Glycolic Acid Market Analysis by Purity Level (99% Purity, 70% Purity, 60% Purity, and 30% Purity); Grade (Cosmetic Grade, Technical Grade, Pharmaceutical Grade, Industrial Grade); Application (Personal Care & Dermatology, Tanning & Dyeing, Agriculture, Medical and Food) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4911 | Published Date: May 02, 2023
Glycolic Acid Market size is estimated to reach ~USD 4 Billion by the end of 2035 by growing at a CAGR of ~9.60% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of glycolic acid was ~USD 1 Billion. The growth of the market can be attributed to the increasing demand for glycolic acid from various end-use industries. Further, the growing use and demand for emulsion polymers are also expected to contribute to the growth of the market in the forecast period. For instance, worldwide emulsion polymer consumption is 410 thousand metric tonnes. The increased demand from the cosmetic industry is another factor that is predicted to keep growing in the coming years.
In addition to these, factors that are believed to fuel the market growth of glycolic acid include the rise in skincare products. In 2021, approximately 40 % of the world glycolic acid market will be made up of products for skin care. The main drivers for the entire growth of the cosmetics industry have been emerging as internet businesses, social networking activities, a higher per capita disposable income, and consumers' interest in new, more premium, or differentiated products. Additionally, the growing production of chemicals with glycolic acid as an intermediate is predicted to present the potential for market expansion over the projected period.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~9.60% |
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Base Year Market Size (2022) |
~ USD 1 Billion |
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Forecast Year Market Size (2035) |
~ USD 4 Billion |
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Regional Scope |
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Growth Drivers
Challenges
The global glycolic acid market is segmented and analyzed for demand and supply by application into personal care & dermatology, tanning & dyeing, agriculture, medical, and food. Out of the three types of glycolic acid, the personal care & dermatology segment is estimated to gain the largest market share of about ~40% in the year 2035. The growth of the segment can be attributed to the increasing number of cosmetic and personal care products in the market and spending. For instance, in Europe, the market value of skin care products made up to one-fifth of the entire cosmetic industry. Glycolic acid also known as hydroxyacetic acid is used as a key ingredient for the manufacture of antiaging creams, lipsticks, shampoos, hair treatment sprays, moisturizers, cleansers, deodorants, fragrances, and body wash products due to improving and healing skin, and anti-aging properties. There will be an increasing demand for these products from the cosmetics sector, thus leading to an increase in the demand for glycolic acid market, which will further support market growth. These factors are estimated to contribute to the market growth in the forecast period.
The global glycolic acid market is also segmented and analyzed for demand and supply by grade into cosmetic grade, technical grade, pharmaceutical grade, and industrial grade. Amongst these four segments, the cosmetic grade segment is expected to garner a significant share in the year 2035. Amorphous PET is used for the manufacture of containers and packaging because it has a high transparency that's similar to glass. An aqueous solution or crystalline powder with a concentration ranging from 10 to 99 % purity is the cosmetic grade glycolic acid. Due to its unparalleled and exceptional performance in combating aging and antipollution skin treatments, it is a very popular and favored grade of glycogenic acid. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.
Our in-depth analysis of the global glycolic acid market includes the following segments:
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By Purity Level |
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By Grade |
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By Application |
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The market share of glycolic acid in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about ~38% by the end of 2035. The growth of the market can be attributed majorly to the increasing textile and cosmetic industries in the region. China is a major customer because of the large presence of the cosmetics sector, in order to meet increasing consumer demand. For instance, China is the leading market for cosmetics, fragrances, and personal care products, with a net worth of USD 80 Billion. Further, rising consumer spending on beauty products, as well as high demand for quality and innovation in the fields of skincare and haircare is also estimated to contribute to the growth of the market in the forecast period. There is a huge consumption of glycolic acid in anti-aging products owing to the growing old age population in China, Japan, South Korea, and other countries will positively impact the market. In addition, the region's expanding e-commerce sector and rising commercialization of cosmetic products are also anticipated to boost market growth during the forecast period.
The North American glycolic acid market is estimated to be the second largest, registering a share of about ~24% by the end of 2035. The growth of the market can be attributed majorly to the increasing demand from the pharmaceutical industries in the region. As glycolic acid is used to produce bioabsorbable suture material without any harm, the pharmaceutical industry in the U.S. is a major user of glycolic acid. Technological developments in the field of medicine have led to improved quality medical instruments which are expected to support market growth. In the case of glycolic acid as a food preservative and flavoring agent, growing consumer awareness about packaged foodstuffs and beverages has led to its use. All these factors are estimated to contribute to the growth of the market growth during the forecast period.
Further, the market in Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the increasing demand from the textile industry. High-quality fabrics are required by the fashion industry, which is dominant in the region, to transform them into different types of clothing. In order to do so, companies are engaged in innovative product development with the introduction of advanced technology that could contribute to market growth across the region.
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
Ans: Increasing demand for glycolic acid from various industries such as cosmetics, and pharmaceuticals are the major factors driving the market growth.
Ans: The market size of glycolic acid is anticipated to attain a CAGR of ~9.60% over the forecast period, i.e., 2023 – 2035.
Ans: Hazardous effects of glycolic acid on health, the environment, and stringent regulations in the use of the acid are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are China Petrochemical Corporation, The Chemours Company, CABB Group, Saanvi Corp, Parchem Fine & Specialty Chemicals, Water Chemical Co., Ltd, Shandong Xinhua Pharmaceutical Co., Ltd., Mehul Dye Chem Industries, Avid Organics, Zhonglan Industry Co., Ltd., Eastman Chemical Company
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue-generating capacity, and the new products being launched into the market by the company.
Ans: The market is segmented by purity level, grade, application, and by region.
Ans: The personal care & dermatology segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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