Home Bulk Chemicals Phenoxyethanol Preservatives Market Share & Analysis Report [2031]

Phenoxyethanol Preservatives Market

Phenoxyethanol Preservatives Market Size, Share & Trends Analysis Report By Type (Phenoxyethanol P5, Phenoxyethanol P25), By Applications (Personal Care, Pharmaceuticals, Dyes and Inks, Industrial, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRCH450DR
Study Period 2020-2032 CAGR 5.25%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD 150.15 million
Forecast Year 2032 Forecast Year Market Size USD 237.97 million
Largest Market Asia-Pacific Fastest Growing Market
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Market Overview

The global phenoxyethanol preservatives market was valued at USD 150.15 million in 2023. It is estimated to reach USD 237.97 million by 2032, growing at a CAGR of 5.25% during the forecast period (2024–2032). Phenoxyethanol is extensively utilized as a preservative in the personal care industry in a diverse range of applications spanning from lotions and creams to shampoos and makeup to ensure product safety and longevity. Consumers are more inclined towards beauty and personal care, so the industry is flourishing exponentially, driving global market growth. Moreover, consumers in recent years have shown more interest in products that contain natural or near-natural ingredients, which is anticipated to create opportunities for market expansion.

The antibacterial qualities of phenoxyethanol make it a popular preservative in medicines, cosmetics, and personal hygiene items. Many products have a longer shelf life because it prevents germs, fungus, and yeast growth. This compound is particularly valued for its broad-spectrum effectiveness and stability across a wide pH range. Phenoxyethanol is considered safer than older preservatives like parabens and formaldehyde-releasing agents, making it popular in formulations aiming for safer and gentler products.

Its relatively low sensitization potential and mild odor contribute to its desirability. However, despite its widespread use, some concerns have been raised about its safety in high concentrations, particularly when used on infants or in products applied around the eyes. As with any ingredient, its safety and efficacy depend on its specific application and concentration within formulations. Therefore, regulatory bodies like the FDA and the European Commission set limits on its usage to ensure product safety.

Highlights

  • Asia-Pacific contributed to the largest market share

Market Dynamics

Market Drivers:

Increasing Demand for Personal Care Products 

The rising demand for personal care products is a key driver propelling the phenoxyethanol preservatives market growth. As consumers worldwide become more conscious about personal hygiene, grooming, and appearance, there's a corresponding surge in demand for cosmetics, skincare, and personal care items. These products often require effective preservatives like phenoxyethanol to conserve their shelf life and prevent bacterial or fungal contamination.

Moreover, evolving consumer preferences for natural and mild formulations have further fueled the demand for preservatives perceived as safer alternatives, contributing to phenoxyethanol's prominence in this market segment. As the personal care industry continues to innovate and expand globally, the demand for phenoxyethanol preservatives is expected to witness sustained growth in the foreseeable future. For instance, Statista predicts that the revenue in the personal care market will reach USD 83.36 billion by 2024. It is anticipated to have an annual growth rate of 7.91% from 2024 to 2029, resulting in a predicted market volume of USD 122.00 billion by 2029.

Market Restraint:

Health Concerns

Health concerns regarding phenoxyethanol act as a significant restraint in its market growth. While considered safe in low concentrations, prolonged exposure or high concentrations have raised apprehensions. Studies have linked phenoxyethanol to skin irritation, allergic reactions, and potential toxicity. Consumers increasingly scrutinize product labels, seeking safer alternatives amid growing awareness of health risks associated with synthetic chemicals.

Numerous reports of negative reactions increase consumer anxiety, leading them to prefer products with fewer artificial components. Regulatory agencies impose limitations on product phenoxyethanol concentrations, reflecting safety concerns. Consequently, manufacturers face pressure to reformulate products or seek alternative preservatives to address consumer apprehensions. This is expected to restrict the market growth.

Market Opportunities:

Preference for Natural Preservatives

The preference for natural preservatives significantly influences the phenoxyethanol preservatives market. As consumers increasingly prioritize products perceived as safer and more environmentally friendly, there's a growing demand for preservatives derived from natural sources or with natural characteristics. While phenoxyethanol is not strictly natural, it is often considered a safer alternative to synthetic preservatives due to its mildness and low toxicity profile. Its acceptance as a "nature-identical" preservative aligns with consumer preferences for products with fewer synthetic chemicals.

Moreover, the regulatory approval of phenoxyethanol for various applications further solidifies its position as a preferred choice among manufacturers seeking alternatives to traditional preservatives like parabens. For instance, in 2016, The European Scientific Committee on Consumer Safety (SCCS) stated that phenoxyethanol as a preservative is safe in cosmetics at the maximum concentration of 1.0% for all consumers, regardless of age. This preference for natural or nature-derived preservatives and regulatory bodies supporting it is anticipated to create opportunities for the phenoxyethanol preservatives market.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global phenoxyethanol preservatives market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

Asia-Pacific is the most significant global phenoxyethanol preservatives market shareholder and is expected to expand substantially during the forecast period. Asia-Pacific's growing population, rising awareness, a surge in disposable income, and desire to improve living standards will all help to fuel the market's expansion. For instance, Euromonitor's Income and Expenditure in Asia-Pacific research predicts that the total disposable income in the Asia-Pacific region will increase by more than two times, surpassing the growth rate of any other region globally. Within the next decade, it is projected that Asian consumers will contribute approximately 50% of the overall increase in worldwide consumption. Moreover, rapid industrialization and urbanization across countries like China, India, and Southeast Asia have increased demand for personal care and cosmetics products, where phenoxyethanol is commonly used as a preservative.

For instance, according to Statista, In India, the Beauty & Personal Care market is expected to create a revenue of USD 31.51 billion in 2024, with a CAGR of 3.00% from 2024 to 2028. The Asian market, particularly China, is the main driver for growth in the most crucial segment of the global cosmetics sector, skincare, which represents 23% of the market. Similarly, the Asia-Pacific region is witnessing a surge in the pharmaceutical and healthcare sectors, where phenoxyethanol finds applications in drug formulations and medical products due to its antimicrobial properties.

As per an article published by NITI Aayog in the year 2021, The healthcare industry in India has shown a CAGR of approximately 22% since 2016 and was projected to reach USD 374 billion by 2022. Further, according to a survey by CareEdge Ratings, the Indian pharmaceutical business is expected to reach USD 57 billion by FY25, with an increase in operating margins by 100-150 basis points (bps). Therefore, the factors above are estimated to drive the regional market growth.

The North American phenoxyethanol preservatives market is estimated to grow significantly. The stringent regulations regarding product safety and consumer health, enforced by organizations like the FDA and Health Canada, compel manufacturers to seek effective preservative solutions like phenoxyethanol. A list of FDA Inactive Ingredients (topical preparations) includes phenoxyethanol. Cosmetics and topical medicinal devices are also permitted to use phenoxyethanol. For use in food products, it is not authorized. Similarly, the region's robust cosmetics and personal care industry, coupled with a growing demand for natural and sustainable products, fuels the adoption of phenoxyethanol as a preservative due to its efficacy and broad regulatory approval.

On a global scale, the United States is the leading country in terms of generating income in this industry, with a forecast revenue of USD 100 billion in 2024. Moreover, North America's strong emphasis on research and development fosters innovation in formulations, leading to the development of new applications for phenoxyethanol beyond traditional uses. Increasing consumer awareness regarding product ingredients and their potential health effects also drives the preference for preservatives like phenoxyethanol, which is known for its safety profile and minimal skin irritation. These factors contribute to the growth and sustainability of the phenoxyethanol preservatives market in the North American region.

Report Scope

Report Metric Details
Segmentations
By Type
  1. Phenoxyethanol P5
  2. Phenoxyethanol P25
By Applications
  1. Personal Care
  2. Pharmaceuticals
  3. Dyes and Inks
  4. Industrial
  5. Others
Company Profiles Dow Dupont BASF SE Symrise AG Galaxy Surfactants Ltd. Clariant AG Ashland Global Speciality Chemicals Inc. Schülke and Mayr GmbH Akema Fine Chemicals Lonza Group AG Thor Personal Care
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global phenoxyethanol preservatives market is bifurcated into types and applications.

Based on the type, the global phenoxyethanol preservatives market is segmented into phenoxyethanol P5 and phenoxyethanol P25.

Phenoxyethanol P25 is a chemical compound commonly used as a preservative in cosmetics, pharmaceuticals, and personal care products. It is a glycol ether derived from phenol, exhibiting antibacterial and antifungal properties. Phenoxyethanol P25 is particularly valued for its ability to inhibit the growth of various microorganisms, thereby extending the shelf life of products and safety for consumer use. With a molecular formula of C8H10O2, phenoxyethanol P25 is soluble in water and most organic solvents, making it versatile for formulation purposes. Phenoxyethanol P25 has higher phenol content, which can be toxic for humans and is used widely in various water-based architectural and industrial coatings. Due to the resurgent increase in construction and industrial development activities, the demand for phenoxyethanol P25 preservatives is expected to escalate in the coming years.

Based on the application, the global phenoxyethanol preservatives market is bifurcated into personal care, pharmaceuticals, dyes and inks, industrial, and others.

Phenoxyethanol is widely used in pharmaceutical formulations because it prevents microbial contamination and extends the shelf life of liquid oral medications, injectable drugs, and topical solutions. Phenoxyethanol is still in high demand as a preservative as the pharmaceutical industry grows internationally due to factors including aging populations, rising healthcare costs, and the incidence of chronic illnesses.

Stringent regulatory requirements mandating effective preservatives to ensure product safety further drive the adoption of phenoxyethanol in pharmaceutical formulations. Its compatibility with various active pharmaceutical ingredients (APIs) and its established safety profile contribute to its prominence in the pharmaceutical industry, positioning it as a crucial component in drug formulation and manufacturing processes. The growth in the pharmaceutical industry is a significant driver fueling demand for phenoxyethanol preservatives.

Market Size By Type

Market Size By Type
  • Phenoxyethanol P5
  • Phenoxyethanol P25
  • Recent Developments

    • March 2024- Lonza's share price increased following its agreement to acquire a manufacturing facility in the United States from Roche for around USD 1.2 billion in cash. This acquisition aims to enhance the expansion of Lonza's biologics division in the field of life sciences.
    • September 2023- Clariant introduced Phenoxetol SG, a preservative made entirely from bio-ethanol, specifically designed for antibacterial purposes. The applications encompass creams, lotions, liquid soap, wet wipes, hair conditioners, and shampoos. According to the firm, it has a renewable carbon index (RCI) of 25%, which means it has the same chemical qualities as its fossil counterpart. This helps to minimize the need for reformulation.

    Key Players

    Phenoxyethanol Preservatives Market Share of Key Players

    Phenoxyethanol Preservatives Market Share of Key Players
    Dow Dupont BASF SE Symrise AG Galaxy Surfactants Ltd. Clariant AG Ashland Global Speciality Chemicals Inc. Schülke and Mayr GmbH Akema Fine Chemicals Lonza Group AG Thor Personal Care Others

    Frequently Asked Questions (FAQs)

    What is the growth rate for the Phenoxyethanol Preservatives Market?
    The global Phenoxyethanol Preservatives Market growing at a CAGR of 5.25% from (2023–2031).
    Some of the top industry players in Phenoxyethanol Preservatives Market are, Dow Dupont, BASF SE, Symrise AG, Galaxy Surfactants Ltd., Clariant AG, Ashland Global Speciality Chemicals Inc., Schülke and Mayr GmbH, Akema Fine Chemicals, Lonza Group AG, Thor Personal Care, etc.
    Increasing demand for personal care products is the major growth factors of the Phenoxyethanol Preservatives Market.
    Preference for natural preservatives is one of the key opportunities in Phenoxyethanol Preservatives Market.


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