Our in-depth analysis segmented the global cosmetic chemicals market in the following segments:
By End User
Global cosmetic chemicals market is further classified on the basis of region as follows:
The global cosmetic chemicals market is estimated to expand at a CAGR of over 4% during 2017 to 2027. The market was valued to be of worth USD 22.4 Billion in 2016, and is expected to reach around USD 33.6 Billion by the end of 2027. The market trends that the cosmetic industry follow globally include globalization of cosmetic products, increased use of non-traditional distribution channels and growing interest in cosmetics. The major international companies such as L’Oreal, Unilever and Procter & Gamble are investing hugely in cosmetic which is expanding the market.
The global cosmetic chemicals market is segmented on the basis of type, function and end user. Moreover, on the basis of type, the market can be segmented into emollients, surfactants, antioxidants and preservatives, rheology modifiers and polymers. Surfactants is the major product segments accounting for the major market share in 2016 on the account of increasing application in skincare and makeup products. These chemicals are widely used to prevent the microbial growth in cosmetics.
By region, global Cosmetic Chemicals Market is segmented into North America, Asia-Pacific, Latin America, Europe, Middle East and Africa. North America dominated the global cosmetic chemical market on the account of growing consumer spending on cosmetic products coupled with increasing disposable income in this region. Asia Pacific on the account of rapidly increasing population, rapid urbanization and changing lifestyle in developing nations such as China, and India in this region will foster market growth during the forecast period.
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Rising demand for skincare and anti-aging cosmetics is one of the factors that are driving global cosmetic chemicals market. The increased usage of natural and organic cosmetics will increase the market of cosmetic chemicals during the forecasted period. Growing consumer spending on cosmetics and toiletry products is one of the crucial factors that drive the market. Top players in the cosmetics market have been shifting their R&D goals towards developing organic grade cosmetics chemicals that can be produced by using petroleum oils and commodity surfactants. Extensive demand for innovative and premium skin lightening ingredients is anticipated to push growth opportunities for cosmetics chemicals manufacturers in near future. The other driving factors of the cosmetic industry include rising demand from the ethnic groups for beauty products that are customized according to their needs. Moreover, rising expenditure on cosmetic products coupled with increasing awareness for organic personal care products among the young population is also expected to fuel demand for cosmetic chemicals market.
However, increasing demand for naturally produced ingredients may block the growth of the cosmetic chemicals market globally. However, growing health concerns regarding ingredient toxicity are expected to hinder the market growth during the forecast period.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel