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Cosmetic Ingredients Market: Consumer Consciousness to be Key Triggering Factor For Upcoming Years

Cosmetic Ingredients Market was worth US$22.89 bn in 2016 which is expected rise at a CAGR of 4.60% from 2017 to 2025, increasing to US$33.80 bn by the end of 2025.
Published 16 March 2018

Global Cosmetic Ingredients Market: Snapshot

The global market for cosmetic ingredients has been growing at a steady pace, thanks to the escalating demand for cosmetic products across the world. The pursuit of beauty, together with the increasing consciousness of consumers towards physical appearance, and the rising awareness among them pertaining to skin care has fueled the demand for cosmetics substantially. Apart from this, the increasing trend of the anti-aging formulations is also driving the growth of this market.

On the flip side, the implementation of stringent government rules and regulations upon a number of ingredients is likely to act as a restraint in the growth trajectory of this market in the near future. However, the frequent and continual changes in the preferences of consumers are anticipated to generate lucrative opportunities for the progress of this market over the years to come. 

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The global cosmetic ingredients market was worth US$22.89 bn in 2016 and is expected rise at a CAGR of 4.60% from 2017 to 2025, increasing to US$33.80 bn by the end of 2025.

Moisturizing Agents to Enjoy Continued High Demand

Cosmetic ingredients are mainly utilized as cleansing agents, moisturizing agents, and coloring agents. Among these, the moisturizing agents segment holds the most prominent share in this market, thanks to the extensive usage of moisturizing agents in skin care, hair care, and makeup cosmetics. Researchers anticipate the scenario to remain same over the next few years.

The demand for cleansing agents is also expected to increase considerably in the near future, especially in the skin care and hair care products. The growing awareness among consumers regarding the benefits offered by cleansing agents, such as effective removal of oil and dirt from skin and hair, is expected to influence their demand in the years to come.

Asia Pacific to Remain Dominant in Global Cosmetic Ingredients Market

On the basis of geography, the worldwide cosmetic ingredients market has been segmented into North America, Asia Pacific, Europe, the Middle East and Africa, and Latin America. Primarily driven by China, India, Japan and the Rest of Asia Pacific, Asia Pacific led the global market in 2016 with a total share of 32.02%. The strengthening economy of Asian countries has increased the disposable income of Asian consumers, reflecting greatly on their living standard, which consequently, is influencing their aesthetic consciousness. With the increased purchasing power, consumers are willing to spend on high-end expensive cosmetic products, in a bid to look good. This, as a result, is likely to stimulate the market for cosmetic ingredients in Asia Pacific over the forthcoming years remarkably, ensuring its dominance on the global market.

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China has surfaced as the most prominent domestic market for cosmetic ingredients in Asia Pacific as well as the whole world, thanks to the presence of a large pool of cosmetic product manufacturers. Analysts expect that China will remain sitting in this position over the next few years, thanks to the availability of low cost of raw materials and the increasing investments by leading players. Europe, among other regional markets, is expected to witness healthy growth in the years to come. France, Italy, Germany, the U.K., and the Rest of Europe are likely to drive the Europe cosmetic ingredients market in the near future, in which, France is anticipated to emerge as the leading domestic market, closely followed by Italy and Germany.

Ashland Inc., Croda International Plc, BASF SE, Akzo Nobel N.V., Evonik Industries AG, The Dow Chemical Co., Innospec Inc., Solvay SA, Lonza Group, and Clariant AG are some of the key vendors of cosmetic ingredients across the world.

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