What Has Driven the Growth of the Cosmetic Ingredients Market in Recent Years?
The cosmetic ingredients market has seen considerable growth due to a variety of factors.
•In recent times, the market size of cosmetic ingredients has experienced substantial growth. A surge from $31.89 billion in 2024, to $33.63 billion in 2025 is anticipated, corresponding to a compound annual growth rate (CAGR) of 5.5%.
Factors for this growth during the historical period include trends in natural ingredients, scientific progress, enhanced consumer awareness, regulatory modifications, and cultural impacts.
What is the Market Size Forecast for the Cosmetic Ingredients Market?
The cosmetic ingredients market is expected to maintain its strong growth trajectory in upcoming years.
• In the upcoming years, the market size of cosmetic ingredients is forecasted to experience considerable growth, escalating to $43.79 billion by 2029 with a compound annual growth rate (CAGR) of 6.8%.
The predicted expansion during this period can be ascribed to factors like the clean beauty trend, the prevalence of regenerative and healing components, the growing demand for microbiome-friendly ingredients, the proliferation of online beauty solutions and technology-aided formulations. Key trends anticipated during this period encompass upcycled components, personalized skincare packages, bioactive peptides, barrier repair components, and cannabidiol (CBD) and hemp-based ingredients.
What Are The Core Factors Supporting Growth In The Cosmetic Ingredients Market?
The escalation in the need for personal care items is projected to spur the expansion of the cosmetic ingredients market. Personal care products encompass numerous items typically used for personal cleanliness, beauty enhancement, and cleaning. Such products aim to improve and augment personal health, cleanliness, and aesthetics. Cosmetic ingredients find their applications in personal care products to provide an array of benefits and functionalities. These ingredients serve distinct roles, adding to the overall performance, efficacy, and sensory appeal of the products. Consequently, the call for personal care products contributes to the expansion of the cosmetics ingredients market. For example, a report by Bureau of Labor Statistics, a US government agency, in December 2023 indicated that spending on personal care products and services surged from $771 in 2021 to $866 in 2022, marking a 12.3% rise in expenditure. Hence, the burgeoning demand for personal care products is propelling the growth of the chlorinated fatty acid methyl ester market. Thus, the growing demand for personal care products is fueling the expansion of the cosmetic ingredients market.
What Are The Major Segments Within The Global Cosmetic Ingredients Market?
The cosmetic ingredients market covered in this report is segmented –
1) By Ingredient Type: Synthetic Chemical Ingredients, Natural Or Herbal Ingredients, Specialty Ingredients, Oleochemical, Botanical Extract, Rheology Modifier, Preservatives, Emulsifier And Stabilizer, Other Ingredient Types
2) By Functionality: Cleansing Agents And Foamers, Aroma, Moisturizing, Specialty, Other Functionalities
3) By Application: Skin Care, Oral Care, Hair Care, Make-Up, Fragrance, Other Applications
Subsegments:
1) By Synthetic Chemical Ingredients: Emollients, Surfactants, Synthetic Fragrances
2) By Natural Or Herbal Ingredients: Essential Oils, Plant Oils, Natural Extracts
3) By Specialty Ingredients: Peptides, Hyaluronic Acid, Anti-aging Agents
4) By Oleochemical: Fatty Acids, Glycerin, Fatty Alcohols
5) By Botanical Extract: Flower Extracts, Leaf Extracts, Root Extracts
6) By Rheology Modifier: Thickeners, Gelling Agents, Stabilizers
7) By Preservatives: Parabens, Organic Acids, Antioxidants
8) By Emulsifier And Stabilizer: Anionic Emulsifiers, Cationic Emulsifiers, Non-ionic Emulsifiers
10) By Other Ingredient Types: Colorants, Fragrance Modifiers, Sun Protection Agents
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Which Trends Are Expected To Transform The Cosmetic Ingredients Market?
Prominent players in the cosmetic ingredients market are embracing collaborations as a strategic tactic to merge sustainable, ground-breaking biotechnological-based cosmetic ingredients. Strategic collaborations are essentially about companies utilizing one another's capabilities and resources for joint benefits and prosperity. For instance, in August 2023, Cosmecca Korea Co., a K beauty production company based in South Korea, formed a partnership with Vytrus, a Spanish cosmetic ingredient production company. The goal of this collaboration is to harness biotechnology to concoct novel cosmetic ingredients that are innovative and sustainable, exploiting Vytrus' plant stem cell technology.
Who Are the Key Players in the Cosmetic Ingredients Market?
Major companies operating in the cosmetic ingredients market include:
• BASF SE
• Unilever
• The Dow Chemical Company
• L'Oréal International
• Evonik Industries AG
• Solvay S.A.
• The Estée Lauder Companies Inc.
• DuPont
• International Flavors & Fragrances Inc.
• Kao Chemicals
• Eastman Chemical Company
• DSM
• Wacker Chemie AG
• Givaudan
• Lonza Group Ltd.
• Clariant AG
• KCC Corporation
• Symrise
• Croda International PLC.
• Ashland Inc.
• P2 Science Inc.
• Spira Inc.
• Naturbeads Ltd.
• Allozymes
• Ardra Bio
• Firmenich
• Protameen Chemicals
• Lipoid Kosmetik
• Ecogreen Oleochemicals
• Aqia
What Is The Most Dominant Region In The Cosmetic Ingredients Market?
Asia-Pacific was the largest region in the cosmetic ingredients market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the cosmetic ingredients market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
