Personal Care Ingredients Market Size & Share, by Product (Active, Inactive); Application (Skin Care, Hair Care, Oral Care, Color Cosmetics); Consumer (Manufacturer, Consultants) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5989
  • Published Date: Apr 03, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024 - 2036

Personal Care Ingredients Market size is poised to reach USD 21 Billion by the end of 2036, growing at a CAGR of 6% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of personal care ingredients was USD 13 Billion. The market growth can be attributed to evolving lifestyles and rising purchasing power in developing nations. For instance, the active ingredients sector is worth over USD 2 billion globally. Moreover, the dominance is seen in the United States and Europe, claiming nearly 60% of the industry, while Asia holds about one-third, with China alone taking a 60% share within the region. 

In addition to these, factors that are believed to fuel the sectoral growth of the market include their diverse applications as anti-fungal, anti-aging, and skin conditioning agents. Active components like UV protectants and exfoliants, along with inactive elements such as surfactants and preservatives, serve as secondary keywords, underlining their extensive use in skincare product manufacturing.


Personal Care Ingredient Market
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Personal Care Ingredients Sector: Growth Drivers and Challenges

Growth Drivers

  • Economic Indicators Boosting the Personal Care Ingredients Market: The market is on an upward trend, leveraging the purchasing power that remained strong in 2022, with a dollar retaining 92.6 percent of its 2021 value. Women, who are more than half of the U.S. population and influence 85% of consumer spending, are pivotal to this sector’s dynamics. Concurrently, India’s consumer spending has skyrocketed to over 25.6 trillion rupees by late 2023, reflecting a massive potential customer base. These factors, alongside a demand shift towards multifunctional personal care ingredients, indicate a promising growth trajectory for the industry despite regulatory challenges and concerns regarding chemical constituents.
  • Consumer Trends Catalyzing Growth in Personal Care Ingredients: The market is witnessing a surge, propelled by consumer gravitation towards ‘natural’ and ‘botanical’ product claims. Retail insights reveal that such products are experiencing a robust year-on-year growth of 20-25%. Significantly, 71% of consumers have shown a preference for ‘natural’ face creams and lotions, while 38% are inclined to buy shampoos or hail oils labeled with ‘botanical’ ingredients. This trend underscores the growing personal care ingredients market potential, as more consumers seek authenticity and health-conscious solutions in their personal care choices, indicating a promising horizon for the industry and spotlighting consumer health awareness as a key sectoral driver. 
  • Innovation and An Overall Rise in Health Awareness: Innovation in skincare and an overall rise in health awareness are carving out sustainable opportunities within the personal care ingredients industry. Developments in product formulation that cater to a more informed and health-oriented consumer base are expected to foster growth. The Asia-Pacific region, particularly China with its considerable sectoral share, is emerging as a dynamic arena for such advancements. With the integration of natural and eco-friendly components, the industry is adapting to not only meet but anticipate consumer needs, driving forward the sector’s evolution. 

Challenges

  • The volatility of raw material prices, particularly crude oil and natural gas, presents a significant hurdle for manufactures in  market.
  • As personal care ingredients often come from petrochemicals, which require chemical processes that can release harmful wastes, regulatory bodies impose tight control. Agencies like the USEPA and REACH enforce rules that limit the growth of the sector, especially since synthetic ingredients form a significant portion.  
  • Another constraint is the environmental and health impact of the chemical processes used to derive personal care ingredients.

Personal Care Ingredients Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~6%

Base Year Market Size (2023)

~ USD 13 Billion

Forecast Year Market Size (2036)

~ USD 21 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Personal Care Ingredients Segmentation

Application (Skin Care, Hair Care, Oral Care, Color Cosmetics)

The skincare segment in personal care ingredients market is estimated to gain the largest industry share of about 54% in the year 2036. Dominating 40% of the 2019 global cosmetics arena, its trajectory is bolstered by consumers’ surging scrutiny over product ingredients -47% in the U.S. prioritize this knowledge. The drive for growth is twofold: an escalating awareness of skin care’s crucial role in overall health and an eagerness to offset the damaging effects of urban living, pollution, UV exposure, and modern lifestyle shifts. This dual awareness has sparked a robust demand for products designed to neutralize these diverse environmental challenges.

Product (Active, Inactive)

The inactive segment in personal care ingredients market is estimated to gain a significant share of about 52% in the year 2036. The global cosmetics industry, boasting a revenue of USD 103.8 billion, is witnessing the inactive segment’s ascension due to its role in magnifying the efficacy of cosmetic components and its versatile compatibility with numerous formulations. This specialized segment’s influence has surged, becoming increasingly prevalent in hair and skin care products, as recent trends underscore a consumer shift towards products that significantly enhance the overall efficacy of their cosmetic routines.

Our in-depth analysis of the global market includes the following segments:

          Product

  • Active
  • Inactive

          Application

  • Skin Care
  • Hair Care
  • Oral Care
  • Color Cosmetics

          Consumer

  • Manufacturer
  • Consultants

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Personal Care Ingredients Industry - Regional Synopsis

APAC Market Forecast

Personal care ingredients market in the Asia Pacific, is anticipated to hold the largest with a share of about 46% by the end of 2036. The sectoral growth in the region is expected on account of its economic vigor evidenced by per capita spending is anticipated to reach USD 55.70, reflecting the increasing consumer investment in personal care. Notably, online sales are forecasted to make up 18.8% of the total sectoral revenue, underscoring the digital shift in consumer buying patterns. The region’s large and varied population, coupled with rising incomes and changing lifestyles, continues to drive the demand for a diverse range of personal care ingredients. The evolving industry landscape is characterized by robust demand for natural and organic products as well as innovative offers from a growing number of small and medium-sized enterprises, with China, Japan, and India being key contributors to this dynamic sector’s expansion.

European Market Analysis

The Europe personal care ingredients market is estimated to be the second largest, registering a share of about 23% by the end of 2036. The industrial growth in the region is also expected on account of a projected revenue generation of USD 144.60 billion in 2024, indicating a robust industrial demand. Additionally, with online sales poised to represent 23.3% of the total beauty & personal care market revenue by the same year, there is a discernible shift towards digital commerce, as consumers increasingly opt for the convenience of online shopping for their beauty and persona care purchases. This digital trend, combined with the European consumer’s growing preference for natural and organic personal care options, is set to fuel the sectoral’s growth trajectory. In France, the demand for organic and natural beauty products is on the rise, with consumers seeking sustainable and eco-friendly options.   

Research Nester
Personal Care Ingredient Market size
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Companies Dominating the Personal Care Ingredients Landscape

top-features-companies
    • BASF Personal Care and Nutrition GmbH
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Inolex Inc.
    • Vantage Specialty Chemicals
    • Naturex
    • Treatt Plc
    • Evonik Industries AG
    • Dow
    • Akott Evolution S.r.l.
    • Symrise
    • Avenir Ingredients Pty Ltd.

In-the-news

In The News

  • May 9, 2023; To access a larger consumer base, Evonik Industries AG partnered with Safic-Alcan, a reputable distributor of specialized chemicals, to broaden the appeal of its nutraceutical products. With this alliance, Evonik reached consumers in Europe, Turkey, and Egypt with its extensive line of nutraceutical goods, which includes AvailOm, Healthberry, and IN VIVO BIOTICS. Through a vast network of regional sales offices, Evonik was able to service a wider range of clients by utilizing Safic-Alcan's distribution capabilities.
  • March 1, 2022; The acquisition of JEEN International Corporation by Vantage Specialty Chemicals, a well-known and vertically integrated provider of components sourced from natural sources, was completed with success. Vantage Personal Care further improved its wide array of naturally derived ingredients, which includes active compounds, natural oils, and bio-based chassis ingredients, thanks to this calculated decision. The addition of JEEN International Corporation to Vantage Personal Care's portfolio offers skills and products that compliment each other well.

Author Credits:  Smruti Ranjan, Rajrani Baghel


  • Report ID: 5989
  • Published Date: Apr 03, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The major factors driving the growth of the personal care ingredients market are economic indicators boosting the personal care ingredients market, consumer trends catalyzing growth in personal care ingredients and innovation, and an overall rise in health awareness.

The market size of personal care ingredients is anticipated to attain a CAGR of 6% over the forecast period, i.e., 2024-2036.

The major players in the market are BASF Personal Care and Nutrition GmbH Inolex, Inc., Vantage Specialty Chemicals, Naturex, Treatt Plc, Evonik Industries AG, Dow, Akott Evolution S.r.l., Symrise, Avenir Ingredients Pty Ltd., and others

The skincare segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Personal Care Ingredients Market Report Scope
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