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Active Ingredients for Cosmetics - Global Market Trajectory & Analytics

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    Report

  • 517 Pages
  • May 2022
  • Region: Global
  • Global Industry Analysts, Inc
  • ID: 4804528

New Study Highlights a $4.3 Billion Global Market for Active Ingredients for Cosmetics by 2026


Amid the COVID-19 crisis, the global market for Active Ingredients for Cosmetics estimated at US$3.5 Billion in the year 2022, is projected to reach a revised size of US$4.3 Billion by 2026, growing at a CAGR of 5.5% over the analysis period. Conditioning Agents, one of the segments analyzed in the report, is projected to grow at a 4.8% CAGR, while growth in the UV Filters segment is readjusted to a revised 5.8% CAGR. The COVID-19 pandemic resulted in slowing down the growth of global beauty products market. The measures to contain the spread of coronavirus including lockdown led to number of cosmetic manufacturers around the world closing down operations, mainly due to the shortage of labor. In addition, the pandemic led to the closure of multitude of cosmetic stores. Every segment of the cosmetic sector including haircare, skincare, make-up, oral cosmetics and toiletries and perfumes, witnessed sales decline owing to the closure of physical stores around the world. Almost all categories of the beauty sector were hit considerably by the pandemic and the impact was devastating for the whole of 2020 and for a large part in 2021. However, with world economies slowly falling back on track, the global beauty sector also started performing, helped by increasing disposal income of consumers. By the beginning of 2022, demand for products and services grew strongly, showing signs of a full-fledged return to pre-pandemic levels. However, the competitive intensity of the sector remains.

All through 2020 and also 2021 major cuts in consumer discretionary spending was noticed, mainly due to the restrictions which led to major declines in beauty product sales. Sales at the global level fell 15% in 2020, compared to 2019. In 2021 however, with lockdowns easing, the sector started reversing the negative impact and a 10% increase was reported. In 2022, sales are anticipated to top the levels of 2019. North American and Asia-Pacific markets would be the first ones to experience complete recovery and return to sales performance of 2019. The sector is also expected to perform strongly in the European, MEA and Latin American markets even though sales returning to pre-pandemic levels may take longer. A few Asia-pacific beauty markets, in China for instance, showed no signs of fading even amid the pandemic. Demand had especially been high for color cosmetics and skincare products in such markets. Furthermore, impact of the pandemic varied across the segments. The segment of premium products was hit more considerably mainly because its traditional sales channels had to be closed down due to restrictions whereas, the mass products segment, even though not easily available online for a few weeks, was able to withstand the crisis with comparatively less impact. However, the category is anticipated to reach pre-pandemic levels in 2022.

In the post pandemic period, the market for active ingredients in cosmetics will be spurred by the growing desire to look good among people and the subsequent rise in spending on a range of cosmetic products for skin and hair care. Consumers across the world are becoming increasingly aware about the achieving flawless skin without any marks or blemishes. The growing consciousness among consumers about overall physical appearance, the general pursuit of beauty and growing awareness about the benefits of using various cosmetic products for improving skin care are driving growth in the cosmetics market, thus driving demand for active cosmetic ingredients that find use in their manufacture. The market for active ingredients in cosmetic products is being fueled by the escalating demand for sun protection, anti-aging and skin whitening products. Growing concerns over aging skin and the desire to achieve even skin tone is also leading to high demand for active cosmetic ingredients. With concerns growing over premature aging, dry skin, age spots, premature aging, and pigmentation, demand is rising for ingredients used in anti-aging products. In addition, novel solutions in hair care and increased use of natural ingredients provide favorable growth opportunities for the market. Demand for cosmetic products is strong amongst the elderly population, specifically for products with active ingredients that can minimize signs of aging.
The global cosmetic active ingredients market will also be driven by the growing interest of male consumers in personal grooming and grooming products. For example male consumers are showing increased interest in hair care products such as hair serums. Growing urban population and development of novel products with enhanced effectiveness are also driving growth in the market. Rising awareness about clean label cosmetic products is leading to the development of environment-friendly or green active cosmetic ingredients. The high demand for organic ingredients-incorporating cosmetic ingredients especially in Asia-Pacific countries is expected to drive growth in the market. Despite their higher cost in comparison to synthetic materials, natural or organic ingredients are finding favor amidst the increasing consumer focus on health and environment. The market is thus benefiting immensely from growing consumer inclination towards natural and active cosmetic ingredients, which is spurring demand for products such as botanical extracts, enzymes and amino acids. Also favoring the market is the escalating demand for multifunctional ingredients, driven by the rising sales of multifunctional products.

The positive outlook market is encouraging manufacturers to focus on R&D initiatives to develop new products featuring unique ingredients, thus driving growth in the cosmetic active ingredients market. Leading players operating in the cosmetic active ingredients market are adopting strategies such as new product development, mergers, acquisitions and expansions to strengthen market presence. Active cosmetic ingredients market is being impacted by the growing consumer aversion to synthetic chemicals, as awareness grows about their harmful effects. Since synthetic chemicals are non-biodegradable, there are concerns over their adverse environmental impact. Such concerns are also driving focus onto organic cosmetic products, thus fueling demand for organic and biodegradable active cosmetic ingredients. Market growth is also impeded by the high cost of products and ingredients, specifically in view of the growing shift towards organic and natural products. The high cost of feedstock is deterring manufacturers of ingredients from investing into organic cosmetic formulations. Strict government regulations and industry standards related to the use of ingredients in cosmetics industry also impacts market growth.

Cosmetics industry and cosmetic ingredients including active agents market have always been subject to intense scrutiny of various regulations and compliance requirements. Ban on marketing of animal-tested cosmetic products and classifying cosmetic ingredients as drugs are some of the developments that affected the cosmetics industry. Also several regulatory bodies have adopted own set of regulations for ensuring safety of ingredients being used in cosmetic products. Such a move has however presented challenges for the cosmetic ingredients market. With legislative mandates being tightened amidst concerns over safety of ingredients, development costs for formulations and ingredients are increasing. High materials costs also has potential to restrict anticipated growth for the market for cosmetic active ingredients. The market actively shifting towards organic and natural ingredients is leading to increase in feedstock costs. Increasing preference for organic cosmetics has also been adversely impacting market growth even though it is seen as a growth opportunity for suppliers of organic active ingredients, as the market continues to depend largely on synthetic ingredients.

Select Competitors (Total 153 Featured):

  • Ashland, Inc.
  • BASF SE
  • Clariant AG
  • Croda International Plc
  • Evonik Industries AG
  • Gattefossé SAS
  • Givaudan SA
  • Lonza
  • Lucas Meyer Cosmetics
  • Nouryon
  • Seppic SA
  • Symrise AG

What`s New for 2022?

  • Global competitiveness and key competitor percentage market shares
  • Market presence across multiple geographies - Strong/Active/Niche/Trivial
  • Online interactive peer-to-peer collaborative bespoke updates
  • Access to the digital archives
  • Complimentary updates for one year

Table of Contents

I. METHODOLOGYII. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
  • Impact of COVID-19 Pandemic and Looming Global Recession
  • Year 2021 in Review and Near-term Outlook
  • Prolonged Pandemic, Ukraine-Russia Conflict and Ensuing Economic Disruptions Impact Growth Outlook
  • EXHIBIT 1: World Economic Growth Projections (Real GDP, Annual % Change) for the Years 2021, 2022 and 2023
  • Beauty and Personal Care Industry Comes Under Tremendous Stress Due to Pandemic
  • EXHIBIT 2: Pandemic-Induced Reduction in Consumer Spending Affects Cosmetic Ingredients Market: % Change in Consumer Spending in Select Regions/Countries for 2020
  • Beauty Industry Recovers Cautiously from the Pandemic Impact
  • EXHIBIT 3: Global Beauty Sector Percentage YoY Growth: 2016 to 2024
  • EXHIBIT 4: Active Ingredients for Cosmetics - Global Key Competitors Percentage Market Share in 2022 (E)
  • Competitive Market Presence - Strong/Active/Niche for Players Worldwide in 2022 (E)
  • Introduction to Active Ingredients in Cosmetics
  • Active Vs. Inactive Ingredients in Skincare Products
  • Proven Benefits for Skin and Hair Spur Growth in Active Ingredients for Cosmetics Market
  • Conditioning Agents Market Leads, Anti-Aging Active Ingredients to Boost Future Growth
  • Skin Care: The Largest Application Category
  • Developing Markets Poised to Fuel Future Growth
  • World Brands
  • Recent Market Activity
2. FOCUS ON SELECT PLAYERS
3. MARKET TRENDS & DRIVERS
  • Demand for Cosmetic Products amidst Rising Consumer Desire to Look Good Fuels Growth in Active Cosmetic Ingredients Market
  • EXHIBIT 5: Global Cosmetic Products Market Value in US$ Billion for the Years 2019, 2021, 2023 and 2025
  • A Review of Active Ingredients to Deal with Various Skin Issues
  • Trending Ingredients for Skin Care Products
  • Thriving Beauty Trends Augmenting Scope of Active Cosmetic Ingredients
  • Shift in Beauty Product Trends amid the Pandemic Leads to Development of Innovative Active Ingredients
  • Pandemic-Induced Hand Care Products Boosts Demand Novel Active Ingredients
  • Growing Use of Beauty & Cosmetic Products among Men: An Opportunity for Active Cosmetic Ingredients Market
  • EXHIBIT 6: Global Male Grooming Products Market Size in US$ Billion for the Years 2020, 2022, 2024 and 2026
  • Trend towards Natural Cosmetics Fuel Demand for Natural Active Ingredients
  • Growing Sales of Natural and Organic Cosmetic Products: Potential for Growth
  • EXHIBIT 7: Global Natural Cosmetics Market: Sales in US$ Billion for the Years 2019, 2021, 2023 and 2025
  • Demand for Natural Ingredients for Cosmetic Products Surges amid the Pandemic
  • Plant-based Active Ingredients: Rising Use in Formulations of Natural Cosmetic Products
  • Green Biotechnology Emerges as a Viable Alternative to Produce Safe & Sustainable Active Ingredients for Skin Care
  • Increasing Use of UV Filters in Cosmetic and Personal Care Products
  • Rising Popularity of Active Cosmetics Ingredients from Marine Sources
  • Rising Sales of Anti-Aging Products: A Major Factor Fueling Demand for Active Ingredients
  • EXHIBIT 8: Global Anti-Aging Cosmetics Market for the Years 2017, 2019, 2021, 2023 and 2025
  • EXHIBIT 9: Global Anti-Wrinkle Products Market Size in US$ Billion for the Years 2017, 2019, 2021, 2023 and 2025
  • Research-Backed Ingredients Hold Preference
  • Increasing Consumer Interest in Natural Ingredients Drive Strong Demand for Natural and Organic Anti-Aging Products
  • Cosmeceuticals with Biologically Active Ingredients to Improve Skin Functioning Begin to Find Favor
  • Major Anti-Aging Ingredients of Cosmeceuticals
  • Cosmeceuticals Receive Boost from Introduction of Lipid Nanoparticles
  • Rising Demand for Anti-Pollution Cosmetics Augurs Well for the Anti-Pollution Active Ingredients Market
  • EXHIBIT 10: Rise in Air Pollution Drives Need for Anti-Pollution Cosmetic Ingredients: Most Polluted Countries Ranked by Average PM2.5 Concentration (in Micrograms per Cubic Meter of Air) for 2021
  • Moss Emerges as a Potential Anti-Pollution Active Ingredient
  • Anti-Pollution Product Formulations and Choice of Active Ingredients for Products
  • Active Hair Care Ingredients Market Help in Protecting Hair against Environmental and Biological Factors
  • Organic Active Ingredients for Effective Coverage of Grey Hair
  • Trend towards Multifunctional Active Ingredients Gains Pace in Cosmetics Industry
  • Succinic Acid Emerges as a Promising Multi-Functional Ingredient
  • Assessing the Effectiveness of Cosmetics with Innovative Multipurpose Active Ingredients
  • Popularity of Sun Protection Products Presents Opportunity for Active Ingredients Market
  • EXHIBIT 11: Global Sun Care Products Market: Sales in US$ Billion for the Years 2020, 2022, 2024 and 2026
  • Focus on Developing Cosmetic Active Ingredients to Offer Protection against Blue Light
  • Concerns over the Use of Active Ingredients Used in Sunscreen Products
  • Sunscreen Ingredients Disrupt Hormones
  • Mineral Sunscreens vs. Chemical Sunscreens
  • Methylisothiazolinone in Sunscreen: A Skin Sensitizer
  • With Skin Lightening Product Sales on the Rise, Demand Rises for Active Ingredients Used in Skin Lighteners
  • Rise in Demand for Innovative Ingredients for Skin Lightening
  • Natural Skin Lightening Ingredients Continue to Find Favor
  • Lax Regulations, Unsafe Ingredients: Major Areas of Concern
  • Novel Methods to Push Stability & Bioavailability of Peptides for Cosmetic Applications
  • Ceramides: A Highly Hydrating Ingredient in Skin Care
  • Active Ingredient Serums and Concentrates: Packing Higher Concentrations of Ingredients to Address Specific Skin Problems
  • Macroalgae-Derived Active Ingredients: Potential Role in Cosmetic Formulations
  • Innovations & Advancements Boost Market Growth
  • Expanscience Unveils Algaenia Natural Cosmetic Active Ingredient for Sensitive Skins
  • Lessonia Develops Fucoreverse Anti-Aging Ingredient Derived from Brown Algae Compound
  • Blue OléOactif®: A Plant Oil-Extracted Cosmetic Active Ingredient
  • Vetivyne™: A Natural Cosmetic Active Ingredient with Numerous Beauty Advantages
  • Lonza Unveils H2OBioEv Multifunctional Bioacative for Moisturizing and Rejuvenating Skin
  • Favorable Demographics Promote Market Growth
  • Women: An Important Consumer Cluster
  • EXHIBIT 12: Participation of Women in Workforce & Subsequent Need to Maintain Appearance to Fuel Cosmetics Sales & Drive Gains for Active Ingredients: Women as % of Labor Force by Region (2020)
  • Expanding Middle Class Population to Drive Demand
  • EXHIBIT 13: Global Middle Class Population (In Million) by Region for the Years 2020, 2025 and 2030
  • EXHIBIT 14: Global Middle Class Spending (US$ Trillion) by Region for the Years 2020, 2025 and 2030
  • Urbanization: A Mega Trend
  • EXHIBIT 15: World Urban Population in Thousands: 1950-2050P
  • EXHIBIT 16: Degree of Urbanization Worldwide: Urban Population as a % of Total Population by Geographic Region for the Years 1950, 1970, 1990, 2018, 2030 and 2050
4. GLOBAL MARKET PERSPECTIVEIII. MARKET ANALYSIS
UNITED STATES
  • Active Ingredients for Cosmetics Market Presence - Strong/Active/Niche - Key Competitors in the United States for 2022 (E)
  • US Active Ingredients Market: A Look at Buzzing Trends
  • Market Analytics
CANADA
JAPAN
  • Active Ingredients for Cosmetics Market Presence - Strong/Active/Niche - Key Competitors in Japan for 2022 (E)
  • Market Analytics
CHINA
  • Active Ingredients for Cosmetics Market Presence - Strong/Active/Niche - Key Competitors in China for 2022 (E)
  • Market Analytics
EUROPE
  • Active Ingredients for Cosmetics Market Presence - Strong/Active/Niche - Key Competitors in Europe for 2022 (E)
  • Growing Customer Interest in Natural Cosmetics Bodes Well for Natural Ingredients Demand
  • Market Analytics
FRANCEGERMANYITALYUNITED KINGDOMREST OF EUROPE
ASIA-PACIFIC
  • Active Ingredients for Cosmetics Market Presence - Strong/Active/Niche - Key Competitors in Asia-Pacific for 2022 (E)
  • Asia: A High Potential Market, Botanicals and Biotechnology Actives Register Strong Demand
  • Market Analytics
REST OF WORLD
IV. COMPETITION
  • Total Companies Profiled: 153

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Ashland, Inc.
  • BASF SE
  • Clariant AG
  • Croda International Plc
  • Evonik Industries AG
  • Gattefossé SAS
  • Givaudan SA
  • Lonza
  • Lucas Meyer Cosmetics
  • Nouryon
  • Seppic SA
  • Symrise AG