Personal care active ingredients market Outlook (2022-2032)
The global personal care active ingredients market size is set to reach US$ 1.9 billion in 2022 and is projected to grow at a CAGR of 5.1% to reach US$ 3.2 billion by the end of 2032.
Boosting sales of personal care ingredients accounted for close to 4.8% of overall consumption in 2021. The personal care products market has expanded notably, with more skin lightening, hair care, sun care, and anti-inflammatory product categories in the marketplace.
The reason why there is a remarkable switch of consumers from chemical-based components to botanical extracts is the evolvement of product formulations, increased research and development activities across the world, and nascent consumer awareness about combinations of botanicals and other active ingredients.
Report Attributes |
Details |
|---|---|
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Personal care active ingredients market Size (2021A) |
US$ 1.8 Billion |
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Global Cosmeceuticals Market (2021) |
US$ 49.1 Billion |
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Estimated Market Value (2022E) |
US$ 1.9 Billion |
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Forecasted Market Value (2032F) |
US$ 3.2 Billion |
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Global Market Growth Rate (2022-2032) |
5.1% CAGR |
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North America Market Share (2022) |
23.2% |
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China Market Share (2022) |
6.3% |
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Europe Market Share (2022) |
27.5% CAGR |
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Market Share of Top 3 Companies |
20.6% |
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Key Companies Profiled |
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Acknowledged by Pandemic, embraced by Consumers
Stakeholders in the personal care active ingredients business worldwide experienced revitalized demand for these ingredients amidst the pandemic period. The industry reported over three-fold increase in 2021 over 2020 on the backdrop of heightened consumer awareness.
The growth pattern observed during 2020-21 continued in the first half of 2022, and continuous northward growth in sales of Personal care active ingredients was reported. Personal care product brand owners opted for omni-channel retailing with top-selling products were made available in offline as well as online retail SKUs.
To express consumer awareness into revenues, companies also channelized marketing budgets across several channels, which previously were centered on legacy marketing mechanisms. More and more consumers are willing to pay for personal care products that are backed by scientific evidence.
Personal care active ingredients have a large number of applications that augments their market's growth. They are specifically used for producing anti-aging products. Some examples of active ingredients include antioxidants like Vitamin A, Vitamin C, and Vitamin E.
Apart from this, advancement in the availability of active substances and smooth supply chain operations of botanical raw materials and extracts is also boosting the market growth for active ingredient products.
- Short Term Viewpoint (2022 Q2 to 2025): The emerging population inclining towards using botanical dietary supplements and plant-based active ingredients to capture the changing dynamics of the market can positively impact the market growth.
- Medium Term Aspect (2025-2028): Germany and China anticipated to witness significant demand for active ingredients. The wide application of this product in the cosmeceutical sector will drive the market’s growth over the period 2025-2028.
- Long Term Long-Term (2028-2032): In the coming years, sales of personal care ingredients are expected to be influenced by the rising number of and increase in the number of research and development activities.
According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 5.1% CAGR between 2022 and 2032.
Market share analysis of personal care active ingredients based on end-users and region is provided in a nutshell in the above image. Under the product category, anti-aging products dominates the market with 56.0 % market share in 2022.
“Penetration of Active Ingredients in skincare products”
Choosing the right ingredient or product with lesser side effects can be a significant task. The inclination of consumers towards these ingredients is due to their scientifically proven benefits for the skin.
Too many skincare brands have penetrated into the market right from the herbal ones to chemical formulations. Some of the majorly used active ingredients in cosmetics includes Aincluderoxy acid, vitamin C as an anti-oxidant, Hyaluronic acid, retinol, Niacin amide, vitamin E etc.
They are found to be very benign for the treatment of variety of skin diseases and problems like acne, redness and irritation, sunburn, clogged pores, skin burnouts, dryness and itching etc. Active ingredients balance out the ceramide ratio of the skin and acts a protective barrier against several bacterial infections. These compounds are present in the product in a modified form.
Apart from this, increase in the number of research and development activities across different regions can be considered as a key factor.
“Greater the challenges, more glory in overcoming it”
There are certain environmental concerns regarding the use of toxic elements in personal care products. Certain formulations can trigger hormonal imbalances, allergies, and even skin cancer. Manufacturers need to watch out for using more of natural constituents rather than synthetic ones.
Country-wise Insights
Why is Germany emerging as a Lucrative Market for active ingredients?
Germany leads the cosmetics and beauty market in Europe. Germany’s cosmetic and beauty market is valued at around US$ 93.3 million, with the domination of sales for skin care products.
Additionally, Germany is poised to account for around 17.3% of total personal care active ingredient sales in Europe, while poised to provide an absolute $ opportunity worth ~US$ 15.0 million over the forecast period.
Also, sales of organic cosmetic products will provide strong growth in demand for active ingredients.
Moreover, with German consumer spending 1.2X higher than their European counterparts, the country is projected to be the most lucrative market for generating revenue from active ingredient sales.
What factor is leading the market sales in Japan?
Japan has emerged as one of the productive markets for personal care active ingredient sales, accounting for around 35.0% of total East Asia sales. The centralization of key cosmetics and beauty companies in Japan has provided consumers with a variety of products to choose from. Japan is poised to surpass US$ 220.0 million market by 2032, thus establishing itself as one of the most attractive markets for investing.
What Potential Does China Hold for these Ingredient Suppliers?
China leads the East Asian personal care product market, with the active ingredients market projected to be valued at around US$ 122.8 million by 2022.
Additionally, the growth of various cosmetic products in China is mainly determined by sales of Japanese and Korean brands, accounts for around 50.0% of the total Chinese cosmetic and beauty product market share.
Moreover, market growth for active ingredients can also be attributed to the popularity of anti-aging and skin-lightening products, accounting for around 60.0% of the total active ingredient revenue share.
Category-wise Insights
Will botanical extracts continue driving the demand for active ingredients?
Potential botanical extracts are extracted from natural plants and are easy to integrate into cosmetic formulations. These extracts have beautifying properties and can be used to rejuvenate hair, skin, and body. Powder and liquid botanical extracts are the most exploited forms.
Powder botanical extracts have anti-oxidant and anti-bacterial properties due to which it is widely used in the skincare, haircare, and cosmeceutical industries and hence are driving the market growth. Botanical extracts are rich in vitamins, minerals, carotenoids, and polyphenols to rejuvenate tired skin and provide a fair complexion.
Which Product category will capture the growth opportunity?
Some studies suggest that aging and acne are among the most prevalent skincare problems and the key manufacturers dealing with formulations for these skin problems are taking advantage of active ingredients in their skincare products. The most entrenched ingredients include retinol, niacin amide, salicylic acid, hyaluronic acid, and ceramides. The anti-aging product category is dominating the overall market.
Manufacturers Approach and Prospectus
Key players in PCAI global market include- BASF SE, Evonik Industries, Clariant SA, Givaudan, Symrise AG, and Croda International plc.
Some key players operating in the PCAI market are focused on their regional expansion through merger and acquisition activities. Recently, Evonik acquired a biotechnology firm in health for expanding its position in novel dermo-cosmetic products.
Further, various enterprises are investing laboriously in research and development activities. The main reason behind these moves is to offer superior quality products. These approaches signify that vendors from the global personal care active ingredients market have remarkable growth opportunities in the forthcoming years.
- In June 2020, Croda launched a new product KeraMatch V, a vegan substitute for keratin.
Fact.MR has provided detailed information about the price points of key manufacturers of personal care active ingredients positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.
Segmentation of Personal Care Active Ingredients market
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PCAI By type :
- Botanical Extracts
- Enzymes & Coenzymes
- CoenzymeQ10
- Others
- Proteins & Peptides
- Amino Acid
- Quat & Native Proteins
- Synthetic Peptides
- Others
- Synthetic Actives
- Vitamin A and Derivatives
- Vitamin B and Derivatives
- Vitamin C and Derivatives
- Vitamin E and Derivatives
- Salicylic Acid
- Glycolic Acid
- Others
- Biotechnology Products
- Ceramides
- Hyaluronic Acid
- Others
- Marine Ingredients
- Substantiated Algae Extra
- Chitosan
- Others
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PCAI By Product category :
- Anti-aging
- Anti-Acne
- Anti-inflammatory
- Skin Lightening
- Slimming
- Sun Care
- Hair Care
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PCAI By Region :
- North America
- Latin America
- Europe
- East Asia
- South Asia & Oceania
- MEA