Personal Care Ingredients - Market Insights, Competitive Landscape, and Market Forecast - 2030

Personal Care Ingredients Market By Ingredients Type (Emulsifiers [Oil In Water And Water In Oil], Surfactant [Nonionic Surfactants, Cationic Surfactants, And Zwitterionic Surfactants], Rheology Modifiers [Organic Rheology Modifiers And Inorganic Rheology Modifiers], Emollients, Active Ingredients, And Others), By Application (Skin Care, Hair Care, Makeup, Fragrance, And Others), and by geography is expected to advance at a respectable CAGR forecast till 2030 owing to the growing demand for organic and natural cosmetic ingredients across the globe and rise in spending by young and adult people on personal and grooming care products

The global personal care ingredients market is estimated to grow at a CAGR of 6.03% during the forecast period from 2024 to 2030 to reach USD 17,082.73 million by 2030. The personal care ingredients market is observing remarkable market growth due to the factors such as the growing demand for organic and natural cosmetic ingredients across the globe. Further, the increasing consumer spending on grooming products, rising consumer awareness towards multi-purpose and clean-label products along with the increasing launches of ingredients and final products in the market, presence of key players, and other factors will create a requisite for the personal care ingredients in the market. Therefore, the market for personal care ingredients is estimated to grow at a substantial CAGR during the forecast period from 2024 to 2030.

Personal Care Ingredients Market Dynamics:

One of the key aspects driving the personal care ingredients market is the growing demand for organic and natural cosmetic ingredients globally.

For instance, the demand for natural ingredients that are used in cosmetics and toiletries is growing as natural ingredients can be easily used in both conventional and personal care products. Companies are incessantly replacing synthetic chemicals with the natural form of ingredients, partly because of consumer demand and partly because of the move towards sustainable raw materials.

Further, several forms of natural ingredients are used in place of synthetic ingredients. These comprise shea butter, coconut oil, avocado oil, frankincense essential oil, patchouli essential oil, and licorice extract. Thus, the increasing use of natural ingredients over synthetic will in turn aid in driving the market of personal care ingredients in the forthcoming years.

Moreover, various types of research also show that consumers are avoiding chemicals such as parabens, phthalates, and sodium lauryl sulfate as they are readily concerned about the associated health risks. Consumers view natural forms of ingredients much safer for both human health and the environment. As per the Centre for Promotion of Imports (CBI) reports, there have been claims that the most established certifications in the cosmetic industry are deemed today as "natural" and "organic".

Another reason to develop all organic products by the manufacturers is that all large cosmetic companies have implemented sustainability programs and many of them have pre-set targets to reduce environmental impacts and become more resource efficient.

Thus, owing to an increase in the growing demand for organic and natural cosmetic ingredients for the development of cosmetic products, there will be an increase in demand for personal care ingredients during the forecast period from 2022 - 2028.

Moreover, the increasing strategic activities by the key players in the market will aid in increasing the demand for personal care ingredients in the forthcoming years. For instance, in June 2022, Solvay introduced a new line of biosurfactants called Microsoft. The new range of products is aimed at carbon-neutral and circular beauty products. The biosurfactants are bio-based and biodegradable, with a wide range of applications in hair and skin care. The ingredients are derived from rapeseed oil and sugar through a cost-efficient fermentation process, offering a reduced carbon footprint.

Also, in June 2020, BASF SE collaborated with BTC Europe as a distribution partner for its care creation portfolio. This consolidates the entire portfolio, for the time being, increasing efficiency and simplifying the supply chain for personal care customers.

Therefore, the factors stated above collectively will drive the overall personal care ingredients market during the forecast period from 2022 - 2028.

However, the side effects associated with chemical-based personal care products, stringent government regulations, and others may halt the growth of the personal care ingredients market during the forecast period (2022 - 2028).

The unprecedented COVID-19 pandemic had a slightly negative effect on the personal care ingredients market. This is because, in the initial days of the pandemic, several industries had stopped their production units and other operations owing to the imposition of strict lockdown rules by the government. Also, the lockdown across the globe and the stringent regulations on import-export trade activities that had led to the containment of the virus, disrupted the global supply chain, thereby disturbing the manufacturing of personal care ingredients in the market. Contrarily, the e-commerce channels in the second phase of the pandemic had effectively improved the demand for natural and organic cosmetic products across the globe, thereby enhancing the demand for personal care ingredients, in turn affecting the personal care ingredients market growth.

Personal Care Ingredients Market Segment Analysis:

Personal Care Ingredients Market by Ingredients Type (Emulsifiers [Oil in Water and Water in Oil], Surfactant [Nonionic Surfactants, Cationic Surfactants, and Zwitterionic Surfactants], Rheology Modifiers [Organic Rheology Modifiers and Inorganic Rheology Modifiers], Emollients, Active Ingredients, and Others), Application (Skin Care, Hair Care, Make Up, Fragrance, and Others), and Geography (North America, Europe, Asia-Pacific, and Rest of the World).

In the application segment of the personal care ingredients market, the hair care segment is expected to have a significant revenue share in the year 2023. This was primarily owing to the increase in the prevalence of balding patterns amongst men and women and the rising demand amongst consumers for natural and organic hair care products.

For instance, according to the New Look Institute 2022, there are about 42.79% of people suffer from baldness in Prague, 43.6% of men in Spain, 41.24% of men in Germany, 39.04% in the United States, and 39.23% of men in the United Kingdom.

Further, consumers demand several hair care products beyond keeping their hair clean such as shampoos and conditioners to make the hair shiny, manageable, and soft. Also, the individuals want to reverse the hair damage and weakening of the hair in the dyeing process, thereby protecting the newly colored hair from fading in the sun or with repeated washing. The ingredients for the above-mentioned hair care treatments include silicones for shine, quaternary ammonium compounds for easier combing, proteins for thickening, and polyvinylpyrrolidone for shaping and styling. Thus, the increasing demand for specific hair care products by consumers will aid in propelling the demand for hair care products in the upcoming years, thereby increasing the demand for ingredients used in preparing the hair care products,

Also, the launch of several new hair-related personal care ingredients will raise the demand for hair-related personal care ingredients, thereby driving the overall market growth of personal ingredients. For instance, in 2020, P2Science launched Citropol HA, an ingredient that functions as an alternative to centipoise dimethicone silicone fluids in cosmetic product formulations.

Therefore, owing to the above-mentioned factors, the hair care category is expected to witness considerable growth eventually contributing to the overall growth of the global personal care ingredients market during the forecast period.

North America is expected to dominate the overall Personal Care Ingredients Market:

Among all the regions, North America is expected to hold the largest share in the global Personal Care Ingredients in 2022 and is expected to do the same during the forecast period from 2024-2030.

This can be ascribed to the increasing demand for personal care ingredients in the region owing to the rising prevalence of alopecia areata amongst the population. Further, the rising launch of personal care ingredients, increasing consumer demand for clean-label products, presence of key players in the region, the surge in ingredient launches in the region, and others will be contributing to the growth of the personal care ingredients market in North America.

For instance, according to the National Alopecia Areata Foundation 2022, the number of people that are affected by alopecia areata in the United States in 2022 were observed to be 6.8 million. Thus, owing to an increase in the prevalence of alopecia areata there will be a higher demand for personal hair care products to treat alopecia and other hair-related disorders, thereby leading to overall market growth of personal care ingredients.

Also, as per the American Academy of Dermatology Association 2022, in 2022 in the United States there were about 50 million Americans that were suffering from acne. As per the afore-said source, approximately 85 percent of people between the ages of 12 and 24 were experiencing at least minor acne in the United States, in 2022. Thus, the rising number of acne cases in the region will increase the demand for personal care ingredients used in the treatment or management of acne and other skin-related disorders, ultimately increasing the overall market for personal care ingredients.

Furthermore, the presence of key players in the United States will also lead to an increase in the production and manufacturing of personal care ingredients, thereby causing an increase in the demand for personal care ingredients, and affecting the overall market growth. For instance, manufacturers such as Dow Inc. and Ashland Global Holdings Inc. are the key players developing personal care ingredients in the United States.

Lastly, the increasing activities by the above-mentioned players will also drive the demand for personal care ingredients. For instance, in April 2022, Ashland completed the acquisition of Schulke & Mayr GmbH's personal care business.

Also, in February 2020, Dow demonstrated ACULYN rheology modifiers, a sustainable beauty formulation. This product has a low carbon footprint and is simple to use.

Therefore, the interplay of the aforementioned factors would provide a conducive growth environment for the North America region in the personal care ingredients market.

Personal Care Ingredients Market Key Players:

Some of the key market players operating in the personal care ingredients market include BASF SE, Actives International., ADM, Ashland, Clariant, Croda International Plc, Eastman Chemical Company, Evonik, INOLEX INCORPORATED., SEQENS, COBIOSA, Dow, Pharmacos India, Symrise, Sensient Cosmetic Technologies, ZSCHIMMER & SCHWARZ CHEMIE GMBH, Nikko Chemicals Co., Ltd., Momentive, Wacker Chemie AG, Chemisches Laboratorium Dr. Kurt Richter GmbH, and others.

Recent Developmental Activities in the Personal Care Ingredients Market:

In July 2022, BASF introduced Verdessence RiceTouch, a plant-based sensory powder biopolymer used in personal hygiene products for light and smooth skin. The ingredient is manufactured using non-GMO rice and offers shine control, a mattifying effect, and excellent oil absorbency. The biopolymer is derived from renewable feedstocks, is readily biodegradable, and is free from any preservatives. It also exhibits a low microbial count while decreasing stickiness and improving spreading properties.

In August 2020, BASF SE launched a new production line at its Kaohsiung site in Taiwan to double the production of Uvinul A Plus, a UVA (UV longest wavelength) protection ingredient. It is used in a variety of sun and skin care products. The production line was introduced to meet rising consumer demand in the Asia Pacific market.

In July 2020, BASF SE and Isobionics introduced Isobionics Santalol, a joint product. It is made from a sustainable resource. The product is a substitute for sandalwood oil.

Key Takeaways from the Personal Care Ingredients Market Report Study

• Market size analysis for current personal care ingredients market size (2023), and market forecast for 5 years (2024-2030)
• The effect of the COVID-19 pandemic on this market is significant. To capture and analyze suitable indicators, our experts are closely watching the personal care ingredients market.
• Top key product/services/technology developments, mergers, acquisitions, partnerships, and joint ventures happened for the last 3 years
• Key companies dominating the global personal care ingredients market.
• Various opportunities are available for the other competitor in the personal care ingredients market space.
• What are the top-performing segments in 2023? How these segments will perform in 2030.
• Which are the top-performing regions and countries in the current personal care ingredients market scenario?
• Which are the regions and countries where companies should have concentrated on opportunities for personal care ingredients market growth in the coming future?

Target Audience who can be benefited from this Personal Care Ingredients Market Report Study

• Personal care ingredients providers
• Research organizations and consulting companies
• Personal care ingredients -related organizations, associations, forums, and other alliances
• Government and corporate offices
• Start-up companies, venture capitalists, and private equity firms
• Distributors and traders dealing in personal care ingredients
• Various end users want to know more about the personal care ingredients market and the latest developments in the personal care ingredients market.

Frequently Asked Questions for the Personal Care Ingredients Market:

1. What are personal care ingredients?

The personal care ingredients are raw materials used to manufacture skin care products and essentials. They are used in formulating a wide range of products for skincare, hair care, and cosmetics. These ingredients offer properties such as anti-aging, moisturizing, cleansing, complexion-enhancing, and pollution defense, among others.

2. What is the global market for personal care ingredients?

The global personal care ingredients market is estimated to grow at a CAGR of 6.03% during the forecast period from 2024 to 2030 to reach USD 17,082.73 million by 2030.

3. What are the drivers for the global personal care ingredients market?

The personal care ingredients market is witnessing positive market growth owing to the factors such as the growing demand for organic and natural cosmetic ingredients, increasing consumer spending on grooming products, rising consumer awareness towards multi-purpose and clean-label products, increasing new ingredients launches and approvals, presence of key players in the market, and others will create an exigency for the personal care ingredients market.

4. Who are the key players operating in the global personal care ingredients market?

Some of the key market players operating in the personal care ingredients market include BASF SE, Actives International., ADM, Ashland, Clariant, Croda International Plc, Eastman Chemical Company, Evonik, INOLEX INCORPORATED., SEQENS, COBIOSA, Dow, Pharmacos India, Symrise, Sensient Cosmetic Technologies, ZSCHIMMER & SCHWARZ CHEMIE GMBH, Nikko Chemicals Co., Ltd., Momentive, Wacker Chemie AG, Chemisches Laboratorium Dr. Kurt Richter GmbH, and others.

5. Which region has the highest share of the personal care ingredients market?

Among all the regions, North America is estimated to hold the major revenue share in the global Personal Care Ingredients market. This can be ascribed to the increasing prevalence of alopecia areata amongst the population, the rising launch of personal care ingredients, the increasing consumer demand for clean-label products, and the presence of domicile players in the region the reasons which act as a supportive factor for the North America personal care ingredients market growth.