Personal Care Active Ingredient Market Outlook (2024 to 2034)
Increasing at a CAGR of 5.1%, the global personal care active ingredient market size is estimated to increase from a valuation of US$ 2.09 billion in 2024 to US$ 3.44 billion by 2034.
Sales of personal care products for skin lightening, hair care, sun care, and anti-inflammatory applications are set to increase at a healthy pace during the next 10 years. The shift of consumers from chemical-based components to botanical extracts is due to the evolvement of product formulations, increasing research and development activities across the world, and nascent consumer awareness about combinations of botanicals and other active ingredients.
- Short Term Viewpoint (2024 to 2027): More people inclining toward using botanical dietary supplements and plant-based active ingredients set to positively influence product sales growth.
- Medium Term Aspect (2027 to 2030): Germany and China are anticipated to exhibit high demand for active ingredients. Widespread application of the product in the cosmetic sector is set to boost demand for personal care active ingredients.
- Long Term (2030 to 2034): In the long term, sales of personal care active ingredients are expected to be influenced by rising number of research and development activities.
Personal care product brand owners opted for omni-channel retailing with top-selling products were made available in offline as well as online retail SKUs (stock keeping units). To express consumer awareness into revenues, companies also channelized marketing budgets across several channels, which previously were centered on legacy marketing mechanisms. More and more consumers are willing to pay for personal care products that are backed by scientific evidence.
Personal care active ingredients have a large number of applications that are set to augment the market growth. They are specifically used for producing anti-aging products. Some examples of active ingredients include antioxidants such as vitamin A, vitamin C, and vitamin E.
Apart from this, advancement in the availability of active substances and smooth supply chain operations of botanical raw materials and extracts is also boosting the market growth for active ingredient products.
- The North American personal care active ingredient market size is forecasted to reach US$ 603.6 million by 2034.
- East Asia is estimated to hold 22.3% of the global personal care active ingredient market share in 2024.
| Report Attributes |
Details |
| Personal Care Active Ingredient Size (2024E) |
US$ 2.09 Billion |
| Forecasted Market Value (2034F) |
US$ 3.44 Billion |
| Global Market Growth Rate (2024 to 2034) |
5.1% CAGR |
| South Korea Market Value (2034F) |
US$ 117.9 Million |
| Key Companies Profiled |
BASF SE; DSM; DOW; Evonik Industries AG; Givaudan; BERKEM; BGG; LipoTrue; Tishcon Corporation; Vantage Specialty Ingredients Inc.; Lucas Meyer Cosmetics; Nouryon; Provital Group; Clariant AG; GREENTECH; Kyowa Hakko U.S.A. Inc.; Symrise AG |
Which Personal Care Active Ingredient Market Trends are Leading Companies Cashing in On?
“Successful Research Outcomes Driving Use of Active Ingredients in Skincare Products”
Choosing the right ingredient or product with lesser side effects can be a significant task. The inclination of consumers towards these ingredients is due to their scientifically proven benefits for the skin. Too many skincare brands have penetrated into the market right from the plant-based ones to chemical formulations. Some of the majorly used active ingredients in cosmetics include Aincluderoxy acid, vitamin C as an anti-oxidant, hyaluronic acid, retinol, Niacin amide, and vitamin E.
These skincare ingredients are found to be very benign for the treatment of variety of skin diseases and problems such as acne, redness and irritation, sunburn, clogged pores, skin burnouts, dryness and itching. Active ingredients balance out the ceramide ratio of the skin and act as a protective barrier against several bacterial infections. These compounds are present in the product in a modified form. Apart from this, ongoing research and development activities across different regions can be considered as a key growth factor.
“Growing Demand for Clean-Label and Natural Products Set to Increase Consumption of Bio-based Ingredients”
Growing popularity of herbal or bio-based products is expected to boost the consumption of natural active ingredients. Customers are more interested in cosmetics produced using bio-based ingredients such as vitamins and derivatives. Rising awareness about harmful synthetic ingredients is expected to boost the consumption of natural ingredients, leading to overall market growth.
What Issues are Expected to Lower Consumption of Active Ingredients?
“Some Uncertain Formulations Deterring Application of Active Ingredients”
There are certain environmental concerns regarding the use of toxic elements in personal care products. Certain formulations can trigger hormonal imbalances, allergies, and even skin cancer. Such aspects may hamper the personal care active ingredient market growth to some extent. Fluctuations in raw material price are also expected to hinder the sales of personal care active ingredients. Furthermore, strict government regulations on the use of ingredients in personal care products are also expected to affect the market growth.
Start-up Ecosystem
“New Companies Leveraging Natural Ingredients and Sustainable Manufacturing Practices to Attract Eco-friendly Consumers”
- Estonia-based start-up Ari, founded in 2021, focuses on eco-friendly manufacturing of refillable personal care products. It uses organic powder-based formulas for the production of hand wash, gel-based body wash, face cleanser, shampoo, and conditioner.
- Trishveda Naturals, an Indian start-up, is using modern technology to produce personal care products using upcycled and natural raw materials. This company also utilizes green chemistry, biochemistry, and biotechnology for production of personal care products.
Country-wise Analysis
North America and Europe are big markets for personal care active ingredient suppliers due to high awareness about self-care and grooming. Furthermore, Asia Pacific is expected to be a fastest growing market for personal care active ingredients.
According to Fact.MR, a market research and competitive intelligence provider, North America is anticipated to account for 17.5% of the global market share by 2034.
What is the Sales Outlook for Personal Care Active Ingredients in the United States?
“High Importance of Skincare Increasing Demand for Bio-based Products”
| Attribute |
United States |
| Market Value (2024E) |
US$ 324.8 Million |
| Growth Rate (2024 to 2034) |
3.2% CAGR |
| Projected Value (2034F) |
US$ 443.7 Million |
The United States is the big market for skin and hair care products, particularly male being the top consumers. This can be due the rising awareness about the importance of personal care. The health and safety concerns are further driving the demand for personal care products manufactured using natural ingredients.
Why is Germany Emerging as a Lucrative Market for Active Ingredients?
“Organic Personal Care Products Widely Consumed by Germans”
Germany leads the cosmetics and beauty market in Europe. Germany’s cosmetic and beauty industry is witnessing increasing demand for anti-aging and organic skin care products. Increasing awareness of synthetic ingredient use is driving the attention of German consumers towards organic cosmetic products. Thus, Germany is projected to be the most lucrative market for personal care active ingredient producers.
How Fast are Sales of Active Ingredients Increasing in Japan?
“Trend to Look Good Driving Sales Active Beauty Ingredients”
| Attribute |
Japan |
| Market Value (2024E) |
US$ 146.4 Million |
| Growth Rate (2024 to 2034) |
5.3% CAGR |
| Projected Value (2034F) |
US$ 244.4 Million |
Japan is emerging as one of the productive markets for personal care active ingredient in East Asia. The centralization of key cosmetics and beauty companies in Japan is providing consumers with a variety of products to choose from. Also, the craze to look young among Japanese consumers is set to offer high-growth opportunities for personal care active ingredient manufacturers.
Category-wise Analysis
Bioactive peptides are widely is used to enhance the skin health and beauty. The growing popularity of proteins and peptides in skincare are further boosting their sales growth.
Which Type of Active Ingredient is Widely Used in Personal Care Products?
“Multifaceted Features of Proteins and Peptides Driving Use in Skincare Products”
| Attribute |
Proteins & Peptides |
| Segment Value (2024E) |
US$ 453.1 Million |
| Growth Rate (2024 to 2034) |
5.2% CAGR |
| Projected Value (2034F) |
US$ 752 Million |
Peptides being a chain of amino acids provide protein to skin such as collagen and elastin. They are widely used in skincare product to reduce inflammation, wrinkles, and for even tone skin. Peptides also called as polypeptides aids to look younger. Collagen can help to plump lips and skin which further aids in wrinkle reduction.
What’s Driving Application of Active Ingredients in Hair Care Products?
“Rising Concerns Related to Hair Loss Boosting Demand for Active Ingredient-Based Hair Care Solutions”
| Attribute |
Hair Care |
| Segment Value (2024E) |
US$ 610.4 Million |
| Growth Rate (2024 to 2034) |
4.2% CAGR |
| Projected Value (2034F) |
US$ 921 Million |
Use of active ingredients in hair care products is increasing due to growing awareness of hair health and rising concerns related to hair loss. The desire for effective and personalized hair care products is increasing the use of active ingredients in hair care solutions. Hair loss, frizziness, dandruff, and dryness are some of the other factors driving demand for active ingredient-based hair care products.
Competitive Landscape
Key players in the personal care active ingredient market are focused on their regional expansion through merger and acquisition activities.
- In 2020, Evonik acquired a biotechnology firm innovativeHealth Group. Through this move Evonik is set to expand its novel dermo-cosmetic product folio.
Leading companies are also investing heavily in research and development activities. The main reason behind this tactic is to offer superior quality products.
- In June 2020, Croda launched a new product KeraMatch V, a vegan substitute for animal-derived keratin.
