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The cosmetic ingredients market size is forecast to increase by USD 5.8 billion at a CAGR of 7.76% between 2023 and 2028. The market is experiencing significant growth, driven by several key trends and challenges. The increasing demand for natural and organic cosmetic ingredients is a major growth factor, as consumers become more health-conscious and seek products free from synthetic additives. Additionally, the growing prominence of clean labeling in cosmetic formulations is influencing manufacturers to use simpler, more recognizable ingredients. However, stringent regulations governing the use of certain ingredients, particularly those with potential health risks, pose challenges to market growth. Compliance with these regulations requires significant investment in research and development, as well as adherence to strict manufacturing standards. Overall, the market is expected to continue expanding, driven by these trends and challenges, as consumers seek high-quality, natural, and transparent cosmetic products.
The market is witnessing significant growth due to increasing demand for body lotions, eyeliners, lipsticks, moisturizers, and various other skincare and body care products. Water, preservatives, emulsifiers, thickeners, lubricants, pigments, perfumes, and natural sources such as plants are the key ingredients used in the production of these cosmetics. Preservatives ensure the safety and longevity of cosmetic products, while emulsifiers help in maintaining the uniform mixture of water and oil-based ingredients. Thickeners provide texture and appearance to the products, while lubricants enhance their application. Pigments add color to cosmetics, and perfumes provide fragrance. Anti-oxidant and anti-inflammatory properties are in high demand in cosmetic ingredients due to consumer awareness and urbanization leading to increased pollution levels.
Moreover, the natural cosmetic ingredients derived from plants are gaining popularity in the market due to the growing trend towards green cosmetics. However, the use of dangerous chemicals in cosmetics has raised concerns among consumers, leading to a shift towards natural and organic ingredients. The market for oral care products, including toothpaste, is also growing due to increasing awareness of oral hygiene. Overall, the market is expected to grow significantly due to the increasing demand for various cosmetic and personal care products.
The market research 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. The market encompasses a wide range of products, including body lotions, moisturizers, lipsticks, and eyeliners. Water serves as a primary component in various cosmetic formulations, while preservatives, emulsifiers, thickeners, lubricants, pigments, and perfumes play crucial roles in enhancing texture, appearance, and sensory qualities. Natural sources, such as plants, are increasingly being utilized for their anti-inflammatory and antioxidant properties. Consumer awareness and urbanization have led to a growing demand for green cosmetics, free from dangerous chemicals like sodium lauryl sulfate and propylene glycol. Methyl parabens and other synthetic preservatives have raised concerns due to their potentially hazardous effects, including links to cancer and chapped skin.
Moreover, in response, the market is witnessing a shift towards natural cosmetic ingredients, such as vitamins, fatty acids, and antioxidants derived from natural sources. Skincare and body care products, including moisturizers and body lotions, dominate the market. Oral care products, such as toothpaste and gels, also rely on a variety of ingredients, including thickeners for texture and anti-inflammatory agents to combat periodontal disease. The cosmetic industry continues to innovate, with research focusing on developing safer, more effective, and eco-friendly ingredients.
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The surfactants segment was valued at USD 4.23 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market encompasses a wide range of substances used in the production of various personal care products. These include plant extracts, which offer numerous health benefits due to their antioxidant and anti-inflammatory properties. Starch, a common thickening agent, extends the shelf life of cosmetics by preventing separation and settling. Emollients, such as face washes and sunscreens, soften and soothe the skin, while face masks, serums, or oils provide intensive nourishment. Alpha hydroxy acids and beta hydroxy acids are exfoliating agents that help address skin problems like acne, while retinol and hydroquinone target aging and hyperpigmentation. Copper peptides and kojic acid are other active ingredients used to combat skin issues, including hair loss, split ends, dandruff, and premature greying. The use of these ingredients continues to evolve, driven by consumer demand for effective, natural, and health-conscious solutions.
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.
Growing demand for natural and organic cosmetic ingredients is the key driver of the market. The cosmetics industry has witnessed a notable shift towards natural and organic ingredients in recent years. Consumers are increasingly conscious of the potential hazardous effects of synthetic ingredients, particularly in long-term use. Established cosmetic ingredient suppliers, such as BASF SE and Croda International Plc, are responding by expanding their offerings of natural ingredients. This trend is reflected in the growing popularity of natural cosmetics, which include body lotions, eyeliners, lipsticks, moisturizers, and other skincare and body care products. These items often contain natural sources like plants, vitamins, fatty acids, and antioxidants, as well as extracts from aloe vera, sunflower, carrot seed, jojoba, and other natural ingredients.
Moreover, natural cosmetics also include thickeners like clay, and pigments derived from plants. Additionally, oral care products, such as toothpaste and gels, are incorporating natural ingredients to combat periodontal disease and maintain oral health. Natural ingredients offer benefits like anti-inflammatory and anti-oxidant properties, improving texture, appearance, and moisture retention, while reducing the risk of chapped skin and potentially hazardous effects associated with chemicals like sodium lauryl sulfate, propylene glycol, methyl, and other synthetic additives.
The growing prominence of clean labeling in cosmetic formulations is the upcoming trend in the market. The cosmetics industry is witnessing a shift towards the use of natural and organic ingredients, driven by growing consumer awareness and concerns regarding the hazardous effects of certain synthetic chemicals. This trend is particularly prominent in the production of body lotions, moisturizers, lipsticks, and eyeliners. Natural sources, such as plants, are increasingly being used as alternatives to synthetic preservatives, emulsifiers, thickeners, lubricants, pigments, and perfumes. Key players in The market, including Koninklijke DSM NV and BASF SE, are expanding their portfolios to cater to this demand. Natural ingredients, such as vitamins, fatty acids, antioxidants, and antimicrobial agents derived from plants, are being used to enhance the texture, appearance, and functionality of cosmetic products.
Moreover, the rise of urbanization and increasing disposable income have led to an increase in demand for skincare, body care, and oral care products. However, the use of dangerous chemicals, such as sodium lauryl sulfate, propylene glycol, methyl parabens, and synthetic fragrances, has raised concerns regarding their potential hazardous effects, including cancer and chapped skin. As a result, there is a growing emphasis on the use of natural and safe ingredients, such as natural antioxidants and anti-inflammatory agents, in cosmetics. Green cosmetics, which prioritize the use of natural and sustainable ingredients, are gaining popularity. This trend is particularly prominent in the production of periodontal disease-fighting toothpaste gels, which use natural antimicrobial agents instead of harsh synthetic chemicals.
Overall, The market is expected to grow significantly in the coming years, driven by the increasing demand for natural and sustainable ingredients and the growing awareness of the potential hazards of synthetic chemicals.
Stringent regulations is a key challenge affecting the market growth. The market encompasses a wide range of elements used in the production of various cosmetic products, including body lotions, eyeliners, lipsticks, moisturizers, and more. Water, preservatives, emulsifiers, thickeners, lubricants, pigments, perfumes, and natural sources such as plants are among the key ingredients. Natural cosmetic ingredients, derived from natural sources, are gaining popularity due to consumer awareness and the shift towards green cosmetics. However, some dangerous chemicals, such as sodium lauryl sulfate, propylene glycol, methyl, and certain vitamins and fatty acids, have raised concerns due to their potential hazardous effects, including cancer and chapped skin. Regulatory bodies, such as the US Food and Drug Administration (FDA), ensure the safety of cosmetic ingredients through stringent regulations.
However, the FDA regulates the production, handling, and labeling of cosmetics, including organic cosmetics, under the Food, Drug and Cosmetic Act (FDCA). The labeling standards for organic cosmetics are based on the percentage of organic ingredients in a product. Other skincare, body care, and oral care products, such as toothpaste and gels, also utilize these ingredients for their thickening, moisturizing, texture, and appearance enhancing properties. Periodontal disease and other oral health issues have led to the use of certain cosmetic ingredients, such as antioxidants and anti-inflammatory agents, in toothpaste and other oral care products.
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.
Alfa Chemicals Ltd. - The company is committed to providing high-quality ingredients for the cosmetics industry. With a deep understanding of consumer preferences and regulatory requirements, the company ensures that our offerings meet the highest standards.
The market research and growth report 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 market encompasses a wide range of substances used in the production of various cosmetic products, including body lotions, eyeliners, lipsticks, moisturizers, and more. Key ingredients include water, preservatives, emulsifiers, thickeners, lubricants, pigments, perfumes, and natural sources such as plants and their extracts. Natural cosmetic ingredients are gaining popularity due to consumer awareness and the desire for safer, more sustainable options. Anti-oxidant and anti-inflammatory ingredients, such as vitamins and fatty acids, are essential for skincare products, helping to protect against environmental damage and improve texture and appearance. In contrast, dangerous chemicals like sodium lauryl sulfate and propylene glycol have raised concerns due to their potentially hazardous effects, including links to cancer and chapped skin.
Moreover, urbanization and the increasing demand for body care, oral care, and personal hygiene products have driven market growth. Green cosmetics, which use natural and organic ingredients, are a growing segment, with an emphasis on avoiding harmful chemicals and promoting sustainable practices. Thickeners and gels are crucial for toothpaste and periodontal disease treatment, while pigments and perfumes add color and fragrance to lipsticks, eyeliners, and other cosmetics.
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Market Scope |
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Report Coverage |
Details |
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Page number |
196 |
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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 7.76% |
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Market Growth 2024-2028 |
USD 5.8 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.05 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 40% |
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Key countries |
France, Singapore, South Korea, Japan, and US |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alfa Chemicals Ltd., Ashland Inc., Aston Chemicals Ltd., BASF SE, Clariant International Ltd., Croda International Plc, Dow Chemical Co., Eastman Chemical Co., Evonik Industries AG, Givaudan SA, J M Huber Corp., Koninklijke DSM NV, Lonza Group Ltd., Lucas Meyer Cosmetics, Nouryon Chemicals Holding BV, Pharmacos India, Solvay SA, Symrise AG, The Estee Lauder Companies Inc., and Wacker Chemie AG |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market 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 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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