Global Active Cosmetic Ingredients Market Overview
Active Cosmetic Ingredients Market Size was estimated at 21.5 (USD Billion) in 2022. The Active Cosmetic Ingredients Industry is expected to grow from 22.77(USD Billion) in 2023 to 38.2 (USD Billion) by 2032. The Active Cosmetic Ingredients Market CAGR (growth rate) is expected to be around 5.91% during the forecast period (2024 - 2032).
Key Active Cosmetic Ingredients Market Trends Highlighted
The Active Cosmetic Ingredients (ACI) market is driven by rising consumer awareness about skin health, increasing demand for personalized skincare products, and the growing popularity of natural and organic ingredients. Opportunities exist in the development of new and innovative ACIs, targeting specific skin concerns and offering tailored solutions. The trend towards clean beauty and the use of sustainable ingredients is creating opportunities for ACIs derived from plant-based sources and biodegradable materials. Furthermore, the advancements in biotechnology and the integration of artificial intelligence (AI) in skincare product development are expected to drive innovation in the ACI market. Emerging trends include the use of botanical extracts, probiotics, and prebiotics for their skin-benefiting properties, the incorporation of cutting-edge technologies like microencapsulation and nanoscale delivery systems to enhance ACI efficacy, and the growing focus on personalized skincare solutions tailored to individual skin profiles.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Active Cosmetic Ingredients Market Drivers
Increasing Demand for Natural and Organic Cosmetics
The increasing awareness of potential health and environmental risks of synthetic chemicals in cosmetics pushes consumers towards demand for natural and organic cosmetics. Therefore, the consumption of cosmetics with active organic ingredients is a significant driver of the Active Cosmetic Ingredients Market growth, as the above-mentioned products are made without using synthetic chemicals, and, are, therefore, considered in the society to be safer for health and the environment.
Rising Disposable Income in Emerging Markets
Also, significant factors, such as the rising disposable income in emerging markets, contribute to the growth of the Active Cosmetic Ingredients Market. When people in emerging markets become richer, they prefer to spend more money on personal care products, such as cosmetics. The fact that emerging markets begin to make people wealthier triggers demand for active cosmetic ingredients because they are needed to make such kinds of products as cosmetics.
Advancements in Biotechnology
Biotechnology has also provided some boost to the global market of active cosmetic ingredients. It resulted in the development of new active ingredients types that provide a wide spectrum of properties such as anti-aging, skin whitening, and sun protection. The development of such ingredients is crucial for the growth of the Active Cosmetic Ingredients Market as cosmetics producers can develop new products to meet the changing needs of individuals.
Active Cosmetic Ingredients Market Segment Insights:
Active Cosmetic Ingredients Market Ingredient Type Insights
The Active Cosmetic Ingredients Market segmentation by Ingredient Type consists of Anti-aging, Moisturizing, Whitening, Sun Protection, Anti-inflammatory, Antioxidants, and Acids. Anti-aging products are the fastest-growing ones. By now, consumers have been aware of the positive effects of anti-aging products so aging is not as alarming as it used to be. Nonetheless, consumers of all ages want to find a way to have not only healthy skin but also a glowing and youthful complexion. Another segment includes moisturizing components. Their popularity has been growing as well since more and more consumers need items that can help their skin shine and look healthy.The third most popular segment includes whitening ingredients. This high demand may be explained by the main trend: the lighter the skin, the better. This trend mostly relates to Asia, where lighter skin is mostly highly culturally preferred. Sun protection ingredients are the best shield from the UV radiation that should not be underestimated. Anti-inflammatory ingredients are used to cool the skin and relief its red color. Antioxidants can be added to the components list to protect the skin from free radicals. Finally, acids are used to peel the skin and increase its smoothness.Thus, the growth in demand may be added up to the importance of each aspect. The Active Cosmetic Ingredients Market revenue is evident. Ingredient Type segment witnessed growth throughout the years starting from USD 12.5 billion to USD 19.7 billion by 2032 amassing a CAGR of 5.9%. Nowadays the demand for the natural product increases with anti-aging and moisturizing being the most introduced to the market. This pressure and an increasing number of customers provide a sufficient stimulus to develop and implement various natural components and acids in production.Key players in the Active Cosmetic Ingredients Market for Ingredient Type segment are BASF, Clariant, Croda International, Dow, Evonik, Givaudan, IFF, Kao Corporation, Lonza, and Merck KGaA. These companies provide new ingredients for produced items.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Active Cosmetic Ingredients Market Application Insights
The application segment plays a pivotal role in shaping the dynamics of the Active Cosmetic Ingredients Market. Skincare, haircare, makeup, and cosmeceuticals are the key application segments, each exhibiting unique growth trajectories and market dynamics. Skincare holds the dominant share in the Active Cosmetic Ingredients Market, driven by rising consumer awareness about skin health and the increasing popularity of natural and organic skincare products. The market for active cosmetic ingredients in skincare is projected to reach USD 15.3 billion by 2024, expanding at a CAGR of 6.2%.The growing demand for anti-aging, anti-wrinkle, and moisturizing products, coupled with the increasing adoption of personalized skincare routines, is fueling the growth of this segment. Haircare is another significant application segment, with a projected market size of USD 5.2 billion by 2024, growing at a CAGR of 5.6%. The rising popularity of hair styling products, hair colorants, and hair care treatments is driving the demand for active cosmetic ingredients in this segment. Makeup is a rapidly growing segment, driven by the increasing use of cosmetics and the growing popularity of social media platforms.The market for active cosmetic ingredients in makeup is projected to reach USD 3.7 billion by 2024, growing at a CAGR of 7.1%. The demand for high-performance, long-lasting, and natural makeup products is propelling the growth of this segment. Cosmeceuticals, a hybrid of cosmetics and pharmaceuticals, represent a promising segment in the Active Cosmetic Ingredients Market. The market for active cosmetic ingredients in cosmeceuticals is projected to reach USD 2.8 billion by 2024, growing at a CAGR of 8.3%. The increasing consumer focus on preventive skincare and the growing demand for products that address specific skin concerns are driving the growth of this segment.
Active Cosmetic Ingredients Market Source Insights
The Active Cosmetic Ingredients Market is segmented by Source into Natural, Synthetic, and Biotechnology. This growth can be attributed to the increasing demand for natural and organic cosmetic products due to rising consumer awareness about the harmful effects of synthetic chemicals. The Synthetic segment is also expected to witness steady growth, primarily driven by the rising popularity of advanced synthetic ingredients that offer enhanced efficacy and stability. The Biotechnology segment is anticipated to gain momentum over the forecast period, owing to the growing adoption of bio-based and sustainable ingredients in the cosmetic industry.
Active Cosmetic Ingredients Market Form Insights
The Active Cosmetic Ingredients Market is segmented by form into liquid, powder, gel, and cream. Among these, the liquid segment held the largest market share in 2023, accounting for over 40% of the global revenue. The liquid form is easy to apply and spread, and it is often used in products such as serums, toners, and lotions. The powder segment is expected to grow at the fastest CAGR during the forecast period, owing to its increasing popularity in products such as face masks and scrubs. The gel segment is also expected to grow at a healthy rate, due to its cooling and soothing properties.The cream segment is expected to maintain a steady growth rate, due to its versatility and ability to be used in a wide range of products.
Active Cosmetic Ingredients Market Regional Insights
The Active Cosmetic Ingredients Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America held the largest market share in 2023 and is expected to continue its dominance during the forecast period. The growth of the regional market can be attributed to the increasing demand for personal care products and the rising awareness of the benefits of active cosmetic ingredients. Europe is another major market for active cosmetic ingredients, and the region is expected to witness significant growth in the coming years.The growing demand for anti-aging and skin care products is driving the growth of the European market. APAC is also a promising market for active cosmetic ingredients, and the region is expected to experience strong growth in the coming years. The increasing disposable income and the rising awareness of the benefits of active cosmetic ingredients are driving the growth of the APAC market. South America and MEA are relatively smaller markets for active cosmetic ingredients, but the regions are expected to witness steady growth in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Active Cosmetic Ingredients Market Key Players And Competitive Insights:
Major players in Active Cosmetic Ingredients Market industry are constantly seeking to improve their competitiveness in a highly saturated industry. For instance, in 2021, BASF SE, acquired the Care Chemicals business from Solvay, in the bid to expand its offerings in the personal care space. The Active Cosmetic Ingredients Market industry has a competitive landscape with leading Active Cosmetic Ingredients Market players including The Lubrizol Corporation, Croda International Plc, Dow, BASF SE, Ashland Global Holdings Inc., DSM, AkzoNobel N.V., Evonik Industries, Lonza Group, and Clariant AG. These players are focusing on research and development to introduce innovative products. Furthermore, they are adopting strategies such as mergers, acquisitions, and partnerships to expand their global presence.Leading Active Cosmetic Ingredients Market players such as The Lubrizol Corporation, is engaged in the research and development of new active cosmetic ingredients to meet the evolving needs of the personal care industry. The company offers a wide range of active cosmetic ingredients for various applications such as skin care, hair care, and sun care. Lubrizol focuses on innovation and invests heavily in research and development to create new products and technologies that address specific consumer needs. The company also has a strong distribution network and a global presence, which enables it to cater to a wide customer base.A competitor company, Croda International Plc, is another major player in the Active Cosmetic Ingredients Market. Croda has a diversified portfolio of active cosmetic ingredients for various applications such as skin care, hair care, color cosmetics, and toiletries. The company is focused on sustainability and has committed to reducing its environmental impact. Croda has also been actively involved in mergers and acquisitions to expand its product offerings and geographic reach. With its strong product portfolio and commitment to innovation and sustainability, Croda is well-positioned to compete in the Active Cosmetic Ingredients Market.
Key Companies in the Active Cosmetic Ingredients Market Include:
Active Cosmetic Ingredients Market Industry Developments
Recent developments in the Active Cosmetic Ingredients Market include a growing focus on natural and sustainable ingredients, as well as increased demand for personalized and targeted skincare products. Key market players are investing in research and development to create innovative and effective active ingredients that meet the evolving needs of consumers. The market is also witnessing a shift towards online channels for distribution, as consumers increasingly seek convenience and a wider selection of products. Mergers and acquisitions are expected to continue as companies seek to expand their portfolios and gain market share. Overall, the active cosmetic ingredients market is projected to continue its growth trajectory, driven by rising consumer awareness and demand for effective and innovative skincare solutions.
Active Cosmetic Ingredients Market Segmentation Insights
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Active Cosmetic Ingredients Market Ingredient Type Outlook
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Anti-Aging
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Moisturizing
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Whitening
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Sun Protection
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Anti-Inflammatory
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Antioxidants
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Acids
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Active Cosmetic Ingredients Market Application Outlook
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Skincare
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Haircare
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Makeup
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Cosmeceuticals
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Active Cosmetic Ingredients Market Source Outlook
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Natural
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Synthetic
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Biotechnology
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Active Cosmetic Ingredients Market Form Outlook
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Active Cosmetic Ingredients Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
21.5(USD Billion) |
| Market Size 2023 |
22.77(USD Billion) |
| Market Size 2032 |
38.2(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
5.91% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Merck ,Dow ,Rhodia ,IFF ,Gattefossé ,LANXESS ,Lipo Chemicals ,Mitsubishi Chemical Holdings ,BASF ,Procter Gamble ,Solvay ,Croda International ,Stepan Company ,Symrise ,Evonik |
| Segments Covered |
Ingredient Type ,Application ,Source ,Form ,Regional |
| Key Market Opportunities |
Rising demand for natural and organic products Growing awareness of skin health Increasing disposable income Technological advancements Ecommerce expansion |
| Key Market Dynamics |
Rising demand for clean beauty Technological advancements Growing awareness of skin health Increasing skincare expenditure Personalized skincare solutions |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Active Cosmetic Ingredients Market is projected to reach a valuation of approximately USD 22.77 billion in 2023.
The Active Cosmetic Ingredients Market is anticipated to grow at a CAGR of 5.91% from 2023 to 2032.
The Asia-Pacific region is projected to account for the largest market share in the Active Cosmetic Ingredients Market in 2023.
Active Cosmetic Ingredients are widely used in various applications, including skincare, haircare, and makeup products.
Some of the prominent players in the Active Cosmetic Ingredients Market include BASF, Ashland, Clariant, Croda International, and Evonik.
The growth of the Active Cosmetic Ingredients Market is attributed to factors such as rising consumer demand for natural and organic personal care products, increasing awareness of the benefits of active ingredients, and technological advancements in the cosmetics industry.
The Active Cosmetic Ingredients Market faces challenges such as regulatory complexities, stringent quality standards, and intense competition.
The Active Cosmetic Ingredients Market is anticipated to witness trends such as personalization, sustainability, and the integration of advanced technologies.
Businesses can capitalize on the growth opportunities in the Active Cosmetic Ingredients Market by focusing on innovation, building strong customer relationships, and expanding into emerging markets.
Potential risks associated with investing in the Active Cosmetic Ingredients Market include economic downturns, changes in consumer preferences, and regulatory uncertainties.
