The global personal care specialty ingredients market size was valued at USD 12.54 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 5.4% from 2023 to 2030. Growing consumer awareness regarding the toxicity of synthetic chemicals used in personal care products and toiletries is expected to propel the market for organic ingredients over the next eight years. Personal care products with negligible skin irritation have gained significance among various consumer age groups. This trend can be attributed to the increasing access to health forums via internet sources. In the hair care segment, the shifting preference toward water-based products over solvent-based alternatives is attributed to the ease of utility and minimal damage caused to hair by prolonged usage.
The above trend has urged manufacturers to shift toward the use of mild ingredients such as sulfate-free anionic surfactants, which are preferred over conventional products such as sodium lauryl ether sulfates. A similar trend was also witnessed in the other product segments such as the anti-microbial and anti-aging product categories.
Major sources of the active ingredients comprise raw materials such as soybean, neem, fish oil, xanthan gum, and guar gum. While xanthan gum is majorly used in skincare, haircare, makeup, and bath products, soy-based ingredients find significance in anti-aging products. Specialty ingredients demand is primarily influenced by the price and availability of these raw materials for the further production of cosmetic chemicals.
While climatic conditions influence raw material production and supply, regulatory norms govern the extraction and processing of ingredients from these sources. Certification bodies such as EcoCert, BDIH, Certech, and Soil Association have established stringent guidelines for cosmetics based on food standards. These guidelines influence the trading of products that are not produced according to the guidelines. These strategies are anticipated to impact the false labeling of products and steer the natural and organic personal care specialty ingredients market over the next eight years.
The skin care segment accounted for the largest revenue share of 33.3% in 2022. Growing awareness among consumers regarding the significance of skincare and its role in maintaining healthy skin has led to an increased demand for skin care products. Factors such as urbanization, pollution, exposure to harmful UV rays, and changing lifestyles have adversely affected skin health. Consequently, consumers are seeking skin care products that can counter these negative effects.
The hair care segment is expected to grow at a CAGR of 5.6% over the forecast period. Increasing consumer awareness regarding hair health and the desire for personalized and effective hair care products have fueled the demand for hair care products. Hair-related issues such as hair loss, dandruff, dryness, and frizz continue to be significant concerns for consumers. As a result, there is a strong demand for ingredients that address these specific hair concerns and provide effective solutions.
The inactive segment accounted for the largest revenue share of 58.9% in 2022. The high penetration of this segment can be attributed to its efficiency in enhancing the benefits of individual components of cosmetic formulations. In addition, its enhanced compatibility with various formulations has led to increased adoption across hair and skin care products over the past few years.
The active segment is expected to grow at the fastest CAGR of 5.7% during the forecast period. The high growth of this segment can be attributed to the growing conditioning polymers and emollients demand in beauty products such as body washes, lotions, gels, and creams.
Conditioning polymers are expected to witness the highest growth within the active elements over the forecast period at an estimated CAGR of 5.9% from 2023 to 2030. Shifting consumer preference toward multi-functional products has urged the formulators to develop products with both conditioning and other functionalities such as coloring and anti-dandruff treatment. Ongoing research activities in polyquaternium and protein-based ingredients to develop effective hair conditioning products are expected to offer ample opportunities for industry participants over the long term.
Asia Pacific dominated the market and accounted for the largest revenue share of 33.8% in 2022. The shifting consumer trend towards at-home beauty treatment has contributed to the significant demand for skin care and hair care products in the region. In addition, ongoing research projects adopted by various start-ups in countries such as China, India, and Vietnam for formulating innovative products from local ingredients are expected to further drive R&D investments over the long term.
North America is expected to grow at a CAGR of 5.6% during the forecast period. Shifting consumer trends toward UV protection and moisturizing products in the region, especially in the U.S. and Mexico is expected to drive related personal care product demand over the next eight years.
The global market for personal care specialty ingredients is highly fragmented owing to the presence of a large number of independent small & medium scale manufacturers, particularly in Asia Pacific and the Middle East.
In July 2023, Evonik Industries AG acquired Novachem, an Argentinian manufacturer of cosmetic active ingredients. This strategic move involves the integration of Novachem into Evonik's Care Solutions business line, which operates within the company's life sciences division.
The primary objective of this acquisition is to enhance its existing portfolio of active ingredients, specifically catering to the beauty industry. Evonik aims to strengthen its position in serving the evolving needs of the cosmetics sector by incorporating Novachem's capabilities and expertise.
In May 2023, Evonik Industries AG collaborated with Safic-Alcan, a distinguished specialty chemicals distributor, to expand the reach of its nutraceutical offerings to a wider customer base. Through this partnership, Evonik is able to distribute its comprehensive range of nutraceutical products, including AvailOm, Healthberry, and IN VIVO BIOTICS, to customers across Europe, Turkey, and Egypt. By leveraging the distribution capabilities of Safic-Alcan, Evonik will be able to serve broader clients through an extensive network of local sales offices. This collaboration strengthens Evonik's portfolio and enables the company to cater to a diverse array of consumer needs, particularly in areas such as brain health, eye health, and heart health.
In March 2022, Vantage Specialty Chemicals, a prominent and vertically integrated supplier of naturally derived ingredients, successfully completed the acquisition of JEEN International Corporation. This strategic move enables Vantage Personal Care to further enhance its comprehensive range of naturally derived ingredients, encompassing active ingredients, natural oils, and bio-based chassis ingredients. The acquisition of JEEN International Corporation aligns seamlessly with Vantage Personal Care's existing portfolio, offering complementary products and expertise.
In August 2022, Inolex, a reputable specialty ingredients company, introduced ProCondition Sativa (INCI: Cannabisamidopropyl Dimethylamine), an innovative emulsifying and conditioning ingredient derivative of Cannabis sativa (hemp) seed oil. This new product is both sustainable and biodegradable.
ProCondition Sativa offers similar performance to Cetrimonium Chloride (CTAC) as a conditioning agent, while providing enhanced safety for the skin and eyes. Moreover, it is environmentally friendly, poses no harm to aquatic life. Functioning as a primary emulsifier, this ingredient contributes to the stability of formulations through the creation of lamellar liquid crystals.
Report Attribute |
Details |
Market size value in 2023 |
USD 13.20 billion |
Revenue forecast in 2030 |
USD 19.07 billion |
Growth Rate |
CAGR of 5.4% from 2023 to 2030 |
Base year for estimation |
2022 |
Historical data |
2018 - 2021 |
Forecast period |
2023 - 2030 |
Report updated |
October 2023 |
Quantitative units |
Revenue in USD million/billion and CAGR from 2023 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, application, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; MEA |
Country scope |
U.S.; Canada; Mexico; U.K.; Germany; France; Italy; Spain; Russia; China; Japan; India; South Korea; Brazil; Argentina; Saudi Arabia; South Africa |
Key companies profiled |
Inolex, Inc.; Vantage Specialty Chemicals; Naturex; Adina Cosmetic Ingredients Ltd.; Avenir Ingredients Pty Ltd.; Cosmetic Ingredients; Lotioncrafter, Treatt Plc; Akott Evolution S.r.l.; Symrise; CLARIANT; BASF Personal Care and Nutrition GmbH; Evonik Industries AG; Dow |
Customization scope |
Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global personal care specialty ingredients market based on product, application, and region:
Product Outlook (Revenue, USD Million, 2018 - 2030)
Active
Surfactant
Amphoterics
Anionics
Cationics
Non-ionics
Others
Emollient
Emollient ester
Natural oil
Other
UV Absorber
Organic
Inorganic
Conditioning polymer
Silicone
Polyquaternium
Conditioning protein
Antimicrobial
Preservative
Bacteriostats
Antidandruff agent
Others
Inactive
Skin Care
Hair Care
Oral Care
Color Cosmetics
Others
North America
U.S.
Canada
Mexico
Europe
U.K.
Germany
France
Italy
Spain
Russia
Asia Pacific
China
Japan
India
South Korea
Central & South America
Brazil
Argentina
Middle East and Africa
Saudi Arabia
South Africa
b. The global personal care specialty ingredients market size was estimated at USD 12.5 billion in 2022 and is expected to reach USD 13.2 billion in 2023.
b. The global personal care specialty ingredients market is expected to grow at a compound annual growth rate of 5.4% from 2023 to 2030 to reach USD 19.1 billion by 2030.
b. Asia Pacific dominated the personal care specialty ingredients market with a share of 33.8% in 2022. This is attributable to the shifting consumer trend towards at-home beauty treatment, which has led to a significant demand for skin care and hair care products in the region.
b. Some key players operating in the personal care specialty ingredients market include BASF SE, Evonik Industries, Dow Chemicals, Clariant International Limited, Symrise Group, Akott, Ashland, Inc., Vantage Specialty Ingredients, Naturex. and others.
b. Key factors that are driving the market growth include the growing consumer awareness regarding the toxicity of synthetic chemicals used in personal care products and toiletries.
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