Cosmetic Chemicals Market Report 2025

The cosmetic chemicals market size has grown strongly in recent years. It will grow from $20.06 billion in 2024 to $21.25 billion in 2025 at a compound annual growth rate (CAGR) of 5.9%. The growth in the historic period can be attributed to consumer demand for beauty products, changing beauty standards, globalization and urbanization, marketing and branding strategies, regulatory changes and safety standards.

The cosmetic chemicals market size is expected to see strong growth in the next few years. It will grow to $27.98 billion in 2029 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to growing emphasis on natural and organic products, health and wellness trends, global economic and demographic changes, regulatory compliance and safety standards. Major trends in the forecast period include rise of clean beauty, customization and personalization, focus on health and wellness, sustainable packaging and practices, inclusivity and diversity.

The rising popularity of hair and skin care products is expected to fuel the growth of the cosmetic chemicals market moving forward. Skin care products refer to cosmetic preparations such as antiseptics, tonics, lotions, creams, or other treatments used for massaging, cleansing, stimulating, and beautifying or performing non-invasive hair removal on the body. Hair and skin care products are designed to enhance, protect, and alter the appearance of external features. Cosmetic chemicals serve as key ingredients in these products. For instance, in September 2023, Circana, LLC, a US-based company offering consumer insights, data, and analytics, reported a 25% rise in beauty industry sales. Fragrance sales increased by 24%, skincare by 17%, and the hair care category by 27% compared to 2021. Thus, the growing popularity of hair and skin care products will continue to drive the cosmetic chemicals market.

Rising disposable incomes play a pivotal role in propelling the growth of the cosmetic chemicals market. As individuals and households experience an increase in disposable income, there is a corresponding uptick in spending on beauty and personal care products. This trend is particularly noticeable in emerging economies, where consumers are allocating a larger portion of their income to these products. For instance, in 2022, India saw a notable rise in disposable income, reaching 274.13 million compared to 238.57 million in the previous year. Globally, disposable incomes and family spending are projected to increase by 2.6% in 2022, further contributing to the expansion of the cosmetic chemicals market.

A key trend gaining traction in the cosmetic chemicals market is product innovation. Major companies in this market are actively engaged in developing innovative cosmetic ingredients to fortify their market positions. In this context, Merck & Co. Inc., a prominent science and technology company, introduced RonaCare Baobab and RonaCare Hibiscus in February 2022. These cosmetic ingredients, derived from the baobab fruit and hibiscus flower, respectively, are rich in nutrients and offer benefits for the skin. RonaCare Baobab provides robust elastin and collagen protection, reducing skin irritation. On the other hand, RonaCare Hibiscus addresses skin irritation, aids sensitive skin care, protects collagen, and enhances skin cell vitality.

Furthermore, major players in the cosmetic chemicals market are focusing on sustainability, introducing solutions such as sustainably sourced cosmetic ingredients. These ingredients, derived from renewable resources in an environmentally responsible manner, align with the growing consumer demand for sustainable and ethical beauty products. For instance, BASF Personal Care launched Epispot in September 2023, a sustainably sourced cosmetic ingredient extracted from the French plant Epilobium angustifolium. Epispot addresses skin imbalances, minimizing shine, enhancing facial pores, and supporting a healthy complexion while meeting consumer preferences for a natural, unfiltered skincare approach.

In April 2023, Givaudan, a Switzerland-based multinational company specializing in the production of flavors, fragrances, and active cosmetic ingredients, acquired Amyris Inc. for an undisclosed sum. This acquisition enables Givaudan to strengthen its portfolio in sustainable and bio-based ingredients, in line with the increasing consumer demand for eco-friendly products within the cosmetics and personal care industries. Amyris Inc. is a US-based biotechnology company that supplies cosmetic chemicals.

Major companies operating in the cosmetic chemicals market are Dow Chemical Company, Givaudan SA, Ashland Global Holdings Inc., Eastman Chemical Company, Lonza Group Limited, BASF SE, Lanxess AG, P&G Chemicals, Solvay SA, Evonik Industries AG, Bayer AG, Croda International PLC, Stephan Company, Symrise AG, Cargill Inc., Lubrizol Corporation, Cobiosa, Genomatica Inc., Pharmacos, Wacker Chemie AG, Synthomer PLC, Celanese Corporation, Arkema Inc., ARLANXEO Holding BV, Apcotex Industries Limited, Asahi Kasei Corporation, KCC Corporation, Bluestar Silicones USA Corp., Clariant AG, Huntsman Corporation, Momentive Performance Materials Inc., Nippon Shokubai Co. Ltd., OMNOVA Solutions Inc., Shin-Etsu Chemical Co. Ltd.

North America was the largest region in the cosmetic chemicals market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global cosmetic chemicals market during the forecast period. The regions covered in the cosmetic chemicals market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the cosmetic chemicals market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Cosmetic chemicals are a combination of chemical compounds derived from both synthetic and natural sources, serving as the primary ingredients for formulating personal care and cosmetic products.

These cosmetic chemicals encompass various product types, including surfactants, emollients and moisturizers, colorants and pigments, preservatives, and emulsifying and thickening agents. Fragrances, characterized by a blend of organic compounds creating a distinctive scent, are a significant component in applications such as perfumes and fragrances, hair care, skincare, color cosmetics, and others.

The cosmetic chemicals market research report is one of a series of new reports that provides cosmetic chemicals market statistics, including the cosmetic chemicals industry global market size, regional shares, competitors with cosmetic chemicals market share, detailed cosmetic chemicals market segments, market trends, and opportunities, and any further data you may need to thrive in the cosmetic chemicals industry. The cosmetic chemicals market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The cosmetic chemicals market consists of sales of glycerin, wax, and oil. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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