Phenoxyethanol Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Sales Channel (Direct, Indirect), By End Use (Home & Personal Care, Dyes & Inks, Pharmaceuticals, Paints & Coating, Others), By Region and Competition, 2020-2030F

Market Overview

Global Phenoxyethanol Market was valued at USD 273.47 Million in 2024 and is expected to reach USD 368.72 Million by 2030 with a CAGR of 4.53% during the forecast period. Phenoxyethanol is predominantly utilized in the cosmetics and personal care industry, where it serves as a preservative in products such as skin creams, shampoos, and makeup items. Its effectiveness in preventing microbial growth extends the shelf life of these products, aligning with consumer preferences for safe and long-lasting formulations. Additionally, phenoxyethanol finds applications in pharmaceuticals, inks and dyes, and home care products, further contributing to its market expansion.

While generally considered safe, concerns over potential skin irritation and toxicity at higher concentrations may affect consumer perception and demand. Some regions have imposed limits on the permissible concentration of phenoxyethanol in products, which could impact its usage. The availability of alternative preservatives and the development of new formulations may pose competitive pressures on the phenoxyethanol market. The global phenoxyethanol market is poised for continued growth, driven by its essential role in enhancing product safety and longevity across various industries. While challenges exist, ongoing research and adherence to regulatory standards are likely to sustain its demand and application in the foreseeable future.

Key Market Drivers

Growth in Personal Care Industry

With the increasing consumer focus on skincare, hygiene, and grooming, the personal care industry has witnessed an expansion of its product portfolio. The global Beauty & Personal Care market is expected to generate USD 677.19 billion in revenue by 2025. Despite the ongoing global recession, the U.S. beauty and personal care sector remains robust, driven by a growing emphasis on organic and natural products. This includes the development of a wide range of lotions, sunscreens, haircare products, and cosmetics. Phenoxyethanol plays a crucial role in these formulations by preventing microbial growth, thus ensuring the safety and longevity of these products. As companies innovate to meet changing consumer preferences for multi-functional and long-lasting products, the demand for effective preservatives like Phenoxyethanol has grown, directly boosting the market.

In recent years, consumers have become more conscious of the ingredients in their personal care products, driving demand for natural and organic formulations. Phenoxetol SG is produced from bio-based ethanol, achieving a renewable carbon index (RCI) of 25%. As a phenoxyethanol, it retains the same chemical properties as its fossil-derived counterpart, minimizing the need for extensive reformulation. Learn more about Phenoxetol SG, a highly effective antimicrobial preservative that seamlessly integrates into your cosmetic formulations. While Phenoxyethanol is a synthetic compound, it has found acceptance in products labeled as "natural" or "organic" due to its mildness compared to other preservatives. It is often used in combination with other natural ingredients to maintain product stability without compromising the integrity of the product’s natural components. This shift toward cleaner beauty products has further fueled the adoption of Phenoxyethanol in personal care formulations.

Growth in Paint & Coatings Industry

The growth of the paint and coatings industry has significantly driven the expansion of the global phenoxyethanol market, as this chemical compound plays a crucial role as a preservative and stabilizer in various formulations. In 2023, the global paint and coatings industry was valued at approximately USD 179.98 billion. Projections indicate that the market will exceed USD 255.59 billion by 2032. This growth is primarily fueled by rising demand from the construction sector, while additional momentum is being generated by expanding applications in the automotive, general industrial, coil, wood, aerospace, railing, and packaging segments. Phenoxyethanol is widely used in the production of paints and coatings due to its ability to prevent microbial growth, ensuring the longevity and performance of the products. As the demand for high-quality, durable coatings continues to rise across both residential and industrial sectors, the need for effective preservatives like phenoxyethanol has become increasingly important.

In recent years, there has been a notable shift towards eco-friendly and sustainable products in the paint and coatings industry, particularly in response to rising environmental awareness and regulatory pressures. Phenoxyethanol, due to its relatively low toxicity and effectiveness as a preservative, has gained favor as a safer alternative to traditional, harsher chemicals. As manufacturers strive to meet both consumer demand for non-toxic ingredients and stricter environmental standards, phenoxyethanol’s role in formulations that are both high-performing and safe has further fueled its market growth.

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Key Market Challenges

Disruptions in Supply Chain

Disruptions in the supply chain represent a significant challenge to the stability and growth of the global phenoxyethanol market. As a chemically synthesized compound, phenoxyethanol relies heavily on the steady supply of key raw materials such as ethylene oxide and phenol both of which are derived from petrochemical sources. Interruptions in the upstream production or transportation of these raw materials, whether due to geopolitical tensions, environmental regulations, or fluctuations in crude oil prices, can severely impact the availability and cost of phenoxyethanol.

Furthermore, the globalized nature of the phenoxyethanol supply chain makes it vulnerable to external shocks, including shipping delays, port congestion, and trade restrictions. The COVID-19 pandemic underscored these vulnerabilities, with widespread logistical bottlenecks and lockdowns in manufacturing hubs such as China and India delaying raw material shipments and production schedules. Even as markets recover, persistent issues such as container shortages and rising freight costs continue to strain global supply networks, causing volatility in lead times and pricing.

Key Market Trends

Rising Focus on Formulation Innovation

One of the defining trends in modern formulation science is the preference for clean-label, minimalist products. Phenoxetol SG represents an innovative solution for developing safer cosmetic products by incorporating more sustainable and environmentally friendly preservatives. Recognized as a reliable preservative in the cosmetics industry, Phenoxetol SG offers strong efficacy particularly against Gram-negative bacteria, as well as yeasts and molds. It is gentle on the skin, features low volatility, and is formulated using 100% bio-ethanol, contributing to a Renewable Carbon Index (RCI) of 25%. Consumers increasingly scrutinize ingredient lists, favoring products that contain fewer synthetic additives while maintaining high performance and safety. Phenoxyethanol is gaining traction as a preferred preservative in such formulations due to its proven safety profile, effective antimicrobial properties, and ability to perform well at low concentrations. This aligns well with the industry's goal of developing streamlined, yet potent formulations.

Modern consumers are not only concerned with the functional benefits of personal care products but also with their sensory attributes, such as texture, fragrance, and absorption rate. Phenoxyethanol, being a low-odor, non-irritating preservative, supports formulation development that enhances user experience. It allows product developers to create stable, appealing formulations that meet both technical and consumer-centric expectations, contributing to brand differentiation in a competitive market.

Segmental Insights

Sales Channel Insights

Based on Sales Channel, Direct have emerged as the fastest growing segment in the Global Phenoxyethanol Market in 2024. One of the key factors behind this growth is the growing consumer preference for formulations that are free from parabens and other harsh preservatives. Phenoxyethanol is considered a safer, non-irritating alternative, which makes it highly desirable in formulations marketed as gentle, dermatologically tested, or suitable for sensitive skin. As manufacturers respond to these preferences by formulating products with minimal processing and fewer intermediate steps, the direct use of phenoxyethanol becomes more attractive due to its stability and ease of integration.

End Use Insights

Based on End Use, Pharmaceuticals have emerged as the fastest growing segment in the Global Phenoxyethanol Market during the forecast period. The pharmaceutical industry’s increasing focus on product safety, especially in sterile and multi-use packaging, has driven the adoption of phenoxyethanol as a reliable alternative to traditional preservatives such as parabens and formaldehyde-releasing agents, which are often associated with adverse health effects. Additionally, the rising demand for over-the-counter products, dermatological treatments, and pediatric formulations where mild and non-irritating preservatives are essential has further contributed to the segment’s rapid growth.

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Regional Insights

Based on Region, Asia Pacific have emerged as the dominating region in the Global Phenoxyethanol Market in 2024. Growing demand from personal care and cosmetics sectors across populous nations such as China, India, Japan, and Indonesia has significantly fueled market growth. With a rising middle class and increasing urbanization, consumer preference has shifted toward skincare and beauty products that require safe, effective preservatives like phenoxyethanol, especially in formulations that avoid parabens and formaldehyde-releasing agents.

Recent Development

• In April 2024, LANXESS showcased its extensive portfolio of preservatives, multifunctional ingredients, and flavors and fragrances tailored for cosmetics, personal care, and oral care applications. Operating under its Consumer Protection segment, the specialty chemicals company delivers a broad array of solutions designed to enhance consumer safety and well-being. LANXESS is recognized globally as a leading supplier of benzoates, phenoxyethanol, and other premium-grade preservatives. Its preservation solutions are widely utilized in both leave-on and rinse-off formulations—including face creams, shampoos, shower gels, deodorants, and make-up—featured in many globally recognized brands. The company’s offerings range from conventional to nature-identical and natural alternatives, all of which are approved for use under various green label certifications such as the EU Ecolabel, Ecocert, NATRUE, COSMOS, and Nordic Swan.
• In September 2024, Dermegen Inc. introduced Dermacare NP, a naturally derived, synergistic preservative blend positioned as an alternative to phenoxyethanol. Developed through a proprietary fermentation process, the formulation leverages a patent-pending peptide complex and esters to deliver broad-spectrum antimicrobial efficacy across a wide pH range—performance the company describes as "unexpectedly" robust. According to Dermegen, most conventional preservative systems are synthetic and petroleum-based, whereas Dermacare NP (INCI: Water (Aqua), 1,3-Propanediol, Glyceryl Caprylate, and Epsilon Polylysine) is a naturally sourced innovation designed to meet the rising demand for clean-label cosmetic ingredients.
• In February 2025, The Estée Lauder Company's brand, The Ordinary, acquired through its purchase of DECIEM, introduced its latest age-support skincare product, the GF 15% Solution. Alongside this launch, the brand unveiled a new website dedicated to cosmetic science education: TheTruthShouldBeOrdinary.com. As part of its commitment to transparency, The Ordinary's formulations, including the GF 15% Solution, are free from controversial ingredients, with phenoxyethanol being a key example. Although phenoxyethanol is commonly used as a preservative in cosmetics, The Ordinary prioritizes safer, more effective alternatives in its products, aligning with the brand's ethos of offering simple, clean, and scientifically-backed skincare solutions.
• In November 2024, Croda Beauty introduced FibraShield C (INCI Name: Hydrolyzed Cicer Seed Extract), a protective multi-peptide designed to enhance hair longevity throughout the lifespan. Derived from the increasingly popular food source, chickpeas, FibraShield C provides a potent, natural solution to combat oxidative stress, preserve hair health, and deliver environmental protection. With 98.9% naturally derived content (ISO 16128), this ingredient is COSMOS approved, suitable for vegan formulations, Halal certified, non-GMO, and free from phenoxyethanol. Additionally, it is biodegradable (OECD 301B), making it a sustainable and environmentally responsible choice for brands focused on eco-friendly solutions.

Key Market Players

• Tristar Intermediates Pvt. Ltd.
• Galaxy Surfactants
• Liaoning Kelong Fine Chemical Co., Ltd.
• Guangzhou B-Ai Chemical Co., Ltd.
• Jiangsu Jiafeng Chemical Co.,ltd
• Unilong Industry Co., Ltd.
• Qingdao Food Additive Inc.
• Shandong Zhi Shang Chemical Co., Ltd.
• Zhejiang Multinpharma Co., Ltd.
• Jinan Future Chemical Co.,Ltd

Report Scope

In this report, the Global Phenoxyethanol Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Phenoxyethanol Market, By Sales Channel:

o   Direct

o   Indirect

• Phenoxyethanol Market, By End Use:

o   Home & Personal Care

o   Dyes & Inks

o   Pharmaceuticals

o   Paints & Coating

o   Others

• Phenoxyethanol 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

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Phenoxyethanol Market.

Available Customizations:

Global Phenoxyethanol Market report with the given market data, TechSci 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).

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