Forecast Period | 2026-2030 |
Market Size (2024) | USD 11.83 Billion |
Market Size (2030) | USD 16.22 Billion |
CAGR (2025-2030) | 5.47% |
Fastest Growing Segment | Emollients |
Largest Market | Asia Pacific |
Market Overview
Global Personal Care Ingredients Market was valued at USD 11.83 Billion in 2024 and is expected to reach USD 16.22 Billion by 2030 with a CAGR of 5.47%. Ingredients used in skincare, hair care, and cosmetic products play a vital role in enhancing their performance by offering diverse benefits such as anti-aging, moisturizing, cleansing, complexion improvement, and protection against pollution. There is a notable industry-wide shift toward incorporating natural and organic ingredients, gradually replacing synthetic components in personal hygiene and cosmetic formulations. This trend is driven by increasing consumer demand for safer, eco-friendly, and sustainable products, reflecting evolving lifestyle preferences and greater awareness of skincare health.
To meet this demand, manufacturers are focusing on developing products rich in natural constituents that deliver multiple benefits, including skin repair, prevention of cellular damage, enhanced skin immunity, hydration, and anti-aging effects. These natural formulations align with the growing consumer preference for clean-label, green beauty products.
Complex emulsions, widely utilized in cosmetic products, are prized for their ability to provide long-lasting skin moisturization, protect sensitive biological components, and facilitate controlled release of fragrances. As consumers prioritize sustainability, demand is rising for green, biodegradable emulsifiers, replacing traditional ethoxylated/propoxylated emulsifiers. Non-ethoxylated green emulsifiers such as polyglyceryl esters and alkyl glucosides are gaining traction, reflecting a broader move towards environmentally responsible ingredients.
The COVID-19 pandemic has notably influenced the personal care industry by accelerating demand for hygiene-related ingredients used in cleaning products, sanitizers, soaps, and detergents. Heightened consumer awareness around hygiene and sanitation has sustained strong market demand for these essential constituents. However, the industry has faced operational hurdles including production disruptions, logistics challenges, and trade restrictions, which have impacted manufacturing efficiency and supply chain stability.
Consumer preferences strongly favor “clean” products, with 68% of people seeking formulations described as such. Additionally, 59% of consumers are influenced by products labeled “natural and organic,” highlighting the growing demand for safer and more sustainable personal care options. Supporting this trend, the global natural beauty and cosmetics market is projected to reach a value of USD 59 billion by 2031. These underscore the increasing importance of natural and clean ingredients in driving growth within the Global Personal Care Ingredients Market. The personal care and cosmetics sectors are experiencing a paradigm shift driven by sustainability, innovation, and heightened hygiene awareness. Manufacturers are responding by reformulating products with natural, eco-friendly ingredients while navigating operational challenges imposed by global disruptions. This dynamic environment continues to shape the future of the industry, emphasizing consumer health, environmental responsibility, and product efficacy.
Key Market Drivers
Surge in Urbanization and Lifestyle Changes
Urbanization, characterized by the migration from rural to urban areas, is a major catalyst reshaping consumer behavior, especially in the personal care industry. By 2050, urbanization is projected to reach 68% of the global population, meaning that two-thirds of the world's population will live in urban areas. This shift will add approximately 2.5 billion people to urban populations, with a significant portion of this growth occurring in Asia and Africa. Urban dwellers face increased exposure to pollution, which drives heightened demand for skincare and haircare products designed to combat environmental damage. Products that offer anti-pollution benefits and protective treatments have become essential, reflecting consumers’ growing focus on maintaining healthy skin and hair in challenging urban environments. The fast-paced and often stressful nature of city living has elevated consumer interest in wellness and relaxation products. Items such as essential oils, bath salts, and aromatherapy solutions are increasingly sought after, as urban consumers look for ways to manage stress and incorporate moments of tranquility into their busy lifestyles. This shift has broadened the scope of personal care beyond basic hygiene to include holistic well-being.
Rising disposable incomes in urban areas further support the growth of the personal care ingredients market. Consumers are now willing to invest in premium and innovative products that provide not only efficacy but also a sense of indulgence and luxury. This trend drives demand for ingredients that enhance product performance and deliver visible results, fostering brand loyalty and repeat purchases The global health and wellness movement has amplified consumer preference for natural and organic ingredients. The clean beauty trend, emphasizing safety, transparency, and environmental responsibility, has increased the demand for sustainable and non-toxic formulations. Consumers are more informed and selective about the ingredients they apply, favoring products that align with their values around health and sustainability.
In response, manufacturers are investing heavily in research and development to create innovative, high-performance, and eco-friendly ingredients. Urbanization and evolving lifestyles are thus key growth drivers for the personal care ingredients market, with continued innovation and sustainability commitments shaping the future landscape of the industry.
Rise in Disposable Income
Disposable income—the portion of household income remaining after taxes is a fundamental driver of consumer spending patterns, particularly in non-essential sectors like personal care products. As disposable incomes rise, especially in developing economies, consumers increasingly allocate more of their budget toward premium and high-quality personal care items. This shift in spending behavior has a direct and positive impact on the demand for advanced personal care ingredients. By 2050, a notable rise in disposable income is expected, especially across low and middle-income countries, a key factor supporting the growth of the global personal care ingredients market. If income levels grow at an annual rate of 3.3%, the average income in these regions could reach approximately USD 6,300. This increase in consumer purchasing power will likely boost demand for premium personal care products, thereby driving the need for high-quality and innovative personal care ingredients.
India, in particular, is poised to play a significant role in this market expansion. The country is projected to achieve high-income status, with GDP per capita expected to reach USD 21,000 by 2050. This transition signals a substantial rise in consumer spending capacity. Additionally, India’s disposable personal income is forecasted to reach INR 456 Billion in 2025 and continue its upward trajectory in the following years. These economic indicators point to strong future growth opportunities for personal care brands and ingredient suppliers targeting emerging markets.
Economic growth in emerging markets has contributed significantly to higher disposable incomes, which in turn fuels consumers’ willingness to invest in personal care products that promise superior efficacy, safety, and aesthetic appeal. These consumers are not only focused on basic functionality but also seek added benefits such as anti-aging, moisturizing, and natural formulations. Consequently, there is a marked increase in demand for natural, organic, and sustainable ingredients, driven by rising health awareness and environmental consciousness.
Manufacturers and suppliers in the personal care ingredients market are responding to this trend by emphasizing innovation and sustainability in their product portfolios. Investments in research and development are accelerating to meet consumer preferences for clean-label, eco-friendly ingredients that align with the “green beauty” movement. This demand for value-added products also pushes companies to enhance ingredient performance, offering benefits such as improved skin protection, longer-lasting effects, and multifunctionality. The rising disposable income serves as a critical catalyst for the growth of the global personal care ingredients market. As consumers gain greater purchasing power, the market for premium personal care products expands, driving the need for diverse and innovative ingredients. The evolving relationship between disposable income, consumer preferences, and ingredient demand creates a vibrant and competitive landscape, presenting ample opportunities for industry players to innovate and capture market share in this rapidly growing sector.
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Key Market Challenges
Volatility in Prices of Ingredient
The cost of raw materials used in personal care
products can fluctuate significantly due to various factors such as changes in
supply and demand, geopolitical events, natural disasters, and currency
exchange rates. These price fluctuations can have a considerable impact on the
cost of manufacturing personal care products, thereby affecting the
profitability of companies operating in the personal care ingredients market.
For instance, the price of palm oil, a common
ingredient in many personal care products, can vary greatly due to factors such
as weather conditions affecting crop yield, changes in governmental policies,
and shifts in global trade patterns. Similarly, petroleum-based ingredients
like paraffin wax and mineral oil are subject to price volatility due to
fluctuations in global oil prices.
The volatility in ingredient prices poses a
significant challenge for the personal care ingredients market. It creates
uncertainty and risk, making it difficult for companies to forecast costs and
plan for the future. This unpredictability can lead to reduced profit margins,
particularly for smaller companies that may not have the financial resilience
to absorb these cost fluctuations.
Key Market Trends
Growing Demand of Microbiome-Friendly Ingredients
The human microbiome, which refers to the trillions
of microorganisms residing on and within our bodies, plays a vital role in
maintaining our overall health and well-being. These microorganisms have been
found to have a profound impact on various aspects of our physiology, including
digestion, immunity, and even mental health.
In recent years, there has been a surge of interest
in harnessing the power of the microbiome in the realm of personal care
products. Scientists and researchers have recognized the potential of
microbiome-friendly ingredients in promoting healthier skin and hair. These
ingredients work by supporting and nourishing the natural microbial communities
that exist on our skin and scalp.
Among the microbiome-friendly ingredients,
prebiotics have gained significant attention. These substances act as a source
of nutrition for the beneficial bacteria present on our skin and hair, helping
them thrive and maintain a healthy balance. Also, postbiotics, which
are the beneficial by-products produced by these bacteria, have shown promising
effects in enhancing the skin's barrier function and overall appearance.
The growing interest and demand for
microbiome-friendly products have become a driving force in the personal care
industry. Manufacturers are investing heavily in research and development to
explore and produce novel microbiome-friendly ingredients that can cater to
consumers' evolving needs. This wave of innovation has opened up new avenues
for creating effective and sustainable personal care products that prioritize
the health and balance of the skin and hair microbiome.
As consumers become more educated and aware of the
crucial role of the microbiome in maintaining skin and hair health, the demand
for microbiome-friendly ingredients is expected to continue its upward
trajectory. This trend represents a significant shift in the global personal
care ingredients market, reflecting the growing recognition of the microbiome's
importance and its potential to revolutionize the way we approach personal
care.
Segmental Insights
Ingredient Insights
Based on the category of ingredient, the emollients
segment emerged as the fastets hrwoing segment in the global market for Personal Care
Ingredients in 2024. Emollients are widely used in various personal care
products, including antiperspirants, deodorants, soaps, skin creams, face
cleansers, and more. Their popularity stems from the soothing and smoothing
properties they provide to the skin. Not only do emollients alleviate dryness
and irritation, but they can also reduce scaling and itching, and help manage
the overgrowth and shedding of skin cells associated with conditions like
psoriasis. Moreover, these products have the ability to soften plaques and cracks,
improve the skin's barrier function, ease inflammation, and act as a vehicle
for active medical ingredients.
It is worth noting that emollients with a higher
oil content also serve as occlusive agents. By forming a thin oily film on the
skin, they create a barrier that seals in moisture. Emollients can be
classified based on their oily or greasy nature, with each type offering a
different level of occlusion. The more oil an emollient contains, the better it
becomes at forming a protective layer on the skin, effectively trapping
moisture.
Application Insights
The skin care segment is projected to experience
rapid growth during the forecast period. Skin care is not just important for
personal care, but it is also a crucial aspect of maintaining overall
well-being. It encompasses a wide range of practices, from corrective measures
to preventive routines, that contribute to the process of achieving flawless
makeup. Having healthy and radiant skin has always been a timeless trend, and
thanks to continuous innovations and advancements in the beauty industry, we
can expect even more improved products with a focus on promoting skin health.
Skin care involves a holistic approach that not
only addresses external factors but also takes into consideration internal
factors such as nutrition and lifestyle choices. It encompasses practices that
not only enhance the appearance of the skin but also protect its integrity and
effectively treat various skin conditions. This comprehensive approach includes
adopting a balanced diet, protecting the skin from excessive sun exposure, and
using suitable emollients to nourish and moisturize the skin.
The global skin care products market is influenced
by several factors that contribute to its growth and development. One
significant factor is the changing lifestyle patterns in emerging countries,
driven by rapid urbanization and an increase in disposable income. This shift
in lifestyle has led to a rise in awareness about advanced skin care products
and a growing demand for effective solutions. Furthermore, the beauty industry
is constantly evolving, with continuous product innovations and the introduction
of new ingredients to cater to the diverse needs of consumers. Investments in
emerging countries have also played a crucial role in expanding the market
reach and availability of skin care products.
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Regional Insights
Asia Pacific emerged as the largest market in the Global
Personal Care Ingredients Market in 2024, holding the largest market share in
terms of value. The economy of APAC (Asia-Pacific) is primarily shaped by the
economic dynamics of influential countries such as China and India. However,
there is a noticeable shift in the current scenario due to the increasing
foreign direct investment for the economic development of South East Asia. This
change is particularly evident in the personal care sector, where countries in
South East Asia are experiencing significant growth. This growth can be
attributed to several factors, including the region's large prospective
population, rising personal disposable income, and increasing internet
penetration.
The distribution of
personal care products plays a crucial role in the success of companies
operating in this sector. The distribution network directly impacts the demand
and supply in the market, which, in turn, affects revenue. With the rising
penetration of the internet and e-commerce worldwide, personal care product
companies have expanded their reach. The advent of e-commerce has not only
benefited companies by increasing their market reach but has also provided
consumers with advantages such as competitive pricing and a wider range of
options to choose from.
These developments highlight the evolving
landscape of the APAC economy, with South East Asia emerging as a high-growth
region in the personal care sector, fueled by factors such as population
demographics, rising incomes, and increasing internet connectivity.
Recent Developments
- In 2024, IFF has completed the divestiture of its Cosmetic Ingredients business to Clariant, a sustainability-focused specialty chemicals company. This transaction is part of IFF’s broader strategy to streamline operations and concentrate on core business areas. The divestment enables the company to simplify its portfolio, reduce debt, and lower interest expenses, while creating opportunities for more focused investments in strategic growth initiatives. Under Clariant’s ownership, the Cosmetic Ingredients business will continue delivering innovative solutions for the cosmetics and personal care industry. The transition marks a significant step in optimizing business operations and supporting long-term value creation, while ensuring continuity and advancement in the development of high-performance personal care ingredients.
- In 2023, Shiseido Company, Limited has announced the acquisition of DDG Skincare Holdings LLC, the parent company of Dr. Dennis Gross Skincare, a U.S.-based leader in dermatologist-led, science-driven prestige skincare. The decision was approved by Shiseido's Board of Directors on December 20, 2023, with a definitive agreement signed on December 22, 2023 (JST December 23, 2023). The acquisition will be executed through Shiseido Americas Corporation, a wholly owned subsidiary of Shiseido. This strategic move enhances Shiseido’s global skincare portfolio by integrating a high-growth, science-backed brand, further strengthening its presence in the prestige skincare segment and aligning with its long-term focus on skin health and innovation.
- BASF SE, a leading chemical company, expanded its
production capabilities in the Kaohsiung area of Taiwan in August 2020. This
expansion includes the addition of a new production line dedicated to the
manufacturing of Uvinul A Plus, an advanced UVA (UV longest frequency)
protection component. Uvinul A Plus is a key ingredient found in a range of
solar and skin health products, providing effective protection against harmful
UV rays. The decision to expand the production line was driven by the growing
demand for these products in the Asia Pacific region, reflecting the company's
commitment to meeting the needs of its customers.
- In August 2019, Cargill Beauty, a global provider
of beauty ingredients, announced a strategic collaboration with Univar to
strengthen its presence in the Latin America market (LATAM). This collaboration
aims to provide companies in Latin America with access to a wide range of
high-quality, innovative ingredients and formulation solutions. By leveraging
Univar's extensive distribution network and Cargill Beauty's expertise in
sustainable and nature-inspired ingredients, this partnership aims to meet the
unique needs and preferences of the South American consumer market.
- In January 2019, Symrise, a leading provider of
fragrances, flavors, and cosmetic ingredients, made an important announcement
regarding one of its key products. SymOcide BHO, the primary benzyl
alcohol-based preservative blend in SymSave H, was discontinued. SymOcide BHO
plays a crucial role in protecting personal care products from microbial
growth, including bacteria and fungi. These preservatives are widely used in
various products such as wet wipes, cleansers, shower gels, and face masks, and
they are known for their compatibility with different types of non-sulfur
compounds and surfactants. The decision to discontinue SymOcide BHO reflects
Symrise's commitment to continuously improving and evolving its portfolio to
meet the changing needs and preferences of the industry and consumers.
Key Market Players
- ASHLAND GLOBAL HOLDINGS INC.
- BASF SE
- BERKSHIRE
HATHAWAY INC.
- CLARIANT
AG
- CRODA
INTERNATIONAL PLC.
- DOW INC.
- Evonik
Industries AG
- J.M.
HUBER CORPORATION
- KCC
CORPORATION
- SOLVAY
S.A.
|
By
Ingredient
|
By Application
|
By Region
|
- Emollients
- Emulsifiers
- Surfactants
- Rheology Modifiers
- Active Ingredients
- Others
|
- Skin Care
- Hair Care
- Oral Care
- Make-Up
- Others
|
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
|
Report Scope:
In this report, the Global Personal Care
Ingredients Market has been segmented into the following categories, in
addition to the industry trends which have also been detailed below:
- Personal Care Ingredients Market, By Ingredient:
o Emollients
o Emulsifiers
o Surfactants
o Rheology Modifiers
o Active Ingredients
o Others
- Personal Care Ingredients Market, By Application:
o Skin Care
o Hair Care
o Oral Care
o Make-Up
o Others
- Personal Care Ingredients Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
§ Egypt
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global
Personal Care Ingredients Market.
Available Customizations:
Global Personal Care Ingredients Market report with
the given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Global Personal Care Ingredients Market is an
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report or want to confirm the date of release, please contact us at [email protected]