Cosmetic Ingredients Market Size, Share, and Trends 2024 to 2034

The global cosmetic ingredients market size was exhibited at USD 32 billion in 2022 and is projected to hit around USD 55.44 billion by 2032 with a registered CAGR of 5.7% during the forecast period 2023 to 2032.

Key Takeaways

• In 2022, By ingredient type, the natural ingredient segment is expected to have the largest market share
• In 2022, By geography, Asia-Pacific has captured the highest revenue share.
• On the basis of end-use, the skin care segment is expected to have the largest market share from 2023 to 2032.
• The cosmetic ingredients market in North America accounted for a sizeable portion, In terms of revenue share in 2022.
• According to a statement made by L'Oréal, the company's active cosmetic product sales in China increased by 13.4% in Q1 2022.

Cosmetic ingredients are the elements that go into the creation of cosmetic goods like body lotions, eyeliners, lipsticks, moisturizers, and lotions with sunscreen. Water, moisturizers, preservatives, emulsifiers, thickeners, lubricants, pigments, and perfumes are some of the substances used in cosmetics. Ingredients for cosmetics can be created synthetically or obtained from natural sources like items derived from plants. They are utilized to give cosmetic products anti-oxidant, anti-inflammatory, thickening, and moisturizing characteristics. They are additionally employed to improve the texture and appearance of cosmetic goods. Green cosmetics that are beneficial to the environment have been developed as a result of growing awareness of clean-label cosmetic goods. Manufacturers of cosmetic ingredients work hard to develop new products and components while also conducting considerable research and development in order to satisfy consumer demands. Asia Pacific is predicted to have the highest demand for products made with organic components, which will in turn significantly fuel the expansion of the global cosmetics ingredients market over the course of the next five to six years.

Nowadays, customers choose to use fully natural and herbal personal care and cosmetic products because they don't include any dangerous chemicals that could hurt their skin. Major producers and players in the worldwide cosmetic ingredients market have taken notice of the growing demand for herbal cosmetic products and are progressively developing new lines of herbal components, mostly in developed regions like North America and Europe.

Growth Factors

The growing consumer awareness of the advantages and drawbacks of using products made with particular specific ingredients, as well as the increasing focus on improving and modifying the textual features of various ingredients used in the personal care and cosmetics industries, are also anticipated to fuel demand within the global market for cosmetic ingredients in the upcoming years. The ongoing efforts and financial resources devoted to advancing research and development within the global market for cosmetic ingredients, to create new goods and solutions, are also anticipated to give the market pace in the near future.

• The growing consumer awareness.
• Inclination towards natural products.

Cosmetic Ingredients Market Scope

Cosmetic Ingredients Market Dynamics

Key Market Drivers

• Increase in product introductions and consumer awareness - The necessity to meet consumer demand has prompted cosmetics firms to create new product lines in response to rapid urbanization and growing consumer interest in natural ingredients. For instance, Quench Botanic announced the introduction of four new skincare products in May 2022, each of which has Birch juice as its main ingredient. Additionally, Mug Guard, a facial sunscreen that lessens the look of wrinkles and skin discoloration, was launched in June 2022, according to a statement from the sun-care company Dune. In addition, Olay asserts that three new body-washing products with vitamin B3 complex were announced by the company in April 2020.  Such product launches will assist the expansion of the cosmetic ingredients market throughout the forecast period by enabling the effective use of natural cosmetic ingredients in the cosmetics and personal care sector to develop a variety of product lines in skincare and body care.
• Promotional programs for oral care products - In addition to skincare and body care, cosmetic ingredients are quite useful in oral care products like toothpaste and gel for their cleansing properties. The rising prevalence of the periodontal disease has prompted businesses to launch campaigns to promote and make oral care products easily accessible. For instance, Proctor & Gamble started a campaign in January 2021 with the goal of enabling 2 billion people to develop good dental hygiene practices. Additionally, in May 2021, EPL and Unilever collaborated on a sustainable project that would make it possible for people to easily get Unilever's oral care products. The initiatives will boost both demand for and production of oral care products, which will accelerate the use of cosmetic ingredients in their manufacture and favorably affect the development of the cosmetic ingredients market throughout the course of the forecast year. 

Key Market Challenges

• Hazardous effect - Both cancer and chapped skin can develop from synthetic or chemical cosmetic ingredients that are particularly harmful to human skin, such as sodium lauryl sulfate, propylene glycol, and methyl. Governmental organizations have established a few regulations to stop these damaging skin effects. For instance, the National Industrial Chemicals Notification and Assessment Scheme of the Australian Government restrict the use of chemicals in cosmetics. Additionally, the Cosmetic Directive of the EU forbids the use of specific synthetic cosmetic components in cosmetics. Such laws could restrict the use of synthetic components in cosmetics and personal care products, which could hinder the industry's expansion and limit the market size for cosmetic ingredients over the projection period. 

Key Market Opportunities

• Increasing middle-class population - The market for cosmetic ingredients is expected to benefit greatly from the growing middle class in emerging economies, particularly in the Asia Pacific. According to the European Commission, the global middle class currently accounts for more than half of the world's population, up from 1.8 billion in 2009, and is expected to increase to 4 billion people by 2021 and 5.3 billion people by 2030. This factor is therefore expected to provide the market for cosmetic components tremendous growth potential. 

Ingredient Type Insights

On the basis of ingredient type, the natural ingredient segment is expected to have the largest market share in 2022. Vitamins, fatty acids, and antioxidants that are easily absorbed by the skin are abundant in natural cosmetic substances like plant extracts and starch.

Natural ingredients, as opposed to synthetic ones, extend the shelf life of cosmetic products and have no detrimental effects on health. As emulsifiers, emollients, and preservatives, the natural ingredients have a wide range of uses because of their high performance and ecologically friendly makeup. Due to the significant increase in cosmetics consumption and the rising need for ecologically friendly chemicals, the demand for natural ingredients in the cosmetics and personal care sector has increased, which is propelling the segment growth in the cosmetic ingredients market.

End Use Insights

On the basis of end-use, the skin care segment is expected to have the largest market share in the coming years period, the segment has dominated the market and it will continue to grow well in terms of revenue. Increased demand for skin care products (face washes, creams & moisturizers, sunscreens, face masks, serums or oils, etc.) and expanding use of ingredients like alpha-hydroxy acids, beta-hydroxy acids, retinol, hydroquinone, copper peptide, and kojic acid in skin care products are some of the main factors boosting this segment's revenue growth.

Regional Insights

On the basis of geography, Asia-Pacific has captured the highest revenue share in 2022. The region has seen a considerable increase in the use of beauty care goods, particularly skincare, as a result of the quick change in consumer lifestyle and the rising popularity of natural cosmetics. According to a statement made by L'Oréal, the company's active cosmetic product sales in China increased by 13.4% in Q1 2022 compared to Q1 2021. The demand for cosmetic components serving as emulsifiers and preservatives in the area is being driven by the rising cosmetic product consumption in key Asia-Pacific nations like China, which will boost the market for cosmetic ingredients during the forecast period.

In terms of revenue share in 2022, the market for cosmetic ingredients in North America accounted for a sizeable portion. Consumers' increased attention to beauty and personal care, particularly among millennials, rising demand for cosmetics like eye and facial make-up, rising incidences of skin problems like acne and hair issues like hair loss, split ends, dandruff, and premature greying, rising demand for herbal or natural cosmetic products, and consumers' high purchasing power are all major drivers of regional market revenue growth. 

Recent Developments

• In April 2022– With the signing of an agreement to purchase Gorla Minore's cosmetic ingredients division from B&C S.p.A., Sharon Laboratories Ltd. now has the potential to expand its line of cosmetic ingredients products.

Cosmetic Ingredients Market Companies

• Clariant AG
• Solvay S.A.
• BASF SE
• Dow Chemical Company
• Eastman Chemical Company
• Croda International PLC
• Estee Lauder Company
• Ashland Global Specialty Chemicals
• Lonza Group Ltd.
• Wacker Chemie AG 

Segments Covered in the Report

By Ingredient Type

• Synthetic
• Natural

By Product Type

• Surfactant
• Emollient
• Polymer
• Oleo-chemical
• Botanical Extract
• Rheology Modifier
• Preservatives
• Antioxidant
• Emulsifier & Stabilizer
• Others

By Functionality

• Cleansing Agents & Foamers
• Aroma
• Moisturizing
• Specialty
• Others

By End Use

• Skin Care
• Oral Care
• Hair Care
• Body Care

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)