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The personal care ingredients market size is forecast to increase by USD 3.04 billion at a CAGR of 4.2% between 2023 and 2028. The personal care ingredients market is experiencing significant growth, driven by the rising demand for multifunctional products that cater to evolving consumer preferences. companies in this market are focusing on new product launches to cater to this trend, introducing innovative cosmetic ingredients and formulations. However, stringent government regulations on the safety and efficacy of personal care products and their ingredients pose a challenge to market growth. Compliance with these regulations requires substantial investment in research and development and testing, increasing the cost of production. Additionally, the increasing awareness of the potential health hazards associated with certain ingredients, such as parabens and sulfates, is leading to the development of alternative, natural and organic ingredients. This shift towards natural and organic personal care products is expected to gain momentum in the coming years, presenting both opportunities and challenges for market participants. The market report forecast market size, historical data spanning from 2018 - 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
The personal care ingredients market encompasses a wide range of substances used in the production of cosmetics and skincare products. Surfactants, emulsifiers, and rheology modifiers are among the essential ingredients in personal care formulations. Surfactants aid in emulsifying and dispersing ingredients, while emulsifiers help in creating stable emulsions. Rheology modifiers, on the other hand, control the viscosity of products, ensuring the desired consistency. Emollients, another vital ingredient, provide skin-conditioning benefits and help in moisturizing the skin. The market for personal care ingredients is driven by the increasing demand for cosmetic products and skincare items. However, health risks associated with toxic wastes from synthetic chemicals and petrochemical-derived ingredients have fueled the clean beauty movement. As a result, there is a growing preference for natural ingredients and multifunctional ingredients in personal care formulations. The purchasing power of consumers and raw material prices significantly impact the personal care ingredients market. Organic rheology modifiers and inorganic rheology modifiers are gaining popularity due to their eco-friendly and non-toxic properties. The market for emollient products, skin care, and cosmetics continues to grow, with concentrated shampoos and premium cosmetics leading the way. Despite the benefits of natural ingredients, there are concerns regarding skin irritation caused by some organic ingredients, making it essential to ensure safety and efficacy in the use of personal care ingredients.
The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The surfactants segment is estimated to witness significant growth during the forecast period. Personal care ingredients, including surfactants, rheology modifiers, emulsifiers, and emollients, are essential components of various cosmetic products such as skincare, cosmetics, hair care, and personal hygiene items. Surfactants, which lower the surface tension between oil and water, enable the creation of foams in cleansing products. Rheology modifiers, both organic and inorganic, regulate viscosity and texture in personal care formulations. Emulsifiers ensure the even distribution of oil and water phases in emulsions, while emollients provide skin-conditioning benefits, enhancing the moisturizing and skin-conditioning properties of these products. Toxicity concerns, driven by the clean beauty movement, have led to increased demand for mild, sulfate-free anionic surfactants and multifunctional, natural ingredients.
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The surfactants segment accounted for USD 3.51 billion in 2018. Raw material prices and purchasing power influence the selection of ingredients. Health risks associated with petrochemical-derived ingredients and synthetic chemicals have led consumers to seek water-based products and solvent-based alternatives. Anti-aging products and anti-microbial agents also rely on these ingredients for their efficacy. The personal care industry continues to innovate, offering concentrated shampoos, premium cosmetics, and a wide range of moisturizing and skin-conditioning products. Skin irritation and toxicity remain key concerns, with health forums and consumer advocacy groups driving the conversation around safer, natural ingredients.
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APAC is estimated to contribute 42% to the growth of the global market during the market forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The Personal Care Ingredients Market is driven by the increasing demand for active ingredients in various personal care products. Raw materials, such as Soybean, Neem, Fish oil, Xanthan gum, and Guar gum, are essential in creating high-quality personal care items. Makeup and bath products benefit from specialty ingredients like Climatic conditions-adaptive formulations and certification bodies like the Soil Association. False labeling and pollution are significant challenges in the market, necessitating stringent regulations. UV rays and personalized products catering to hair-related issues continue to gain popularity. Inactive ingredients like Conditioning polymers, such as Polyquaternium, and protein-based ingredients, are crucial for body washes, lotions, gels, creams, and multi-functional products. Active ingredients, including UV filters and antioxidants, are integral to addressing various skin concerns. Neem oil, known for its antibacterial properties, and Fish oil, rich in Omega-3 fatty acids, are popular active ingredients in skincare. Soybean and Guar gum serve as thickeners and stabilizers, ensuring the desired texture and consistency in personal care products. Certification bodies like the Soil Association play a vital role in ensuring ethical and sustainable production practices. Their involvement helps build consumer trust and reduces the risk of false labeling. As the market evolves, the focus on eco-friendly and clean labeling is increasing, with a growing emphasis on natural and organic ingredients. The Personal Care Ingredients Market is continually innovating to cater to diverse consumer needs. With a focus on addressing various skin concerns, such as aging, acne, and hyperpigmentation, the market is expected to grow significantly. The integration of advanced technologies, such as nanotechnology and biotechnology, is also driving market growth. In conclusion, the Personal Care Ingredients Market is a dynamic and evolving industry, driven by consumer preferences, regulatory requirements, and technological advancements. The use of active ingredients, raw materials, and specialty ingredients, along with certification bodies' involvement, ensures the production of high-quality, effective, and sustainable personal care products.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising demand for multifunctional personal care products is notably driving market growth. The market is experiencing significant growth due to the increasing demand for multifunctional cosmetic products. Consumers, particularly those with busy schedules and budget constraints, are increasingly opting for streamlined solutions that offer multiple benefits. This trend is evident in the growing popularity of beauty balm or blemish balm (BB) and color correcting or color control (CC) creams. In response to this market demand, competitors are focusing on developing personal care formulations with multiple active ingredients and creating new solutions for anti-aging, acne, and dark circles, as well as products tailored to men. Surfactants, such as sulfate-free anionic surfactants, remain essential ingredients in personal care products, providing cleansing and emulsifying properties. Emulsifiers and rheology modifiers, including both organic and inorganic varieties, enable the creation of viscosity and texture in various cosmetic products, from moisturizing lotions to concentrated shampoos. Emollients, another key ingredient type, provide skin-conditioning benefits, contributing to the overall skin care and moisturizing properties of personal care formulations. The clean beauty movement and growing health concerns have led to increased scrutiny of personal care products, with a focus on natural and mild ingredients. This shift has resulted in the use of natural alternatives to synthetic chemicals, such as solvent-based alternatives and milder surfactants.
However, there are concerns regarding the potential health risks associated with toxic wastes and skin irritation from some personal care ingredients, particularly petrochemical-derived ones. As a result, there is a growing emphasis on developing anti-microbial products and anti-aging solutions using safe, natural ingredients. In conclusion, the personal care ingredients market is driven by the increasing demand for multifunctional, natural, and safe cosmetic products. Competitors are focusing on developing innovative formulations that cater to this demand, using a variety of ingredients, including surfactants, rheology modifiers, emulsifiers, and emollients, to create high-performing, visually appealing, and health-conscious personal care products. Thus, such factors are driving the growth of the market during the forecast period.
The growing focus of companies on new product launches is the key trend in the market. In the dynamic personal care ingredients market, companies are prioritizing new product innovations to cater to emerging consumer preferences and stay competitive. This trend is fueled by the burgeoning popularity of personal care products among Millennials and the expanding awareness of their benefits. Manufacturers are investing substantially in research and development to create advanced ingredients, delivering enhanced features such as anti-aging, UV protection, and improved skin and hair health. For example, BASF unveiled Epispot in September 2023, a sustainably sourced cosmetic ingredient, designed to boost self-confidence for individuals with blemish-prone skin. This ingredient effectively addresses common skin concerns like shine, enlarged pores, and blemishes by addressing imbalances in lipids, microbiota, and the skin's natural defense system. The market for personal care ingredients is witnessing a shift towards milder, natural, and organic alternatives, driven by the clean beauty movement and health concerns.
Moreover, consumers are increasingly seeking multifunctional ingredients that offer multiple benefits, such as emollients, rheology modifiers, and emulsifiers. The demand for concentrated shampoos, premium cosmetics, and water-based products is on the rise, while there is growing apprehension regarding the health risks associated with petrochemical-derived ingredients and synthetic chemicals. In response, there is a demand for organic rheology modifiers, inorganic rheology modifiers, and other natural ingredients. The personal care industry is also witnessing a growing trend towards anti-microbial products and anti-aging solutions. The purchasing power of consumers and raw material prices significantly impact the personal care ingredients market. Viscosity plays a crucial role in the formulation of personal care products, with both water-based and solvent-based alternatives gaining popularity. Sulfate-free anionic surfactants are gaining traction due to their milder nature and reduced skin irritation. Skin care and hair care remain the largest application areas for personal care ingredients, with skincare accounting for the majority of the market share. The market is expected to grow steadily, driven by the increasing demand for moisturizing, skin-conditioning, and multifunctional ingredients. However, concerns regarding toxic wastes and the potential health risks associated with certain ingredients may pose challenges to market growth. Health forums and social media platforms are increasingly being used to raise awareness about these issues, adding to the pressure on manufacturers to adopt sustainable and safe production practices. Thus, such trends will shape the growth of the market during the forecast period.
Stringent government regulations on BPC products and their ingredients is the major challenge that affects the growth of the market. The global personal care ingredients market is characterized by the use of various types of ingredients, including surfactants, rheology modifiers, emulsifiers, and emollients, in the production of cosmetic products. Surfactants aid in the creation of lather and foam in cleansing products, while rheology modifiers adjust the viscosity and flow properties of personal care formulations. Emulsifiers help to blend oil and water-based ingredients, and emollients provide moisturizing and skin-conditioning benefits. However, the market faces challenges such as regulatory compliance and raw material prices. Toxic wastes from the production of synthetic chemicals used in personal care ingredients pose health risks, leading to the clean beauty movement's growing popularity. Consumers are increasingly demanding natural and organic ingredients, leading to the use of organic rheology modifiers and inorganic rheology modifiers in place of their synthetic counterparts.
Further, the purchasing power of consumers and the trend toward premium cosmetics have led to the development of multifunctional ingredients, concentrated shampoos, and anti-aging products. The cosmetics industry is also shifting towards milder ingredients, such as sulfate-free anionic surfactants, and solvent-based alternatives to water-based products. The use of anti-microbial products and natural ingredients is also on the rise, as health risks associated with synthetic chemicals become more apparent. Regulatory compliance is a significant challenge in the market, with regulations varying by region. For instance, the European Union's REACH regulation requires extensive testing and documentation to ensure the safety of chemical substances used in personal care products. In the US, the Food and Drug Administration (FDA) oversees cosmetic safety, but regulations are less stringent, requiring companies to ensure their products are not adulterated or misbranded. This process can be time-consuming and costly, particularly for smaller companies. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Ashland Inc. - The company offers personal care ingredients such as aquaflex xl-30 polymer, antaron soja glyceride, chronogen biofunctional, and others.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The personal care ingredients market encompasses a wide range of substances used in the production of cosmetics and skincare products. Surfactants, rheology modifiers, emulsifiers, and emollients are among the most commonly used ingredient types in this industry. Surfactants aid in creating foam and dispersing oils in water, while rheology modifiers control the viscosity of personal care formulations. Emulsifiers help in combining water and oil phases, and emollients provide skin-conditioning benefits. The market for personal care ingredients is driven by the increasing demand for cosmetic products, particularly in the skin care and hair care segments. Toxic wastes from the production of synthetic chemicals and health risks associated with petrochemical-derived ingredients have led to the clean beauty movement, which advocates for the use of natural and organic ingredients. The purchasing power of consumers and raw material prices significantly impact the personal care ingredients market. Organic rheology modifiers and inorganic rheology modifiers are gaining popularity due to their milder nature and reduced health risks. The market also sees a trend towards multifunctional ingredients, concentrated shampoos, premium cosmetics, and anti-aging products. Solvent-based alternatives and sulfate-free anionic surfactants are being explored as alternatives to synthetic chemicals. Anti-microbial products and water-based formulations are also in demand due to their effectiveness and mildness. However, skin irritation and toxicity remain concerns, leading to increased scrutiny on ingredient safety and transparency. Health forums and consumer awareness have played a significant role in shaping the personal care ingredients market, with a growing preference for natural ingredients and a focus on minimizing health risks. The market is expected to continue evolving, with a shift towards sustainable and eco-friendly practices and the development of innovative ingredients to cater to changing consumer preferences.
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Market Scope |
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Report Coverage |
Details |
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Page number |
232 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.2% |
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Market growth 2024-2028 |
USD 3.04 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.0 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 42% |
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Key countries |
US, China, Germany, France, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Ashland Inc., BASF SE, Clariant AG, Croda International Plc, Dow Inc., Evonik Industries AG, Givaudan SA, ICHIMARU PHARCOS Co. Ltd., Innospec Inc., Kobo Products Inc., Koninklijke DSM NV, Kraton Corp., Merck KGaA, Nouryon, SEPPIC SA, Solvay SA, Stepan Co., Symrise Group, The Lubrizol Corp., and Vantage Specialty Chemicals |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Product
9 Market Segmentation by Application
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
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