by The global Cosmetic Ingredients Market is estimated to be valued at US$ 1.99 Bn or billion 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 used in various types of personal care and beauty products for their functional benefits and appearance. These ingredients provide specific functions such as conditioning, cleansing, moisture retention, and anti-aging in cosmetic formulations. Commonly used cosmetic ingredients includes surfactants, emollients, moisturizers, sunscreen agents, preservatives, and antioxidants. Owing to their benefits, cosmetic ingredients are widely used in skin care, hair care, makeup, and fragrances. Consumers’ preference towards natural and organic cosmetic and personal care products has increased the demand for plant-based, herbal and mineral-based cosmetic ingredients resulting in their higher adoption among manufacturers.
Market key trends:
The rising consciousness regarding personal appearance has boosted the growth of the global cosmetic industry. This growing demand for cosmetic products is driving the cosmetic ingredients market. Growing demand for multifunctional cosmetic ingredients with anti-aging properties is another key trend in the market. The multifunctional ingredients serve the purpose of moisturization, sun protection, anti-aging in a single ingredient, thereby becoming popular choices among manufacturers. Furthermore, manufacturers are developing new methods for processing plant-based and herbal extracts that retain the biologically active compounds to cater to the demand for natural ingredients in cosmetic formulations. Growing online retail of cosmetic products owing to technological advancements and increasing internet penetration is also creating new opportunities over the forecast period.
Porter’s Analysis
Threat of new entrants: The global cosmetics ingredients market has moderate barriers of entry due to stringent regulations for product safety and manufacturing standards. Entering the market involves high capital investment for R&D, manufacturing and marketing.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives. However, regulatory compliance and proprietary ingredients provide some differentiation power to ingredient suppliers.
Bargaining power of suppliers: Suppliers have high bargaining power owing to differentiated and proprietary ingredients, intellectual property and patents held by major players. This gives them pricing leverage over buyers.
Threat of new substitutes: Threat of substitutes is low as cosmetics ingredients are highly customized for formulations with established safety profiles. Significant R&D is required to develop new substitutes meeting stringent norms.
Competitive rivalry: Competition is high among global players. Major players differentiate through continuous R&D to develop novel ingredients meeting evolving consumer demands and regulatory guidelines.
Key Takeaways
The global cosmetic ingredients market is expected to witness high growth, exhibiting CAGR of 5.2% over the forecast period 2023-2030, due to increasing consumer awareness about beauty and personal care products.
North America dominated the market in 2023, attributed to high personal care expenditure and presence of leading global players in the region. Asia Pacific is expected to be the fastest growing market during the forecast period, led by booming cosmetics industry in countries like China, India as a result of growing middle-class population and improving living standards.
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 are focusing on new product launches and expansion in emerging regions through strategic partnerships to garner higher market share.
