Cosmetics And Toiletries Chemicals Market - Forecast(2024 - 2030)
Cosmetics and Toiletries Chemicals Market Overview
The Cosmetics
and Toiletries Chemicals Market is forecast to reach US$14.2 billion by 2027 after growing at a CAGR of 4.8 % during the forecast period (2022-2027). In
general, various chemicals such as Exfoliants, Formaldehyde, Surfactants,
Emulsifiers, Emollients, Colorants, and alcohols are used for Cosmetics and
Toiletries products. They are used for a wide range of applications which
include Cosmetics & Skin Care, Hair Care, Fragrances & Perfumes,
Bathing Products, and other applications.
The need for Cosmetics and Toiletries Chemicals has been increasing
rapidly across the globe. For instance, European countries sold the highest
amount of exported beauty and skincare goods during 2020 with shipments valued
at $26.7 billion, which indicates around 44% of the global account. This is
followed by Asian exporters with related shipments at 43%, and North America by
10.7%. An increase in demand for cosmetics & personal care products along
with an increase in demand from the Fragrances & Perfumes industry acts as
major drivers for the market. On the other hand, strict regulations regarding
the use of these chemicals may act as a major constraint for the market.
COVID-19 Impact
There is no doubt that the COVID-19 lockdown has impacted the Cosmetics and Toiletries Chemicals Market. Strict lockdowns all over the world interrupted the entire supply and trade of raw materials, which in turn, resulted in slow developments, and manufacturing from Cosmetics & Skin Care industry. However, a slow recovery in new cosmetics, and skincare production has been witnessed across many countries around the world since 2020. According to recent research published on The Business Line, India reported a growth of around 20% on annual retail sales of cosmetics and other skincare products during the fourth quarter of 2020 and is expected to grow in the upcoming years. In this way, a slow and steady increase in production activities from Cosmetics & Skin Care industry will increase the demand for cosmetics chemicals required for the production of these cosmetics and skincare products. This will eventually lead to a slow and steady recovery of the market in the upcoming years.
Report Coverage
The report: “Cosmetics and Toiletries Chemicals Market
– Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the
following segments of the Cosmetics and
Toiletries Chemicals Industry.
By Type: Active
Ingredients, and Inactive Ingredients.
By Application: Cosmetics
& Skin Care, Hair Care, Fragrances & Perfumes, Bathing Products,
Others.
By Geography: North
America (USA, Canada, and Mexico), Europe (the UK, Germany, France, Italy,
Netherlands, Spain, Russia, Belgium, and the Rest of Europe), Asia-Pacific
(China, Japan, India, South Korea, Australia and New Zealand, Indonesia,
Taiwan, Malaysia, and the Rest of Asia-Pacific), South America (Brazil,
Argentina, Colombia, Chile and the Rest of South America), the Rest of the
World (the Middle East, and Africa).
Key Takeaways
- Cosmetics & Skin Care segment is expected to see the fastest growth, especially during the forecast period, owing to the rise in fashion standards across the world. Since cosmetic & skincare chemicals such as surfactants, emulsifiers, emollients, colorants, formaldehyde, and other preservatives are widely used in cosmetics and skincare products, an increase in demand for these chemicals from this industry is most likely to drive the market growth over the forecast period.
- Inactive Ingredients held a significant share in the Cosmetics and Toiletries Chemicals owing to increasing demand for cosmetics and skincare products across the globe. For instance, European countries have imported around 27.8% of the global total for cosmetics and skincare products, followed by North America with 9.9%.
- Asia-Pacific is expected to account for the largest share in the Cosmetics and Toiletries Chemicals. The major reason behind this is the rising requirement of cosmetic products, skincare products, fragrances, and more applications that require the use of these chemicals, thus, boosting the market growth. For instance, Asia-Pacific countries bought the highest amount of imported beauty, cosmetics, and skincare products during 2020 with acquisitions costing around $37.2 billion which indicates 57.9% of the global total.
Figure: Asia-Pacific Cosmetics and Toiletries Chemicals Market Revenue, 2021-2027 (US$ Billion)
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Cosmetics and Toiletries Chemicals Market Segment Analysis – By Type
Inactive
Ingredients held a significant share in the Cosmetics and Toiletries Chemicals
Market in 2021 and is expected to grow at a CAGR 4.9% between 2022 and 2027,
owing to increasing demand for cosmetics and skincare products like
sunscreens, cleansers, lotions, serums, lipsticks, nail colors, and cream. The
use of inactive ingredients such as surfactants, emulsifiers, emollients,
colorants, and preservatives such as benzyl alcohol on skincare products offers
a number of benefits. Some of the advantages that these inactive ingredients
offers include, it helps balance the PH of the products, provide aesthetic
benefits, and helps thicken the product formula. It also plays a major role in
stabilizing the emulsions and helps prevent the contamination and the growth
of harmful bacteria in products which makes the overall products last longer.
Hence, all of these factors are most likely to boost market growth.
Cosmetics and Toiletries Chemicals Market Segment Analysis – By Application
The Cosmetics
& Skin Care segment held the largest share in the Cosmetics and Toiletries
Chemicals Market in 2021 and is expected to grow at a CAGR of 5% between 2022 and
2027. This is mainly to the increase in demand for the production of cosmetics,
and skincare products, owing to an increase in awareness regarding personal
grooming across the world. For instance, according to a study published on
Fashion Network, skincare and sun care products produced an average annual
growth of 5.6% in 2020. Furthermore, countries like France, Singapore, South
Korea, and the US sold some of the largest amounts of exported beauty and skincare
goods during 2020 with shipments valued at $9 billion, $6.2 billion, $6.1
billion, and $5.1 billion respectively. Since Cosmetics & Skin Care
chemicals offer properties for stabilizing formulations and emulsions in the
product, it plays a major role during the production of cosmetics, and skincare products. This will most likely lead to market growth in the upcoming
years.
Cosmetics and Toiletries Chemicals Market Segment Analysis – By Geography
The Asia Pacific
held the largest share in the Cosmetics and Toiletries Market in 2021 up to
30%, owing to the increasing demand from the fragrance, cosmetics, and skincare sectors. For instance, a recent study published by the Indian Ministry of
Economy and Industry states that the beauty and personal care industry in the
country is expected to reach more than $10 billion by the end of 2021, and is most
likely to grow by around 6% in the upcoming years. Likewise, Shiseido, a
leading cosmetics and beauty brand in Japan, published a report which stated
that the net sales of the company based on cosmetics and personal care products
reached around 267.2 billion yen (USD 2.4 billion) during the fourth quarter of
2020, and it is expected to rise in the upcoming years as well. Furthermore,
according to a recent article published on Vogue, multiple globally reputed
beauty brands like Glossier, Ceremonia, Tata Harper, Dermalogica, and more,
have come up with new cosmetics and skincare product launches in August 2021.
Hence, increasing demand for cosmetics and personal care products also increases the
demand for Cosmetics and Toiletries chemicals required during their production,
thus, resulting in the growth of the market in the upcoming years.
Cosmetics and Toiletries Chemicals Market Drivers
An increase in demand for cosmetics and personal care products is most likely to increase demand for the product
Cosmetics and
Toiletries chemicals are commonly used in moisturizing creams and lotions,
lipsticks, bar soaps, shampoos, and perfumes since they give integral fresh
odor, helps balance the PH of the products, provides aesthetic benefits, helps
thicken the product formula, helps stabilize the emulsions, and helps prevent
the contamination and the growth of harmful bacteria in products. According to
a recent study published on Redseer, the Indian beauty and personal care sector
holds a major share of 75% and is expected to increase by 9% by 2022, which
includes daily required personal care products such as shampoos, soaps,
deodorants, shaving kits, hand cleaners and many more. Likewise, according to a
recent article published on the Vouge in 2021, 10 new beauty products are to be
launched from multiple leading brands across the world such as Becca, Indya,
Forrest Essentials, Jimmy Coo, Colorbar, Wow Skin, Clinique, MyGlamm, and more.
Hence, an increase in demand for cosmetics and personal care products also
increases the demand for Cosmetics and Toiletries Chemicals required during
their production, thus, resulting in the growth of the market in the upcoming
years.
An increase in demand from the Fragrances & Perfumes industry is most likely to increase demand for the product
Ingredients such
as benzyl alcohol, acetone, ethanol, ethyl acetate, camphor, formaldehyde, and
others are commonly used for adding fragrances to perfumes, cosmetics, and
personal care products. According to a recent study published in the Economic
Times the average annual revenue of the Indian Perfume Industry is around INR
3000 crore ($408 million), and is expected to grow by approximately 17% in the next
three years by 2024. Likewise, a recent study published on the Vogue Business
stated that China’s perfume consumption has been growing rapidly in recent
years and reached up to $ 1.76 billion during the fourth quarter of 2020.
Hence, an increase in demand for these chemicals from the fragrances and perfumes
industry is most likely to boost the growth of the Cosmetics and Toiletries
Chemicals Market in the upcoming years.
Cosmetics and Toiletries Chemicals Market Challenges
Strict regulations regarding the use of Cosmetics and Toiletries Chemicals can cause an obstruction to the market growth
According to U.S. law, cosmetic products and ingredients, apart from color additives, do not
need Food and Drug Administration (FDA) approval before they go on the market.
However, cosmetic manufacturers hold a legal responsibility in order to provide
the safety and labeling of their products.
FDA can take strict actions against any cosmetic products on the market
that do not comply with the law. For example, if the product comprises of any
poisonous or harmful ingredients, or if the product constitutes of cosmetics
chemicals over the permissible limit or quantity, then the FDA can take legal
actions against the manufacturers. Hence, strict regulations regarding the use
of Cosmetics and Toiletries Chemicals may confine the market growth.
Cosmetics and Toiletries Chemicals Market Landscape
Technology
launches, acquisitions, and R&D activities are key strategies adopted by
players in the Cosmetics and Toiletries Chemicals Market. Cosmetics and
Toiletries Chemicals Market top companies are:
- Akzo Nobel N.V.
- Ashland
- BASF SE
- Croda International Plc
- DSM N.V.
- Eastman Chemical Company
- Emery Oleochemicals
- Evonik Industries AG
- Firmenich SA
- The Lubrizol Corporation
Acquisitions/Technology Launches
- In March 2021, Firmenich, teamed up in an exclusive alliance with Central Saint Martins in London for the purpose of redefining the future of fine fragrance. The projects aim to provide a distinctive vision for the usage of fine fragrance, from heat relief, community empowerment, and water conservation to mindful eating and scent travel.
- In January 2020, BASF launched new skincare active ingredients for makeup formulations. It included ingredients such as Hydagen Aquaporin that helps stimulate the formation of cellular water channels in the skin, Inolixir which helps soothe sensitive skin, Hydrasensyl Glucan that helps moisturize the skin, and multi-benefit bioactive for makeup formulations.
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