Cosmetic Ingredients Market Global Trend, Segmentation and Opportunities Forecast To 2025 | FMI Report

VALLEY COTTAGE, N.Y. –  Cosmetic ingredient market has changed a lot over the course of time. Since time immemorial, human beings are using different types of cosmetics to enhance their physical appearance, which in turn makes people feel more confident and pleasing in nature. It is due to growing demand for beauty products that market is flooded with various cosmetic products. The multi–billion dollar industry is growing at a lightning speed to meet the consumer demand. Cosmetic ingredients are the specific sets of substance that are used in the formulation and composition of cosmetics. Any kind of impurities in raw materials and subsidiary technical materials are not considered as ingredients, hence water is also considered as separate ingredient. At present, various cosmetic business entrepreneurs use more than 5000 available cosmetic ingredients to offer selected cosmetics products. 

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Cosmetic Industry: Drivers & Restraints

The demand for good quality cosmetic products is fuelling the cosmetic ingredient market. Changing lifestyle specially in developing regions of Asia Pacific and Latin America brings a sea of opportunities to cosmetic ingredients manufacturers and suppliers. Increase in per capita income, rising awareness about beautification and increasingly urbanized population is offering momentum to the growth of overall cosmetic industry which in turn is escalating the cosmetic ingredients market to its zenith. Though cosmetic industry market size is growing at an impressive rate, various regulations prohibiting the use of certain chemicals as ingredients is a major challenge to the cosmetic ingredients manufacturers.  In APAC, China and ASEAN regions are some of the most lucrative regions for increase in consumer spending and rise in GDP.

Cosmetic Ingredients Market: Segmentation

Alpha hydroxy acids, beta hydroxyl acids and talc are some of the examples of commonly used cosmetics ingredients. Among all these product type, surfactants are expected to hold the market dominance throughout the forecast period, however, conditioning polymers is projected to grow at the highest CAGR between 2015 and 2025.

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Skin care and make up are the two most lucrative markets for chemical ingredients manufacturers. Together, they account more than one–fourth of total cosmetic ingredients market. Changing lifestyle and increasing awareness about skin care is boosting the demand for skin care applications. 

Cosmetic Ingredients Market: Region-wise Outlook

On the basis of region, cosmetic ingredients finds its market scope in North America, Latin America, Middle East & Africa, Europe and Asia-Pacific. North America and Europe dominates the cosmetic ingredients, however, Asia Pacific and Latin America are expected to be the most promising region in terms of incremental opportunities lying ahead for generating high revenue.  Cosmetic ingredient market is highly regulated in Europe and North America. China, India and ASEAN are the key promising countries driving the cosmetic ingredients market in Asia-Pacific. Rapid growth of urbanization coupled with growing desire for skin care is expected to offer above average growth to cosmetic ingredients market in Asia-Pacific. Brazil leads the cosmetic market followed by Mexico in Latin America. As per the CANIPEC, the Mexican personal care industry’s national chamber and association, there are more than 64 business enterprises operating in personal care market that are worth approximately US$ 14 billion in Mexico.

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Cosmetic Ingredients Market: Key Players

Company needs to meet the stringent quality norms before marketing their key ingredients. It is due to these factors that the market in North America and Europe is consolidated and is dominated by list of key cosmetic ingredient manufacturers and suppliers.

Some of the market participants in the global cosmetic ingredients market are BASF SE, The Dow Chemical Co., Ashland Inc., Rhodia, DuPont Tata & Lyle Bio Products, Sederma Inc., Sumitomo Group, etc. Companies are investing heavily and are entering into mergers and acquisitions to tap the cosmetic ingredient market potential globally. For instance, Sumitomo Group is expected to acquire active cosmetic ingredient business from Kyowa Hakko Europe GmbH in order to advance its cosmetic ingredient business in Europe.

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