The market for personal care chemicals is anticipated to register a CAGR of more than 5% during the forecast period. Cosmetics and personal care products are designed to cleanse, protect and change the appearance of external parts of an individual. There are more than thousands of different cosmetic products on the market currently, all with differing combinations of ingredients to provide the desired effect required by the individual using the product.
- Growing awareness among beauty & skin care products and increasing demand for products with active ingredients are augmenting the market's growth.
- Stringent government regulations limiting the use of certain cosmetic chemicals is likely to hinder the market's growth.
- Growing customer demand for natural ingredients opening opportunities for technical innovation is projected to act as an opportunity for the market in future.
Key Market Trends
Skin Care Application to Witness Higher Potential Growth
- Skin care application dominated the global personal care chemicals market with an estimated share of around 40%. Increasing youth population, growing purchasing power among urban households, preference for a sophisticated lifestyle is driving the market for skin care products globally.
- The global skin care market is expected to grow at an average rate of around 5% annually. The industry has witnessed a shift from demand from older consumers to a growing younger consumer base. People are increasingly becoming more self-aware about themselves has hence started using skin care at an increasingly young age in order to delay the signs of aging.
- Every single year, new skin care products are been launched by various beauty brands and the trend is likely to grow in the near future wing to the remarkable growth in such segments.
- Owing to the boom in skin care products, various smaller manufacturers too have ventured into the marketplace to avail the benefits of the continuously thriving industry. Through the last two years, on an average, over 100 new brands debuted in department and specialty stores in the United States.
- Such positive factors are expected to drive the market for skin care products, and hence the demand for personal care chemicals through the forecast period.
India to Dominate the Market in the Asia-Pacific Region
- The India personal care chemicals market is expected to register the fastest growth of more than 12% among other Asia-Pacific countries.
- At present, penetration of personal care products in India is comparatively lower when compared to developed or even other developing economies. However, improving economic environment and increasing purchasing power of the Indian population is expected to increase the adoption of personal care products in the country, thereby driving the demand for personal care chemicals.
- According to a report published by the Ministry of Economy and Industry, the beauty and personal care (BPC) industry in the country is expected to reach more than USD 10 billion by 2021, at an estimated growth rate of 5%-6% annually. The personal care and cosmetics sector in India is expected to register continuous growth, with increasing shelf space in retail stores and boutiques in India.
- Moreover, the increasing adoption of men's grooming products (growth of more than 42% since the last five years) in the country too is expected to have a favorable effect on the market.
- According to a study by Assocham, one of the apex trade associations of India, the country's beauty, cosmetic and grooming market is expected to reach USD 20 billion by 2025.
- Such factors are expected to drive the use of personal care chemicals in the county through the forecast period.
The personal care chemicals market is expected to be fragmented, with no players having a significant share to influence the market. Key players in the personal care chemicals market include Ashland, Croda International Plc, BASF SE, Evonik Industries AG, Clariant, Wacker Chemie AG, Stepan Company among others.
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