|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD10.76 billion
|
|
CAGR
(2023-2028)
|
5.66%
|
|
Fastest
Growing Segment
|
Emollients
|
|
Largest
Market
|
Asia
Pacific
|
Market Overview
Global Personal Care Ingredients Market has valued
at USD10.76 billion in 2022 and is anticipated to project robust growth in the forecast
period with a CAGR of 5.66% through 2028. These ingredients are commonly used
in formulating a wide range of skincare, hair care, and cosmetics products.
With their diverse properties, such as anti-aging, moisturizing, cleansing,
complexion-enhancing, and pollution defense, they play a crucial role in
enhancing the overall effectiveness of these products. Notably, there is a
growing shift towards the use of natural and organic ingredients, gradually
replacing synthetic constituents in personal hygiene products.
In response to the increasing demand for natural
and sustainable alternatives, market players are actively developing products
that harness the power of natural constituents. These products offer a
multitude of benefits, including skin repair, cell damage prevention, enhanced
skin immunity, hydration, and anti-aging effects. This trend is driven by
evolving consumer lifestyles, a growing awareness of skincare, and a rising
preference for natural ingredients in personal hygiene products.
Complex emulsions, known for their ability to
provide sustained skin moisturization, protect sensitive biologicals, and offer
prolonged release of aerosol fragrances, are extensively used in cosmetics and
beauty products. As consumers increasingly prioritize natural options, there is
a rising demand for green, sustainable, and biodegradable emulsifiers in the
market. Consequently, there has been a decline in the use of
ethoxylated/propoxylated emulsifiers, while the demand for green-based
non-ethoxylated emulsifiers, such as polyglyceryl esters and alkyl glucosides,
is on the rise.
The COVID-19 pandemic has significantly impacted
the personal care industry, with a steady market demand for hygiene-related
constituents. These constituents are vital for the manufacturing of cleaning
products, soaps, sanitizers, detergents, and other personal care items, as
consumers have become increasingly aware of the importance of individual
hygiene. However, the manufacturing processes have faced operational
challenges, logistics delays, and trade restrictions, affecting the overall
production of these essential products.
Key Market Drivers
Surge in Urbanization and Lifestyle Changes
Urbanization, characterized by the shift from rural
living to city life, has a profound and far-reaching impact on consumer
behavior. As people transition to urban areas, they are exposed to a myriad of
changes that influence their preferences and choices, particularly in the realm
of personal care products.
One of the key changes brought about by
urbanization is the increased access to and demand for personal care products.
In urban areas, individuals are often more exposed to pollutants, resulting in
a heightened focus on skincare and haircare. The need to combat the negative
effects of pollution and maintain a healthy appearance becomes a priority.
Consequently, there is a surge in the demand for products that address these
concerns, such as anti-pollution skincare and protective hair treatments.
Moreover, urban lifestyles often involve higher
stress levels due to the fast-paced nature of city living. This increased
stress leads to a greater demand for wellness and relaxation products, such as
essential oils and bath salts. People seek solace in these soothing and
rejuvenating products, which help them unwind and find moments of tranquility
amidst the urban chaos.
These factors, arising from the urban environment
and lifestyle, contribute significantly to the growing demand for personal care
ingredients. Manufacturers and brands are continuously developing innovative
solutions to cater to the needs and desires of urban consumers, investing
heavily in research and development to create new, sustainable, and
high-performing ingredients.
Alongside urbanization, changes in lifestyle have
also had a significant impact on the personal care ingredients market. With
rising disposable incomes, consumers are now more willing to invest in
high-quality, premium personal care products that offer superior efficacy and
luxurious experiences. The desire for indulgence and self-care drives the
demand for ingredients that provide exceptional performance and deliver visible
results.
Furthermore, the health and wellness trends that
have swept across the globe have influenced consumers to seek out natural and
organic ingredients in their personal care products. The rise of the 'clean
beauty' movement, driven by the desire for safe, non-toxic, and environmentally
friendly products, has sparked a surge in demand for ingredients sourced from
nature. Consumers are increasingly conscious of the ingredients they put on
their skin and hair, embracing the power of nature to enhance their beauty routines.
In conclusion, the surge in urbanization and
sweeping lifestyle changes are significant drivers of the global personal care
ingredients market. As these trends continue to evolve and shape consumer
preferences, the market is expected to witness further growth and innovation.
Manufacturers, driven by the demand for effective and sustainable solutions,
will continue to explore new frontiers in ingredient development, shaping the
future of personal care products.
Rise in Disposable Income
Disposable income, which refers to the money
households have available for spending and saving after deducting income taxes,
plays a crucial role in shaping consumer behavior. As disposable income increases,
consumer spending also tends to rise, especially on non-essential goods and
services like personal care products.
In the context of developing countries, where
economic growth has led to higher disposable incomes, there has been a
noticeable shift in consumer spending patterns. Consumers are now more willing
to allocate a larger portion of their budget towards high-quality, premium
personal care products. This shift in consumer behavior has significantly
impacted the demand for superior personal care ingredients.
The rise in disposable income has not only affected
consumer behavior but also has significant implications for the global personal
care ingredients market. As consumer spending on personal care products
continues to increase, there is a direct correlation with the heightened demand
for personal care ingredients.
Furthermore, with the increase in disposable
income, consumers are showing a growing preference for value-added products,
leading to a surge in demand for natural, organic, and sustainable ingredients.
This emerging trend has prompted manufacturers to focus on innovation and
invest in research and development to meet evolving consumer preferences.
In conclusion, the rise in disposable income stands
as a significant driver of the global personal care ingredients market. As
consumers worldwide experience an increase in their spending power, the demand
for high-quality, premium personal care products is expected to grow steadily.
Consequently, this surge in demand further fuels the need for personal care
ingredients, setting the stage for robust growth in the market. The interplay
between disposable income, consumer behavior, and personal care ingredients
creates a dynamic landscape that presents ample opportunities for market
players to capitalize on.
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Key Market Challenges
Volatility in Prices of Ingredient
The cost of raw materials used in personal care
products can fluctuate significantly due to various factors such as changes in
supply and demand, geopolitical events, natural disasters, and currency
exchange rates. These price fluctuations can have a considerable impact on the
cost of manufacturing personal care products, thereby affecting the
profitability of companies operating in the personal care ingredients market.
For instance, the price of palm oil, a common
ingredient in many personal care products, can vary greatly due to factors such
as weather conditions affecting crop yield, changes in governmental policies,
and shifts in global trade patterns. Similarly, petroleum-based ingredients
like paraffin wax and mineral oil are subject to price volatility due to
fluctuations in global oil prices.
The volatility in ingredient prices poses a
significant challenge for the personal care ingredients market. It creates
uncertainty and risk, making it difficult for companies to forecast costs and
plan for the future. This unpredictability can lead to reduced profit margins,
particularly for smaller companies that may not have the financial resilience
to absorb these cost fluctuations.
In addition to the factors mentioned above, other
factors can also contribute to price fluctuations in personal care ingredients.
For example, changes in regulations and standards related to ingredient
sourcing and sustainability can impact the availability and cost of certain raw
materials. Consumer preferences and trends, such as the increasing demand for
natural and organic ingredients, can also influence the pricing of personal
care ingredients.
Furthermore, the global supply chain for personal
care ingredients is complex, with raw materials sourced from different regions
around the world. This introduces additional challenges in terms of logistics,
transportation costs, and potential disruptions in the supply chain. All these
factors contribute to the overall complexity and volatility of ingredient
prices in the personal care industry.
In conclusion, the cost of raw materials used in
personal care products is subject to significant fluctuations due to a wide
range of factors. These fluctuations pose challenges for companies in the
personal care ingredients market, making it crucial for them to closely monitor
and manage the risks associated with ingredient price volatility. By doing so,
companies can mitigate the impact on their profitability and ensure the
long-term sustainability of their operations.
Key Market Trends
Growing Demand of Microbiome-Friendly Ingredients
The human microbiome, which refers to the trillions
of microorganisms residing on and within our bodies, plays a vital role in
maintaining our overall health and well-being. These microorganisms have been
found to have a profound impact on various aspects of our physiology, including
digestion, immunity, and even mental health.
In recent years, there has been a surge of interest
in harnessing the power of the microbiome in the realm of personal care
products. Scientists and researchers have recognized the potential of
microbiome-friendly ingredients in promoting healthier skin and hair. These
ingredients work by supporting and nourishing the natural microbial communities
that exist on our skin and scalp.
Among the microbiome-friendly ingredients,
prebiotics have gained significant attention. These substances act as a source
of nutrition for the beneficial bacteria present on our skin and hair, helping
them thrive and maintain a healthy balance. Additionally, postbiotics, which
are the beneficial by-products produced by these bacteria, have shown promising
effects in enhancing the skin's barrier function and overall appearance.
The growing interest and demand for
microbiome-friendly products have become a driving force in the personal care
industry. Manufacturers are investing heavily in research and development to
explore and produce novel microbiome-friendly ingredients that can cater to
consumers' evolving needs. This wave of innovation has opened up new avenues
for creating effective and sustainable personal care products that prioritize
the health and balance of the skin and hair microbiome.
As consumers become more educated and aware of the
crucial role of the microbiome in maintaining skin and hair health, the demand
for microbiome-friendly ingredients is expected to continue its upward
trajectory. This trend represents a significant shift in the global personal
care ingredients market, reflecting the growing recognition of the microbiome's
importance and its potential to revolutionize the way we approach personal
care.
In conclusion, the rise of microbiome-friendly
ingredients is not just a passing fad, but a transformative trend that is
reshaping the personal care industry. With its focus on nurturing and
maintaining a healthy microbial ecosystem, this trend is poised to have a
lasting impact on the way we care for our skin and hair, ultimately leading to
more effective and personalized beauty solutions.
Segmental Insights
Ingredient Insights
Based on the category of ingredient, the emollients
segment emerged as the dominant player in the global market for Personal Care
Ingredients in 2022. Emollients are widely used in various personal care
products, including antiperspirants, deodorants, soaps, skin creams, face
cleansers, and more. Their popularity stems from the soothing and smoothing
properties they provide to the skin. Not only do emollients alleviate dryness
and irritation, but they can also reduce scaling and itching, and help manage
the overgrowth and shedding of skin cells associated with conditions like
psoriasis. Moreover, these products have the ability to soften plaques and cracks,
improve the skin's barrier function, ease inflammation, and act as a vehicle
for active medical ingredients.
It is worth noting that emollients with a higher
oil content also serve as occlusive agents. By forming a thin oily film on the
skin, they create a barrier that seals in moisture. Emollients can be
classified based on their oily or greasy nature, with each type offering a
different level of occlusion. The more oil an emollient contains, the better it
becomes at forming a protective layer on the skin, effectively trapping
moisture.
Application Insights
The skin care segment is projected to experience
rapid growth during the forecast period. Skin care is not just important for
personal care, but it is also a crucial aspect of maintaining overall
well-being. It encompasses a wide range of practices, from corrective measures
to preventive routines, that contribute to the process of achieving flawless
makeup. Having healthy and radiant skin has always been a timeless trend, and
thanks to continuous innovations and advancements in the beauty industry, we
can expect even more improved products with a focus on promoting skin health.
Skin care involves a holistic approach that not
only addresses external factors but also takes into consideration internal
factors such as nutrition and lifestyle choices. It encompasses practices that
not only enhance the appearance of the skin but also protect its integrity and
effectively treat various skin conditions. This comprehensive approach includes
adopting a balanced diet, protecting the skin from excessive sun exposure, and
using suitable emollients to nourish and moisturize the skin.
The global skin care products market is influenced
by several factors that contribute to its growth and development. One
significant factor is the changing lifestyle patterns in emerging countries,
driven by rapid urbanization and an increase in disposable income. This shift
in lifestyle has led to a rise in awareness about advanced skin care products
and a growing demand for effective solutions. Furthermore, the beauty industry
is constantly evolving, with continuous product innovations and the introduction
of new ingredients to cater to the diverse needs of consumers. Investments in
emerging countries have also played a crucial role in expanding the market
reach and availability of skin care products.
However, it is important to note that the skin care
industry also faces certain challenges. One such challenge is the limited shelf
life of certain skin care products, which poses constraints on product
availability and distribution. Additionally, the increasing awareness about
skin sensitivity and the harmful effects of chemicals and synthetic ingredients
has led to a demand for natural and organic alternatives. This growing
consciousness among consumers has further fueled the market growth, as more individuals
seek safer and healthier options for their skin care routines.
In conclusion, skin care is a multifaceted
discipline that encompasses various practices and considerations. With the
constant evolution of the beauty industry and the increasing awareness about
skin health, the market for skin care products is poised for further growth and
development. By understanding the factors that drive this market, addressing
its challenges, and prioritizing the needs of consumers, we can continue to
witness advancements and improvements in the realm of skin care.
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Regional Insights
Asia Pacific emerged as the dominant player in the Global
Personal Care Ingredients Market in 2022, holding the largest market share in
terms of value. The economy of APAC (Asia-Pacific) is primarily shaped by the
economic dynamics of influential countries such as China and India. However,
there is a noticeable shift in the current scenario due to the increasing
foreign direct investment for the economic development of South East Asia. This
change is particularly evident in the personal care sector, where countries in
South East Asia are experiencing significant growth. This growth can be
attributed to several factors, including the region's large prospective
population, rising personal disposable income, and increasing internet
penetration.
It is worth noting that the distribution of
personal care products plays a crucial role in the success of companies
operating in this sector. The distribution network directly impacts the demand
and supply in the market, which, in turn, affects revenue. With the rising
penetration of the internet and e-commerce worldwide, personal care product
companies have expanded their reach. The advent of e-commerce has not only
benefited companies by increasing their market reach but has also provided
consumers with advantages such as competitive pricing and a wider range of
options to choose from.
Overall, these developments highlight the evolving
landscape of the APAC economy, with South East Asia emerging as a high-growth
region in the personal care sector, fueled by factors such as population
demographics, rising incomes, and increasing internet connectivity.
Recent Developments
- BASF SE, a leading chemical company, expanded its
production capabilities in the Kaohsiung area of Taiwan in August 2020. This
expansion includes the addition of a new production line dedicated to the
manufacturing of Uvinul A Plus, an advanced UVA (UV longest frequency)
protection component. Uvinul A Plus is a key ingredient found in a range of
solar and skin health products, providing effective protection against harmful
UV rays. The decision to expand the production line was driven by the growing
demand for these products in the Asia Pacific region, reflecting the company's
commitment to meeting the needs of its customers.
- In August 2019, Cargill Beauty, a global provider
of beauty ingredients, announced a strategic collaboration with Univar to
strengthen its presence in the Latin America market (LATAM). This collaboration
aims to provide companies in Latin America with access to a wide range of
high-quality, innovative ingredients and formulation solutions. By leveraging
Univar's extensive distribution network and Cargill Beauty's expertise in
sustainable and nature-inspired ingredients, this partnership aims to meet the
unique needs and preferences of the South American consumer market.
- In January 2019, Symrise, a leading provider of
fragrances, flavors, and cosmetic ingredients, made an important announcement
regarding one of its key products. SymOcide BHO, the primary benzyl
alcohol-based preservative blend in SymSave H, was discontinued. SymOcide BHO
plays a crucial role in protecting personal care products from microbial
growth, including bacteria and fungi. These preservatives are widely used in
various products such as wet wipes, cleansers, shower gels, and face masks, and
they are known for their compatibility with different types of non-sulfur
compounds and surfactants. The decision to discontinue SymOcide BHO reflects
Symrise's commitment to continuously improving and evolving its portfolio to
meet the changing needs and preferences of the industry and consumers.
Key Market Players
- ASHLAND GLOBAL HOLDINGS INC.
- BASF SE
- BERKSHIRE
HATHAWAY INC.
- CLARIANT
AG
- CRODA
INTERNATIONAL PLC.
- DOW INC.
- Evonik
Industries AG
- J.M.
HUBER CORPORATION
- KCC
CORPORATION
- SOLVAY
S.A.
|
By
Ingredient
|
By Application
|
By Region
|
- Emollients
- Emulsifiers
- Surfactants
- Rheology Modifiers
- Active Ingredients
- Others
|
- Skin Care
- Hair Care
- Oral Care
- Make-Up
- Others
|
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
|
Report Scope:
In this report, the Global Personal Care
Ingredients Market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- Personal Care Ingredients Market, By Ingredient:
o Emollients
o Emulsifiers
o Surfactants
o Rheology Modifiers
o Active Ingredients
o Others
- Personal Care Ingredients Market, By Application:
o Skin Care
o Hair Care
o Oral Care
o Make-Up
o Others
- Personal Care Ingredients Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
§ Kuwait
§ Turkey
§ Egypt
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global
Personal Care Ingredients Market.
Available Customizations:
Global Personal Care Ingredients Market report with
the given market data, Tech Sci 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).
Global Personal Care Ingredients Market is an
upcoming report to be released soon. If you wish an early delivery of this
report or want to confirm the date of release, please contact us at [email protected]