The growth of the global cosmetic ingredients market is estimated to reach $11.7 billion by 2023, which is being fuelled by the demand for good quality cosmetic products. The changing lifestyles of consumers in the developing markets, increase per capita income and rising awareness around beautification are also contributing to the growth of the overall cosmetics industry which in turn benefits the cosmetic ingredients manufacturers.
One of the main drivers of growth in natural cosmetics has been the consumer trend towards healthier lifestyles. In an effort to improve sales, manufacturers have capitalised on growing consumer interest in health and wellness and have started to invest in new products containing natural ingredients. Rightly or wrongly, good health is often associated in consumers’ minds with all things natural, while chemicals are considered by some to have a negative impact on one’s health. Consequently, these perceptions have given rise to demand for natural additives and ingredients used in cosmetic products. For instance, the natural origins and SPF-boosting properties of cinnamon bark oil, oat extract and soy bean oil allows formulators to market sun care products as containing natural ingredients to attract consumers. However, products with natural ingredients are more prone to microbial attacks and also face compatibility issues with other ingredients in various formulations. This creates challenges for manufacturers of surfactant-based systems, such as shampoos, as they are not compatible with other natural ingredients.
With increasingly busy lifestyles, consumers tend to simplify their daily beauty routines. A new context seems to be emerging for multifunctional products as they offer several benefits at once, such as anti-aging, cleansing, moisturisation, anti-oxidant, UV protection, etc. Consequently, this trend is leading to growth in the consumption of multifunctional ingredients. For example, consumers are expecting their skin care products and makeup to have sun care protection features, as they are aware of the harmful effects of UV radiation. This drives the demand for UV absorbers, making it the fastest growing ingredient group. Furthermore, the demand for conditioning polymers for hair care products is also likely to be a growth trend in the coming years.
In terms of regional demand, North America and Europe dominates the cosmetic ingredients, however, Asia Pacific and Latin America are expected to be the most promising region in terms of incremental opportunities over the next ten years for generating high revenues. The cosmetic ingredient market is highly regulated in Europe and North America. China, India and ASEAN are the key promising countries driving the cosmetic ingredients market in Asia Pacific. Rapid growth of urbanisation coupled with growing desire for skin care is expected to offer above average growth to the cosmetic ingredients market in Asia Pacific. Brazil leads the cosmetic market followed by Mexico in Latin America. As per the CANIPEC, the Mexican personal care industry’s national chamber and association, there are more than 64 business enterprises operating in the personal care market that are worth approximately US$14 billion in Mexico.
Though cosmetic industry market size is growing at an impressive rate, various regulations prohibiting the use of certain chemicals as ingredients is a major challenge to the cosmetic ingredients manufacturers. Companies operating in this market need to meet the rigorous criteria before launching their ingredients. A number of smaller businesses are not only struggling to meet these requirements but also to maintain their market share against the large to mid-cap organisations. This has led to a number of mergers and acquisitions in recent years which has seen the market in North America and Europe become consolidated and dominated by a number of key cosmetic ingredient manufacturers and suppliers. These key players include BASF, Evonik, AkzoNobel, Ashland, Dow Corning, Lonza, Croda, Solvay, Wacker Chemie and Clariant. However, these businesses are now facing fierce competition from the multi-national fragrance houses such as Givaudan, Symrise and IFF who have all recently purchased small cosmetic ingredients businesses to help expand their footprint into the market.
The cosmetics ingredients market has been an evolving arena over the past few years and will, no doubt continue to do so between now and 2023. Consumer needs are forever changing and those key players who are able to adapt quickly and efficiently will be in a strong position come 2023.
Miramar has an extensive track record in identifying and attracting talent in this market. Our resources and strong networks enable us to support the hiring processes for our clients commerical, operational and technical functions in EMEA, APAC and North America. Examples of recent hires in this market include:
– Global Business Director Consumer
– Sales Director EMEA Consumer
– Sales Manager EMEA Consumer
– Global Account Manager and Regional Key Account Manager
– Strategic Business development Manager
– Commercial Director EMEA
– Global Perfumery Market Mapping Project
– Head of Manufacturing
If you have any questions about the employee market, competitive landscape or our services then please feel free to contact us.