Personal Care Ingredients Market- By Type , By Application (Skin Care, Hair Care, Oral Care, Make-Up & Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2024 - 2030

Personal Care Ingredients Market Overview

The Personal Care Ingredients market size is forecast to reach around $8.34 billion by 2030, after growing at a CAGR of 7% during 2024-2030. Active ingredients can be defined as components of chemical products which can be natural or synthetics and help in directly achieving the performance objectives of the final products. Increasing awareness about personal care and growing disposable income in major developing nations has led to a higher demand for Personal and beauty care products and is expected to remain key growth driver during the period of study.  Furthermore, a growing middle-class sector from developing regions, an aging population, and demand for bio-based skin care products also contribute to the growth of the Personal Care Ingredients Market size during the forecast period.

There is an increasing demand for products formulated with natural and organic active ingredients. Consumers are becoming more conscious of the potential harmful effects of synthetic chemicals commonly found in traditional personal care products. As a result, there's a growing preference for ingredients sourced from nature, such as plant extracts, essential oils, and botanicals. These ingredients are perceived as safer, environmentally friendly, and often carry additional skincare benefits like antioxidant properties, hydration, and soothing effects. Companies are responding by formulating products with a higher percentage of natural and organic ingredients, often highlighting these features prominently in their marketing strategies to appeal to health-conscious consumers.

Consumers are also seeking products that offer multiple benefits in one application, saving time and streamlining their skincare routines. Active ingredients with versatile properties, such as antioxidants, peptides, and hyaluronic acid, are increasingly popular as they address various skin concerns simultaneously, such as anti-aging, hydration, and brightening. Additionally, customizable ingredients, such as serums and essences with interchangeable additives or concentrations, allow consumers to tailor their skincare regimen to their specific needs and preferences. This trend reflects a desire for personalized solutions in the personal care industry, driven by advancements in ingredient science and consumer demand for efficient yet effective products.

COVID-19 Impact

The COVID-19 pandemic has significantly impacted the personal care market, particularly concerning active ingredients. With heightened awareness of hygiene and health, consumers are prioritizing products with antimicrobial and immune-boosting properties, driving demand for active ingredients like zinc oxide, vitamin C, and botanical extracts renowned for their antibacterial and antioxidant properties. Additionally, the pandemic has prompted a shift towards self-care routines, leading to increased interest in ingredients promoting relaxation and stress relief, such as lavender oil and chamomile extract.

Report Coverage

The report: “Personal Care Ingredients Market – Forecast (2024-2030)”, by Industry ARC, covers an in-depth analysis of the following segments of the Global Personal Care Ingredients Industry.

By Type: Natural and Synthetic.

By Ingredient Type: Moisturizing Ingredient (Glycerol, Hyaluronic Acid, Amino Acids and Ceramides, and Others) Anti-aging Ingredient (Vitamin A and Derivatives, Vitamin B and Derivatives, Vitamin E and Derivatives, and Vitamin C and Derivatives), UV Ingredient, Antimicrobial Ingredient, Exfoliating Ingredients (Glycolic Acid, Lactic Acid, and Salicylic Acid), and Others.

By Application: Sun Care (Creams, Lotions, Gels, Sprays, and Others), Oral Care (Mouth Washes, Toothpastes, and, Others), Skin Care (Shaving Creams, Exfoliators, Anti-ageing Creams, Toners, Moisturizers, Cleansing Lotions, Facial Marks, and Others), Body Care (Soaps, Antiperspirants, Body washes, Shower Gel, Body Lotions, Scrubs, Oils, and Others), Perfume (Scented Oils, Salves, Deodorants and Perfumes, After Shave, and Others), Decorative Cosmetics (Lipsticks and Glosses, Eyeliners, Nail Varnishes, Blushes, Mascaras, Eye Shadows, Powders, Foundation, Others), and Hair Care (Shampoos, Hair Coolants, Mousses, Texturizers, Serums, Conditioners, and Others).

By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and Rest of the World (Middle East, and Africa).

Key Takeaways

• In the North America region, in 2023, the USA is the major market for the Personal Care Ingredients owing to consumer desire for natural products with high efficacy and visible results. 
• E-commerce is also considered as a key factor contributing to the growing usage of personal care products globally.
• The demand for male hair care and facial skin care products is growing due to growing trend of male grooming particularly from emerging market.
• Stringent government norms such as European Commission Cosmetics Directive (ECCD) and the U.S. Food and Drug Administration (FDA), restraining the market growth.

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Personal Care Ingredients Market Segment Analysis - By Product Type

The natural segment is projected to witness a highest CAGR of 9% during the forecast period of 2024-2030 in the Personal Care Ingredients Market due to growing demand for environmentally sustainable products. Whereas, the growing awareness about environment safety, various personal care product manufacturers have inclined their focus towards the eco-friendly products, which in turn drive the demand for natural Personal Care Ingredients products.

Personal Care Ingredients Market Segment Analysis - By Ingredient Type

The Anti-aging Ingredient is projected to witness a highest CAGR of 9.5% during the forecast period of 2024-2030 in the Personal Care Ingredients Market due to growing ageing population globally especially in European region. Furthermore, growing demand for Vitamin C and Derivatives based personal products from the consumers is also propel the market growth. As, Vitamin C is a powerful antioxidant with the ability to reduce the intensity of brown spots and age spots. Moreover, the growing demand for organic anti-aging products is also contribute to the growth of this market during the forecast period.

Personal Care Ingredients Market Segment Analysis - By Application

The skin care segment is projected to grow at the fastest CAGR of 9% in the Personal Care Ingredients Market during the forecast period of 2024-2030 due to growing uses of emollients, emulsifiers, surfactants, thickeners, antioxidants, active agents, and antimicrobial ingredients in skin care products. Besides, the growing concern over various skin related problems such as anti-ageing, fairness, acne, and cracking skin among consumers are driving the demand for skin care products that further contribute to the market growth.

Personal Care Ingredients Market Segment Analysis - By Geography

Among the regions, the APAC region is projected to witness a highest CAGR of around 9.5% in 2024-2030 in the Personal Care Ingredients Market followed by North America and Europe during the forecast period. The growing economies of South East Asian countries, changing lifestyle like “selfie lifestyle” increasingly indulge in high-end personal care products, growing disposable income, and rise in population along with the increase in per capita spending on personal care products propels the growth of this market in APAC region.

Personal Care Ingredients Market Drivers

Surging demand for natural ingredients

Nowadays, natural ingredients are being demanded by an extremely attentive consumers to avoid exposure to harsh chemicals. The high awareness about the effects of personal care products with synthetic ingredients compared to natural one further drives the market growth, which is expected to double to share of natural ingredient by 2030. Increasing demand for natural skincare and personal hygiene products owing to the coronavirus pandemic further drive the growth of natural ingredients from the personal care industry. For instance, lemon myrtle, which is used in hand sanitizers and cleaning products.

Growing Personal Care Industry

The growing inclination towards organic personal care products is one of the promising trends to have emerged in the developed and developing regions that is driving the growth of personal care industry. Furthermore, the arrival of the fashion industry in the Western European countries particularly in France and Italy has provided various lucrative opportunities for the growth of the personal care industry during the forecast period. Besides, the growing trend of fashion weeks globally is also contributing for the growth of personal care products, which in turn drives the growth of this market during the forecast period. For instance, according to Cosmetic Europe, the personal care and cosmetics industry has witnessed a growth of 8.1% in 2023.

Personal Care Ingredients Market Challenges

Environmental concern regarding harmful ingredients in personal care products 

The stringent regulations of European Union pressurized manufacturers to submit data regarding the long-term health impact of Personal Care Ingredients products, particularly hormonal effects and contributions to antibiotic-resistant bacteria in order to ascertain the safety of these products. This combined with increasing stringency worldwide regarding harmful effects of the ingredients is likely to hinder the market growth. For instance, triclosan causes negative developmental and reproductive effects in fish and other aquatic organisms. Moreover, mostly the personal care products are coming with plastic and glass packaging. The low recycling rate of single use personal care bottles is a major concern for the increasingly environmentally aware consumers. This will impact the Personal Care Ingredients Market.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Personal Care Ingredients Market report. Major players in the Personal Care Ingredients Market industry outlook are 

1. Evonik Industries AG
2. Lonza Group Ltd.
3. Solvay SA
4. Akzo Nobel N.V.
5. Ashland Global Holdings Inc.
6. BASF SE
7. Croda International Plc.
8. Clariant AG
9. The Dow Chemical Company
10. Wacker Chemie AG

Acquisitions/Technology Launches

• In 18 December 2023, Univar Solutions INC. announced an exclusive distribution agreement with ImDerma Laboratories, Co. Ltd. ("ImDerma") in the United States. ImDerma is a cosmetic actives producer for the beauty and personal care industry with an array of botanical actives and functional ingredients, including the Imdermalab® Peptide X™ and MolecuPure purified botanical actives series.

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