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Market Players Focus on Minimizing Carbon Footprint, Waste Management Gains Momentum

The cosmetic sector has evolved at a rapid pace over the past couple of decades due to augmenting consumer awareness, rapidly changing regulations, and emerging trends. At present, players operating in the cosmetics ingredient market are increasingly focusing on offering improved textural experiences, and producing sustainable and holistic cosmetic solutions and products. Several new trends such as the ‘clean beauty’ trend have played a key role in influencing the overall growth of the global cosmetics ingredient market over the past few years– a factor that is expected to fuel market growth in the upcoming years.

With consistent advancements in cosmetic technology in the past decade, the prospects of the cosmetics ingredient market look bright during the forecast period. At present, a large number of companies operating in the cosmetics ingredient market are walking down the sustainability path to gain an advantage in the current market landscape. In addition, market players are increasingly reviewing their product development cycle to minimize the carbon footprint of various ingredients by enhancing waste management. Traditional ingredients are being reinvented due to the entry of novel technologies, including Artificial Intelligence (AI) in various ways such as refinement of processing techniques, in silo modeling, and more.

At the back of these factors, along with booming sales of cost-effective skin care products made from natural ingredients, the global cosmetics ingredient market is expected to attain a market value of US$ 51.6 Bn by the end of 2030.

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Fast-paced Innovations and Entry of Novel Technologies to Aid Market Growth

While technological advancements, including 3D printing and artificial intelligence, are playing an imperative role in bolstering the growth of an array of industries, including manufacturing, automotive, e-commerce, aerospace, and healthcare, the cosmetic sector is also on track to leverage these technologies to improve production techniques, quality of products, etc. At present, 3D printing is increasingly being used to develop skincare products such as sheet masks and more. The advent of 3D printing technology is expected to play a key role in improving the size and shape of sheet masks. Several brands are increasingly investing resources in such innovative technologies to improve the quality of their products. For instance, Neutrogena launched Neutrogena MaskiD, a 3D printed face mask to address various issues involved with face masks made by conventional manufacturing techniques. In addition, personalization and customization trends are expected to act as a catalyst in terms of adoption of new technology across the cosmetics ingredient market during the forecast period.

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At present, due to rising consumer awareness pertaining to various cosmetic ingredients, a new range of cosmetic ingredients are gradually entering the market. While alpha hydroxyl acids (AHAs) and beta hydroxyl acid (BHAs) have gained immense popularity as chemical exfoliators, a new generation of acids, including polyhydroxy acid (PHAs) are gradually making a mark in the cosmetic ingredients market. Moreover, the growing interest in plant-based retinol alternatives is another factor that is expected to provide a considerable boost to the growth of the cosmetics ingredient market during the forecast period.

Demand to Remain Low in 2020 amid COVID-19 Pandemic, Research Likely to Gain Traction

The COVID-19 pandemic is expected to have a strong impact on the growth of the global cosmetics ingredient market, particularly in 2020 and the first quarter of 2021. As governments across several prominent markets around the world are increasingly focusing on containing the spread of the novel coronavirus, retail stores, shopping malls, and brand showrooms continue to remain shut for a major part of 2020 due to which, offline sales are expected to take a significant hit. In addition, restriction on cross-border trade, along with transportation are some of the other major factors that are likely to pose major challenges across the supply chain.

The overall demand for cosmetic ingredients in the first three quarters of 2020 is projected to remain relatively lower than usual due to the ongoing pandemic. Thus, market growth will remain sluggish. However, market players are anticipated to focus on product development, research, and explore possibilities of using new and safe ingredients in their products.

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Analysts’ Viewpoint

The global cosmetics ingredient market is expected to grow at a healthy CAGR of 5.6% during the forecast period. The market growth will be largely driven by a range of factors, including, growing emphasis on improving textural properties of ingredients, progress in manufacturing techniques and processes, growing consumer awareness pertaining to different cosmetic ingredients, research and development, and growing integration of novel technologies such as 3D printing. Market players should focus on product innovation and personalization, along with pricing strategies to improve their position in the current market landscape.

Cosmetics Ingredient Market: Overview

  • The global market value for the cosmetics ingredient market stood at US$ 30 Bn in 2020, finds Transparency Market Research (TMR) in a recent study. According to the report, the market is expected to reach US$ 51.6 Bn by 2030, at a CAGR of 5.6%.
  • The cosmetics ingredient market is anticipated to have a lucrative business attributable to the rising demand from several cosmetics and personal care products. The global cosmetics ingredient market is also driven by the growing demand for the natural/herbal product segments.

 Cosmetics Ingredient: Market Frontrunners

  • Synthetic chemical ingredients, natural/herbal ingredients, and specialty cosmetics ingredients are key segments in terms of ingredients among which, the natural/herbal ingredients segment is leading. In 2020, it accounts ~46.8% of the market share in terms of value.
  • Skin care is the leading segment of the global cosmetics ingredient market based on the end use, followed by skin care. These segments account for 34.2% and 21.8% of the market, respectively, in terms of value.
  • Geographically, the global cosmetics ingredient market encompasses North America, Latin America, Middle East & Africa (MEA), and Asia Pacific. Among these regions, Europe holds the major market share that is ~33.8%, followed by North America, accounting for ~28.2% of the total market share, respectively.

Cosmetics Ingredient Market: Trends

  • Rising Popularity of Herbal Cosmetics
    • Consumers are shifting toward the application of herbal cosmetic products, as they observe these as healthier alternatives over conventional products. Herbal cosmetic products stabilize hormones, support natural healing of the body, increase immunity, and have less side effects on the body. Due to these various health benefits, the demand for herbal cosmetics and personal care product is gaining traction across the globe. Moreover, herbal cosmetics and personal care products are more favored over conventional ones, which are offered in the market. The increasing demand for herbal cosmetic products among customers is pushing producers to offer herbal cosmetic ingredients, and this trend is estimated to continue during the forecast period.
  • Surging Demand for Color Cosmetic Products Propelling Growth of Cosmetic Ingredients Market
  • Key manufacturers operating in color cosmetics market are increasing their product portfolios by procuring cosmetic ingredient suppliers and domestic players, along with promoting their brands via continuous marketing promotions, and also through celebrity endorsements. The wider use of color cosmetics is increasing the demand for cosmetic ingredients to provide luster and texture to products, and hence, with the increasing demand for color cosmetics, the cosmetic ingredients market is witnessing significant growth. The cosmetic ingredients industry has been also witnessing several innovations and launch of novel products by key players in the global market due to rising consumer demand for high-quality premium cosmetic ingredient-based products.

Cosmetics Ingredient Market: Strategies

  • Key players operating in the global cosmetic ingredients market are introducing various innovative products with clear and exclusive information about its sources, production technology, along with health benefits
  • Product Launches and Key Innovations: The cosmetic ingredients manufacturers have started introducing several products with various health beneficial properties.
    • In November 2019, Kao Corporation has announced the restaging of its prestige brand est by presenting a new value added line into the mix. The brand revamped by the incorporation of a three-step skincare routine comprising three kinds of serum and treatment, including the idea of coaching. est is growing to developed as a brand that is capable to work, along with the customers to search for and offer ongoing provision for the unique beauty to which every woman desires.
    • In September 2019, INOLEX Inc. has launched SustOleo™ TL, palm-free sensory enhancing, texturizer that offers innovation enabling technology with a sound environmental profile
    • The complete portfolio of the company is vegan-friendly, INOLEX Inc. does not sell animal-derived ingredients/products and they don’t even perform the test of products on animals

Target Region for Cosmetics Ingredient Market

  • As of 2020, Europe holds the major market share and is projected to continue leading the global cosmetic ingredients market during the forecast period, followed by Americas having the second major market share for cosmetic ingredients

Cosmetics Ingredient Market: Players

  • The leading key manufacturers operating in the global cosmetic ingredients market, as profiled in the study comprises 
    • BASF SE
    • Croda International Plc
    • DuPont de Nemours Inc.
    • Archer Daniels Midland Company
    • Clariant AG
    • Ashland Global Specialty Chemicals Inc.
    • Solvay SA
    • Evonik Industries AG
    • Actives International LLC.
    • INOLEX Inc.
    • Eastman Chemical Company
    • Kolmar BNH Co Ltd.
    • COBIOSA
    • Innospec Inc.
    • Lonza Group Ltd.
    • Novacap Group (SEQENS)
    • Kao Corporation

Cosmetics Ingredient Market - Scope of the Report

Transparency Market Research (TMR) has recently published a market study on the cosmetics ingredient market. It provides a detailed assessment of key market dynamics, including the drivers, trends, opportunities & restraints, and detailed information about the cosmetics ingredient market structure. The market study presents exclusive information about how the cosmetics ingredient market will grow during the forecast period of 2020-2030.

Key indicators of market growth, which include year-on-year (Y-o-Y) growth of the market, value chain, supply chain analysis, and compounded annual growth rate (CAGR) are elaborated in the study in a comprehensive manner. This information is intended to help readers understand the quantitative growth prospects of the cosmetics ingredient market during the forecast period.

The study is intended to offer a holistic market overview to stakeholders in the cosmetics ingredients, including manufacturers, suppliers, distributors, and investors, and to help them develop winning growth strategies. Stakeholders in the cosmetics ingredient market, which include investors, industry experts, researchers, and journalists, and business researchers can leverage the information and data presented in TMR’s study.  

The study also includes statistics and facts related to the macro as well as microeconomic factors that are impacting expansion of the market. It also offers actionable insights into the future trends in the cosmetics ingredient market. Furthermore, small businesses and new entrants in the cosmetics ingredient market can make use of the information presented in this study, based on which, they can make appropriate business decisions in order to gain momentum in the market. 

Key Questions Answered in TMR’s Cosmetics Ingredient Market Report

  • Which region will continue to remain the most profitable regional market for cosmetics ingredient market players?
  • Which factors will induce a change in the demand for cosmetics ingredient during the assessment period?
  • How will the changing trends impact the cosmetics ingredient market?
  • How can market players capitalize on the low-hanging opportunities in the cosmetics ingredient market in developed regions?
  • Which companies are leading the cosmetics ingredient market?
  • What are the winning strategies of stakeholders in the cosmetics ingredient market to catapult their position in the forefront?  

Cosmetics Ingredient Market: Research Methodology

In TMR’s study, a unique research methodology is used to conduct extensive research on the growth of the cosmetics ingredient market and identify future growth parameters. This research methodology is a combination of primary and secondary research, to help analysts ensure the accuracy and reliability of the conclusions.

Secondary resources referred to by analysts for compiling the cosmetics ingredient market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers who contributed to the development of this report as a primary resource.

Information acquired from primary resources and secondary resources is compiled in a comprehensive manner. This also acts as a validation from companies in the cosmetics ingredient market, which makes TMR’s projections more accurate and reliable.

Key Segments of Cosmetics Ingredient Market

TMR’s study on the cosmetics ingredient market offers information divided into important segments - ingredient type, end use, and region. This report offers comprehensive data and information about the important market dynamics and growth parameters associated with these categories.

Ingredient Type

  • Synthetic Chemical Ingredients
    • Alcohol
    • Glycerol/Glycerine
    • Mineral Oils
    • Triethanolamine (TEA)/Diethanolamine (DEA)
    • Synthetic Colours
    • Methyl, Propyl, Butyl, Ethyl Paraben
    • Sodium Lauretha Sulphate
  • Natural/Herbal Ingredients
    • Vegetable Fatty Acids
    • Animal Fats
    • Essential Oils
    • Natural Colors
    • Waxes
  • Specialty Ingredients
    • Bioactives
    • Emollients
    • Surfactant
      • Anionic
      • Non-anionic
      • Cationic
      • Amphoteric
    • Conditioning Polymer
    • Rheology Control Agent
    • UV-Absorber
    • Emulsifiers
    • Antimicrobial

End Use

  • Fragrance
  • Hair Care
    • Hair removal
    • Hair Conditioning & Shampoos
    • Hair Color
  • Skin Care
    • Anti-Ageing
    • Acne Preparations
    • Moisturizers
    • Skin Whitening Cream
    • UV-Protection
    • Others
  • Make-up
    • Foundation
    • Lipsticks & Lip guards
  • Oral Care
  • Eye Care

Region

  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Chile
    • Peru
    • Argentina
    • Rest of LATAM
  • Europe
    • Russia
    • Poland
    • U.K.
    • Germany
    • France
    • Italy
    • Spain
    • Switzerland
    • Belgium
    • Netherlands
    • Luxemburg
    • Norway
    • Sweden
    • Denmark
    • Rest of Europe
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Turkey
    • Rest of MEA
  • Asia Pacific
    • China
    • India
    • Malaysia
    • Indonesia
    • Australia
    • New Zealand
    • Japan
    • Thailand
    • Singapore
  • Rest of Asia Pacific

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Cosmetic Ingredients Market