July 19, 2024

Skin Care Ingredients Is The Largest Segment Driving The Growth Of Cosmetic Ingredients Market

The global Cosmetic Ingredients Market is estimated to be valued at US$ 1.99 Bn in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Cosmetic ingredients are the core components that provide desired properties and effects to personal care, cosmetics and skin care products. Key ingredients include emollients, surfactants, uvs filters and preservatives which ensure properties like softness, cleansing and protection from pollutants. Growing personal grooming industry relying on effective yet safety ensured cosmetic formulations is driving the demand.

Market key trends:

Demand for natural and organic ingredients is gaining significant momentum in the market. Consumers today are more aware and concerned about potential side-effects of chemicals in cosmetic products. They prefer formulations containing plant extracts, vitamins and other natural actives which are typically associated with fewer risks. This is prompting manufacturers to focus on sourcing natural alternatives and promote their products as chemical-free, thus expected to positively impact the market over the forecast period.

Market key trends:

The cosmetic ingredients market has been witnessing high demand for multifunctional ingredients that can deliver multiple cosmetic benefits. Manufacturers focus on developing ingredients that provide anti-aging benefits, improve skin texture as well as even skin tone. Growing demand for natural and organic cosmetic products is another key trend being witnessed as consumers prefer cosmetic products containing natural ingredients.

SWOT Analysis

Strength: High demand for multifunctional and natural ingredients.
Weakness: Stringent regulations regarding ingredients and their sources.
Opportunity: Growth of natural and organic cosmetic industry provides business opportunities.
Threats: Intense competition among existing players and entry of new players.

Key Takeaways

The global cosmetic ingredients market is expected to witness high growth, exhibiting CAGR of 5.2% over the forecast period, due to increasing demand for multifunctional ingredients and natural cosmetic products.

The market size for cosmetic ingredients was valued at US$ 1.99 Bn in 2023. North America dominated the global market, followed by Europe and Asia Pacific. The high demand for natural and multifunctional cosmetic formulations supports market growth in the region.

Key players operating in the cosmetic ingredients market are BASF SE, AkzoNobel N.V., Croda International Plc, The Dow Chemical Company, Eastman Chemical Company, Clariant AG, and Wacker Chemie AG. These players focus on new product launches, expansions, and collaborations to enhance their market share.