Cosmetic Chemicals Market

Cosmetic Chemicals Market Size 2023-2028

The cosmetic chemicals market was valued at USD 22.6 billion in 2022 and is anticipated to reach approximately USD 39.1 billion by 2028, expanding at a CAGR of 7.64% from 2023 to 2028. 

Cosmetic Chemicals Market Overview:

The cosmetic chemicals used in the formulation of personal care and cosmetic products. These chemicals are utilized to improve the color, texture, fragrance, and retail life of cosmetic products.

Increasing demand for personal care and cosmetic products, particularly in emerging economies, drives the market for cosmetic chemicals. Increasing discretionary income, altering lifestyles, and a growing awareness of personal maintenance and hygiene are factors that contribute to the expansion of the cosmetic chemicals market.

Cosmetic Chemicals Market Drivers:

The cosmetic chemicals market is driven by a number of factors, such as the increasing demand for personal care and cosmetic products, rising disposable income, shifting lifestyles, and rising awareness of personal maintenance and hygiene. The rising demand for personal care and cosmetic products is one of the key forces propelling the cosmetic chemicals market. Increasing discretionary income is closely related to the expansion of the market, as consumers are more likely to invest in personal care and cosmetics. Changing lifestyles, particularly in urban areas, have also contributed to the expansion of the market. Increasing awareness of personal hygiene and sanitation has increased the demand for high-quality and safe cosmetic products, thereby driving the demand for the cosmetic chemicals market. 

Cosmetic Chemicals Market Restraints:

The cosmetic chemicals market confronts a number of growth-limiting factors, such as stringent regulations and rising consumer awareness of the harmful impacts of certain cosmetic chemicals. Additionally, the high cost of research and development for new and innovative cosmetic compounds can hinder market expansion. Market obstacles also include the availability of natural and organic alternatives to synthetic cosmetic compounds. 

Cosmetic Chemicals Market Opportunities:

The cosmetic chemicals market presents a number of growth opportunities, including the rising demand for natural and organic cosmetic products, particularly as consumer awareness of detrimental chemicals in cosmetics grows. The expanding middle class and rising disposable income present significant growth opportunities in Asia-Pacific and Latin American emerging markets. Innovative cosmetic compounds with enhanced properties are being developed as a result of technological advances, creating new opportunities for growth and market expansion. Manufacturers who capitalize on these opportunities are likely to acquire a market advantage. 

 COVID-19 Impact on the Cosmetic Chemicals Market:

The COVID-19 pandemic has had a substantial effect on the cosmetic chemicals market. The demand for cosmetic products has been affected by the pervasive lockdowns and social distancing measures imposed by governments to control the spread of the virus. As a consequence, cosmetic chemical manufacturers have experienced a decline in demand for their products, particularly in the first few months of the pandemic.

The suspension of manufacturing facilities and disruptions to the supply chain caused by the pandemic has resulted in a lack of raw materials, making it difficult for cosmetic chemical manufacturers to fulfill orders. Due to the limited supply, this has led to an increase in the price of cosmetic compounds, further affecting the market.

Additionally, the pandemic has altered consumer behavior toward personal care and hygiene products. There has been an increase in demand for hand sanitizers and disinfectants, which contain cosmetic compounds such as ethanol and isopropyl alcohol, as health and sanitation awareness has increased. This has provided some relief to the market for cosmetic chemicals, as manufacturers have been able to modify their production lines to meet demand. 

COSMETIC CHEMICALS MARKET REPORT COVERAGE:

Cosmetic Chemicals Market Segmentation  

By Product:

• Surfactants

• Emollients & Moisturizers

• Film-Formers

• Colorants & Pigments

• Preservatives

• Emulsifying & Thickening Agents

• Single-Use Additives

• Others

The emollients and moisturizers segment has the highest shares of the market. Emollients and moisturizers are used to soften and hydrate the skin, while surfactants are used to remove impurities from the skin and hair. Film-forming agents create a barrier on the epidermis, while colorants and pigments give products their hue. Preservatives and emulsifying and thickening agents contribute to the stabilization of cosmetic formulations. Smaller volumes of single-use additives are used to provide specific benefits, such as exfoliation or fragrance. UV absorbers, antioxidants, and chelating agents are examples of possible additional compounds. The demand for personal care products that enhance appearance, hygiene, and well-being drives the cosmetic chemical market. Additionally, the expansion of e-commerce and social media has contributed to the rise in demand for new and innovative cosmetic products.

By Application:

• Skin Care

• Hair Care

• Makeup

• Oral Care

• Fragrances

• Others

The skin care segment is ruling with the highest shares of the market, whereas the hair care segment is likely to hit the dominant shares of the market. Shampoos, conditioners, and styling products for healthy, fashionable hair care products are having huge popularity these days. Foundations, lipsticks, and mascaras remain popular because they enhance natural characteristics and convey personality. As people realize the importance of oral health, toothpaste and mouthwash are crucial. Perfumes and body sprays are popular as people want to improve their aroma and express themselves. Sunscreens, deodorants, and specialist skin and hair products are also used. Cosmetic chemicals are motivated by the demand for beauty and wellness goods.

By Geography:

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East & Africa (MEA)  

The North American cosmetic chemicals market has been gaining traction over the shares from the past few years owing to high consumer expenditure on personal care products and a strong presence of established multinational corporations. The Asia-Pacific region is a swiftly expanding cosmetic chemicals market, propelled by an expanding middle class, rising disposable incomes, and rising consumer awareness of personal care products. Due to their large populations and expanding economies, China and India are major countries leading the shares of the market. In addition to being an emerging market, Latin America has a developing consumer base for personal care products and a high demand for natural and organic ingredients. The Middle East and Africa have slow growth rates, but their consumer base for personal care products is expanding due to urbanization and retail expansion. Global trends in personal care and beauty, as well as regional factors such as consumer preferences, regulatory environments, and economic conditions, influence the cosmetic chemicals market. 

Cosmetic Chemicals Market Key Developments

• In April 2021, Dow Inc. unveiled its new Virtual Experience Centre (VEC), an immersive 3D platform that enables beauty companies to expand their offerings by allowing visitors to investigate significant technological advances and marketing trends.

• In November 2020, Care Creations of BASF SE will offer Neutrol MGDA, a highly stable and environmentally benign complexing agent, for personal care applications. It has an outstanding ecological and toxicological profile and is biodegradable.

Cosmetic Chemicals Market Key Players

• BASF SE

• Dow Chemical Company

• Croda International Plc

• Clariant AG

• AkzoNobel N.V.

• Ashland Global Holdings Inc.

• Evonik Industries AG

• Lonza Group Ltd.

• Wacker Chemie AG

• Eastman Chemical Company