Active Ingredients Market Overview
The Active Ingredients Market
size is estimated to grow at a CAGR of 6.3% during the forecast period
2022-2027. Active ingredients are the components of a product that are
subjected to natural processes during the manufacturing process and which include
salicylic acid, arecoline, petrolatum and mineral oil. An active ingredient is a chemically active
pharmaceutical ingredient and the traditional word for the active
pharmaceutical ingredient is pharmacon. It is widely used in pharmaceuticals,
agriculture and cosmetics, where a combination of active chemicals and other
compounds is developed to enhance the effects of pharmacological and pesticide
activities. The rising need for multifunctional components is a primary driver
of the active ingredients market's expansion. Furthermore, rising demand for
sun protection, skin whitening, or anti-aging treatments, as well as a
developing trend in the cosmetic sector and the increasing prevalence of male
grooming, is projected to boost the growth of the active ingredients market. The
covid-19 pandemic majorly impacted the market due to restricted production,
supply chain disruption, logistics restrictions and a fall in demand. However,
with robust growth and flourishing applications across major industries such as
skin care, hair care and others, the active ingredients industry is anticipated
to grow rapidly during the forecast period.
Active Ingredients Market Report Coverage
The “Active Ingredients Market
Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis
of the following segments in the Active Ingredients industry.
Key Takeaways
- The Asia-Pacific region dominates the Active Ingredients market size, owing to the Increased government emphasis on generic drugs, as well as rising demand for cosmetics and skin care products in this region.
- Rising product demand connected to youth-centric strategy has expanded the use of active ingredients, creating numerous prospects for the active ingredients industry.
- Rising demand for sun protection, skin whitening and anti-aging treatments, as well as the expanding trend of men grooming, are likely to drive the expansion of the active ingredients market.
Figure: Asia-Pacific Active Ingredients Market Revenue, 2021-2027 (US$ Billion)
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Active Ingredients Market Segment Analysis – by Source
Natural held a significant
share in the Active Ingredients market in 2021 and is forecasted to grow at a
CAGR of 6.5% during the forecast period 2022-2027, owing to increasing demand
for natural ingredients over synthetic ingredients. The increasing awareness
about the benefits of natural ingredient-based products has prompted customers
to seek out eco-friendly products such as arecoline, petrolatum and mineral oil
products. Growing environmental concerns and consumer awareness of the
advantages of natural products are both anticipated to drive up demand for
active ingredients. While there is a growing awareness about environmental
safety, numerous personal care product makers have shifted their focus to
eco-friendly products, which drives the demand for natural active ingredients. For
instance, L'Oréal and the multinational packaging company Albea produced
paper-based cosmetic tubes in March 2020. Bio-based paper is used in the
developed cosmetic tubes. Thus, owing to numerous advantages and abundance over synthetic
ingredients, the demand for natural ingredients is growing for application in
major industries, thereby boosting the active ingredients market share in the
coming years.
Active Ingredients Market Segment Analysis – by End-Use Industry
Personal Care & Cosmetic
held a significant share in the Active Ingredients market in 2021 and is
forecasted to grow at a CAGR of 6.8% during the forecast period 2022-2027,
owing to expanding global population and increased consumer desire for
attractiveness. The increased usage of cosmetic active ingredients is also
being influenced by growing worries about aging skin and the desire for a
uniform skin tone. The market is dominated by personal care & cosmetic
primarily because of the rising demand for anti-aging, skin-lightening and
sunscreen products as a result of consumers' increased knowledge of the
importance of their health and skin. Moreover, the increased need for men's
grooming products is increasing the demand for skin and hair care products,
resulting in an increase in the demand for active ingredients in personal care
& cosmetics. According to the International Trade Administration, Mexico's
overall cosmetic sector output increased from $7.10 billion in 2018 to $7.15
billion in 2019. For instance, according to Cosmetic Europe, the personal care
and cosmetics industry has witnessed a growth of 1.3% in 2018 as compared to
2017. The demand for active ingredients is rising dramatically along with the
personal care and cosmetics sectors. Therefore, the growing personal
care and cosmetics market is a key factor in the growth of the active
ingredients market share over the forecast period.
Active Ingredients Market Segment Analysis – by Geography
The Asia-Pacific held a
significant share in the Active Ingredients market in 2021 up to 43% and is
forecasted to grow at a CAGR of 6.9% during the forecast period 2022-2027. The
fuelling demand and growth of active ingredients in this region are influenced by
flourishing demand from major industries such as personal care & cosmetic,
agriculture and others, along with fuelling manufacturing activities across
APAC. The personal care & cosmetic sector is growing rapidly in
Asia-Pacific owing to rapid technical development, product innovation and
expanding consumer preference. According to the India Brand Equity Foundation (IBEF), the beauty,
cosmetics and grooming market in India in 2025 will have grown from US$6.5 billion
to US$20 billion. According to the International Trade Administration, Mexico's
overall cosmetic sector output increased from $7.10 billion in 2018 to $7.15
billion in 2019. According to the International Trade Administration,
Thailand's beauty and personal care goods market was valued at around US$6.2
billion in 2018 and is projected to grow to US$8.0 billion by 2022. Thailand's
beauty and personal care sector is projected to grow at a rate of 7.3 percent
per year from 2019 to 2022. With the rise in personal care & cosmetic
production and flourishing consumer demand in APAC, the demand for active
ingredients for a wide range of applications such as skin care, hair care, face
care and others will grow. This is anticipated to boost the active ingredients market
size in the Asia-Pacific region during the forecast period.
Active Ingredients Market Drivers
Increasing Governments Initiatives in Agriculture:
Governments are
spending extensively on agricultural programs and investments since it is an effective
strategy to increase agricultural productivity while also improving
environmental sustainability, which is boosting the market growth of Active Ingredients in the agriculture industry. According to China's Ministry of
Agriculture, over 1,300 Chinese firms made $26 billion in overseas investments
in agriculture in 2016. The overall amount of private investment in India
should rise (with an additional investment of Rs. 78,424 crores) from Rs.
61,000crore in 2015-16 to Rs. 139,424crore by 2022-23. In India, the Pradhan
Mantri Samman Nidhi Yojana was established in the Budget 2019-20, which
provides a minimum fixed pension of Rs 3000 (US$ 42.92) to qualified small and
marginal farmers upon reaching the age of 60. The Canadian and Saskatchewan
governments have announced more than $484,000 in funding for six projects under
the Strategic Field Program (SFP), which provides funding for field-level
demonstrations and evaluation of selected agricultural practices and
technology. According to the Department of Food and Rural Affairs, the UK
government has launched sustainable farming initiatives and the Farming
Innovation Pathways was also introduced as a research and development
competition inside UK Research and Innovation's Transforming Food Production program
to develop farm-focused innovations and funding for the program was increased
to £14.5 million. As a result of different government initiatives, agricultural
productivity is expanding in many regions. And, as agricultural output
increases, so does the demand for active ingredients, which drives the active
ingredients market share in agrochemicals.
Flourishing Demand for Multifunctional Ingredients:
The increasing
need for improved versatility and varied advantages from a single product is a
primary element driving the demand for multifunctional compounds in Active ingredients. Active and specialized compounds are also present in these
multifunctional products. Active multifunctional chemicals in a personal care
product can serve multiple functions non-comedogenic blemish balm (BB) cream is
touted as a multifunctional treatment that can address a variety of skin
problems caused by excessive sun exposure, such as aging, dullness and
tanning, which driving the market growth of active ingredients. For instance, in May 2022, Avant, a cell culture biotech start-up, introduced a
multifunctional protein made from cultivated fish cells for active cosmetics.
The company claims that this component will create a completely new market for
anti-aging and protective skin care. In April 2021, Symrise introduces
HydrolexTM E, a multifunctional solution for the protection of modern cosmetic
compositions. As a result, the increased need for multifunctional ingredients
will drive the active ingredient market over the forecast period.
Active Ingredients Market Challenges
High Manufacturing Cost:
The high
manufacturing cost for Active Ingredients is one of the major challenges faced
by the Active Ingredients market. The high cost of products and ingredients due
to their restricted availability, such as salicylic acid, arecoline, petrolatum
and mineral oil are another barrier to the market expansion of active
ingredients, particularly in light of the expanding trend toward organic and
natural products. The high cost of feedstock discourages ingredient producers
from putting money into organic cosmetic formulations. To comply with
regulatory bodies' criteria for active ingredients, businesses must adhere to
qualification standards, procedures and safety checks, which drives up the cost
of producing active ingredients. Furthermore, the market expansion of active
ingredients is also impacted by stringent government laws and industry
standards connected to the usage of ingredients in various industries. This
results in a considerable increase in active ingredient prices, which drives up
manufacturing costs and reduces manufacturers' profit margins, thereby limiting
the active ingredients market growth.
Active Ingredients Industry Outlook
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Active Ingredients market. The top 10 companies in the Active Ingredients market are:
- BASF SE
- The Dow Chemicals Company
- Ashland Inc.
- Rhodia
- Du Pont
- Sumitomo Group
- LOral S.A.
- Beiersdorf AG
- Sederma Inc.
- Evonik Industries.
Recent Developments
- In April 2021, Ashland has introduced a new active skin care component that claims to add vibrancy and "glow" for a well-aged appearance.
- In October 2020, Evonik has significantly expanded its bio-based portfolio of active ingredients for the beauty and personal care industry to address growing demand for unique, sustainably sourced products.
- In January 2020, At Cosmet'Agora 2020 in Paris, BASF SE introduced new skincare active ingredients Hydagen® Aquaporin, Hydrasensyl® Glucanand InolixirTM for makeup applications.
Relevant Reports
Report Code: CMR
69670
Report Code: CMR
0333
Report Code: CMR
1236
LIST OF TABLES
1.Global Active Ingredient for Cosmetics Market By Functionality Market 2023-2030 ($M)1.1 Conditioning Agent Market 2023-2030 ($M) - Global Industry Research
1.2 UV Filters Market 2023-2030 ($M) - Global Industry Research
1.3 Anti-Ageing Agents Market 2023-2030 ($M) - Global Industry Research
1.4 Skin Lightening Agents Market 2023-2030 ($M) - Global Industry Research
2.Global Active Ingredient for Cosmetics Market By Functionality Market 2023-2030 (Volume/Units)
2.1 Conditioning Agent Market 2023-2030 (Volume/Units) - Global Industry Research
2.2 UV Filters Market 2023-2030 (Volume/Units) - Global Industry Research
2.3 Anti-Ageing Agents Market 2023-2030 (Volume/Units) - Global Industry Research
2.4 Skin Lightening Agents Market 2023-2030 (Volume/Units) - Global Industry Research
3.North America Active Ingredient for Cosmetics Market By Functionality Market 2023-2030 ($M)
3.1 Conditioning Agent Market 2023-2030 ($M) - Regional Industry Research
3.2 UV Filters Market 2023-2030 ($M) - Regional Industry Research
3.3 Anti-Ageing Agents Market 2023-2030 ($M) - Regional Industry Research
3.4 Skin Lightening Agents Market 2023-2030 ($M) - Regional Industry Research
4.South America Active Ingredient for Cosmetics Market By Functionality Market 2023-2030 ($M)
4.1 Conditioning Agent Market 2023-2030 ($M) - Regional Industry Research
4.2 UV Filters Market 2023-2030 ($M) - Regional Industry Research
4.3 Anti-Ageing Agents Market 2023-2030 ($M) - Regional Industry Research
4.4 Skin Lightening Agents Market 2023-2030 ($M) - Regional Industry Research
5.Europe Active Ingredient for Cosmetics Market By Functionality Market 2023-2030 ($M)
5.1 Conditioning Agent Market 2023-2030 ($M) - Regional Industry Research
5.2 UV Filters Market 2023-2030 ($M) - Regional Industry Research
5.3 Anti-Ageing Agents Market 2023-2030 ($M) - Regional Industry Research
5.4 Skin Lightening Agents Market 2023-2030 ($M) - Regional Industry Research
6.APAC Active Ingredient for Cosmetics Market By Functionality Market 2023-2030 ($M)
6.1 Conditioning Agent Market 2023-2030 ($M) - Regional Industry Research
6.2 UV Filters Market 2023-2030 ($M) - Regional Industry Research
6.3 Anti-Ageing Agents Market 2023-2030 ($M) - Regional Industry Research
6.4 Skin Lightening Agents Market 2023-2030 ($M) - Regional Industry Research
7.MENA Active Ingredient for Cosmetics Market By Functionality Market 2023-2030 ($M)
7.1 Conditioning Agent Market 2023-2030 ($M) - Regional Industry Research
7.2 UV Filters Market 2023-2030 ($M) - Regional Industry Research
7.3 Anti-Ageing Agents Market 2023-2030 ($M) - Regional Industry Research
7.4 Skin Lightening Agents Market 2023-2030 ($M) - Regional Industry Research
LIST OF FIGURES
1.US Active Ingredients Market Revenue, 2023-2030 ($M)2.Canada Active Ingredients Market Revenue, 2023-2030 ($M)
3.Mexico Active Ingredients Market Revenue, 2023-2030 ($M)
4.Brazil Active Ingredients Market Revenue, 2023-2030 ($M)
5.Argentina Active Ingredients Market Revenue, 2023-2030 ($M)
6.Peru Active Ingredients Market Revenue, 2023-2030 ($M)
7.Colombia Active Ingredients Market Revenue, 2023-2030 ($M)
8.Chile Active Ingredients Market Revenue, 2023-2030 ($M)
9.Rest of South America Active Ingredients Market Revenue, 2023-2030 ($M)
10.UK Active Ingredients Market Revenue, 2023-2030 ($M)
11.Germany Active Ingredients Market Revenue, 2023-2030 ($M)
12.France Active Ingredients Market Revenue, 2023-2030 ($M)
13.Italy Active Ingredients Market Revenue, 2023-2030 ($M)
14.Spain Active Ingredients Market Revenue, 2023-2030 ($M)
15.Rest of Europe Active Ingredients Market Revenue, 2023-2030 ($M)
16.China Active Ingredients Market Revenue, 2023-2030 ($M)
17.India Active Ingredients Market Revenue, 2023-2030 ($M)
18.Japan Active Ingredients Market Revenue, 2023-2030 ($M)
19.South Korea Active Ingredients Market Revenue, 2023-2030 ($M)
20.South Africa Active Ingredients Market Revenue, 2023-2030 ($M)
21.North America Active Ingredients By Application
22.South America Active Ingredients By Application
23.Europe Active Ingredients By Application
24.APAC Active Ingredients By Application
25.MENA Active Ingredients By Application
26.Akzonobel N.V., Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.Ashland Inc., Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.BASF SE, Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Clariant AG, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.Evonik Industries AG, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Lonza, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Gattefosse, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Lucas Meyer Cosmetics, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Sederma Inc., Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Seppic SA, Sales /Revenue, 2015-2018 ($Mn/$Bn)