Cosmetic Ingredients Market Size, Share, Growth Report 2032

Global Cosmetic Ingredients Market Size And Industry Analysis

The global cosmetic ingredients market size was worth around USD 19,251.7 million in 2021 and is estimated to grow to about USD 24079.8 million by 2028, with a compound annual growth rate (CAGR) of approximately 3.8 % over the forecast period. The report analyzes the cosmetic ingredients market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the cosmetic ingredients market.

Competitive Landscape

Some of the main competitors dominating the global cosmetic ingredients market include - BASF SE (Germany), Ashland (US), Solvay (Belgium), Dow (US), Clariant (Switzerland), Croda International Plc. (UK), Evonik Industries AG (Germany), Nouryon (North Holland), and Lonza (Switzerland).

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Global Cosmetic ingredients Market: Overview

Cosmetic ingredients are major elements that are used in the formulation of multiple cosmetic and personal care products. The demand for cosmetic ingredients is expected to see good growth over the forecast period as consumption of cosmetic and personal care products increases on a global scale.

Increasing focus on personal care, rising availability of cosmetic products, increasing awareness about physical appearance via social platforms, and increasing disposable income are some of the other factors that will guide the cosmetic ingredients market potential in years to come.

Regulations across multiple regions are expected to have a slowing effect on the cosmetic ingredients market growth over the forecast period.

COVID-19 Impact:

The COVID-19 pandemic led to a downfall in the demand outlook for the cosmetic ingredients market and this was due to multiple factors that affected the market potential. Lockdown restrictions imposed by multiple nations across the world led to a global economic slowdown as trade activity and industrial activity were majorly hampered under these restrictions.

Shortage of raw materials led to a complete shutdown of manufacturing and production facilities and the market stance was worsened by the closure of multiple sales and distribution channels across the world and resulting in losses for cosmetic ingredients companies in 2020

The cosmetic ingredients market is expected to make a slow recovery in a post-pandemic era as the world returns to normal. As sales and distribution channels are opened and manufacturing activity resumes normal the cosmetic ingredients market is expected to make full recovery over the forecast period.

Global Cosmetic ingredients Market: Growth Drivers

Increasing Per Capita Disposable Income of Consumers

Consumers across the world have seen some major changes in purchasing trends and this is expected to favor the cosmetic ingredients market potential. Increasing urbanization and rising purchasing power of consumers are expected to be prime factors driving the sales of cosmetic and personal care products and this subsequently drives the cosmetic ingredients market potential over the forecast period.

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Cosmetic ingredients Market: Restraints

Regulatory Norms of Different Nations

Different nations have different regulatory bodies that regulate the safety standards of multiple products and they govern their sales. These regulations are for consumer safety but they make it difficult for cosmetic ingredients manufacturers to make products that are compliant with them all. And hence this factor alone is expected to have a hindering effect on the global cosmetic ingredients market potential through 2028.

Cosmetic Ingredients Market Opportunities

In the future years, the market for cosmetic ingredients is anticipated to expand significantly due to the increased demand for personal care products, expanding awareness of the benefits of utilizing natural and organic chemicals, and rising disposable income in emerging nations.

Here are several opportunities on the market for cosmetic ingredients:

• In personal care products, natural and organic components are increasingly sought after by consumers. This gives an opportunity for businesses to produce and promote products made with sustainably derived and ecologically friendly plant-based or organic materials.
• Anti-aging ingredients: As the population ages, the demand for anti-aging products increases. This creates a potential for businesses to develop and market anti-aging products containing substances such as retinol, vitamin C, and peptides.
• Increasingly, consumers are interested in beauty products that are tailored to their unique demands and personalised. This gives an opportunity for businesses to create and promote products with ingredients tailored to the specific demands of each customer.
• Male grooming: The popularity of men's grooming products is on the rise, giving potential for companies to develop and market products with ingredients specifically formulated for men's skin and hair.
• Customers seek products with numerous advantages, including moisturizing, UV protection, and anti-aging effects. This gives an opportunity for businesses to produce and market goods containing multifunctional chemicals that offer many benefits in a single product.
• Consumers are increasingly concerned about the environmental impact of personal care products, thus sustainable and eco-friendly components are becoming more and more important. This gives an opportunity for businesses to create and promote items made with sustainable, eco-friendly, biodegradable ingredients that do not hurt the environment.

Global Cosmetic Ingredients Market Challenges

In the coming years, the cosmetic ingredients market challenges a number of challenges that may restrict its growth.

Here are a few of the challenges:

• Regulations: Companies in the cosmetics sector must comply with numerous requirements to assure the safety and efficacy of their goods. Companies may find it challenging to navigate the complex regulatory landscape due to the fact that regulations differ from country to country.
• Cost: Developing and testing novel cosmetic components can be an expensive endeavor. This can be a barrier for businesses, especially small and medium-sized organizations (SMEs) who lack the capital to invest in research and development.
• Competition: The market for cosmetic ingredients is extremely competitive, with numerous competitors competing for market share. This might make it difficult for businesses to differentiate themselves from their competitors and stand out from the crowd.
• Consumer preferences: Customer preferences are in a perpetual state of flux, and businesses must adapt to remain relevant. This can be a challenge for businesses, as they must engage in research and development to meet the ever-changing needs of consumers.
• Sustainability: As customers become more environmentally concerned, the need for eco-friendly and sustainable cosmetics increases. Companies must invest in sustainable sourcing and production processes to meet consumer demand while maintaining cost management.
• Ingredient safety: Some cosmetic compounds, such as parabens and phthalates, have generated consumer reactions and regulatory scrutiny due to safety concerns. Given the complexity of the ingredient supply chain, it can be difficult for companies to ensure that their goods are safe and devoid of potentially hazardous substances.

Global Cosmetic Ingredients Market: Segmentation

The global cosmetic ingredients market is segregated based on functionality, product type, application, and region.

By Product Type, the market is divided into Surfactant, Emollient, Polymer, Oleo-chemical, Botanical Extract, Rheology Modifier, Preservatives, antioxidants, Emulsifiers & Stabilizers, and Others. The surfactants segment is anticipated to hold a dominant market share through the forecast period. Rising use of surfactants in cosmetic and personal care products is expected to boost the demand for this segment over the forecast period. 

By Application, the cosmetic ingredients market is segmented into Skin Care, Hair Care, Makeup, Fragrance, Oral Care, and Others. The rising awareness for skincare and makeup is expected to boost these applications for the cosmetic ingredients market on a global scale. The skin care segment will be the most lucrative over the forecast period.

Recent Developments

• In July 2020 – BASF SE a leading multinational chemical manufacturer announced its partnership with BTC Europe for distribution of its new care ingredients portfolio. This will increase efficiency and FastTrack supply chain for personal care customers of BASF.

Regional Landscape

Europe region leads the global cosmetic ingredients market in terms of revenue and volume share and is anticipated to maintain this stance through 2028. The cosmetic ingredients market in this region is expected to be driven by presence of key cosmetic ingredients companies and rising awareness for physical appearance in the European population. Increasing consumption of skincare, hair care, make up products in this region is expected to propel demand for cosmetic ingredients in this region. The cosmetic ingredients market in this region will also be driven by increasing spending potential of the general population. The rising popularity of luxury care products is also anticipated to propel sales of cosmetic ingredients in this region over the forecast period.

Increasing per capita disposable income in Asia Pacific region will also prominently drive the cosmetic ingredients market potential through 2028. India and China are expected to lead the cosmetic ingredients market potential.

Report Scope:

The global cosmetic ingredients market is segmented as follows:

By Functionality

• Cleansing Agents & Foamers
• Aroma
• Moisturizing
• Specialty
• Others

By Product Type

• Surfactant
• Emollient
• Polymer
• Oleo-chemical
• Botanical Extract
• Rheology Modifier
• Preservatives
• Antioxidant
• Emulsifier & Stabilizer
• Others

By Application

• Skin Care
• Hair Care
• Makeup
• Fragrance
• Oral Care
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa