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I AgreeAnalysis of Cosmetic Chemicals market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Sales of cosmetic chemicals exceeded US$ 21 Billion by 2021. As of 2022, the market is poised to experience a Y-o-Y growth rate worth 4.7% in 2022, reaching US$ 22 Billion.
Overall, cosmetic chemical sales are expected to be US$ 39.4 Billion by 2032, growing approximately 1.8x throughout the evaluation period. Cosmetic chemicals for skincare and hair care products account for more than 30% of global demand.
Report Attributes |
Details |
Anticipated Base Year Value (2021) |
US$ 21 Billion |
Expected Market Value (2022) |
US$ 22 Billion |
Projected Forecast Value (2032) |
US$ 39.4 Billion |
Global Growth Rate (2022-2032) |
6% CAGR |
Growth Rate of the U.S (2022-2032) |
5.8% CAGR |
Expected Market Value of China (2032) |
US$ 7 Billion |
Key Cosmetic Chemicals Service Providers |
|
Globally, almost 1500 chemical entities have been identified as cosmetic compounds. Thickening agents, carrier powders, colorants, pigments, surfactants, preservatives, emollients, film formers, and moisturizers are some of the typical compounds used in cosmetics.
Because a vast number of suppliers supply a varied variety of inorganic and organic chemicals, which are needed components in the cosmetic business, the cosmetic sector is fragmented. Nonetheless, twenty or more significant worldwide businesses control a sizable percentage of the cosmetic chemicals commerce in the market.
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The analysis of cosmetic chemical demand from 2015 to 2021 showed a historical growth rate of less than 5% CAGR, with general expansion of the cosmetics & personal care industry driving growth as consumers increased spending amid rising disposable incomes.
In 2020, the market was worth approximately US$ 20 Billion, and it is expected to be worth slightly more than US$ 21 Billion by 2021. Initial recessionary downturns brought on by the COVID-19 pandemic in the form of lower cosmetic sales, store closures, and manufacturing cycle interruptions momentarily halted growth hopes.
However, since infection curves have flattened from 2022, industrial production activity in important markets have restarted. As a result, Fact.MR's cosmetic chemicals demand projection predicts a CAGR of 6% by 2032.
Thriving Global Beauty Industry is Catalyzing the Increase in Demand for Cosmetic Chemicals
The worldwide cosmetics sector is experiencing substantial growth, increasing at a rapid pace across numerous areas. With a market worth of approximately US$ 400 billion in 2019, the sector has experienced various fruitful advances, ranging from the introduction of organic beauty products to the inclusion of smart technologies across the supply chain.
Furthermore, when disposable income increases, people are more likely to spend on beauty and personal care. This tendency is becoming more visible in a number of rising economies, primarily in Asia, Africa, and Latin America. This rise in cosmetics appeal is broadening the outlook for cosmetic chemicals in the future.
Rising Environmental Concerns Open the Door for Future Cosmetic Chemical Adoption
According to Fact.MR’s cosmetic chemicals industry study, the worldwide landscape is defined by ongoing R&D activity connected to product innovation. Key manufacturers are prioritizing the use of environmentally friendly formulations generated from natural materials.
These natural raw materials include no artificial additives, which are predicted to be the USP of all prominent cosmetic chemical makers in the next years. Cosmetic firms ensure that ingredient lists reassure customers about the absence of dangerous substances as consumers seek greater brand openness.
Extensive Compliance Requirements Cosmetic Chemical Suppliers' Expansion Prospects Are Restricted
Despite progress, cosmetic chemical sales are expected to face substantial barriers in the future. Individual countries' compliance with stringent regulatory standards is a key development constraint.
For example, while China looks to be a promising market, their rules are constantly changing, making it tough for manufacturers to stay up. Registration processes might get cumbersome at times.
China, like other nations, only authorizes the sale of items that have been deemed safe for use. This permission frequently takes a long period, restricting expansion opportunities.
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The Ever-Expanding Diversity in the Beauty and Personal Care Business is a Significant Growth Catalyst
As of 2021, an analysis of the cosmetic chemicals landscape in the United States anticipated a value share of over US$ 6 Billion. The ever-expanding diversity in the beauty and personal care market is credited with being the key growth driver for cosmetic chemicals across the country.
Growing transparency standards for ingredient labeling are a prominent trend in the US cosmetics business. According to Yeildify, clean beauty has been gaining traction in the business since 2018. With the FDA Ban 11 limiting the use of synthetic compounds like as bithinol and chloroform, businesses are progressively adopting eco-friendly materials, resulting in increased manufacture of organic cosmetic chemicals on a big scale.
Consumer Spending on Cosmetics is growing, which is Fueling Industry Expansion
Insights into the Chinese cosmetic chemicals industry indicate a market size of over US$ 7 Billion by 2032, rising at a CAGR of 5.7%. According to the National Bureau of Statistics, China's cosmetics business is one of the most opportunistic in the world, with retail sales increasing 4.2% year on year.
According to its predictions, cosmetics retail for H1 2019 climbed by more than 13% year on year, owing mostly to increasing cosmetics expenditure by consumers amid rising disposable income. As a result, big firms are establishing bases throughout China. This trend is driving the development of high-quality, ecologically friendly, and safe cosmetic chemicals, which are being closely scrutinized by various domestic regulatory bodies.
Country-wise Forecast CAGRs in the Cosmetic Chemicals Market
U.S |
5.8% |
U.K |
5% |
China |
5.7% |
Japan |
4.5% |
South Korea |
4.6% |
Growing Popularity of Organic Products among Consumers to be Top Growth Driver in the Coming Years
According to Fact.MR, According to a cosmetic chemicals industry survey, hair care and skincare applications make for the majority of total demand, accounting for more than 30% of revenue in 2022. This segment's CAGR is expected to be around 5% during the next decade.
In recent years, rising demand for face creams, body lotions, sunscreens, shampoos, conditioners, and other hair care products has fueled the use of advanced grade cosmetic chemicals. Consumers are increasingly gravitating toward organic items as they become more concerned about the environment.
Emollients, Film-Formers, and Moisturizers to Account for the Lion’s Share
According to Fact.MR's cosmetic chemicals market study, film-formers, moisturizers and emollients are predicted to grow at a CAGR of more than 6% to reach roughly US$ 11 Billion by 2032. Sales are powerful because of their moisture retention characteristics, which soften the skin.
Emollients, film-formers, and moisturizers are commonly found in body lotions, face creams, skin moisturizers, and lipsticks. These emollients are accessible in both natural and synthetic versions on the market. Olive oil, coconut oil, beeswax, and lanolin are examples of these.
Prominent participants in the cosmetic chemicals industry place a strong emphasis on creating innovative product offers, particularly skincare products derived from organic and inorganic components. They also engage in mergers and acquisitions and collaborations while obtaining regulatory permissions.
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As of 2021, Fact.MR estimated the cosmetic chemicals market to have reached US$ 21 Billion
By 2022, Fact.MR expected demand for cosmetic chemicals to reach US$ 22 Billion
From 2015-2021, the cosmetic chemicals market grew at a 5% value CAGR
From 2022-2032, cosmetic chemicals demand is likely to surge at a 6% CAGR
By 2032, the market for cosmetic chemicals is likely to be valued at US$ 39.4 Billion
By 2032, Fact.MR expects the U.S market for cosmetic chemicals to reach US$ 11 Billion
China is expected to register a 5.7% CAGR with regard to the cosmetic chemicals industry
Japan is expected to document a CAGR worth 4.5% in the Cosmetic Chemicals market
Emollients, film-formers, and moisturizers are predicted to grow at a CAGR of more than 6%