Cosmetic Active Ingredient Market Size, Share, Growth, And Industry Analysis, By Type (Anti-Aging, Anti-Inflammatory, Antioxidant and Antimicrobial), By Application (Skin Care Products, Hair Care Products and Other), Regional Forecast To 2031

Updated On: 20 November 2023

Cosmetic Active Ingredient Market Report Overview

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The global cosmetic active ingredient market size was USD 4418 million in 2021 and is projected to touch USD 8041.23 million by 2031, exhibiting a CAGR of 6.17% during the forecast period.

The global COVID-19 pandemic has been unprecedented and staggering, with the cosmetic active ingredient market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.

Cosmetic active ingredients are the elements that are utilized in the production of cosmetic goods such body lotions, eyeliners, lipsticks, moisturizers, and sunscreen lotions. Ingredients used in cosmetics include water, moisturizers, preservatives, emulsifying agents, thickening agents, surfactants, colors, and perfumes. Creating synthetic chemicals for cosmetics is also possible, as is extracting ingredients from natural sources such items made from plants. They are utilized to deliver anti-oxidant, anti-inflammatory, thickening, and moisturizing characteristics to cosmetic goods. Additionally, they are utilized to improve the texture and look of cosmetic goods.

The growing emphasis on improving and modifying the textual properties of various ingredients used in the personal care and cosmetics industries, as well as the growing consumer awareness regarding the advantages and disadvantages of using products made with particular specific ingredients, are also anticipated to fuel requirements within the global cosmetic ingredients sector in the years to come. The ongoing efforts and financial resources put into the global cosmetic products industry to advance research and development and create new goods and services are also predicted to provide the market impetus in the near future.

COVID-19 Impact: Decline in Market Growth due to Supply Chain Disruptions

The unanticipated COVID-19 pandemic had a negative impact on the global industry for cosmetic components, just as it had on other major business verticals around the world. The worldwide market for cosmetic active ingredients lost traction in the years 2020 and 2021 as a result of governments throughout the world enforcing lockdowns and locking their borders. The previous few years have seen a decline in market growth for cosmetic ingredients due to supply chains, logistical, and transportation issues. As a result, manufacturers and market participants in the global market for cosmetic components went to development and research to create new goods that they could then market once the environment for the sector looked promising.

Latest Trends

"Introduction of New Products to Suite the Lifestyle of the Users "

It is anticipated that the market for cosmetic ingredients would rise as new ones are introduced more frequently. For illustration, in April 2018, BASF introduced new components for skincare and hair care solutions that have been demonstrated to help shield and restore the skin and slow the aging process of hair. These goods serve consumers' demands for products that support their way of life while also assisting personal care product makers in keeping up with market developments.

Cosmetic Active Ingredient Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into Anti-Aging, Anti-Inflammatory, Antioxidant and Antimicrobial

• By Application Analysis

Based on application, the market can be divided into Skin Care Products, Hair Care Products and Other

Driving Factors

"Penetration of Active Ingredients in Skincare Products is Propelling the Market"

It can be difficult to choose the proper substance or product with few adverse effects. Customers are drawn to these compounds since they have been shown by science to help the skin. From chemical to herbal formulas, there are far too many skincare companies on the market. Vitamin C, which functions as an antioxidant, hyaluronic acid, retinol, and other substances are among the most often utilized active components in cosmetics. For the treatment of various skin conditions and diseases including breakouts, redness and inflammation, clogged pores, and others, they are discovered to be quite harmless. The skin's ceramide ratio is balanced by active substances, which also operate as a barrier defense against various bacterial diseases. The product contains these chemicals, albeit in a slightly different form.

"Initiatives to Promote the Oral Care Products due to Increasing Cases of Periodontal Diseases"

Cosmetic ingredients are effective in oral care items including toothpaste and gel in addition to skin and body care due to their cleansing qualities. Companies have begun initiatives to advertise and provide dental hygiene items readily available in response to the increased frequency of periodontal disease. To help 2 billion individuals adopt healthy dental hygiene habits, Proctor & Gamble, for instance, launched a marketing campaign in January 2021. The measures will boost the demand for and manufacture of oral care products, increasing the usage of cosmetic active ingredients in their creation and positively influencing the growth of the cosmetic ingredients sector.

Restraining Factors

"High Costs and Organic Alternatives are Hinder the Cosmetic Ingredients Market Broadening"

The high cost of switching to goods with a natural or organic origin is one of the main reasons limiting the cosmetic active ingredient market growth. Ingredient makers are being discouraged from using organic-based ingredients in cosmetic formulations due to the rising expense of feedstock. Additionally, customers are wary of natural/organic cosmetics' propensity to persist longer than synthetic alternatives, which is limiting the growth of the cosmetics industry's demand for active ingredients.

Cosmetic Active Ingredient Market Regional Insights

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"Growing Awareness and Rising Rates of Cancer is Driving the North American Market"

Due to customers being more conscious of the substances used in their products, North America is expected to experience considerable growth throughout the forecast period. Additionally, factors such as the rising rate of skin cancer in the area have increased demand for sun protection goods. The area is anticipated to generate significant amounts of money during the projection period and is also expected to expand. A comprehensive view to beauty and health is becoming more and more popular among consumers in North America. They are more drawn to cosmeceuticals, commonly known as beauty products with a technology edge from the biotech and healthcare industries. Along with this pattern, consumers in the area are paying more attention to product ingredients and insisting on goods made with few chemicals and devoid of sulfates, petrochemicals, and phthalates. It is believed that this will open up significant chances for the cosmetic active ingredient market share to flourish.

Sales of national brands from the region, which make up almost half of the market share for cosmetic and beauty products in the region, are a major factor in the rise of different personal care products in the Asia Pacific region. Furthermore, the popularity of skin-lightening and anti-aging solutions, which together represent for somewhat more than half of the overall active ingredient overall revenue, can be credited with the market expansion for cosmetic active ingredients.

Key Industry Players

"Key Players Focus on M&A as well as R&D Activities to Gain a Competitive Advantage"

Through merger and acquisition activity, some of the major cosmetic active ingredient industry companies are concentrating on regional expansion. To strengthen its position in cutting-edge dermo-cosmetic goods, Evonik recently purchased a biotechnology company in the health sector. Additionally, a number of businesses are laboriously funding research and development initiatives. Offering superior quality items is the key driver behind these actions. These strategies imply that suppliers from the global market for active ingredients in personal care will experience significant growth prospects in the years to come.

List of Market Players Profiled

• Lucas Meyer Cosmetics (Canada)
• BASF SE (Germany)
• Evonik Industries AG (Germany)
• Lonza (Switzerland)
• Ashland Inc. (U.S.)
• Akzonobel N.V. (Netherlands)
• Gattefossé (France)
• Sederma Inc. (U.S.)
• Eastman Chemical Company (U.S.)
• Seppic SA (France)
• Clariant AG (Switzerland)

Report Coverage

This report covers the cosmetic active ingredient market. The CAGR expected to be in during the forecast period, and also the USD value in 2021 and what it is expected to be in 2027. The effect COVID-19 had on the market in the beginning of the pandemic. The latest trends taking place in this industry. The factors that are driving this market as well as the factors that are restraining the growth of industry. The segmentation of this market based on type and applications. The region leading in the industry and why they will continue to do so during the forecast period. Further, the key market players, what all is being done by them to stay ahead of their competition as well as retain their market positions. All these details are covered in the report.