Cosmetic Chemicals Market- Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Emollients & Moisturizers, Surfactants, Specialty Additives, Others), By Application (Skin Care, Hair Care, Color Cosmetics, Toiletries, Oral Care, Others), By Region, and Competition 2018-2028

Market Overview

Global Cosmetic Chemicals Market has valued at USD 20.52 Billion in 2022 and is anticipated to grow with a CAGR of 5.04% through 2028. The global cosmetic chemicals market has undergone an incredible transformation, driven by changing consumer preferences, advancements in technology, and an increasing focus on sustainability. Cosmetic chemicals, which are the building blocks of beauty products, have played a crucial role in shaping the beauty industry and meeting the diverse needs of modern consumers. The market includes a wide range of chemicals, such as moisturizers, cleansers, dyes, preservatives, and more, that are used in skincare, haircare, makeup, perfumes, and other beauty products. The cosmetic chemicals market is highly competitive and consists of a combination of large multinational companies, specialty chemical manufacturers, and innovative startups. Industry has seen a shift towards sustainable and natural ingredients, driven by consumer preferences for clean beauty products that are free from harmful chemicals.

Key Market Drivers

Growing Demand for Personal Care Products

The global cosmetic chemicals industry has experienced unprecedented growth over the past decade. The desire to look and feel good has transcended borders, and beauty products have become an integral part of daily routines for consumers across the globe. One of the primary drivers of the global cosmetic chemicals market is the growing awareness and demand for personal care products. Modern consumers are increasingly conscious of their appearance and well-being, seeking products that address specific concerns and provide visible results. The desire for healthier and more radiant skin, lustrous hair, and expressive makeup looks has led to an upswing in the demand for an extensive array of personal care products. Social media platforms have become influential spaces where beauty trends are born and flourish. Beauty influencers and celebrities showcase the latest personal care products, promoting new looks and skincare routines to their followers. The aspirational content on these platforms fosters consumer curiosity and drives them to try new products, contributing to the rise in demand. The vast majority of Europe’s 500 million customers utilize beauty and personal care items on a daily basis to safeguard their well-being, improve their state of mind, and elevate their self-confidence. Ranging from deodorants, scents, cosmetics, and hair care products, to cleansers, sunscreens, and toothpastes, beauty products serve a crucial purpose in all phases of person's existence and offer significant practical and psychological advantages.

Advancements in Chemical Formulation

The global cosmetic chemicals market has been experiencing a profound transformation, with innovations in chemical formulation at the forefront of this evolution. The relentless pursuit of safer, more effective, and sustainable beauty solutions has led to remarkable advancements in cosmetic chemistry. Emerging product categories, like organic compounds that regulate fluid balance called osmolytes, are currently being created and utilized in the realm of beauty and personal care, specifically for the skin and hair. DuPont has introduced a line of products called GENENCARE OSMS, which contains osmolytes sourced from natural ingredients for the purposes of enhancing skin, hair, and color cosmetic applications. This product, made from genetically unmodified sugar beet, contains natural betaine and inositol. Through laboratory and clinical examinations, osmolytes have demonstrated their ability to effectively moisturize and safeguard skin cells from dehydration and damage. Chemical advancements have unlocked the potential for hybrid and multi-functional cosmetic formulations. This trend addresses the consumer's desire for simplicity and convenience, where a single product can deliver multiple benefits. For example, cosmetic chemicals are now formulated to combine skincare and makeup properties, providing not only coverage but also nourishing and protecting the skin. Consumer safety is of paramount importance in the beauty industry, and advancements in chemical formulation have led to safer and more efficacious products. Researchers are continually studying and testing cosmetic chemicals to ensure they meet the highest safety standards and deliver the desired benefits. As a result, cosmetic products today are formulated with a better understanding of how ingredients interact with the skin, hair, and nails, minimizing the risk of adverse reactions.

Globalization and E-Commerce

Globalization has enabled cosmetic companies to access a vast array of raw materials and ingredients from various parts of the world. This access to a wide spectrum of cosmetic chemicals allows brands to create innovative formulations that cater to the unique needs and preferences of consumers in different markets. E-commerce has emerged as a powerful platform that connects consumers and brands across the globe. Online retailing breaks down barriers to entry, allowing cosmetic companies to expand their reach beyond local markets. With e-commerce, brands can introduce their cosmetic products to international customers, offering a broader selection of beauty solutions formulated with innovative cosmetic chemicals. This increased market penetration stimulates demand for cosmetic chemicals, fostering a thriving global market.

Expansion of Ageing Population  

Growth in ageing population and their increasing reliance on cosmetic products for management of their skin and hair are also anticipated to register an impressive growth to Global Cosmetic Chemicals Market in the forecast period. The global population aged 60 and above is projected to nearly double by 2050, according to the United Nations. Cosmetic chemicals play a vital role in addressing the specific concerns of the ageing population. These chemicals are formulated to provide targeted solutions for mature skin, hair, and nails. Cosmetic chemicals such as peptides, hyaluronic acid, and retinoids are at the forefront of anti-ageing formulations. They target common signs of ageing, such as fine lines, wrinkles, loss of elasticity, and uneven skin tone, helping individuals maintain a youthful and radiant appearance. As the skin's natural barrier weakens with age, cosmetic chemicals are formulated with nutrient-rich ingredients that provide essential vitamins and antioxidants to nourish and protect mature skin. Ingredients like vitamins C and E, niacinamide, and coenzyme Q10 help combat environmental damage and improve overall skin health. Cosmetic chemicals are also integral to haircare products that address age-related hair concerns. They include ingredients like keratin, peptides, and plant extracts that strengthen and revitalize ageing hair, promoting shine, volume, and manageability.

Key Market Challenges

Rising Cost for Research and Development

Scientists and researchers conduct extensive studies, clinical trials, and safety assessments to ensure the efficacy and safety of new ingredients and formulations. The cost of conducting such studies, acquiring advanced technology, and hiring skilled researchers contributes significantly to the rising cost of R&D. Cosmetic manufacturers are exploring innovative delivery systems to enhance the effectiveness of their products. This includes nanoemulsions, liposomes, and other advanced technologies that optimize ingredient delivery to target specific skin concerns. Implementing such sophisticated delivery systems requires substantial R&D investment. Moreover, balancing the investment in R&D with maintaining profitability and competitive pricing becomes a delicate challenge.

Disruption in Supply Chain of Cosmetic Chemicals

The outbreak of health crises, such as the COVID-19 pandemic, has had far-reaching effects on the cosmetic chemicals supply chain. Travel restrictions, lockdown measures, and social distancing protocols have disrupted logistics and hindered the movement of goods and raw materials across borders. Geopolitical tensions and trade wars between countries have introduced additional uncertainties into the supply chain of cosmetic chemicals. Tariffs and trade barriers can impact import and export volumes, leading to fluctuations in prices and availability of cosmetic chemicals in different regions. Consumer demand for sustainable and eco-friendly products has prompted cosmetic manufacturers to seek green and ethically sourced cosmetic chemicals. However, ensuring a sustainable supply chain can be challenging, as it requires compliance with strict environmental and social responsibility standards throughout the production and distribution processes.

Key Market Trends

Growing Demand for Natural and Sustainable Ingredients

Clean beauty, characterized by formulations free from harmful chemicals, has become a dominant trend in the cosmetics market. Natural and sustainable cosmetic chemicals are free from parabens, sulfates, phthalates, and other potentially harmful substances. This trend reflects consumers' desire for products that are gentle on the skin and have minimal impact on the environment. Plant-derived ingredients are gaining popularity as consumers gravitate towards nature's bounty for their skincare and personal care needs. Cosmetic chemicals derived from botanical sources, such as aloe vera, chamomile, and green tea, offer a myriad of benefits for various skin and hair concerns. Their gentle yet effective properties make them ideal for clean and sustainable beauty products. The trend towards natural and sustainable ingredients has fueled innovations in green chemistry. Scientists are exploring new methods to extract and produce cosmetic chemicals that have a lower environmental impact. Green chemistry techniques are not only eco-friendly but also often lead to ingredients with enhanced efficacy and stability.

Growing Focus on Male Grooming

As the demand for male-specific personal care products continues to surge, the global cosmetic chemicals market is experiencing a paradigm shift. Traditionally, men's grooming products were limited to basic shaving creams and aftershaves. However, the trend has expanded to include specialized skincare products, anti-aging solutions, grooming kits, and hair styling products. This growing demand for a comprehensive range of male grooming products drives the need for innovative cosmetic chemicals tailored to meet male-specific requirements. From lightweight and non-greasy moisturizers to beard oils and soothing aftershave balms, these formulations are designed to address the unique characteristics of male skin and hair.

Segmental Insights

Type Insights

In 2022, the cosmetic chemical market was dominated by the Emollients & Moisturizers segment and is predicted to continue expanding over the coming years. Moisturizers are polymer molecules, for example, that make the skin softer by reducing the amount of water lost. Along with other beauty and personal care products, they can be found in facial creams, body creams, lipsticks, and skin moisturizers. The market for cosmetic chemicals has seen the moisturizer and emollient sector become the dominant category, accounting for more than 30% of revenue in 2021. These moisturizers are available in both natural and synthetic forms. Some commonly used moisturizers include olive oil, coconut oil, beeswax, lanolin, petroleum jelly, glycerin, mineral oil, zinc oxide, diglycol laurate, and butyl stearate.

Application Insights

In 2022, the cosmetic chemicals market was dominated by the skin care segment and is predicted to continue expanding over the coming years. This is attributed to a rise in consumer demand for skincare products due to increasing concerns about maintaining healthy skin and taking care of it. The global demand for sunblock, facial creams, and body moisturizers is expected to drive the growth of the market for cosmetic chemicals. Major companies in the cosmetic chemicals industry are now focusing more on developing innovative skincare products. Additionally, a shift in consumer preference towards products derived from natural sources and made from organic ingredients is expected to drive the expansion of the cosmetic chemicals market throughout the projected period. According to a survey of the cosmetic chemicals market, the sales of products used in hair care and skincare accounted for over 30% of total sales in 2022.

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Regional Insights

The North America region has established itself as the leader in the Global Organic Acid market. The demand for cosmetic substances is propelling in the region because of their use in creating natural personal care items. The primary reason behind the growth of the cosmetic substances market in the area is the rise in investments in research and development by manufacturers, along with associated advancements in ingredient processing and cost-efficient production of natural personal care products. This pattern is expected to persist in the foreseeable future. In North America, the cosmetic substances market is marked by the presence of various small and large-scale manufacturers and suppliers of ingredients.

Recent Developments

• In January 2020, BASF SE introduced new active skincare components and exhibited its active collection which includes Hydagen Aquaproin and Hydrasensyl Glucan, Inolixir, and bioactive components for cosmetics applications. Hydagen Aquaproin and Hydrasensyl Glucan were developed as skin hydrators, while Inolixir aids in producing nourished skin and provides a calming sensation.
• Dow Inc. revealed its latest Virtual Experience Center (VEC) in April 2021. It is an engaging 3D platform that enables cosmetic companies to enhance their offerings by enabling visitors to investigate notable innovations and marketing patterns.

Key Market Players

• BASF SE
• Akzo Nobel NV
• Clariant International, Ltd.
• Solvay SA
• Dow Chemical Company
• Evonik Industries AG
• Procter & Gamble Company
• Cargill, Inc.
• Sederma SAS
• FMC Corporation

Report Scope:

In this report, the Global Cosmetic Chemicals Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Global Cosmetic Chemicals Market, By Type:

o   Emollients & Moisturizers

o   Surfactants

o   Specialty Additives

o   Others

• Global Cosmetic Chemicals Market, By Application:

o   Skin Care

o   Hair Care

o   Color Cosmetics

o   Toiletries

o   Oral Care

o   Others

• Global Cosmetic Chemicals Market, By Region:

o   North America

o   Asia Pacific

o   Europe

o   Middle East & Africa

o   South America

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Cosmetic Chemicals Market.

Available Customizations:

Global Cosmetic Chemicals Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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