Chemicals for Cosmetics and Toiletries Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global market value of chemicals for cosmetics and toiletries was valued at USD 55.1 billion in 2023, and a CAGR of 7.1% is expected during the forecast period. Rising disposable income and a rise in the use of beauty chemicals are driving growth significantly in the market. The growing trend of anti-aging and skin care products is driving the market towards significant growth.

Increasing adoption of eco-friendly and green practices is the main reason behind growth in the market. Increasing growth in biotechnology and nanotechnology is also driving the market towards new heights. Rising demand for natural and organic cosmetics is heading the market towards significant growth. E-commerce as a modern business methodology had brought a significant change in cosmetics industry.

Growth Drivers

Increasing expansion in e-commerce is making cosmetics and toiletries more accessible to a broader audience, boosting market penetration and demand for unique formulations. Rising middle-class populations in regions such as the Middle East and Asia Pacific are creating opportunities for growth. Increasing awareness about health and hygiene and demand for male grooming products are contributing significantly to the market growth.

Rising disposable income in emerging economies is driving the market growth significantly. Shift towards natural and sustainable ingredients and consumer preference for eco-friendly products and organic ones has spurred the demand for bio-based and plant-derived chemicals in the market. The development of advanced delivery systems and innovation in emulsifiers, surfactants, and preservatives contribute to market growth significantly. Increasing number of people who are well aware of benefits of hygienic practices are driving growth in the market. Rising disposable income in Emerging countries is the key reason behind the significant growth in the market.

Segmentation

By Product Type

·         Surfactants

·         Moisturizers

·         Conditioning Agents

·         UV Absorbed and Filters

·         Preservatives

·         Colorants and Pigments

·         Active Ingredients

By Function

·         Cleansing

·         Moisturizing

·         Anti-Aging

·         Sun-Protection

·         Fragrance

·         Color

By Application

·         Skin Care

·         Hair Care

·         Oral Care

·         Makeup

·         Fragrance

·         Personal Hygiene

By End-User

·         Men’s Grooming

·         Women’s Cosmetic

·         Baby and Child Care

·         Unisex Products

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Middle East and Africa

·         Europe

Chemicals for Cosmetics and Toiletries Market by Application Segmentation

On the basis of the application, the chemicals for the cosmetics and toiletries market are segmented into skin care, hair care, oral care, makeup, fragrance, and personal hygiene. The skin care segment is the leading application-based segment due to consumer focus on appearance and wellness. Increasing consumer awareness about maintaining healthy, youthful skin has driven demand for products such as anti-aging creams, moisturizers, and sunscreens.

Increasing demand for cleansers, serums, moisturizers, acne treatments, and sunscreens catering to diverse consumer needs. Active ingredients like peptides and antioxidants are widely used in these products, and it has raised the demand for the chemicals significantly. Consumers increasingly prefer natural and organic skincare products, leading to a surge in the use of botanical extracts and bio-based chemicals.

Issues such as pollution, UV exposure, and aging have heightened consumer focus on protective skin care products, driving innovation and chemical usage in this segment. Rapid urbanization and rising disposable income in countries like China, India, and Brazil have fueled the demand for skincare products, further bolstering the growth.

Regional Outlook

On the basis of the regions, the chemicals for cosmetics and toiletries market is segmented into 5 regions: Asia Pacific, North America, Latin America, the Middle East and Africa, and Europe. Asia Pacific is the leading segment in cosmetics and is expected to dominate the market during the forecast period. Increasing population in emerging economies, a growing middle class, and rising urbanization are the key reasons behind the significant growth in the market. Rapid urbanization in emerging economies has increased awareness of personal grooming and hygiene.

Societal and cultural emphasis on skincare and beauty in countries like South Korea, Japan, and China fuels demand for innovative products and hence the chemicals used in them. Asia Pacific is the hub for the global cosmetic industry, particularly in South Korea and Japan, which are known for innovation and high-quality product development. Rapid growth of e-commerce platforms has made cosmetics and toiletries more accessible, driving sales across the region. High demand for natural and organic cosmetics in APAC is driving the market for bio-based chemicals, with sustainability gaining importance in the region.

Asia Pacific has become a significant hub for manufacturing cosmetics and raw materials due to cost advantages and an established supply chain, especially in China and India. While North America is a mature market with high demand for innovative, sustainable, and premium cosmetics, its growth is relatively slower due to market saturation. The presence of key players in North America is the key reason behind the significant growth in the market. The United States of America and Canada are the big markets due to the flourishing cosmetics industry in the region.

Higher consumer spending on beauty and hygiene products and demand for high-quality and premium cosmetics drives the need for specialized chemicals, such as active ingredients, emulsifiers, and preservatives. Consumers in the region are highly aware of product efficacy, safety, and ingredient transparency, leading to a demand for advanced and innovative formulations. The rise of e-commerce and digital marketing has increased access to premium and niche products, creating more opportunities for high-performance chemicals.

Increasing demand for male grooming and anti-aging products is driving the need for specialized chemicals like peptides, antioxidants, and UV filters. A diverse population in North America creates a wide range of products catering to different skin types and hair care needs. Middle East and Africa, and Latin America, especially in the countries like Brazil, Argentina, South Africa, Saudi Arabia, United Arab Emirates are witnessing significant growth due to rising disposable income, and rising awareness among the people about hygiene and health issues. Cosmetics industry is also witnessing significant growth due to increasing trend of E-commerce as modern business methodology.

Key Players

·         Merck KGaA

·         Kao Corporation

·         Dow Chemical

·         LyondellBasell Industries Holdings B.V.

·         The Chemours Company

·         Lonza

·         Croda International Plc

·         Wacker Chemie AG

·         Huntsman Corporation

·         Momentive Performance Materials Inc.

·         Procter & Gamble

·         Other Players