Cosmetics And Toiletries Chemicals Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2021 - 2026

Report Code: CMR 64448 Report Format: PDF + Excel

Cosmetics and Toiletries Chemicals Market Overview

The Cosmetics and Toiletries Chemicals Market is forecast to reach US$14.2 billion by 2027 after growing at a CAGR of 4.8 % during the forecast period (2022-2027). In general, various chemicals such as Exfoliants, Formaldehyde, Surfactants, Emulsifiers, Emollients, Colorants, and alcohols are used for Cosmetics and Toiletries products. They are used for a wide range of applications which include Cosmetics & Skin Care, Hair Care, Fragrances & Perfumes, Bathing Products, and other applications.  The need for Cosmetics and Toiletries Chemicals has been increasing rapidly across the globe. For instance, European countries sold the highest amount of exported beauty and skincare goods during 2020 with shipments valued at $26.7 billion, which indicates around 44% of the global account. This is followed by Asian exporters with related shipments at 43%, and North America by 10.7%. An increase in demand for cosmetics & personal care products along with an increase in demand from the Fragrances & Perfumes industry acts as major drivers for the market. On the other hand, strict regulations regarding the use of these chemicals may act as a major constraint for the market.

COVID-19 Impact

There is no doubt that the COVID-19 lockdown has impacted the Cosmetics and Toiletries Chemicals Market. Strict lockdowns all over the world interrupted the entire supply and trade of raw materials, which in turn, resulted in slow developments, and manufacturing from Cosmetics & Skin Care industry. However, a slow recovery in new cosmetics, and skincare production has been witnessed across many countries around the world since 2020. According to recent research published on The Business Line, India reported a growth of around 20% on annual retail sales of cosmetics and other skincare products during the fourth quarter of 2020 and is expected to grow in the upcoming years. In this way, a slow and steady increase in production activities from Cosmetics & Skin Care industry will increase the demand for cosmetics chemicals required for the production of these cosmetics and skincare products. This will eventually lead to a slow and steady recovery of the market in the upcoming years.

Report Coverage

The report: “Cosmetics and Toiletries Chemicals Market – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Cosmetics and Toiletries Chemicals Industry.
By Type: Active Ingredients, and Inactive Ingredients.
By Application: Cosmetics & Skin Care, Hair Care, Fragrances & Perfumes, Bathing Products, Others.
By Geography: North America (USA, Canada, and Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America), the Rest of the World (the Middle East, and Africa).

Key Takeaways

  • Cosmetics & Skin Care segment is expected to see the fastest growth, especially during the forecast period, owing to the rise in fashion standards across the world. Since cosmetic & skincare chemicals such as surfactants, emulsifiers, emollients, colorants, formaldehyde, and other preservatives are widely used in cosmetics and skincare products, an increase in demand for these chemicals from this industry is most likely to drive the market growth over the forecast period.
  • Inactive Ingredients held a significant share in the Cosmetics and Toiletries Chemicals owing to increasing demand for cosmetics and skincare products across the globe. For instance, European countries have imported around 27.8% of the global total for cosmetics and skincare products, followed by North America with 9.9%.
  • Asia-Pacific is expected to account for the largest share in the Cosmetics and Toiletries Chemicals. The major reason behind this is the rising requirement of cosmetic products, skincare products, fragrances, and more applications that require the use of these chemicals, thus, boosting the market growth. For instance, Asia-Pacific countries bought the highest amount of imported beauty, cosmetics, and skincare products during 2020 with acquisitions costing around $37.2 billion which indicates 57.9% of the global total.

Figure: Asia-Pacific Cosmetics and Toiletries Chemicals Market Revenue, 2021-2027 (US$ Billion)

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Cosmetics and Toiletries Chemicals Market Segment Analysis – By Type

Inactive Ingredients held a significant share in the Cosmetics and Toiletries Chemicals Market in 2021 and is expected to grow at a CAGR 4.9% between 2022 and 2027, owing to increasing demand for cosmetics and skincare products like sunscreens, cleansers, lotions, serums, lipsticks, nail colors, and cream. The use of inactive ingredients such as surfactants, emulsifiers, emollients, colorants, and preservatives such as benzyl alcohol on skincare products offers a number of benefits. Some of the advantages that these inactive ingredients offers include, it helps balance the PH of the products, provide aesthetic benefits, and helps thicken the product formula. It also plays a major role in stabilizing the emulsions and helps prevent the contamination and the growth of harmful bacteria in products which makes the overall products last longer. Hence, all of these factors are most likely to boost market growth.

Cosmetics and Toiletries Chemicals Market Segment Analysis – By Application

The Cosmetics & Skin Care segment held the largest share in the Cosmetics and Toiletries Chemicals Market in 2021 and is expected to grow at a CAGR of 5% between 2022 and 2027. This is mainly to the increase in demand for the production of cosmetics, and skincare products, owing to an increase in awareness regarding personal grooming across the world. For instance, according to a study published on Fashion Network, skincare and sun care products produced an average annual growth of 5.6% in 2020. Furthermore, countries like France, Singapore, South Korea, and the US sold some of the largest amounts of exported beauty and skincare goods during 2020 with shipments valued at $9 billion, $6.2 billion, $6.1 billion, and $5.1 billion respectively. Since Cosmetics & Skin Care chemicals offer properties for stabilizing formulations and emulsions in the product, it plays a major role during the production of cosmetics, and skincare products. This will most likely lead to market growth in the upcoming years.

Cosmetics and Toiletries Chemicals Market Segment Analysis – By Geography

The Asia Pacific held the largest share in the Cosmetics and Toiletries Market in 2021 up to 30%, owing to the increasing demand from the fragrance, cosmetics, and skincare sectors. For instance, a recent study published by the Indian Ministry of Economy and Industry states that the beauty and personal care industry in the country is expected to reach more than $10 billion by the end of 2021, and is most likely to grow by around 6% in the upcoming years. Likewise, Shiseido, a leading cosmetics and beauty brand in Japan, published a report which stated that the net sales of the company based on cosmetics and personal care products reached around 267.2 billion yen (USD 2.4 billion) during the fourth quarter of 2020, and it is expected to rise in the upcoming years as well. Furthermore, according to a recent article published on Vogue, multiple globally reputed beauty brands like Glossier, Ceremonia, Tata Harper, Dermalogica, and more, have come up with new cosmetics and skincare product launches in August 2021.

Hence, increasing demand for cosmetics and personal care products also increases the demand for Cosmetics and Toiletries chemicals required during their production, thus, resulting in the growth of the market in the upcoming years.

Cosmetics and Toiletries Chemicals Market Drivers

An increase in demand for cosmetics and personal care products is most likely to increase demand for the product

Cosmetics and Toiletries chemicals are commonly used in moisturizing creams and lotions, lipsticks, bar soaps, shampoos, and perfumes since they give integral fresh odor, helps balance the PH of the products, provides aesthetic benefits, helps thicken the product formula, helps stabilize the emulsions, and helps prevent the contamination and the growth of harmful bacteria in products. According to a recent study published on Redseer, the Indian beauty and personal care sector holds a major share of 75% and is expected to increase by 9% by 2022, which includes daily required personal care products such as shampoos, soaps, deodorants, shaving kits, hand cleaners and many more. Likewise, according to a recent article published on the Vouge in 2021, 10 new beauty products are to be launched from multiple leading brands across the world such as Becca, Indya, Forrest Essentials, Jimmy Coo, Colorbar, Wow Skin, Clinique, MyGlamm, and more. Hence, an increase in demand for cosmetics and personal care products also increases the demand for Cosmetics and Toiletries Chemicals required during their production, thus, resulting in the growth of the market in the upcoming years.

An increase in demand from the Fragrances & Perfumes industry is most likely to increase demand for the product

Ingredients such as benzyl alcohol, acetone, ethanol, ethyl acetate, camphor, formaldehyde, and others are commonly used for adding fragrances to perfumes, cosmetics, and personal care products. According to a recent study published in the Economic Times the average annual revenue of the Indian Perfume Industry is around INR 3000 crore ($408 million), and is expected to grow by approximately 17% in the next three years by 2024. Likewise, a recent study published on the Vogue Business stated that China’s perfume consumption has been growing rapidly in recent years and reached up to $ 1.76 billion during the fourth quarter of 2020. Hence, an increase in demand for these chemicals from the fragrances and perfumes industry is most likely to boost the growth of the Cosmetics and Toiletries Chemicals Market in the upcoming years.

Cosmetics and Toiletries Chemicals Market Challenges

Strict regulations regarding the use of Cosmetics and Toiletries Chemicals can cause an obstruction to the market growth

According to U.S. law, cosmetic products and ingredients, apart from color additives, do not need Food and Drug Administration (FDA) approval before they go on the market. However, cosmetic manufacturers hold a legal responsibility in order to provide the safety and labeling of their products.  FDA can take strict actions against any cosmetic products on the market that do not comply with the law. For example, if the product comprises of any poisonous or harmful ingredients, or if the product constitutes of cosmetics chemicals over the permissible limit or quantity, then the FDA can take legal actions against the manufacturers. Hence, strict regulations regarding the use of Cosmetics and Toiletries Chemicals may confine the market growth.

Cosmetics and Toiletries Chemicals Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Cosmetics and Toiletries Chemicals Market. Cosmetics and Toiletries Chemicals Market top companies are:

  • Akzo Nobel N.V.
  • Ashland
  • BASF SE
  • Croda International Plc
  • DSM N.V.
  • Eastman Chemical Company
  • Emery Oleochemicals
  • Evonik Industries AG
  • Firmenich SA
  • The Lubrizol Corporation

Acquisitions/Technology Launches

  • In March 2021, Firmenich, teamed up in an exclusive alliance with Central Saint Martins in London for the purpose of redefining the future of fine fragrance. The projects aim to provide a distinctive vision for the usage of fine fragrance, from heat relief, community empowerment, and water conservation to mindful eating and scent travel.
  • In January 2020, BASF launched new skincare active ingredients for makeup formulations. It included ingredients such as Hydagen Aquaporin that helps stimulate the formation of cellular water channels in the skin, Inolixir which helps soothe sensitive skin, Hydrasensyl Glucan that helps moisturize the skin, and multi-benefit bioactive for makeup formulations.

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1. Cosmetics and Toiletries Chemicals Market- Market Overview
    1.1 Definitions and Scope
2. Cosmetics and Toiletries Chemicals Market - Executive Summary
    2.1 Key Trends by Type
    2.2 Key Trends by Application
    2.3 Key Trends by Geography
3. Cosmetics and Toiletries Chemicals Market – Comparative analysis
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Cosmetics and Toiletries Chemicals Market - Startup companies Scenario Premium Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Cosmetics and Toiletries Chemicals Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Cosmetics and Toiletries Chemicals Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Cosmetics and Toiletries Chemicals Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Cosmetics and Toiletries Chemicals Market– By Type (Market Size - US$ Million/Billion)
    8.1 Active Ingredients
        8.1.1 UV Ingredients
        8.1.2 Anti-ageing
        8.1.3 Exfoliants
        8.1.4 Formaldehyde
        8.1.5 Others
    8.2 Inactive Ingredients
        8.2.1 Surfactants
        8.2.2 Emulsifiers
        8.2.3 Emollients
        8.2.4 Colorants
        8.2.5 Preservatives
        8.2.6 Others
9. Cosmetics and Toiletries Chemicals Market - By Application (Market Size - US$ Million/Billion)
    9.1 Cosmetics & Skin Care
    9.2 Hair Care
    9.3 Fragrances & Perfumes
    9.4 Bathing Products
    9.5 Others
10. Cosmetics and Toiletries Chemicals Market - By Geography (Market Size - US$ Million/Billion)
    10.1 North America
        10.1.1 USA
        10.1.2 Canada
        10.1.3 Mexico
    10.2 Europe
        10.2.1 UK
        10.2.2 Germany
        10.2.3 France
        10.2.4 Italy
        10.2.5 Netherlands
        10.2.6 Spain
        10.2.7 Russia
        10.2.8 Belgium
        10.2.9 Rest of Europe
    10.3 Asia-Pacific
        10.3.1 China
        10.3.2 Japan
        10.3.3 India
        10.3.4 South Korea
        10.3.5 Australia and New Zealand
        10.3.6 Indonesia
        10.3.7 Taiwan
        10.3.8 Malaysia
        10.3.9 Rest of APAC
    10.4 South America
        10.4.1 Brazil
        10.4.2 Argentina
        10.4.3 Colombia
        10.4.4 Chile
        10.4.5 Rest of South America
    10.5 Rest of the World
        10.5.1 Middle East
            10.5.1.1 Saudi Arabia
            10.5.1.2 UAE
            10.5.1.3 Israel
            10.5.1.4 Rest of the Middle East
        10.5.2 Africa
            10.5.2.1 South Africa
            10.5.2.2 Nigeria
11. Cosmetics and Toiletries Chemicals Market – Entropy
    11.1 New Product Launches
    11.2 M&As, Collaborations, JVs, and Partnerships
12. Cosmetics and Toiletries Chemicals Market – Industry/Segment Competition Landscape Premium
    12.1 Company Benchmarking Matrix – Major Companies
    12.2 Market Share at Global Level - Major companies
    12.3 Market Share by Key Geography - Major companies
    12.4 Market Share at Country Level - Major companies
    12.5 Market Share by Key Product Type/Product category - Major companies
13. Cosmetics and Toiletries Chemicals Market – Key Company List by Country Premium Premium
14. Cosmetics and Toiletries Chemicals Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    14.1 Company 1
    14.2 Company 2
    14.3 Company 3
    14.4 Company 4
    14.5 Company 5
    14.6 Company 6
    14.7 Company 7
    14.8 Company 8
    14.9 Company 9
    14.10 Company 10 and more
"*Financials would be provided on a best efforts basis for private companies"