Cosmetic Chemicals Market

Market Overview

The Global Cosmetic Chemicals Market Size was valued at USD 16.49 billion in 2021. It is projected to reach USD 29.31 billion by 2030, growing at a CAGR of 6.6% during the forecast period (2022–2030).

Cosmetic chemicals are the essential ingredients in creating personal care products. Common compounds used in cosmetics include thickening agents, carrier powders, colorants, pigments, surfactants, preservatives, emollients, film formers, and moisturizers. Emollients, film formers, and moisturizers are the most often used cosmetic compounds worldwide, followed by surfactants. The increasing demand for ethnically tailored beauty products among ethnic populations is the primary driver of the worldwide cosmetic chemicals market.

In addition, the need for cosmetic chemicals has risen dramatically due to the rising demand for cosmetic products made with natural ingredients and customers' willingness to pay more for luxury goods. However, strict government regulations against dangerous chemicals and the rising demand for organic products containing natural ingredients restrain the global cosmetic chemicals market's rise. In addition, some cosmetic chemicals may have undesirable side effects, such as genetic mutation, prenatal impairments or reproductive injury, genetic mutation, and cancer, which may hinder market expansion.

Cosmetic chemicals are used to create cosmetics to improve their qualities, appearance, and shelf life. It is the primary ingredient used to formulate personal care products. Some cosmetics, such as coconut oil, are derived from natural ingredients, but most are composed of chemical components. Lipstick, perfume, concealer, moisturizer, hair dye, and soap are examples of cosmetic items. Numerous chemicals are utilized in the production of cosmetics, like ammonium lauryl sulfate, talc, formaldehyde, alcohols, lanolin, and mineral oil/waxes. Cosmetic chemicals give personal care items such as makeup, lotions, creams, conditioners, and shampoos their functional and physical features. However, certain cosmetic chemicals may induce allergic reactions, such as 1,4-dioxane, butyl acetate, butylated hydroxytoluene, coal tar, diethanolamine, and mercury which can be found in personal care and cosmetics products.

Market Dynamics

Market Driving Factors

Increasing Demand for Personal Care Items to Drive Market

The manufacture of cosmetics is impacted by changes in people's lifestyles, changing weather patterns, and consumers' rising concern for their skin and sun protection. Both men and women are generally using more skincare products. Women between the ages of 45 and 65 are significantly more likely than men to use anti-aging products. The market for components used in personal care products will grow due to the rising demand for skin care products among consumers of all ages.

There has been a rise in demand for multipurpose skin care products as consumers worldwide become more health-conscious. Manufacturers in the personal care business have created highly effective and environmentally friendly products using cosmetic ingredients due to the growing demand and awareness. Additionally, a shift in consumer behavior toward healthier lifestyles is a prominent driver driving the need for personal care products, which is anticipated to increase the demand for cosmetic chemicals throughout the projected period.

Growing Fashion and Entertainment Industries to Impede the Market Growth

The popularity of beauty products in various nations, including the United States of America, Germany, India, South Korea, and China, is partly attributable to the flourishing fashion and entertainment industries. The increase in the number of competitions and exhibitions held in various parts of the world that focus on new fashion trends has led to the rise in the demand for cosmetic items. Additionally, the development of the entertainment industry in economies still in the process of industrialization has increased the demand for products that fall under the category of cosmetics.

Market Restraining Factors

Increasing Demand for Items Manufactured with Natural Elements to Restrict Market Growth

Certain chemicals in manufacturing cosmetics and other beauty products have been associated with several potentially dangerous side effects, including cancer, congenital disabilities or reproductive harm, genetic mutation, and genetic mutation. Due to a greater understanding of the harmful effects of chemicals on health and skin, there has been a change in consumer preference toward organic products.

Market Key Opportunities

Rising Research and Development in Cosmetic Market

Producers all over the world are beginning to utilize a strategy that is more comprehensive and integrated while creating their goods. Under the heading of personal care, they do not divide health and beauty products into two distinct categories but rather group them. Consequently, they are becoming more sensitive to ideas that build a relationship between the scientific advancements made in the health and biotechnology industries and the efficiency of beauty goods. Companies in the pharmaceutical, biotechnology and food ingredient industries are becoming increasingly interested in expanding their presence in the beauty sector. The end outcome of this will be the implementation of technologically advanced componentry.

Regional Analysis

The global cosmetic chemicals market is primarily classified into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America to Ensure Their Regional Dominance

North America is the largest global cosmetic chemicals market shareholder and is expected to grow at a CAGR of 6.5% during the forecast period. It is studied in the United States, Canada, and Mexico. The North American market for hair care, skin care, and color cosmetics dominate the world. The United States contributes significantly to expanding the skincare and cosmetics market. The need for cosmetic chemicals in the region is mainly driven by the production of organic personal care items. Increasing R&D expenditures by manufacturers, coupled with corresponding technological advancements in ingredient processing and cost-effective production of organic personal care products, have been the primary factors driving the expansion of the cosmetic chemicals market in the region.

Vegan formulas have produced a growing trend in the personal care sector in Germany, particularly in the hair care and skincare areas. Consumers in this region increasingly prefer personal care products containing what they believe to be more natural and organic components. The need for younger-looking skin among men and women, enhanced distribution networks and advertising campaigns, and rising consumer interest in health and beauty regimens have all contributed to the solid growth of the personal care business in Europe.

The Asia-Pacific region is predicted to have the highest growth rate and the most significant potential for cosmetic chemicals among other locations worldwide. The expanding middle class's need for high-end skincare, haircare, and color cosmetics is primarily responsible for the growth.

Segmental Analysis

The global market for cosmetic chemicals is classified by Product Type and Application.

On the Basis of Product Type:

Based on product type, the global cosmetic chemicals market is segmented into Surfactants, Polymer Components, Colorants, and Preservatives.

The polymer ingredients segment is the most dominant and is expected to grow at a CAGR of 6.6% during the forecast period. Rheology control agents, emollients, and emulsifiers are among the polymer constituents. Polymer components have improved the performance of numerous personal care and cosmetic products, delivering advantages such as water resistance or "sweat-proof" qualities and other long-lasting traits. Natural, organic, and synthetic polymer ingredients perform various tasks in cosmetic and personal care products, such as thickening, emulsifying, and creating protective films or barriers. In addition, the considerable molecular weight of polymers implies that they do not quickly enter the skin and are less likely than conventional options to produce stinging, burning, or redness.

Surfactant is one of the essential components of cosmetic and personal care products. Surfactants are organic compounds with hydrophilic and hydrophobic ends that facilitate the dissolution of oil molecules in water. Surfactants are used in cosmetics for washing, foaming, thickening, emulsifying, solubilizing, and enhancing penetration, antimicrobial properties, and other specific effects. The compatibility of surfactant molecules with both water and oil is the characteristic that makes them useful cosmetic components.

On the Basis of Application:

Based on application, the global cosmetic chemicals market is segmented into Skin Care, Hair Care, Makeup, Oral Care, and Fragrances.

The skincare sector owns the highest market share and is expected to grow at a CAGR of 6.9% during the forecast period. The skincare sector includes sun protection, hand and body lotion, and facial care. It consists mainly of articles designed to rid the skin of impurities such as oil, grime, and dead skin cells. Moisturizers and lotions for skin care also provide vital sustenance to the skin. Specific skin care issues are addressed by items including skin lightening, sunscreen, tanning, eye care, and lip care.

The primary purpose of hair care products is to remove debris, dandruff, and oil from the hair and scalp, cure damaged hair, and preserve the hair's moisture content. Hair care products are manufactured by combining a surfactant, such as sodium lauryl sulfate or sodium Laureth sulfate. Specialized hair care products treat hair-related problems like dandruff, color-treated hair, hair loss, split ends, and dry, damaged hair. Makeup is a category of consumer goods used to enhance the facial appearance of individuals. Depending on the product type, each product gives a unique functionality, with some delivering smooth skin, others altering the skin's tone, and others concealing any flaws or imperfections.

Recent Developments

• January 2022- Clariant completes the sale of its Pigments business.
• April 2022- Ashland reveals natural, nature-derived, and biodegradable personal care solutions ad nature-positive STEM education programs for village farmers in India during in-cosmetics.
• April 2022- In January 2022, Clariant completes selling its Pigments business.
• May 2022- Ashland introduced Vialose trehalose dihydrate, a high purity lyoprotectant, and stabilizer for biologic medicines and other parenteral formulations at Excipient World in Kissimmee, Florida.