Thioglycolate Market Size, Share & Trends Analysis Report By Grade (Low Purity Grade, Technical Grade, High Purity Grade), By Product Type (Ammonium Thioglycolate, Calcium Thioglycolate, Sodium Thioglycolate, Butyl Thioglycolate, Potassium Thioglycolate), By End-User (Oil and Gas, Leather, Mining, Chemical and Plastics, Cosmetics and Personal Care) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global thioglycolate market size was valued at USD 117.4 million in 2023 and is projected to reach a value of USD 180.7 million by 2032, registering a CAGR of 4.9% during the forecast period (2024-2032). The thioglycolate market share has increased significantly with an expanding demand for frozen food and cosmetic items.

Thioglycolate is a chemical compound represented by the molecular formula HSCH2CO2H. This substance is an organosulfur compound with a thiol (sulfhydryl) functional group and a carboxylic acid functional group. Thioglycolate is recognized for its capacity to disrupt disulfide connections in proteins, which is beneficial in various applications, especially in the cosmetic and chemical processing sectors.

The market is expected to be in its early stages due to the significant increase in the end-user sector. However, extended skin exposure might have negative consequences, limiting market expansion. Similarly, severe regulatory guidelines from authorities such as the EU Cosmetics Directive and the Food and Drug Administration (FDA) limit thioglycolate market growth. Furthermore, increased consumer awareness and high disposable income are expected to drive the thioglycolate market in the approaching years. The increasing demand from the Asia-Pacific region creates a large market potential for the leading players in the thioglycolate industry.

Highlights

• Technical Grade accounts for the largest share of the market by component.
• Ammonium Thioglycolate generates the highest revenue share of the market by product type.
• Cosmetics and Personal Care occupies the maximum share of the market by end-use. 

Market Dynamics

Market drivers

Increasing disposable income

Increasing disposable income is an essential economic element influencing consumer buying habits, especially in the cosmetics and personal care industries. As people's disposable income increases, they frequently devote resources to non-essential goods and services, such as beauty and grooming products. Consumers with more disposable income have more premium and specialist beauty options. Thioglycolate-containing products, such as sophisticated hair relaxers or high-end hair care formulas, may experience a surge in demand from consumers looking for professional, high-quality solutions. For example, the United States has the highest disposable income per capita in 2023. In June 2023, the average disposable income in the United States was USD 46,646, up from USD 45,345 in 2022. Personal income minus personal current taxes equals disposable income. In December 2023, US disposable personal income was expected to be USD 61,242, up from USD 61,114 in November 2023. 

In addition, individuals with more disposable resources may choose professional hair care procedures, such as salon treatments that use thioglycolate-based formulations to achieve permanent waves or straightening. According to Vogue India, scalp treatments will be the most significant hair care trend in 2023. This includes scalp peels, medical treatments for hair loss and thinning, and hair Botox injections. Luxembourg also has the second-highest average disposable income (USD 49,860), trailing only Switzerland (USD 43,035). Luxembourg has the second-highest average disposable income (USD 49,860), followed by Switzerland (USD 43,035). 

Furthermore, niche beauty businesses may launch luxury hair care lines, including Thioglycolate, for discerning consumers seeking unique and complex products. Hence, Increased disposable income has a wide-ranging impact on the beauty and personal care industries, including the market for thioglycolate-containing products. Higher-income consumers frequently drive demand for premium and specialist formulations, influencing Thioglycolate market trends and preferences. 

Market restraints

Regulatory compliance and safety concerns

Thioglycolate is subject to regulatory oversight and safety issues as a chemical compound. Compliance with tight laws governing the use of specific chemicals in cosmetic formulas presents hurdles for manufacturers. Adherence to these regulations frequently necessitates ongoing monitoring and formulation modifications to fulfill safety standards. As of July 13, 2023, Health Canada is considering adding thioglycolic acid esters to the list of restricted chemicals in Canada due to increasing skin sensitivity. The Cosmetics Regulation 1223/2009 regulates thioglycolic acid esters under entry 2b of Annex III (prohibited chemicals). Furthermore, many countries, including China, have outlawed thioglycolic acid (TGA). In the United States, it is considered a banned pesticide.

Additionally, Regulation (EC) No 1223/2009 governs cosmetic products in the European Union. This rule specifies the safety requirements, ingredient limits, and labeling regulations for cosmetic compositions. Thioglycolate-containing products must follow these requirements to ensure consumer safety. For example, Thioglycolic acid and thioglycolates are permissible ingredients in hair products under European cosmetics legislation. However, using these cosmetics on eyelashes has been restricted since July 11, 2013. 

Similarly, the FDA controls cosmetic items in the United States. Compliance with the Federal Food, Drug, and Cosmetic Act guarantees that cosmetic compositions, including those containing Thioglycolate, meet safety requirements. According to the FDA, the maximum concentration of thioglycolic and thiolactic acid in hair straightening products is 8%. The CIR Expert Panel determined that ammonium thioglycolate, thioglycolic acid, and glyceryl Thioglycolate can be safely used in hair care products at concentrations of no more than 15.4%. Thioglycolate-containing products must undergo extensive testing and documentation to meet stringent regulatory requirements. Meeting regulatory standards, completing safety tests, and staying current on new legislation can be costly for producers. Furthermore, the need for reformulation or component substitution to fulfill changing safety criteria can affect the stability and market presence of thioglycolate-containing goods.

Market opportunity

Expansion in emerging markets

The expansion of thioglycolate-based goods in emerging regions represents a considerable growth opportunity. These markets, typified by rising disposable incomes and a growing interest in beauty and personal care goods, allow producers to reach a consumer base actively looking for novel and effective formulas. Asia-Pacific is seeing significant economic expansion, urbanization, and increased disposable income. Over half of Asia's population is predicted to be urban by 2030, with a 50% increase by 2050. This presents an ideal climate for beauty and personal care product makers, especially those who provide thioglycolate-based formulations, to establish a foothold. Companies might start marketing efforts in countries like China and India, introducing thioglycolate-based hair care products adapted to local preferences and needs.

Latin America, on the other hand, is a burgeoning market with a growing middle class and a greater emphasis on beauty and grooming. According to World Bank research, about one-third of Latin American families are now classified as middle class. The survey also discovered that the region's poverty rate has reduced to nearly the same level or 30% of the population. Manufacturers can capitalize on this opportunity by launching thioglycolate-based goods that appeal to the region's broad consumer base. Expanding into emerging markets has the potential for significant sales growth and market share gains. As customers in these locations grow more aware of beauty trends and seek innovative formulations, introducing thioglycolate-based products suited to their preferences may result in higher adoption.

Regional Analysis

North america dominates the global market

The global thioglycolate market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global thioglycolate market shareholder and is estimated to grow at a CAGR of 4.3% over the forecast period. North America has been the leading region in the global thioglycolatemarket in recent years due to its extensive use in various industries. Thioglycolate is utilized in multiple sectors within North America's diverse industrial landscape, including the United States, Canada, and Mexico. The global market dynamics are influenced by the region's varied industrial landscape, regulatory environment, and consumer preferences. Consumer preferences in North America, explicitly favoring convenience and effectiveness in personal care products, impact the demand for Thioglycolate-based formulations.

Additionally, in a 2023 consumer survey, 69% of shoppers allocate USD 1–USD 100 for skincare and makeup, while 62% and 61% spend USD 1–USD 50 on bath and shower products and body care products, respectively. 55% of American consumers allocate a monthly budget from USD 51 to USD 200. Regulatory compliance and safety standards established by organizations such as the FDA significantly influence product formulations in this industry.

Asia-Pacific is anticipated to exhibit a CAGR of 4.7% over the forecast period. Asia-Pacific leads the thioglycolate market due to rapid economic growth, access to skilled labor at competitive prices, favorable industry regulations, abundant resources, and affordable land prices in countries like India, China, Indonesia, and Malaysia. The cosmetics and personal care industry in the Asia-Pacific region is thriving. Thioglycolate is utilized in hair care products such as permanent wave solutions, hair relaxers, and depilatory creams. Statista reports that Japan leads the Asia-Pacific region in luxury goods market revenue for 2023. The revenue for high-end cosmetics and fragrances in the Asia-Pacific region in 2023 is USD 10.5 billion. 

Furthermore, Thioglycolic acid (TGA) synthesizes pesticides, including thifensulfuron herbicide. It is also utilized in the production of polyphenols and thioesters. China produced approximately 264,000 metric tons of chemical pesticides in December 2023. China had about 2.5 million tons of chemical pesticides in 2022. This will continue to stimulate market expansion throughout the forecast period.

Europe is a diverse region with developed economies like Germany, France, and the United Kingdom. Western European countries like the U.K., Germany, Spain, and France will impact Europe's economic growth. Nevertheless, Brexit will adversely affect the development of the global market in this region.

Nevertheless, In November 2023, the European Parliament approved measures to decrease packaging, prohibit "forever chemicals," and limit specific packaging materials. In the second quarter of 2023, the European Commission will amend the Cosmetic Product Regulation to disclose new allergens to consumers. This will harm the European market.

Segmental Analysis

The global thioglycolate market is segmented based on grade, product type, and end-use.

The market is further segmented by grade into Low Purity Grade, Technical Grade, and High Purity Grade.

Technical Grade accounts for the largest share of the market. Technical Grade Thioglycolate is a mid-purity version that meets technical specifications and is helpful for various industrial applications. It is a popular choice for applications that require a certain amount of purity but need more precision needed by higher purity grades. Technical-grade Thioglycolate is commonly used in textiles, polymer synthesis, and specific chemical processes. This grade balances purity and cost-effectiveness, making it suitable for applications requiring precise standards but not absolute purity.

High-purity grade Thioglycolate is the purest form of Thioglycolate, including few impurities or pollutants. This grade is critical for applications where the chemical composition must meet exacting requirements, such as medicines, cosmetics, and specific specialty chemical syntheses. High-purity thioglycolate ensures a precise and constant chemical structure, reducing the possibility of unwanted reactions or contaminants in sensitive operations. Industries that value the quality and dependability of their final products, particularly in sectors where human safety and product consistency are critical, choose high-purity grade Thioglycolate to meet the most stringent quality standards and regulatory requirements.

Based on product type, the market is fragmented into Ammonium Thioglycolate, Calcium Thioglycolate, Sodium Thioglycolate, Butyl Thioglycolate, and Potassium Thioglycolate.

Ammonium Thioglycolate generates the highest revenue share of the market. Ammonium Thioglycolate is a chemical component frequently used to produce hair care products, particularly in beauty and cosmetics. It is widely acknowledged for its involvement in hair perming and relaxing procedures. Ammonium Thioglycolate disrupts the disulfide bonds in the hair, enabling it to be restyled into curls or waves. This characteristic renders it crucial in permanent wave solutions and hair relaxers. Its adaptability in various hairstyle tasks has led to its substantial impact in the beauty and salon sector.

Calcium Thioglycolate is a kind of Thioglycolate utilized in the beauty and personal care sector. Like Ammonium Thioglycolate, it is commonly used in hair relaxing and perming products. The substance can modify hair texture by interfering with the protein structure, offering an option for those wanting lasting alterations to their hair.

The market can be further bifurcated by end-use into Oil and Gas, Leather, Mining, Chemical and Plastics, Cosmetics, and Personal Care.

Cosmetics and Personal Care occupy the maximum share of the market. The cosmetics and personal care sector held the largest market share. Thioglycolate is commonly used in hair care products in the cosmetics and personal care sector, such as permanent wave solutions, hair relaxers, and depilatory lotions. Its capacity to disrupt disulfide bonds in hair proteins enables the alteration of hair texture and the elimination of undesired hair from the skin's surface. Thioglycolate-based products provide excellent solutions for hair styling, perming, and temporary hair removal, adding to the variety of beauty and grooming goods on the market.

The chemical and plastics sector is expected to grow significantly due to fast product development and a growing emphasis on packaging. Thioglycolate is essential in chemical synthesis and polymer manufacturing in the chemical and plastics sector. It acts as a precursor or intermediary in producing several organic molecules, such as medicines, agrochemicals, and specialty chemicals. Thioglycolate-based chemicals are used as chain transfer agents in polymerization operations to alter polymers' molecular weight and characteristics. Their adaptability in chemical processes aids in the creation of various goods and materials in numerous industrial industries.

Recent Developments

• February 2024- Arkema's advanced bio-circular polyamide 11 range labeled as "Solar Impulse Efficient Solution"
• April 2023- Thermo Fisher Scientific, Inc. will focus its sustainability initiatives on the thioglycolic acid market. It has implemented environmentally friendly production methods and is working to reduce waste generation during its manufacturing processes.
• June 2023- Arkema Company created a new line of thioglycolic acid derivatives for personal care and cosmetics.