Cosmetic Chemicals Market

GMI Research analysis indicates that the Cosmetic Chemicals Market size was estimated at USD 21.8 billion in 2022 and is slated to register a single digit CAGR of 4.9% over the forecast period, and is projected to reach USD 32.0 billion in 2030.

Major Cosmetic Chemicals Market Drivers

The global cosmetic chemicals market is propelled by the significant development in customer need for cosmetic and skin care products, growth in the number of working female population, high increase in disposable income, and changes in living standards of individuals. The foremost factors accountable for the global market growth are the considerable rise in demand of people to develop their physical appearance in emerging nations such as India and China, rapid rise in research and development activities, and a rise in beauty products demand by a high number of women personnel in giant organizations. The growing fashion and entertainment industries in emerging and developed regions have also led to the demand for cosmetic and beauty products, which is predicted to present a positive impact on the cosmetic chemicals demand in the coming period. Moreover, the need for cosmetic chemicals is predicted to rise because of a growing number of working employees in international companies as well as growth in the usage of beauty products in the forecast period.

Cosmetic chemicals are essential in developing the efficacy, performance, and sensory attributes of beauty products and personal care products which increases its demand and leads to extensive usage in the cosmetic industry. Recently, there has a considerable growth in consumer consciousness concerning organic cosmetic products, a rise in personal grooming interest, and development in skincare routines. These market trends are driven by factors including substantial growth in industrialization, urbanization, and rise in the influence of social media. Customers are significantly looking for a broad variety of beauty and personal care products involving lotions, skin care lotions, creams, fragrances, and makeup, to fulfill their self-care, personal interest, and beauty requirements which further propel the global cosmetic chemicals market growth.

Technological innovations and product advancements are other key factors to propel the value of cosmetic chemicals market share globally. The market of personal care and beauty products is highly dynamic and constantly emerging, with customers looking for effective solutions and advanced products for their haircare, skincare, and cosmetic requirements. Developments in cosmetic products and manufacturing procedures have led to the advancement of improved and new cosmetic chemicals. These advancements allow the introduction of ingredients with developed performance, enhanced functionalities, and developed compatibility with different formulations which in turn fosters the global cosmetic chemicals market size.

However, the cosmetic chemicals market faces a different challenge due to strict regulatory standards and rising safety concerns. Global regulatory bodies like the U.S. FDA and the European Union’s Cosmetics Regulation, along with counterparts in other nations, impose vigorous rules and guidelines to prevent customer safety and public health. Whereas, before being incorporated into cosmetic products, cosmetic chemicals must undergo thorough safety assessments and comply with different regulatory standards. Cosmetic chemicals undergo testing for skin irritations, toxicity, allergies, and several other negative effects. Some ingredients may also face restrictions or bans in cosmetics due to their potential risks.

Whereas, in the cosmetic chemicals market, there is one considerable opportunity that lies in the rising demand for eco-friendly and natural ingredients. Customers are significantly looking for personal care and beauty products that have different properties of sustainability, environmental consciousness, and health consciousness. This move in customer choices has introduced a need for cosmetic chemicals founded from natural sources including organic ingredients, botanicals, and plant extracts. Natural cosmetic chemicals are seen as milder, safer, and more eco-friendly substitutes to synthetic counterparts. Cosmetic products are frequently formulated to be free from harmful chemicals and are designed to be more sustainable during their complete life cycle. In addition, there is a rising awareness concerning the environmental impact of the beauty industry including plastic waste, carbon emissions, and water pollution. As a result, consumers are significantly searching for cosmetic products that are formulated by using sustainable ingredients and eco-friendly practices. Cosmetic chemicals introduced through sustainable sourcing practices, with minimal environmental impact and biodegradability, are becoming increasingly prevalent among customers. A move towards a healthier lifestyle of customer behavior is a key driver propelling the demand for beauty and personal care items, which is predicted to increase the need for cosmetic chemicals in the foremost period.

By product, the Emollients and Moisturizers segment held the largest revenue share in the global cosmetic chemicals market

This segment registered the market growth because emollients and moisturizers have high usage in different cosmetic items as well as personal care products including face creams, body lotions and serums, lipsticks, and skin moisturizers. These are commercially advertised in natural and synthetic forms which results in extensive usage in olive oil, coconut oil beeswax, lanolin, zinc oxide, petrolatum, lanolin, and several others. In addition, emollients and moisturizers facilitate softening and hydrating the skin because emollients are moisturizing agents and are exists in different skincare products. With the growing prominence on moisturization, and skincare, emollients and moisturizers are predicted to register the market growth in the forecast period.

By Application, skin care segment dominated the global cosmetic chemical market growth

The growth of this segment is attributed to the growing demand for skincare products and growing concerns related to maintaining healthy skin and prioritizing skincare routines. Considerable growth in demand for sunscreens, body lotions, and face creams globally is predicted to present a positive impact on the global cosmetic chemicals market. Market players are majorly focusing on the development of enhanced skin care items in the cosmetic chemicals market to fulfill growing customer demands. Also, a significant shift in customer priorities towards organically and naturally sourced items is fostering the skin care segment in the global cosmetic chemical market. Different manufacturers are presently inclined towards introducing organic and naturally originated skin and hair care products that develop their skin health with no side effects. This advantage of organic and natural products fosters segment growth in the forecast period.

An increase in pollution across metropolitan cities, rising dress due to hectic working hours, and growing trends in the fashion industry are the other factors propelling the demand for skin care products. In addition, a substantial increase in the disposable income of customers and a rise in commercialization of skin care products are also predicted to be market trends pushing the growth of this segment.

By Region, North America registered the largest share in the global cosmetic chemicals market

The regional growth is attributed to a significant increase in research and development activities by producers, the existence of small and large-scale manufacturers, and the growing usage of organic personal care items. In the U.S., the buying power of working females is growing speedily which is aiding to foster the demand for cosmetic chemicals in North America. Also, the U.S. personal care industry brings new opportunities to the market players. The different groups of market players are presently concentrating on fostering and developing the market entry strategies of pharmaceuticals, biotechnology, and food ingredients firms across the beauty and skincare segment, which will further result in the introduction of cutting-edge goods.

The other driving factor for the North America cosmetic chemical market growth is significant technological innovations in the field of cost-effective generation of organic and natural beauty and personal care items.

By region, Asia Pacific predicted to develop at the fastest rate

Asia Pacific region is estimated to observe steady growth due to growth in demand for cosmetic products from developing nations and a high rise in population. In developing nations, the buying power is growing, and this results in a growth in demand for beauty products. Governments of developing nations framed different stringent government rules and guidelines to decrease the usage of harmful chemicals and raise in need for organic products. The significant growth in different research and development activities to diversify the product portfolio is probable to drive the Asia Pacific cosmetic chemicals market. Additionally, the rising involvement of celebrities in the endorsement and promotion of eco-friendly personal care products is predicted to present different market growth opportunities to the market players. Another key trend in Asia Pacific is the growing popularity of gender-nonconforming and transgender individuals. This APAC cosmetic chemical market is being propelled by high demand for cosmetic products from these communities.

Top Market Players

Various notable players operating in the market include Givaudan, Ashland Inc., Eastman Chemical Company, Lonza Group, BASF SE, Lanxess, P&G Chemicals, Solvay S.A., Evonik Industries AG, Bayer AG. among others.

Key Developments

• • In 2023, BASF announced an acquisition of Cognis Holding GmbH to widen its product portfolio of the specialty chemicals segment and establish a strong place in human nutrition as well as pharma excipients.
  • In 2023, Symrise announced an acquisition of Frutarom to present strong momentum and fulfill the growing demand of customers for luxurious personal care items.
  • In 2022, Dow launched 6 new beauty and personal care products in the respective to widen the product portfolio and meet the growing demand for beauty and personal care products.
  • In 2022, BASF SE introduced Dubbed Pepto Vitae to be competitive in Asia and grow faster.
  • In 2020, Knowlton Development Corporation acquired Shanghai Paristy Daily Chemicals to improve and increase their customer base and develop their existence in the universal market.
  • In 2019, Knowlton Development Corporation joined hands with HCT Group to deliver full service to its clients and partners of cosmetic items in terms of formulation, designing, manufacturing, logistics, and others.

Segments covered in the Report:

The Global Cosmetic Chemicals Market has been segmented on the basis of Application and Product Type. Based on the Application, the market is segmented into Skin Care, Hair Care, Makeup, Oral Care, Fragrances, Others. Based on the end-user, the market is segmented into Surfactants, Emollients & Moisturizers, Film-Formers, Colorants & Pigments, Preservatives, Emulsifying & Thickening Agents, Single-Use Additives, Others.

Report Coverage	Details
Market Revenues (2022)	USD 21.8 billion
Market Base Year	2022
Market Forecast Period	2023-2030
Base Year & Forecast Units	Revenues (USD Billion)
Market Segment	By Application, By Product Type, By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	Dow, Givaudan, Ashland Inc., Eastman Chemical Company, Lonza Group, BASF SE, Lanxess, P&G Chemicals, Solvay S.A., Evonik Industries AG, Bayer AG. among others; a total of 11 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Global Cosmetic Chemicals Market by Application

• • Skin Care
  • Hair Care
  • Makeup
  • Oral Care
  • Fragrances
  • Others

Global Cosmetic Chemicals Market by Product Type

• • Surfactants
  • Emollients & Moisturizers
  • Film-Formers
  • Colorants & Pigments
  • Preservatives
  • Emulsifying & Thickening Agents
  • Single-Use Additives
  • Others

Global Cosmetic Chemicals Market by Region

• • North America Cosmetic Chemicals Market (Option 1: As a part of the free 25% customization)

    • By Application
    • By Product Type
    • US Market All-Up
    • Canada Market All-Up

  • Europe Cosmetic Chemicals Market (Option 2: As a part of the free 25% customization)

    • By Application
    • By Product Type
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Cosmetic Chemicals Market (Option 3: As a part of the free 25% customization)

    • By Application
    • By Product Type
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Cosmetic Chemicals Market (Option 4: As a part of the free 25% customization)

    • By Application
    • By Product Type
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Global Cosmetic Chemicals Leading Market Players (Option 5: As a part of the free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Dow
  • Givaudan
  • Ashland Inc.
  • Eastman Chemical Company
  • Lonza Group
  • BASF SE
  • Lanxess
  • P&G Chemicals
  • Solvay S.A.
  • Evonik Industries AG
  • Bayer AG.