The global cosmetic chemicals market was valued at $14.7 billion in 2019, and is projected to reach $24.1 billion by 2027, growing at a CAGR of 6.5% from 2020 to 2027.
Cosmetic chemicals are a blend of chemical compounds obtained from synthetic sources. They are the main ingredients used for the formulation of personal care or cosmetic products. Cosmetic chemicals that are generally found in cosmetic products include colorants, surfactants, rheology control agents, emulsifier, emollients, and preservatives.
The global cosmetic chemicals market is primarily driven by increasing disposable incomes of individuals in developing countries, such as China and India, along with the desire to improve their visual appearance. In addition, the booming fashion & entertainment industry in developed and emerging countries, such as the U.S., India, France, and South Korea, has surged the demand for cosmetic products, which is expected to eventually drive the demand for cosmetic chemicals in the near future. Furthermore, a large number of working women in big corporations and multinational companies coupled with high consumption of beauty products is expected to surge the demand of cosmetic chemicals during the forecast period.
However, stringent government regulations against the use of toxic chemicals and increase in demand for organic products made from natural ingredients limit the growth of the global cosmetic chemicals market. Furthermore, some cosmetic chemicals may have adverse effects such as genetic mutation, birth defects or reproductive harm, genetic mutation, and cancer, which are also likely to restrain the growth of the market. Surge in R&D activities from market players with the aim to develop advanced and diverse product portfolio is likely to offer fresh opportunities for the growth of the global cosmetic chemicals market.
The global cosmetic chemicals market size is segmented on the basis of product type, application, and region. On the basis of product type, it is divided into surfactants, polymer ingredients, colorants, and preservatives. By application, it is fragmented into skin care, hair care, make-up, oral care, fragrances, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The major key players operating in the global cosmetic chemicals market include Solvay SA, Cargill Incorporated, The Dow Chemical Company, Croda International Plc, BASF SE, P&G, Evonik Industries AG, Stepan Company, Symrise, and Ashland Inc. Other players operating in this market are Cobiosa, DSM, Givaudan, Genomatica, Inc, and Pharmacos. These major key players adopt strategies, such as product launch, acquisition, and business expansion, to stay competitive in the global cosmetic chemicals market.
Global Cosmetic Chemicals Market, By Region
North America accounted for the major share in 2019. The demand for cosmetic chemicals across North America is driven by its consumption in manufacturing of organic personal care products. Surge in investments by manufacturers in R&D coupled with technological innovations in the processing of ingredients and low-cost production of organic personal care products are expected to be the key factors responsible for the growth of the cosmetic chemicals market in the region. In addition, this trend is expected to continue during the forecast period.
By Region
Asia-Pacific would exhibit an CAGR of 6.9% during 2020-2027.
Global Cosmetic Chemicals Market, By Product Type
The polymer ingredients segment accounted for the major cosmetic chemicals market share in 2019. Polymer ingredients, such as emollients, soften the skin by preventing water loss. They are used in several cosmetics and personal care products such as skin moisturizers, body lotions, lipsticks, and face creams. These emollients are commercially sold in synthetic and natural forms. Some of the widely used emollients include coconut oil beeswax, olive oil, lanolin, glycerin, petrolatum (petroleum jelly), zinc oxide, mineral oil, butyl stearate, and diglycol laurate.
By Product Type
Polymer Ingredients is projected as the most lucrative segment.
Global Cosmetic Chemicals Market, By Application
The skin care segment accounted for the major market share in 2019. This is attributed to surge in demand for skin care products among individuals, owing to growing concerns regarding healthy skin and skin care. Increasing demand for sunscreens, face creams, and body lotions across the globe is expected to drive the growth of the cosmetic chemicals market. Major players operating in the cosmetic chemicals industry are now more focused toward the development of advanced skin care products. In addition, change in consumer preference toward organic and naturally-derived products having natural ingredients is expected to drive the cosmetic chemicals market growth during the forecast period.
By Application
Skin Care is projected as the most lucrative segment.
COVID-19 analysis:
The coronavirus (COVID-19) pandemic situation has increased sales of personal hygiene and cleansing products such as soaps and skin care products. According to L’Oreal S.A.’s quarterly report published in April 2020, brands, such as Kiehl’s, Lancôme, and Helena Rubinstein, which have a large proportion of skincare products, have outperformed their company’s other luxury brands in the first quarter of 2020. Thus, the skin care segment, including commodity brands focusing on personal hygiene and cleansing is expected to increase the demand for cosmetic ingredients such as surfactants, emollient, emulsifiers, colorants, and preservatives. In addition, the COVID-19 pandemic has changed the consumer buying pattern and made consumers conservative, leading to decline in their spending for non-essentials products. Nationwide lockdown and social distancing measures implemented by leading countries, such as India, the UK, Italy, Spain, and Russia, have negatively impacted the demand for fragrances and color cosmetics in these countries. During the COVID-19 pandemic, the cosmetic sales of major cosmetic manufacturers, Kao Corporation and Revlon Inc., decreased by 11.4% and 18.1%, respectively, in the first quarter of 2020 as compared to the first quarter of 2019. Therefore, the demand for cosmetic chemicals declined significantly due to decrease in demand for cosmetics during the pandemic.
Key benefits for stakeholders
- The global cosmetic chemicals market analysis covers in-depth information of major industry participants.
- Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- Major countries have been mapped according to their individual revenue contribution to the regional market.
- The report provides in-depth analysis of the global cosmetic chemicals market forecast for the period 2020–2027.
- The report outlines the current global cosmetic chemicals market trends and future scenario of the global cosmetic chemicals market from 2019 to 2027 to understand the prevailing opportunities and potential investment pockets.
- Key drivers, restraints, & opportunities and their detailed impact analysis are explained in the global cosmetic chemicals market study.
Cosmetic Chemicals Market Report Highlights
| Aspects | Details |
 By Product Type |
|
 By APPLICATION |
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 By Region |
|
 Key Market Players | SOLVAY SA, Cargill Incorporated, The Dow Chemical Company, Symrise, Ashland Inc, P&G, Stepan Company, Evonik Industries AG, BASF SE, Croda International PLC |
Analyst Review
The demand for hair and skin care cosmetics ingredients is expected to increase over the course of the next few years. Furthermore, demand for natural hair care products without parabens, ammonia, and sulfur is increasing considerably. Rise in health awareness and inclination of consumers toward hair care products for hair fall control and dandruff protection are driving the growth of the cosmetic chemicals market. The demand for anti-aging skin products is also expected to surge during the forecast period. Growing inclination of men toward enhancing aesthetic appeal has led to surge in demand for cosmetic products, and is likely to drive the demand for cosmetic chemicals from cosmetic manufacturers. This is a major trend in the cosmetic chemicals market and a highly lucrative growth opportunity for market players to capitalize.
However, stringent government regulations against the use of toxic chemicals and increase in demand for organic products made from natural ingredients limit the growth of the global cosmetic chemicals market.
Furthermore, some cosmetic chemicals may have adverse effects, such as genetic mutation, birth defects or reproductive harm, genetic mutation, and cancer, which are also likely to restrain the growth of the market. Surge in R&D activities from market players with the aim of developing advanced and diverse product portfolio is likely to offer fresh opportunities for the growth of the global cosmetic chemicals market.
The booming fashion & entertainment industry in developed and emerging countries, such as the U.S., India, France, and South Korea, has surged the demand for cosmetic products, which is expected to eventually drive the demand for cosmetic chemicals in the near future. Furthermore, a large number of working women in big corporations and multinational companies coupled with high consumption of beauty products is expected to surge the demand of cosmetic chemicals during the forecast period.
The global cosmetic chemicals market was valued at $14.7 billion in 2019, and is projected to reach $24.1 billion by 2027, growing at a CAGR of 6.5% from 2020 to 2027.
Top companies in the cosmetics chemicals industry are Solvay SA, Cargill Incorporated, The Dow Chemical Company, Croda International Plc, BASF SE, P&G, Evonik Industries AG, Stepan Company, Symrise, and Ashland Inc.
Personal care products industry is projected to increase the demand for cosmetics chemicals market.
Skin care segment accounted for the largest cosmetics chemicals market share.
The global cosmetic chemicals market is primarily driven by increasing disposable incomes of individuals in developing countries, such as China and India, along with the desire to improve their visual appearance.
Skin care application are expected to drive the adoption of cosmetics chemicals.
The coronavirus (COVID-19) pandemic situation has increased sales of personal hygiene and cleansing products such as soaps and skin care products. Due to this the demand for cosmetic chemicals form personal care product manufacturers has been surged significantly. However, the COVID-19 pandemic has changed the consumer buying pattern and made consumers conservative, leading to decline in their spending for non-essentials products. Nationwide lockdown and social distancing measures implemented by leading countries, such as India, the UK, Italy, Spain, Russia, and U.S. have negatively impacted the demand for fragrances and color cosmetics in these countries. Owing to this the demand for cosmetic chemicals from beauty product manufacturers has been declined during the Covid-19 pandemic.
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