Glycolic Acid Market Size, Share, Growth Analysis, By Purity(99%, 70%), By Application, By Grade, By Region - Industry Forecast 2024-2031

Global Glycolic Acid Market size was valued at USD 327.00 million in 2022 and is poised to grow from USD 348.58 million in 2023 to USD 581.25 million by 2031, growing at a CAGR of 6.6% in the forecast period (2024-2031).

Glycolic acid (C2H4O3), a prominent alpha hydroxy acid (AHA), is derived through natural or synthetic processes and finds extensive applications in industries such as plastics, adhesives, and skincare. With growing demand across these sectors, the global glycolic acid market is poised for significant growth. Its properties, including cell recovery and exfoliation, make it increasingly favored in various applications, further driving market expansion. Additionally, glycolic acid can substitute for lactic and salicylic acids, enhancing its market appeal. However, the COVID-19 pandemic has disrupted the cosmetics sector, leading to reduced production capacities and a shift towards commercial personal care formulations by brands like Beiersdorf. While pandemic-related challenges have temporarily constrained market growth, the long-term outlook remains positive as demand rebounds.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Glycolic Acid market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Glycolic Acid Market Segmental Analysis

Global Glycolic Acid Market is segmented by Purity, Grade, Application and region. Based on Process, the market is segmented into Glycolic Acid 99%, Glycolic Acid 70%, Glycolic Acid 30%, Others. Based on Grade, the market is segmented into Cosmetic Grade, Technical Grade, Pharma Grade, Other Grade. Based on Application, the market is segmented into Personal Care & Cosmetics, Industrial, Household, Textile, Food Processing, Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.

Driver of the Global Glycolic Acid Market

The global Glycolic Acid market is witnessing significant growth, primarily driven by the surging demand for alpha-hydroxy acids in the cosmetics industry. In 2021, the cosmetics market experienced an impressive growth rate of over 8%, with skincare products constituting more than 40% of the glycolic acid market. Key factors such as the rise of online retail, the expansion of social media, increased disposable income, and a consumer inclination towards unique and premium offerings have fueled this growth. Moreover, glycolic acid's pivotal role in the formulation of a variety of skincare items, including creams, masks, and peels, is further enhancing its demand. Heightened consumer awareness and improved living standards, particularly in countries like India, Malaysia, and China, are also contributing to the increased utilization of glycolic acid in a wide array of cosmetic products, which address skin concerns such as uneven pigmentation, dark spots, and overall skin health.

Restraints in the Global Glycolic Acid Market

The global glycolic acid market faces significant constraints due to the detrimental health and environmental effects associated with its use. Prolonged application of glycolic acid in cosmetic and personal care products can lead to skin irritations, including swelling, itchiness, and inflammation, while excessive use increases susceptibility to UV radiation, raising the risk of sunburn. Moreover, inhalation of high concentrations over time poses severe health risks, potentially affecting the liver, thymus, and respiratory system. Environmental concerns also arise from the production process, which emits phosgene gas, leading to stricter regulations that hamper market growth. Furthermore, the availability of effective alternatives like lactic and salicylic acids, coupled with a growing preference for organic ingredients in cosmetics, further limits the expansion of the glycolic acid market.

Market Trends of the Global Glycolic Acid Market

The global glycolic acid market is experiencing significant growth driven by the rising demand in the oil and refining industries, where it serves as an effective and cost-efficient cleaning agent. This trend is bolstered by glycolic acid's ability to provide economical metal complexing, enhancing cleaning and scraping processes without compromising the integrity of stainless steel when used with hydrochloric acid. Moreover, its biodegradable properties and low volatility make it an attractive choice for both industrial applications and household cleaning products. As sustainability becomes increasingly prioritized, glycolic acid's environmental benefits are poised to further catalyze market expansion in various sectors.