Cosmetic Chemicals Market

Cosmetic Chemicals Market Outlook (2022-2032)

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	Akzo Nobel NV Ashland Global Holdings Inc. BASF SE Clariant International Ltd. Dow Inc. Eastman Chemical Company Evonik Industries AG Firmenich SA Givaudan SA International Flavors & Fragrances Inc. LANXESS AG Lonza Group Limited P&G Chemicals Sederma SAS Solvay SA Symrise AG The Lubrizol Corporation

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.

Cosmetic Chemicals Market Revenue Analysis 2015-2021 vs. Future Outlook 2022-2032

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.

Prominent Cosmetic Chemicals Industry Growth Drivers

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.

Key Challenges Prevalent in the Global Cosmetic Chemicals Market

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.

Country-wise Analysis

What is the outlook for cosmetic chemicals demand in the United States?

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.

How Do China's Expectations for Cosmetic Chemical Sales Appear?

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%

Category-wise Insights

Why is Hair and Skin Care the Most Common Cosmetic Chemical Application Area?

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.

Why are Cosmetic Chemicals in High Demand for Emollients, Film-Formers, and Moisturizers?

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.

Competitive Landscape

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.

• Dow Inc. unveiled its new Virtual Experience Center (VEC) in April 2021, an immersive 3D platform that allows beauty companies to increase their offers by allowing visitors to explore significant advancements and marketing trends.
• BASF SE's Care Creations® will offer Neutrol® MGDA, a highly stable and environmentally friendly complexing agent, for personal care applications in November 2020. It is biodegradable and has an excellent ecological and toxicological profile.

Key Segments Covered in the Cosmetic Chemicals Industry Report

• By Application :

  • Perfumes & Fragrances
  • Hair care & Skincare
  • Color Cosmetic Chemicals
  • Other Applications

• By Type :

  • Cosmetic Chemical Emollients, Film Formers & Moisturizers
  • Cosmetic Chemical Surfactants
  • Single Use Cosmetic Chemical Additives
  • Cosmetic Chemical Carriers, Powders & Colorants
  • Cosmetic Chemical Thickening Agents
  • Other Cosmetic Chemical Types

• By Region :

  • North America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Latin America
  • Middle East & Africa