Allied Market Research

Ceramide Market is Expected to Reach $133.8 Million by 2027


Report Code : A09678

quote the global ceramide market is heading toward expansion phase. This is attributed to significant surge in demand for cosmetics products in aging population as well as in young population. Growth in awareness of skincare products and shifting consumer trend toward natural products are expected to support the market growth. quote

Eswara Prasad
Manager, Materials and Chemicals at Allied Market Research

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According to a new report published by Allied Market Research, titled, “Ceramide Market By Type, Process, And Application: Global Opportunity Analysis And Industry Forecast, 2020–2027”, 

The global ceramide market was valued at $85.0 million in 2019, and is projected to reach $133.8 million by 2027, growing at a CAGR of 5.8% from 2020 to 2027.

Ceramide, a type of lipid complex, is found in epidermis skin layer. Ceramide lipid complex is made of sphingosine and fatty acid. Ceramide are of two types – natural ceramide and synthetic ceramide. Natural ceramides are extracted from various plant resources such as rice, wheat, and soybeans. Whereas, synthetic ceramide can be produced through microbial fermentation. Decrease in ceramide level can lead to various skin diseases and skin dryness problems. Skin appearance can be improved by the application of ceramide through cosmetics, oral supplementation, and food supplements. 

Surge in demand for antiaging skincare products and growth in number of aging population in countries such as the U.S., Japan, and the UK are expected to drive the market growth. Ceramide used in skincare and food products can improve skin appearance and is effective against skin dryness. Moreover, growing number of e-commerce sales channels offering wide range cosmetics ingredients and food supplements is anticipated to support the sales of various ceramide products. For instance, most of the countries in North America and Europe have over 80% internet users who largely contributes to the online sales of various cosmetics and food supplements. In addition, expansion of supermarket and hypermarket stores in urban and semi-urban areas offering wide range of personal care and cosmetics products is expected to propel the segment growth. 

On the basis of type, the synthetic ceramide segment is expected to witness highest market growth. This is attributed to rise in demand for ceramide in antiaging skincare products and various haircare products. Moreover, most of these synthetic ceramides are cost-effective and are easily available compared to natural ceramide.

On the basis of process, the fermentation ceramide segment accounted for the highest revenue share in 2019. This is attributed to growing demand of synthetic ceramide and ceramide by products in cosmetics and personal care application. As the production cost of natural ceramide or plant extracted ceramide is high, fermentation is often used as cost-effective process.

On the basis of application, the cosmetics segment is expected to witness the highest market growth in 2019. This is attributed to increase in application of cosmetics product in meetings or social gatherings. Moreover, rise in demand for antiaging skincare products in aging population is one of the crucial factors influencing the market growth.

Region wise, Asia-Pacific accounted for the highest revenue share in 2019. This is attributed to large consumption of rice, wheat, and soybean products through food supplements and various cosmetics products. China is the highest consumer of rice of around 149 million tons followed by India. In addition, China and India have significant demand for wheat and soybean oil products, which are prominent natural sources of ceramide.

Major players have adopted business expansion, merger, and acquisition to sustain the intense market competition. Some of the key players profiled in the report include Evonik Industries, Toyobo, Cayman Chemical, Arkema, and Doosan Corporation.

COVID-19 scenario analysis

  • The rapid spread of COVID-19 pandemic largely impacted the demand from end users of ceramide such as cosmetics and skincare products manufacturers. Lockdown measures and travel restrictions hindered the offline sales of cosmetics and personal care products. Moreover, due to limited social gathering, consumers are leaving home only for essential products. In addition, due to social distancing norms large number of direct sales channels and retail stores witnessed sharp decline in sales of cosmetics product. Countries across the globe-imposed ban on cross-border imports of various goods, which largely impacted the supply chain of ceramide market. Delayed supply of raw materials and increase in lead time affected the production of ceramide and various end products.  
  • However, the restriction on offline sales channels created new market opportunities for e-commerce, direct-consumer, and click-and-collect sales channels. Many cosmetics products manufacturers reported 200% increase in online sales compared to that of pre-Covid period. Moreover, with new promotion and discounts on online products, the market will slowly improve moving the unsold inventories.

Key findings of the study

  • The synthetic ceramide segment is projected to grow at the highest CAGR of around 6.5%, in terms of revenue, during the forecast period.
  • By process, the plant extract segment held more than 60% market share with a CAGR of 5.4%, in terms of revenue, during the forecast period.
  • By application, the cosmetic segment held more than 60% market share with a CAGR of 5.2%, in terms of revenue, during the forecast period
  • By region, Asia-Pacific dominated the market with more than 30% market share.

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quote Ceramide Market by Type (Natural and Synthetic), Process (Fermentation Ceramide and Plant Extract), and Application (Cosmetic, Food, and Others): Global Opportunity Analysis and Industry Forecast, 2020–2027 quote

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