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How has the cosmetic ingredients market size evolved in recent years?

The market size of cosmetic ingredients has seen robust expansion in the past years. It’s predicted to rise from $31.89 billion in 2024 to $33.63 billion in 2025, with a 5.5% compound annual growth rate (CAGR). The previous growth is due to factors such as the trend towards natural ingredients, advances in science, increased consumer awareness, changes in regulations, and cultural factors.

What are the predictions for the cosmetic ingredients market size in the coming years?

The market size of cosmetic ingredients is projected to witness significant expansion in the forthcoming years. The market’s value is estimated to rocket to $43.79 billion in 2029, with a compound annual growth rate (CAGR) of 6.8%. This predicted growth during the forecast period can be traced back to factors such as the clean beauty trend, restorative and curative ingredients, rising demand for microbiome-friendly ingredients, digital beauty innovations, and tech-oriented formulations. Predominant trends during this forecast period will likely include upcycled ingredients, personalized skincare sets, bioactive peptides, barrier repairing components, and ingredients derived from CBD and hemp.

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What key factors are fueling the growth of the cosmetic ingredients market?

The anticipated rise in the need for personal care products is set to stimulate progress in the cosmetic ingredients market. Personal care items encompass a comprehensive array of goods typically utilized for individual cleanliness, beauty enhancement, and sanitization purposes. They are specifically crafted to bolster personal health, sanitary habits, and aesthetic appeal. Ingredients found in cosmetics play an essential role in personal care merchandise and offer a multitude of perks and functionalities. They serve individual functions and promote overall effectiveness, potency, and sensory experience of the products. Thus, the need for personal care products propels the growth of the cosmetics ingredients industry. For example, in December 2023, as per a report released by the Bureau of Labor Statistics, a government organization in the US, there was a surge in expenditures on personal care commodities and services, from $771 in 2021 to $866 in 2022, indicating an increment of 12.3 percent. As a result, the surging demand for personal care merchandise fuels the chlorinated fatty acid methyl ester market’s expansion. Subsequently, the escalating need for personal care commodities is catalyzing the advancement of the cosmetic ingredients market.

How is the global cosmetic ingredients market divided into key segments?

The cosmetic ingredients market covered in this report is segmented –

1) By Ingredient Type: Synthetic Chemical Ingredients, Natural Or Herbal Ingredients, Specialty Ingredients, Oleochemical, Botanical Extract, Rheology Modifier, Preservatives, Emulsifier And Stabilizer, Other Ingredient Types

2) By Functionality: Cleansing Agents And Foamers, Aroma, Moisturizing, Specialty, Other Functionalities

3) By Application: Skin Care, Oral Care, Hair Care, Make-Up, Fragrance, Other Applications

Subsegments:

1) By Synthetic Chemical Ingredients: Emollients, Surfactants, Synthetic Fragrances

2) By Natural Or Herbal Ingredients: Essential Oils, Plant Oils, Natural Extracts

3) By Specialty Ingredients: Peptides, Hyaluronic Acid, Anti-aging Agents

4) By Oleochemical: Fatty Acids, Glycerin, Fatty Alcohols

5) By Botanical Extract: Flower Extracts, Leaf Extracts, Root Extracts

6) By Rheology Modifier: Thickeners, Gelling Agents, Stabilizers

7) By Preservatives: Parabens, Organic Acids, Antioxidants

8) By Emulsifier And Stabilizer: Anionic Emulsifiers, Cationic Emulsifiers, Non-ionic Emulsifiers

10) By Other Ingredient Types: Colorants, Fragrance Modifiers, Sun Protection Agents

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Who are the key firms paving the way for growth in the cosmetic ingredients market?

Major companies operating in the cosmetic ingredients market include BASF SE, Unilever, The Dow Chemical Company, L’Oréal International, Evonik Industries AG, Solvay S.A., The Estée Lauder Companies Inc., DuPont, International Flavors & Fragrances Inc., Kao Chemicals, Eastman Chemical Company, DSM, Wacker Chemie AG, Givaudan, Lonza Group Ltd., Clariant AG, KCC Corporation, Symrise, Croda International PLC., Ashland Inc., P2 Science Inc., Spira Inc., Naturbeads Ltd., Allozymes, Ardra Bio, Firmenich, Protameen Chemicals, Lipoid Kosmetik, Ecogreen Oleochemicals, Aqia

Which trends are expected to transform the cosmetic ingredients market?

Chief businesses in the cosmetic ingredients market are strategically partnering to amalgamate sustainable and innovative biotechnological-based cosmetic ingredients. These strategic partnerships allow these companies to utilize each other’s resources and strengths for mutual advantage and triumph. For instance, in August 2023, South Korea’s K beauty manufacturing company, Cosmecca Korea Co., joined hands with a Spain-based cosmetic ingredient manufacturer, Vytrus. The objective of this partnership is to use biotechnology for the invention of new, sustainable and innovative cosmetic ingredients, using Vytrus’s plant stem cell technology.

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What regions are contributing significantly to the growth of the cosmetic ingredients market?

Asia-Pacific was the largest region in the cosmetic ingredients market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the cosmetic ingredients market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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