According to a new report published by Allied Market Research, titled, “Personal Care Ingredients Market," The personal care ingredients market was valued at $10.4 billion in 2021, and is estimated to reach $18.5 billion by 2031, growing at a CAGR of 6.0% from 2022 to 2031.
Personal care ingredients are the ingredients that may be natural or synthetic used in the skin care, hair care, and other personal care cosmetic products. Personal care ingredients such as rheology control agents, emollients, UV absorbers, surfactants, emulsifiers, antimicrobials, and others are used in the production of skin care and other personal care products. Increase in demand for personal care products along with rise in health awareness is driving the growth of the personal care ingredients market during the forecast period. However, a stringent government regulation toward harmful synthetic ingredients for skin is expected to restrain the growth of the market in the upcoming years.
The global personal care ingredients market has been analyzed on the basis of source, which includes natural ingredients and synthetic ingredients. The synthetic ingredients segment garnered the highest personal care ingredients share of 66.5% in 2021. This is owing to increase in demand for skin care and other personal care products from the developing economies along with increase in purchasing power of consumers.
The global Personal care ingredients market is segmented on the basis of product type, base oil, end-use industry and region.
In 2021, on the basis of ingredients type, the UV absorbers segment dominated the highest market share of around 26.1% and is projected to maintain the same during the forecast period. This is owing to rise in demand for anti-aging formulations from the growing middle-aged and geriatric population and changing beauty trends.
In 2021, on the basis of application, the skin care segment accounted for around 34.7% of the global personal care ingredients market share. This is owing to increase in demand for skin care products such as sun care products, body lotions, facial creams, and others from the consumers across the globe. In addition, the use of innovate ingredients such as polyhydroxy acids and plant-based retinol alternatives such as Bakuchiol to manufacture skin care products have created new personal care ingredient market trend.
Based on region, the global personal care ingredients market analysis across North America, Europe, Asia-Pacific, and LAMEA. Historically, a developed region such as North America dominated the market, accounting for almost 32.8% of the global personal care ingredients market share and is expected to consolidate its position throughout the forecast period. This is owing to huge consumer base, increase is use of skin care products, and other personal care products in this region.
The market players operating in the global personal care ingredients market are Ashland Global Holdings Inc., BASF SE, Berkshire Hathaway Inc., Clariant AG, Croda International Plc, DOW, Inc., Evonik Industries AG, J.M. Huber Corporation, KCC Corporation (, and Solvay S.A. Other players operating in the value chain of the personal care ingredients market are Wacker Chemie AG, Akzo Nobel N.V., Huntsman International, Cargill, Inc., Lonza Group, and others.
IMPACT OF COVID-19 ON THE GLOBAL PERSONAL CARE INGREDIENTS MARKET
- There is uneven impact of COVID-19 pandemic on the personal care ingredients market, due to the lockdown implemented in almost every economy across the globe to break the chain of spreading of coronavirus. This resulted in shutting off the operations, manufacturing, distribution, and beauty shops. Thus, there is decrease in demand for cosmetic products from the beauty shops, institutes, salons, and others, which in turn resulted in the sluggish growth in the 2020.
- Demand for color cosmetics, hair styling, and sun care products declined significantly during the pandemic. Given the lockdowns and restrictions instituted by governments worldwide, people were forced to shift to working from home and avoiding recreational activities, leading to a decline in demand for these products. In turn, demand for cosmetics ingredients, hair fixative polymers, and UV-protection ingredients took a sharp hit in 2020. Furthermore, increase in demand for personal care & cosmetic products (Sanitizer, Soap, Disinfectants, & others) and other home cleaning chemicals is maintaining the growth rate of the personal care ingredients market, which in turn resulted in less impact of COVID-19 on this sector.
- According to The American Chemistry Council (ACC), volume gain is occurred in the cosmetic additives and flavor & fragrances in the U.S. and other specialty chemicals segment registered decrease in volume gain during pandemic. But this change in personal care ingredients market may be different for other economies across the globe.
- From beginning of 2021, various industries, manufacturing units, offices, shops started their operations due to which the demand for personal care ingredients improved across the globe. In 2021, the chemical industry resumed their operations due to which the demand and supply gap of raw materials required for personal care ingredients also improved.
KEY FINDINGS OF THE STUDY
- Based on source, the synthetic ingredient emerged as the global leader by acquiring around 66.5% of the global personal care ingredient market share in 2021, and is anticipated to be the largest markets during the forecast period.
- Based on ingredients type, the UV absorbers emerged as the global leader by acquiring around 26.1% of the global market share in 2021, while rheology control agents is anticipated to be the largest markets during the forecast period.
- On the basis of applications, skin care segment registered the highest market share of around 34.7% and is projected to maintain the same during the forecast period.
- North America is the major consumer of personal care ingredients among other regions. It accounted for around 32.8% of the global market share in 2021 as a result of huge consumer base and increase in demand for personal care products.