Global Personal Care Specialty Ingredient Market Overview
The Personal Care Specialty Ingredient Market Size was estimated at 48.72 (USD Billion) in 2022. The Personal Care Specialty Ingredient Industry is expected to grow from 51.53(USD Billion) in 2023 to 85.2 (USD Billion) by 2032. The Personal Care Specialty Ingredient Market CAGR (growth rate) is expected to be around 5.75% during the forecast period (2024 - 2032).
Key Personal Care Specialty Ingredient Market Trends Highlighted
The Personal Care Specialty Ingredients Market is experiencing significant growth, driven by rising consumer demand for natural and sustainable personal care products. The market is also being fueled by growing awareness of the harmful effects of synthetic ingredients and increasing demand for products that cater to specific skin and hair concerns. Key market drivers include the growing popularity of natural and organic ingredients, the increasing demand for personalized care solutions, and the growing adoption of advanced technologies in ingredient formulation. Opportunities lie in exploring niche markets, leveraging advancements in biotechnology, and developing sustainable and eco-friendly ingredients. Recent trends include the rise of ingredient transparency, the increasing demand for products formulated for sensitive skin, and the growing popularity of microbiome-friendly ingredients. The market is expected to continue expanding in the coming years, driven by these key trends and opportunities.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Personal Care Specialty Ingredient Market Drivers
Rising Demand for Natural and Organic Personal Care Products
The demand for natural and organic personal care products is growing at an unprecedented pace. People are opting for natural products because they are safe and effective, as opposed to artificial options. This growth trend will continue into the foreseeable future. People are becoming increasingly interested in the health effects of synthetic chemicals. As a result, manufacturers are developing more natural personal care products to facilitate this trend, creating a promising future for the Personal Care Specialty Ingredient Market Industry.
Growing Popularity of Personalized Beauty Products
Another factor driving the Personal Care Specialty Ingredient Market Industry is that an increasing number of people choose personalized beauty products. With the beauty industry growing, people are looking for things that would meet their demand specifically, instead of the already existing product. The popularity of such medium is driven by the existence of social media and the broad representation of online beauty quizzes and consultations.As a result, companies start focusing on the development of new personal care products that would be customizable.
Increasing Demand for Anti-Aging Products
The increasing demand for anti-aging products is another key driver of the Personal Care Specialty Ingredient Market Industry. As the population ages, there is a growing demand for products that can help to reduce the appearance of wrinkles, fine lines, and other signs of aging. This trend is expected to continue in the coming years, as the baby boomer generation continues to age. As a result, manufacturers are investing in the development of new and innovative anti-aging products, which is expected to drive the growth of the market.
Personal Care Specialty Ingredient Market Segment Insights:
Personal Care Specialty Ingredient Market Function Insights
The Function segment of the Personal Care Specialty Ingredient Market is anticipated to exhibit robust growth in the coming years, driven by the rising demand for personal care products with enhanced functionality and efficacy. Emulsifiers, stabilizers, thickeners, moisturizers, and conditioners are key functional ingredients that play a crucial role in the formulation and performance of personal care products. Emulsifiers are essential for creating stable emulsions, which are mixtures of two or more immiscible liquids. They help prevent the separation of oil and water phases, ensuring the homogeneous and consistent texture of products such as lotions, creams, and shampoos.Stabilizers, as the name suggests, contribute to the stability of personal care formulations. They prevent the settling of solids, ensuring that products maintain their desired viscosity and appearance over time. This is particularly important for products that contain active ingredients that tend to precipitate or degrade over time. Thickeners, as the name implies, increase the viscosity of personal care products. They impart a thicker, richer texture to formulations, making them more luxurious and satisfying to use. Thickeners are widely used in products such as hair conditioners, body washes, and facial masks.Moisturizers, as the name suggests, add moisture to the skin and hair. They help prevent dryness, itching, and flaking, leaving the skin and hair feeling soft, smooth, and hydrated. Moisturizers are essential ingredients in a wide range of personal care products, including lotions, creams, hair conditioners, and body washes. Conditioners are primarily used in hair care products to improve the manageability, texture, and appearance of hair. They reduce tangles, add shine, and protect hair from damage caused by heat styling and environmental factors.Conditioners are available in various forms, including rinse-out conditioners, leave-in conditioners, and deep conditioners. Overall, the Function segment of the Personal Care Specialty Ingredient Market is projected to witness significant growth in the coming years, driven by the increasing demand for high-performing and efficacious personal care products. Key market players are continuously innovating and developing new functional ingredients to meet the evolving needs of consumers and the industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Personal Care Specialty Ingredient Market Application Insights
The Personal Care Specialty Ingredient Market segmentation by Application includes Skin Care, Hair Care, Makeup, Personal Hygiene, Oral care. The skin care segment is anticipated for market growth due to consumer’s awareness about skincare and increasing penetration of products which includes anti-aging and moisturizing products, amongst others. Hair care is expected for a significant growth rate as beauty and haircare products including hair styling products and hair colorant, amongst others are trending in the market. Makeup section is projected for a steady growth rate based on increasing popularity of cosmetic and related products amongst the consumers.Personal Hygiene segment is anticipated for the stable growth rate as rising awareness about personal hygiene and demand for deodorants and antiperspirants, amongst others are increasing. The oral Care segment is expected to slow growth rate based as the oral problems are increasing and toothpaste, mouth wash, and other oral care products are in demand.
Personal Care Specialty Ingredient Market Source Insights
The Personal Care Specialty Ingredient Market is segmented based on source into natural, synthetic, and biodegradable. The natural segment is expected to account for the largest share of the market in 2024, followed by the synthetic segment. The biodegradable segment is expected to grow at the highest CAGR during the forecast period. Natural ingredients are derived from plants, minerals, and other natural sources. They are becoming increasingly popular in personal care products as consumers become more aware of the potential health and environmental benefits of using natural ingredients.Natural ingredients are often perceived as being more gentle and less irritating to the skin than synthetic ingredients. Synthetic ingredients are man-made chemicals that are used to create a wide range of personal care products, including cosmetics, skincare products, and hair care products. Synthetic ingredients can be used to create products with specific properties, such as long-lasting wear, water resistance, and sun protection. Biodegradable ingredients are those that can be broken down by natural processes into simpler substances. Biodegradable ingredients are becoming increasingly important in the personal care industry as consumers become more concerned about the environmental impact of their purchases.The increasing demand for natural and biodegradable personal care products is driving the growth of the Personal Care Specialty Ingredient Market. In 2024, the market is expected to be valued at USD 54.23 billion. The market is expected to grow at a CAGR of 5.8% during the forecast period (2024-2031), reaching a value of USD 79.32 billion by 2031.
Personal Care Specialty Ingredient Market Consumer Group Insights
The Personal Care Specialty Ingredient Market is segmented based on consumer group into mass market, premium, and luxury. The mass market segment held the largest share of the market in 2023, and it is expected to continue to dominate the market during the forecast period. The mass market segment includes products that are widely available and affordable for the general population. The premium segment is expected to witness significant growth during the forecast period, owing to the increasing demand for high-quality and effective personal care products.The luxury segment is expected to grow at a steady pace, driven by the growing disposable income of consumers and the increasing demand for premium personal care products. In 2023, the mass market segment accounted for around 60% of the Personal Care Specialty Ingredient Market revenue, while the premium and luxury segments accounted for 25% and 15%, respectively.
Personal Care Specialty Ingredient Market End Use Insights
The Personal Care Specialty Ingredient Market segmentation by End Use includes Cosmetics, Pharmaceuticals, and Household Products. Cosmetics segment held the major market share in 2023, due to the increasing demand for personal care products such as skincare, hair care, and makeup. The Pharmaceuticals segment is expected to witness significant growth over the forecast period, owing to the rising demand for specialty ingredients in the development of advanced drug formulations. Household Products segment is projected to grow steadily, driven by the increasing use of specialty ingredients in cleaning and home care products.The Personal Care Specialty Ingredient Market revenue for Cosmetics segment is expected to reach USD 25.4 billion by 2024, while the pharmaceuticals segment is estimated to reach USD 14.3 billion by 2024, and the Household Products segment is projected to reach USD 12.8 billion by 2024.
Personal Care Specialty Ingredient Market Regional Insights
The Personal Care Specialty Ingredient Market is segmented into North America, Europe, APAC, South America, and MEA. Region wise, North America and Europe are the dominant regions in the Personal Care Specialty Ingredient Market. In 2023, North America accounted for 38.5% of the Personal Care Specialty Ingredient Market revenue, followed by Europe with 31.2%. APAC is projected to grow at the highest CAGR of 6.4% during the forecast period (2024-2032). The growth in APAC is attributed to the increasing demand for personal care products in emerging economies such as China and India.South America and MEA are also expected to witness a steady growth in the Personal Care Specialty Ingredient Market, owing to the rising disposable income and increasing awareness about personal care.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Personal Care Specialty Ingredient Market Key Players and Competitive Insights:
The Personal Care Specialty Ingredient Market industry’s major players are investing heavily in research and development to create new personal care ingredients that are effective and innovative. The leading Personal Care Specialty Ingredient Market companies are also endowed with a wide product portfolio, which they are increasing by acquiring other businesses and entering into partnerships with other companies. The Personal Care Specialty Ingredient Market is growing since the customers are now more inclined to buy natural formulations or alternatives to that. The Personal Care Specialty Ingredient Market Competitive Landscape will be relatively competitive since the key players from the field will further invest both in the development of new ingredients and into expanding their businesses.
The leading player in the Personal Care Specialty Ingredient Market – BASF, being a German chemical company, offers a variety of personal care ingredients. The company’s product portfolio also consists of surfactants, emollients, and polymers. BASF’s personal care ingredients are applied in various areas, including skin care, hair care, and cosmetics among others. The business model is supported by the company’s wide presence, as it operates in more than 180 countries. Sustainability is also important to BASF, since it has laid the ambition to reach net zero emissions by 2050. At the same time, BASF is a member of the Roundtable on Sustainable Palm Oil.
Croda International Plc, operating in the UK and being a specialty chemicals company, is a key player on the market, providing a variety of personal care ingredients. The UK producer’s product portfolio consists of surfactants, emollients, and actives, which are also used in skin care, hair care, and cosmetics. Croda also has a global presence in more than 85 countries. The company puts a heavy emphasis on innovation, having a significant team of scientists and engineers working on creating new personal care ingredients.
Key Companies in the Personal Care Specialty Ingredient Market Include:
- Evonik
- Lubrizol
- Sensient Technologies
- Lonza
- AkzoNobel
- INOLEX
- Clariant
- DowDuPont
- Croda
- BASF
- Eastman Chemical
- Ashland
- Solvay
- Bayer
Personal Care Specialty Ingredient Market Industry Developments
The Personal Care Specialty Ingredient Market is projected to reach USD 85.2 billion by 2032, exhibiting a CAGR of 5.75% during the forecast period (2024-2032). Rising consumer awareness about personal grooming and appearance, coupled with increasing disposable income, is driving market growth. Moreover, the growing popularity of natural and organic personal care products is creating opportunities for specialty ingredient manufacturers. Innovations in product formulations and the launch of new products with added functionalities are also contributing to market expansion. Key industry players are focusing on strategic partnerships and acquisitions to expand their product portfolio and cater to diverse consumer needs.
Personal Care Specialty Ingredient Market Segmentation Insights
- Personal Care Specialty Ingredient Market Function Outlook
- Emulsifiers
- Stabilizers
- Thickeners
- Moisturizers
- Conditioners
- Personal Care Specialty Ingredient Market Application Outlook
- Skin Care
- Hair Care
- Makeup
- Personal Hygiene
- Oral Care
- Personal Care Specialty Ingredient Market Source Outlook
- Natural
- Synthetic
- Biodegradable
- Personal Care Specialty Ingredient Market Consumer Group Outlook
- Mass Market
- Premium
- Luxury
- Personal Care Specialty Ingredient Market End Use Outlook
- Cosmetics
- Pharmaceuticals
- Household Products
- Personal Care Specialty Ingredient Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
48.72(USD Billion) |
| Market Size 2023 |
51.53(USD Billion) |
| Market Size 2032 |
85.2(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
5.75% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2022 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Evonik, Lubrizol, Sensient Technologies, Lonza, AkzoNobel, INOLEX, Clariant, DowDuPont ,Croda ,BASF ,Eastman Chemical ,Ashland ,Solvay ,Bayer |
| Segments Covered |
Function, Application, Source, Consumer Group, End Use, Regional |
| Key Market Opportunities |
Growing demand for natural and organic ingredients Rising disposable income in emerging markets Increasing consumer awareness of skin care benefits Development of new and innovative formulations Focus on sustainability and ethical sourcing |
| Key Market Dynamics |
Increased consumer demand for natural and sustainable ingredients Customization and personalization of personal care products Growing ecommerce sales channels Technological advancements in ingredient formulations Expansion into emerging markets |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Personal Care Specialty Ingredient Market was valued at 51.53 USD Billion in 2023. It is projected to reach 85.2 USD Billion by 2032, exhibiting a CAGR of 5.75% during the forecast period
The Asia-Pacific region held the largest market share in 2023 and is estimated to continue its dominance over the forecast period. This growth can be attributed to factors such as rising consumer awareness regarding personal care and grooming, increasing disposable income, and the presence of a large population base in the region.
The hair care application segment is anticipated to grow at the highest CAGR during the forecast period. The increasing demand for hair care products, such as shampoos, conditioners, and styling products, owing to rising consumer awareness about hair health and appearance, is driving the growth of this segment.
Some of the major players operating in the market include BASF SE, Clariant AG, Croda International Plc, Evonik Industries AG, and The Lubrizol Corporation.
Factors such as rising disposable income, increasing consumer awareness about personal care and grooming, and the growing popularity of natural and organic personal care products are driving the growth of the Personal Care Specialty Ingredient Market.
Stringent government regulations regarding the use of certain ingredients, the availability of substitutes, and intense competition from established players are among the key challenges faced by the market players.
The COVID-19 pandemic had a significant impact on the Personal Care Specialty Ingredient Market, leading to disruptions in supply chains and a decline in demand for personal care products. However, the market is expected to recover as the global economy recovers.
The market is witnessing a growing demand for sustainable and eco-friendly ingredients, as well as personalized and customized personal care products. Additionally, the use of advanced technologies, such as biotechnology and artificial intelligence, is gaining traction in the industry.
The Personal Care Specialty Ingredient Market is expected to continue growing over the coming years, driven by factors such as rising consumer disposable income, increasing demand for natural and organic products, and the expanding e-commerce industry.
