Emollient Market

Sales of Emollients to Plummet, on Back of Supply Chain Disruptions amid COVID-19 Pandemic

Demand for emollients has been marginally impacted as governments world over are locking down to contain spread of coronavirus. However, significant impact will faced on the supply side of the value chain owing to supply chain disruptions. With unprecedented lockdowns people are facing a shortage of supply due to lack of trade permits, as countries are focusing on essential items, thus halting shipments in ports and warehouses. However, the conditions are likely to ease in countries like China where the pandemic originated. The country has shown sign of recovery and manufacturing has started in some parts.

Emollient Market will Exhibit Surge in Demand for Fatty Solutions

Fatty acids and fatty alcohol account for nearly 1/3rd of the emollient market owing to a significant demand for creams and lotions which is expected to grow in the coming decade. In developed countries like United States, Canada and Europe the fatty alcohol market is expected to grow at a CAGR of nearly 5% during the forecasted period.

However, fatty acid market will grow by 2X in United States during the forecasted period owing, to the high demand for skin hydrates, as 60% of the population suffers from skin sensitiveness.

Untapped Sales Opportunities for Semi-solid Emollients across Globe

A surge in demand for ointments for medical usage and cosmetics has boosted the demand for semi-solid emollients, which account for nearly 1/3rd of the global emollient demand. These emollients are expected to grow at a CAGR of nearly 5% during the forecasted period.

APEJ is anticipated to remain a significant market for semi-solid emollients. However the market is expected grow by 2X in Japan during the forecasted period, owing to high demand for cosmetics in the country. While, MEA will be among the top contributors for the market of semi-solid emollients owing to rising personal care demand from GCC countries.

Besides, the covid-19 effect is quite low in the emerging markets suggesting that the demand will be significant amid covid-19 pandemic. However, top manufactures are from developed countries and this might affect supply of emollients in the present crisis.

Emerging Countries to Create Notable Opportunities for Marketers

Emergence of cosmetic industry and personal care industry has a notable impact on rising demand for emollients in markets like, India, China, South Africa and several others. APEJ consists of nearly 27% of the global emollient market demand and is expected to grow at a CAGR of nearly 5%. Key players are focusing on multiple novel solutions through innovative product launches, to capture a significant portion of market share in these countries.

Market Leaders Trying To Prolong Growth Stage of Product Life Cycle with Product Launches and Acquisitions

Key players are trying to keep pace with the evolving market landscape through technological solutions and strategic product launches & acquisitions. However, emerging players are focusing on innovation in order to maintain their market share and to compete with established players.

• In January 2020, BASF SE launched a new product named Hydagen, Hydrasensyl and Inolixir showcasing multiple range of active ingredients in order to demonstrate makeup products with skincare benefits.
• In August 2018, SOLVAY entered into a strategic partnership with Deinove SA to expand its footprint by commercializing innovative skincare products starting with ReGeN-oPhyt.
• In 2019, STEPAN launched STEPAN-MILD, all-in-one naturally-derived ingredient with all variants like scrubs
• In 2020, STEPAN is expected to launch three new skincare products in the market by June.

COVID-19 Impact Insights

In 2003, due to outbreak of SARS, cosmetic industry was badly affected across glob. However, demand for cosmetic products ensued once the situation recovered. Similarly, if covid-19 effect on the global supply chain is severe, it will lead to a fall in demand due to lockdown in countries of Europe where emollients witness high sales.

The demand is expected to rise significantly once the lockdown is lifted. This might affect the market for first quarter under optimistic scenario. While, under probabilistic scenario the lockdown will impact demand for emollient market for first two quarters, owing to a consumer shift for essential products. Moreover, impact of covid-19 will be lower in MEA and South Asian market as the virus has not majorly impacted these markets.

Emollient Market: Segmentation

FactMR’s study has done the segmentation of market on the basis of form, chemical type, application, and region

• By Form :

  • Solid
  • Semi-solid
  • Liquid
  • Power/ Flakes

• By Chemical Type :

  • Ester
  • Fatty Alcohols
  • Fatty Acids
  • Ether
  • Silicones
  • Hydrocarbons

• By Application :

  • Skin Care
  • Hair Care
  • Oral Care
  • Fragrances
  • Toiletries
  • Cosmetics

• By Regions :

  • North America
  • Latin America
  • Europe
  • Japan
  • APEJ
  • MEA