Hand in hand with the attractive personal care market, the personal care ingredients market has been outperforming most other end-use industries in which specialty chemicals suppliers are active, making it an attractive chemical industry segment.
The market value for specialty personal care ingredients in the key regions (including Europe, the United States, Brazil, China, Japan, Southeast Asia, India, and Rest of World) covered in Kline’s recently published Personal Care Ingredients Database is USD 9.0 billion in 2015. With respective shares of 30% and 28%, Europe and the United States remain the two largest markets in the world, followed by Brazil and China.
Hair care and skin care applications dominate all the regional markets with almost similar shares, except in Brazil, where hair care applications are much larger. Other applications like oral care, antiperspirant/deodorant, and sun care have a relatively smaller share in this industry, as not all ingredient groups are used in these applications.
While synthetic ingredients continue to lead the market with about a 70% market share, consumption of natural ingredients is growing; however, they face challenges as they are more prone to microbial attacks and also face compatibility issues with other ingredients in various formulations.
However, there is a clear shift towards milder ingredients, especially for antimicrobials, where the usage of ingredients, such as parabens, triclosan, and formaldehyde-releasing preservatives like BNPD, DMDM hydantoion, etc., is expected to decline in the future, especially in the developed markets like the United States due to health concerns associated with them, which has been leading to a decline in their consumption. As a result, alternative ingredients, such as organic acids (benzoic acids/benzoates or sorbic acids/sorbates) and preservative boosters, are growing in the market. On the other hand, it gives rise to replacement ingredients.
The popularity of multifunctional products is also growing, which results in an increase in the consumption of performance-oriented multifunctional ingredients, driving this promising specialty sector.
Regulations also play an important role in determining the usage of ingredients in the future. For example, the European Commission has stipulated a maximum concentration of 0.0015% of CIT/MIT and MIT in rinse-off skin care products and has banned its usage in leave-on products like body creams. Similarly, other regulations are expected to adversely affect the demand of ingredients like parabens in this industry. Besides regulations, demography and culture also play an important role in determining the growth of different personal care products, which in turn impact the growth of different ingredients in a market.
Find out more about this faster-growing personal care ingredients market by attending Kline’s session “The Global Personal Care Ingredients Market and Its Regional Specificities” on 15 November at AsiaWorld-Expo. LEARN MORE.
By Kunal Mahajan
Project Manager, Chemicals at Kline