Cosmetic Chemicals Market - Forecasts from 2024 to 2029

Cosmetic Chemicals Market - Forecasts from 2024 to 2029

The cosmetic chemicals market is expected to grow at a CAGR of 4.01%, reaching a market size of US$ 37.042 billion in 2029 from US$29.937 billion in 2024.

Originally synthesized, cosmetic chemicals are a combination of various chemicals. Personal care and cosmetic products mostly have these substances. Cosmetic products contain ingredients such as synthetic dyes, surfactants, rheology control chemicals, emulsifiers, emollients, and preservatives. They can emerge naturally or artificially. Additionally, natural products like petroleum or bio-based ingredients are the source of synthetic chemicals. However because they are produced using a complicated process that involves derived reagents and catalysts, these chemicals are referred to as synthetic. Plant, mineral, animal, and microbial products are examples of natural products.

The industry is divided into groups based on ongoing efforts to innovate products through research and development. The goal of market participants is to acquire sustainable formulations devoid of artificial additives and derived from natural ingredients. The speciality chemical manufacturer Elevance Renewable Sciences, Inc. creates and sells emollients made from plant-based products that are formulated using patented technology for use in skin lotions and cosmetics.

Cosmetic Chemicals Market Drivers:

Rising demand for organic-grade cosmetic chemicals

There is a high demand for organic grade cosmetic chemicals because people want their cosmetics made from natural ingredients, not artificial ones, and also because more research is being carried out on product improvement. Besides, the increasing need for high-end cosmetics is caused by increased concerns about clean and clear skin, good looks in general, ageing spots, and balding happening together with different hairdressing styles. Most men and women are increasingly interested in cosmetic items. Based on the impressive recovery seen in the latter part of 2020, there was significant growth in the global cosmetics industry despite a major supply challenge, as indicated by L'Oréal S.A., driven by strong consumer demand. This is further helped by the increasing growth in household disposable incomes in the developing countries. Furthermore, a rise in cosmetics manufacturers' advertising and commercialization spending on luxury personal grooming, skincare, haircare, and beauty treatments would boost cosmetic chemical sales.
Increasing use of emollients for skincare.

Emollients are essential for soothing the skin and keeping it hydrated. They are used in various personal care and cosmetic products, such as body lotions, moisturizers, skin creams, lipsticks, etc., which contribute to the market's growth. Both natural and synthetic forms of these emollients exist. Olive oil, coconut oil, beeswax, and lanolin are common emollients, as are petroleum jelly, mineral oil, glycerin, zinc oxide, etc.
Rising demand for skincare among individuals.

The increasing demand for skin care products globally is because the number of young people is growing; subjects with higher buying power among town-dwelling families. In addition, people are more likely to choose a finer way of living. The industry shows an alteration in preference by moving from old age-consuming individuals to those approaching adulthood. People are becoming more self-aware of themselves, and as a result, they are beginning to use skin care products at a younger age to prevent the indications of ageing. Due to the continued growth of the skin care sector, several smaller manufacturers have entered the market to take advantage of the lucrative opportunities. Throughout the projected period, such positive factors will likely accelerate the market for skin care products and, thus, the demand for cosmetic chemicals.

Cosmetic Chemicals Market Restraint:

Stringent rules and regulations

Government regulations that halt the use of hazardous chemicals and rising consumer demand for natural products made from organic materials hinder the global market growth for cosmetic chemicals. Besides, limits on the possibility of dangerous tendencies such as cancer, genetic anomalies, malformation, or, even more complexly, heredity that might be imposed by certain chemical substances will also prevent the cosmetics industry’s expansion.

Cosmetic Chemicals Market Geographical Outlook
North America is expected to take the lead in terms of market share

The primary factor driving the demand for cosmetic chemicals in the area is their use in the production of organic personal care products. The primary drivers of the cosmetic chemicals market in the region have been rising R&D expenditures from manufacturers and related technological advancements in the domains of ingredient processing and economically viable production of organic personal care products. This trend is anticipated to persist throughout the forecast period.

The biggest market in the area for cosmetic chemicals is the United States. Rather than treating health and beauty products as separate categories within the personal care industry, manufacturers in the nation are embracing an integrated approach. They are therefore becoming more open to ideas that relate the efficacy of beauty products to technological advancements in the biotechnology and health sectors. Several industry participants are concentrating on promoting the entry of food, biotechnology, and pharmaceutical companies into the beauty market, which will lead to the introduction of technologically sophisticated ingredients.

Cosmetic Chemicals Market Developments:

In September 2023, BASF Personal Care released an ingredient for cosmetics obtained from sustainable sources; it increases the attractiveness and enhances the self-esteem of people with oily or spotty skin. According to statistics, this affects people of all races worldwide, women and men alike. The signs range from pimples and inflammation to greasy epidermis and big open pores.
In March 2023, Dow showcased its most recent inventive ingredients (booth N90). The ECOllaboration 2.0 Concepts Collection, one of the biggest portfolios in the personal care sector that emphasizes high-performance and sustainable solutions, is being celebrated with the launch of new products. The most recent product releases cover a variety of beauty care uses, such as colour cosmetics, skincare, hair care, and sun protection. The ECOllaboration 2.0 Concepts Collection highlights Dow's dedication to providing innovative, bio-based ingredients with inspiring formulations and trailblazing formats. These products, which have a minimum of 90% natural origin content, are made with a clear focus on inclusivity and diversity. The collection emphasizes beauty accessibility while embracing timeless, gender-neutral items.
In April 2022, Symrise announced the launch of Hydrolite 8 Green, an eco-friendly multipurpose cosmetic caprylyl glycol that is 100 per cent bio-based. It was created using proprietary technology. The high-purity USDA Biobased, COSMOS, and NaTrue-approved neat ingredients perform well with natural and traditional cosmetic formulations.

Cosmetic Chemicals Key Market Segmentation:

Cosmetic chemicals Market is segmented and analyzed as below:

By Product

Surfactants
Emollients
Preservatives
Thickening Agents
Additives
Polymers
Powders, Colorants, and Pigments
Others

By Application

Skin Care
Hair Care
Makeup
Perfumes and Fragrances
Oral Care
Others

By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
United Kingdom
Germany
France
Italy
Spain
Others
Middle East and Africa
Saudi Arabia
Israel
Others
Asia Pacific
China
Japan
India
South Korea
Indonesia
Thailand
Taiwan
Others