Bio-Based Cosmetics and Personal Care Ingredients Market Size, Share & Trends Analysis Report Based on Active Ingredient (Vitamins and Derivatives, Ceramides, Peptides, Resveratrol, Potassium Sorbate, Bio-Succinic Acid, Hyaluronic Acid, Glycerin, Creatine, Alpha Hydroxy Acids), Based on Application (Skin and Sun Care, Hair Care, Make-up and Color Cosmetics, Fragrances) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global bio-based cosmetics and personal care ingredients market was valued at USD 5.24 billion in 2023. It is expected to reach USD 8.64 billion in 2032, growing at a CAGR of 5.72% over the forecast period (2024-2032). Increasing consumer preference for natural, eco-friendly, and sustainable beauty and personal care products drives demand for bio-based ingredients. Consumers seek products that are perceived as safer, environmentally friendly, and derived from renewable resources.

More and more people are using bio-based technologies, which has an effect on the beauty and personal care industries. Companies that make cosmetics have put a lot of money into bio-based ingredients over the past 10 years because customers have been asking for more advanced formulas and active ingredients. Customers are more likely to buy cosmetics that have bio-active ingredients that come from natural sources because they know that these ingredients are good for them. There are many different types of bio-based ingredients used in the cosmetics and personal care products industry.

Some examples are emollients, conditioning polymers, surfactants, emulsifiers, rheology control, antimicrobials, and others (including UV absorbers and hair fixative polymers). It is expected that the growing trend of using cosmetics and personal care products made with natural and organic ingredients will be a major factor in the growth of the market. It is expected that more money will be spent on research and development, processing of ingredients will get better, and production methods will get cheaper, all of which will help the market grow. Also, more and more people are asking for natural ingredients and additives in cosmetics because they are learning about how harmful traditional, synthetic chemical-filled products can be. During the time frame of the forecast, this trend is expected to grow a lot.

Market Dynamics

Global Bio-Based Cosmetics and Personal Care Ingredients Market Drivers

• Presence of a large number of cosmetic companies

The beauty goods market is growing mostly because there are so many companies that make cosmetics. For example, the Food and Drug Monitoring Agency (BPOM) says that in 2017, there were more than 700 cosmetic businesses in Indonesia's 19 provinces. Major cosmetics companies like L'Oreal Group (France), Avon Products Inc. (United States), The Estée Lauder Companies Inc. (United States), and Oriflame Cosmetics (Luxembourg) are always putting out new products, which is likely to increase demand for cosmetics ingredients that come from natural sources.

• Increase in the disposable income

All over the world, people have more money to spend on cosmetics and other personal care items because they have more money to spend. Acne is a skin condition that affects about 50 million people in the U.S. Each year, it is thought that more than $3 billion will be spent on treating and preventing acne. According to the Bureau of Labor Statistics of the United States, the amount of personal income that people in the United States can spend rose from $10,036.9 billion in 2006 to $13,968.6 billion in 2016, and it is expected to keep going up until it reaches $21,178.2 billion in 2026.

In a similar way, the Organization for Economic Co-operation and Development (OECD) says that the growth rate of household disposable income per capita in the United Kingdom went from 2.9% in 2013–2014 to 3.8% in 2014–2015. This rise happened in the years 2014 and 2015. When customers' disposable income goes up, they have more money to buy things, which makes them more likely to buy personal care and beauty products. Because of this, the growing market for cosmetics is increasing the demand for products with bio-based ingredients.

Global Bio-Based Cosmetics and Personal Care Ingredients Market Restraints

• High cost of bio-based cosmetic products

The growth of the biomaterials industry in developing and emerging countries is mostly held back by the high cost of items made from biomaterials.

Understanding and analysing the Bio-Based Cosmetics and Personal Care Ingredients Market's environment is hard for a number of reasons, including the uneven recovery in different end markets and geographic areas.

Global Bio-Based Cosmetics and Personal Care Ingredients Market Opportunity

• Surging demand coupled with growing research and development

There is a growing trend toward using cosmetics and personal care products made with natural and organic ingredients. This is a chance for the industry to grow. The market for bio-based cosmetics and personal care ingredients is expected to grow even more as more money is put into research and development (R&D) and as technology improves the way ingredients are processed and cheaper ways to make things. Over the forecast period of 2022-2030, the market is expected to grow a lot because consumers are becoming more aware of the harmful effects of traditional, chemical-heavy synthetic products. As a result, they want cosmetics with natural ingredients and additives more and more. This is likely to happen because more and more people are learning about how harmful traditional, chemical-heavy synthetic products are.

Regional Analysis

Based on the regional analysis, the global Bio-Based Cosmetics and Personal Care Ingredients market forecast can be segmented into North America, Europe, the Asia-Pacific, Latin America, the Middle East, and Africa.

In 2021, bio-based cosmetics and personal care ingredients market made up about 45% of the market in North America. This made it the leader in this sector. The sector is growing in the region because more people are getting jobs, more people are buying personal care products that can be used for more than one thing, and modern lifestyles are getting busier and busier. North America is a big market for skin care and hair care products because more and more people are learning how important it is to take care of their skin and hair (especially in the male population). The high income per person in North America helps to support the need for skin care and hair care products, which in turn increases the demand for bio-based ingredients in that area.

APAC is expected to grow the fastest between 2022 and 2030. This is because of things like better healthcare infrastructure, rising disposable income, and the growth of the cosmetics industry. Both India and China are doing things that are making it much easier for markets in the area to grow in a big way. Compared to the industrialised economies of Europe and North America, the amount of money spent on medical care in these countries is proportionally much lower. On the other hand, there are a lot of people and more and more money that people can spend. This means that there is a big demand for personal care products and that bio-based substances are used more and more.

Segmental Analysis

• Demand for Ingredients of Skin and Sun Care Products Is Highest

About $2 billion in sales were made in 2021 from the use of bio-based ingredients in skin and sun care products. Analysts think that these parts will continue to have the most market share in the years to come. This will happen mostly because people are becoming more aware of skin and sun care products and because chemical companies are working hard to find natural ingredients for use in skin care and sun care cosmetics. For example, Ashland Global Holdings Inc. announced the release of sensidin in October 2021. Even when used in small amounts, sensidin is very effective against bacteria that cause bad smells. The product has octenidine hydrochlorides as well as a natural solvent and a humectant called 1,3-propanediol. It has been shown that octenidine hydrochlorides can kill bacteria.

• Vitamins and Derivatives Expected to Witness Fastest Growth in Demand

Vitamins and their derivatives are expected to grow at a rate of more than 5% compound annual growth rate (CAGR) during the period covered by the forecast. This is a higher rate than that of other types of components on the market right now. This growth can be explained by the fact that more baby boomers and members of generation X are using vitamin-rich cosmetics, that lifestyles are changing, and that consumers are becoming more aware of how to improve their whole selves. A report from the World Bank says that 65 percent of the world's population will be between the ages of 15 and 64 in the year 2020. People in these age groups are more likely to use beauty products made from natural ingredients like vitamins and other chemicals.

Impact of covid-19

Covid-19 had some profound adverse impacts on the global advanced ceramics market.

COVID-19 spread across the world from China, making the whole world stand still and to a complete lockdown situation. Covid-19 is an infectious disease that was caused by a newly discovered coronavirus. During the time, the fatality rate among the population above 40 was also high globally. The disease causes severe illness for people suffering from medical conditions like diabetes, cardiovascular disease, chronic respiratory disease, etc.

Considering the situation during that time, it was declared a pandemic which led to numerous countries, including the major economies like China, the United States, India, and others, implementing lockdowns which adversely affected the global economy.

In the first two quarters of 2020, the economic and industrial operations temporarily halted. Almost every manufacturing unit where advanced ceramics is used, such as electrical and electronics, transportation, industrial, chemical, and other End-user Industries (except medical), reduced their manufacturing capacities due to the lack of workers. The lockdown implemented put a halt to global supply chains. This resulted in repercussions in terms of both production and demand for advanced ceramics.

Market Recovery Timeline and Challenges

With time the lockdowns were uplifted, and relaxation was made to the public. Gradually, the economy picked up the pace and started its operations, bringing the demand in the global advanced ceramics market and increasing among various industries. As the situation improved during the initial months of 2021, the economies also strengthened their fiscal policies and initiated their development process; the end-user industries began their activities, bringing the overall ceramics market back on track.

Recent Developments

• July 2024 - The global leader in biotech beauty and vertically integrated biotechnology, Debut, announced that it partnered with L'Oréal to create over a dozen essential, bio-identical ingredients that will take the place of currently sourced conventional ingredients in L'Oréal's skin, hair, color cosmetics, and fragrance brands.
• April 2024 - Syensqo announced that the acquisition of JinYoung Bio, a South Korean producer of specialist cosmetic chemicals, was completed. Syensqo, the firm that was founded from Solvay's specialty chemicals division, expands its portfolio of skin care products with this investment, bolstering its position in the beauty biotech industry.