Cosmetics Ingredient Market 2020 : Heightened Demand for Natural Ingredients to Boost Sales

The cosmetic sector has evolved at a rapid pace over the past couple of decades due to augmenting consumer awareness, rapidly changing regulations, and emerging trends. At present, players operating in the cosmetics ingredient market are increasingly focusing on offering improved textural experiences, and producing sustainable and holistic cosmetic solutions and products. Several new trends such as the ‘clean beauty’ trend have played a key role in influencing the overall growth of the global cosmetics ingredient market over the past few years– a factor that is expected to fuel market growth in the upcoming years.

With consistent advancements in cosmetic technology in the past decade, the prospects of the cosmetics ingredient market look bright during the forecast period. At present, a large number of companies operating in the cosmetics ingredient market are walking down the sustainability path to gain an advantage in the current market landscape. In addition, market players are increasingly reviewing their product development cycle to minimize the carbon footprint of various ingredients by enhancing waste management. Traditional ingredients are being reinvented due to the entry of novel technologies, including Artificial Intelligence (AI) in various ways such as refinement of processing techniques, in silo modeling, and more.

At the back of these factors, along with booming sales of cost-effective skin care products made from natural ingredients, the global cosmetics ingredient market is expected to attain a market value of US$ 51.6 Bn by the end of 2030.

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Fast-paced Innovations and Entry of Novel Technologies to Aid Market Growth

While technological advancements, including 3D printing and artificial intelligence, are playing an imperative role in bolstering the growth of an array of industries, including manufacturing, automotive, e-commerce, aerospace, and healthcare, the cosmetic sector is also on track to leverage these technologies to improve production techniques, quality of products, etc. At present, 3D printing is increasingly being used to develop skincare products such as sheet masks and more. The advent of 3D printing technology is expected to play a key role in improving the size and shape of sheet masks. Several brands are increasingly investing resources in such innovative technologies to improve the quality of their products. For instance, Neutrogena launched Neutrogena MaskiD, a 3D printed face mask to address various issues involved with face masks made by conventional manufacturing techniques. In addition, personalization and customization trends are expected to act as a catalyst in terms of adoption of new technology across the cosmetics ingredient market during the forecast period.

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At present, due to rising consumer awareness pertaining to various cosmetic ingredients, a new range of cosmetic ingredients are gradually entering the market. While alpha hydroxyl acids (AHAs) and beta hydroxyl acid (BHAs) have gained immense popularity as chemical exfoliators, a new generation of acids, including polyhydroxy acid (PHAs) are gradually making a mark in the cosmetic ingredients market. Moreover, the growing interest in plant-based retinol alternatives is another factor that is expected to provide a considerable boost to the growth of the cosmetics ingredient market during the forecast period.

Demand to Remain Low in 2020 amid COVID-19 Pandemic, Research Likely to Gain Traction

The COVID-19 pandemic is expected to have a strong impact on the growth of the global cosmetics ingredient market, particularly in 2020 and the first quarter of 2021. As governments across several prominent markets around the world are increasingly focusing on containing the spread of the novel coronavirus, retail stores, shopping malls, and brand showrooms continue to remain shut for a major part of 2020 due to which, offline sales are expected to take a significant hit. In addition, restriction on cross-border trade, along with transportation are some of the other major factors that are likely to pose major challenges across the supply chain.

The overall demand for cosmetic ingredients in the first three quarters of 2020 is projected to remain relatively lower than usual due to the ongoing pandemic. Thus, market growth will remain sluggish. However, market players are anticipated to focus on product development, research, and explore possibilities of using new and safe ingredients in their products.

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Cosmetics Ingredient Market: Players

  • The leading key manufacturers operating in the global cosmetic ingredients market, as profiled in the study comprises
    • BASF SE
    • Croda International Plc
    • DuPont de Nemours Inc.
    • Archer Daniels Midland Company
    • Clariant AG
    • Ashland Global Specialty Chemicals Inc.
    • Solvay SA
    • Evonik Industries AG
    • Actives International LLC.
    • INOLEX Inc.
    • Eastman Chemical Company
    • Kolmar BNH Co Ltd.
    • Innospec Inc.
    • Lonza Group Ltd.
    • Novacap Group (SEQENS)
    • Kao Corporation

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