly growing due to growth factors such as high drug spending, growing healthcare infrastructure and a high rate of chronic health incidents. For instance, according to the European Federation of Pharmaceutical Industries and Associations (EFPIA), the total pharmaceutical market value for EU member nations at ex-factory prices increased from US$147,686 in 2019 to US$253,027 in 2020. According to the International Trade Administration, the medical device sector in China is projected to expand by 6.2% during 2020-2025. According to the International Trade Administration, the worldwide pharmaceuticals market was estimated to grow from US$ 1 trillion in 2015 to US$1.3 trillion by 2020. With the rapid growth scope and production trend in the medical & pharmaceutical sector, the demand for glycolic acid for various medication drugs, tissue engineering procedures and others is rising, which, in turn, is boosting its applicability and driving the glycolic acid industry.

Flourishing Growth of Cleaning Sector:

Glycolic Acid is majorly used in the cleaning industry in the household and industrial segments for a wide range of utilization in cleaners for ceramic tiles, sinks, tubs, shower doors and others due to its disinfecting and cleaning features. It was first produced using hippuric acid with nitric acid and nitrogen dioxide. The cleaning sector is rapidly growing owing to growth factors such as growing emphasis on hygiene and cleanliness and growing cleaning product consumption. For instance, according to the Unilever Integrated Annual Report, the sales of home care cleaning products increased from US$135 billion on 31^st March 2020 to US$138.83 billion on 31^st March 2021 in India. According to European Cleaning & Facilities Service Industry (EFCI), the revenue for the cleaning sector in Europe increased by 8% to US$135 billion in 2020-21. With the rapid increase in cleaning activities, the applications for glycolic acid in cleaners, soaps and others are rising, which, in turn, is providing major growth scope and driving the glycolic acid industry.

Glycolic Acid Market Challenge

Stringent Regulations for Usage of Glycolic Acid:

The glycolic acid, produced through a reaction between chloroacetic acid and sodium hydroxide, poses various skin damages, despite being majorly used in skin formulations. It can lead to severe side effects such as skin irritation, burn and others. In addition, glycolic acid has to comply with various regulations such as registration under the Center for Food Safety and Applied Nutrition (CFSAN) to be used in cosmetics & personal care products. Furthermore, it should also comply with the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) and EPA to be used in various household and industrial applications. Thus, due to such compliance requirements and regulations, glycolic acid faces a growth hamper in terms of full utilization and applicability.

Glycolic Acid Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Glycolic Acid Market. The top 10 companies in the Glycolic Acid Market are:

1. CABB Group GmbH
2. China Petrochemical Corporation
3. Parchem Fine and Specialty Chemicals
4. Teleflex Inc
5. Shandong Pharmaceuticals Co. Ltd.
6. Kureha Corporation
7. Eastman Chemical Company
8. Water Chemical Co. Ltd.
9. BMG Incorporated
10. Mehul Dye Chem Industries

Recent Developments

• In July 2022, Kinship launched the latest 10% glycolic acid serum that works to offer overnight smooth and bright skin, thereby fueling the demand in the personal care sector.
• In November 2021, Chemours announced the launch of Glyclean D, formulated with a 70% concentration of glycolic acid for applicability in disinfectant and hard-surface cleaners, thereby expanding the product portfolio and maintaining sustainability.
• In October 2021, Pacira agreed to acquire Flexicon and will add its approved OA knee pain treatment to its portfolio. The therapy uses microsphere technology that combines poly lactic-co-glycolic acid matrix with triamcinolone acetonide.

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