The global personal care specialty ingredients market size was valued at USD 11.5 billion in 2021, and it is anticipated to reach USD 19.22 billion by 2030 at a CAGR of 5.87%. In the creation of skin care products around the world, personal care specialty ingredients are employed as raw materials for production. In the formulation of skin care products, these components may take on various roles, including anti-ageing, anti-fungal, skin conditioning, and others. They can also be divided into active and inactive components according to their function. In contrast, inactive components include surfactants, preservatives, colourants, and polymer compounds. Active ingredients include anti-ageing agents, exfoliants, conditioning agents, and UV protection agents. Exfoliants are a type of active ingredient.
Increases in consumers' disposable incomes have led to increased purchasing power. Changes in consumers' living standards are also projected to be a primary factor in expanding the personal care ingredients market throughout the forecast period. In addition, the expansion of the industry is fueled by an increase in consumer awareness of products that serve many purposes. On the other hand, the adverse consequences of using chemical-based personal care products and the stringent regulations imposed by governments are the primary elements that will slow the market's expansion throughout the forthcoming time.
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Developing nations are experiencing a shift in their lifestyles, as well as an increase in their purchasing power
Urbanization, the rise of the female workforce, changing lifestyles, and a growing consciousness of the need for personal hygiene and skin care are the fundamental drivers of the personal care specialty ingredients industry. The increased awareness of the importance of personal cleanliness and health has fueled the demand for personal care products. This shift has led to a rise in the production of skin and hair care products, which has, in turn, driven up the demand for components used in personal care products.
In almost all of the developing countries, particularly in China, Brazil, and India, consumers are undergoing a significant shift in the lifestyles they are accustomed to. The progression is supported by rising levels of income as well as increased purchasing power. Because of these various circumstances, the demand for components used in personal care products has surged in these countries. The attention paid to cleanliness, attractiveness, and health has been growing consistently. For instance, luxury skin and hair care products, traditionally utilized in the urban areas, are now effortlessly infiltrating the rural parts of India and China. It is the case in both countries. This change in consumer purchasing patterns is the primary factor driving growth in the cosmetics and personal care business.
Increasing awareness about the chemicals used in the personal care products
The market will profit from the increased public understanding of the chemicals and other materials utilized in the production of personal care products. The market for chemicals used in personal care products will be the primary force behind the growing demand for anti-ageing products among the older population. As more and more people become aware of the dangers of synthetic chemicals, the natural personal care industry will continue to experience explosive growth.
Strict Regulations and Approval Procedures
Several international governments govern personal care products. Although each region has a different regulatory framework, they all aim to protect personal care products' security and accurate labelling. Thus, the usage of novel components is further constrained globally, hindering the advancement of personal care products. The launch of new products is delayed or hampered by these stringent restrictions, which also increases the cost of any new product released to the market and increases the risk of product recalls. As a result, the introduction of new rules and modifications to existing restrictions harm the expansion of the market.
Shift to Eco-Friendly and Biodegradable Products
When ingredients for personal care products are derived from petrochemicals, this process results in the production of by-products that are harmful to the environment as well as emissions of carbon. Consequently, a wide variety of non-hazardous and environmentally friendly components are currently being created. Enzymes that can produce bio-based solutions have been produced as a direct consequence. In addition to lowering carbon footprints, products made from biomaterials can be tailored to meet a diverse variety of consumer requirements. In addition to its already impressive cleaning and wetting characteristics, this product can also be used for various purposes. Many consumers are becoming aware of the benefits of purchasing biodegradable goods, which has resulted in the developing of innovative products. These new products are expected to provide market participants with opportunities to make a profit between 2022 and 2030.
The global personal care specialty ingredients market is divided into four types: ingredients type, product, end-use and region. Further, the market is divided into Isopropyls, Alcohols, Dimethicone, Glycerols, Titanium Dioxide, Formaldehyde, and Sodium Lauryl Sulphate based on ingredients type. The formaldehyde sector held a significant market share. The broad range of uses for formaldehyde in personal care goods, including shampoos, lotions, and soaps, are credited with helping this segment capture a significant portion of the market. The primary objective of employing this component is to protect the product from bacterial contamination while it is being used and stored.
Based on the product, the market is broken down into Inactive and Active. The inactive product sector occupied a sizeable portion of the market. The market share held by the inactive product sector is related to the product's efficiency in enhancing the benefits of specific cosmetic formulation ingredients, which generates high end-user demand and supports the segment's market share. Due to the product's improved compatibility with various formulations, it is also widely used in numerous skin care and hair care products, further increasing the market share represented by this category.
The market is divided into Skin Care, Make-Up, Hair Care, Oral Care and Others based on end-use. The skincare category occupied a sizeable portion of the market. Moisturizers, lotions, and creams are typical examples of skincare products. The increased popularity of skin beautifying products, which include skin smoothening, brightening, and calming properties, is responsible for the market share held by the skincare segment.
According to the region, the market is divided into North America, Europe, Asia-Pacific, Latin America and the Middle East & Africa. Asia-Pacific dominated the market.
According to the region, the global personal care specialty ingredients market is divided into North America, Europe, Asia-Pacific, Latin America and the Middle East & Africa.
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The Asia-Pacific region had the majority of the market share. Consumers in the APAC region are observed to have a greater focus on hygiene, emphasizing minimizing the risks associated with exposure to health risks amid the outbreak. It is one factor that contributes to the market share held by this segment of the market. In addition, the expanding number of research projects being conducted in countries such as China and India to generate novel products using locally sourced components that are simple to obtain are also contributing to the market share held by this particular segment.