Bio-Based Cosmetics and Personal Care Ingredients Market Report: By Active Ingredient (Vitamins and Derivatives, Ceramides, Peptides, Resveratrol, Potassium Sorbate, Bio-Succinic Acid, Hyaluronic Acid, Glycerin, Creatine, Alpha Hydroxy Acids), Application (Skin and Sun Care, Hair Care, Make-up and Color Cosmetics, Fragrances) - Revenue Estimation and Growth Forecast to 2030

Market Overview

The global bio-based cosmetics and personal care ingredients market size stood at an estimated $4,550.6 million in 2021, which is expected to reach $7,271.7 million by 2030, advancing at a CAGR of 5.3% during 2021–2030. The growing cosmetics industry, rising awareness regarding the harmful effects of synthetic chemicals, and surging influence of advertising strategies on consumer trust are some of the strongest factors propelling the growth of the market.

Moreover, government regulations restricting the use of synthetic ingredients in cosmetics and personal care products have been implemented in numerous countries. For instance,

• The Food and Drug Administration (FDA) has prohibited several toxic substances in cosmetics, such as bithionol, chloroform, mercury compounds, chlorofluorocarbon propellants, halogenated salicylanilides, hexachlorophene, and vinyl chloride. These substances are used in low-quality products and cause life-threatening problems in some cases. Such initiatives are leading to the rising awareness among consumers on such harmful chemicals, thus resulting in a high demand for natural products.
• In March 2022, the European Commission (EC) banned a total of 23 carcinogenic, mutagenic, or toxic for reproduction (CMR) chemicals under Article 15 of the Cosmetics Regulation 1223/2009,​​ due to their long-term and serious effects on human health. These banned CMRs include pyrithione zinc, silicon carbide fibers, flurochloridone, ipconazole, and paclobutrazol.

Demand for Ingredients of Skin and Sun Care Products Is Highest

The bio-based ingredients used in skin and sun care solutions generated around $2 billion revenue in 2021. These ingredients hold the largest share in the market, and they are expected to maintain the same trend in the coming years. This will primarily be due to the increasing awareness about skin and sun care products among consumers and active involvement of chemical companies in launching natural ingredients for such cosmetics. For instance, in October 2021, Ashland Global Holdings Inc. announced the launch of sensidin, which provides high efficacy against odor-causing bacteria, in low concentrations. The product includes octenidine hydrochloride, an active ingredient with antimicrobial properties; a natural solvent, and a humectant, 1,3-propanediol.

Vitamins and Derivatives Expected To Witness Fastest Growth in Demand

During the forecast period, vitamins and derivatives are expected to progress with over 5% CAGR, which is higher than other types of ingredients available in the market. This growth is attributed to the increasing use of vitamin-rich cosmetics by baby boomers and generation X population group, changing lifestyle patterns, and widespread consciousness regarding the enhancement of the overall personality among consumers. According to a World Bank report, 65% of the total population in 2020 was between the ages of 15 and 64. People in these age groups are more inclined toward the use of bio-based cosmetic products containing vitamins and derivatives.

Rising Consumer Preference for Improved Lifestyles Driving North American Market

In 2021, North America led the bio-based cosmetics and personal care ingredients market with an approximately 45% share. The increasing consumer inclination toward multifunctional personal care products, busy lifestyles, and increasing employed population are propelling the growth of the industry in the region. North America is a major market for skincare and haircare products due to the increasing awareness among people on skin and hair care (especially in the male population). The high per capita income in North America also supports the demand for skincare and haircare products, which fuels the demand for bio-based ingredients in the region.

APAC is expected to witness the fastest growth in the forecast period (2022–2030), attributed to the improving healthcare infrastructure, increasing disposable income, and growing cosmetics industry. India and China are creating huge opportunities for the growth of the market in the region. The healthcare expenditure in these countries is still proportionally low when compared to the developed economies of Europe and North America. However, the large population and increasing disposable income are creating a strong demand for personal care products, thus driving the consumption of bio-based ingredients.

R&D for Product Innovation Is Major Market Trend

With time, people are becoming more concerned about their appearance, so they are looking for better alternatives to the traditional cosmetic products in the market. Organizations are delving deeper into all imaginable aspects of beauty and wellbeing, investigating consumer behavior and beauty aspirations, understanding the biology of the skin and hair, and improving sustainable development methods. As a result, the increasing R&D for product innovation has been identified as a major market trend.

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Growing Cosmetic Products Industry Is Strongest Driving Factor for Market

The market for beauty products is driven by the presence of a large number of cosmetic companies. For instance, according to the Food and Drug Monitoring Agency (BPOM), in 2017, there were more than 700 cosmetic companies in Indonesia, across its 19 provinces. Leading cosmetics companies, such as L’Oreal Group (France), Avon Products Inc. (U.S.), The Estée Lauder Companies Inc. (U.S.), and Oriflame Cosmetics (Luxembourg), are continuously introducing new products, which is expected to increase the demand for bio-based cosmetics ingredients.

Furthermore, the increasing disposable income across the globe has led to a high spending on personal care and beauty products. According to the AAD, acne affects around 50 million individuals in the U.S., and the treatment and prevention costs exceed $3 billion every year. Moreover, according to the U.S. Bureau of Labor Statistics, there was an increase in the personal disposable income of the U.S. population from $10,036.9 billion in 2006 to $13,968.6 billion in 2016, and it is further expected to reach $21,178.2 billion by 2026.

Similarly, according to the Organisation for Economic Co-operation and Development (OECD), the growth rate of the household disposable income per capita of the U.K. increased from 2.9% during 2013–2014 to 3.8% during 2014–2015. With the increase in the household disposable income, the buying power of customers increases, thus leading to a growth in the sales of personal care and beauty products. Hence, the growing cosmetic products market as a result is propelling the demand for their bio-based ingredients.

Acquisitions and Product Launches Are Most-Important Strategic Developments

Bio-based cosmetics and personal care ingredients companies are focusing on introducing newer ingredients and acquiring companies of interest, to augment their market position and strengthen their sustainability practices. For Instance,

• In October 2021, Evonik Industries AG acquired Botanica GmbH for enhancing its product portfolio in the active cosmetic ingredients market. Botanica GmbH would integrate into the care solutions business line within Evonik’s life sciences division, nutrition & care.
• In January 2020, BASF SE launched new skincare active ingredients and showcased its actives portfolio, which includes Hydagen Aquaporin and Hydrasensyl Glucan, Inolixir, and bioactive ingredients, for makeup applications. Hydrasensyl Glucan and Hydagen Aquaporin are designed as skin moisturizers, while Inolixir helps in creating healthy skin and offers a soothing effect.

Key Players in Bio-Based Cosmetics and Personal Care Ingredients Market are:

• BASF SE
• Ashland Global Holdings Inc.
• Allied Carbon Solutions Co. Ltd.
• Evonik Industries AG
• Clariant AG
• Covestro AG
• DuPont Tate & Lyle Bio Products Company LLC
• Koninklijke DSM N.V.
• The Dow Chemical Company
• Solvay SA
• The Lubrizol Corporation
• Symrise AG

Market Size Breakdown by Segment

The report offers comprehensive market segmentation analysis along with market estimation for the period 2017–2030.

Based on Active Ingredient

• Vitamins and Derivatives
• Ceramides
• Peptides
• Resveratrol
• Potassium Sorbate
• Bio-Succinic Acid
• Hyaluronic Acid
• Glycerin
• Creatine
• Alpha Hydroxy Acids

Based on Application

• Skin and Sun Care
• Hair Care
• Make-up and Color Cosmetics
• Fragrances

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • Italy
  • France
  • Spain
• Asia-Pacific (APAC)
  • China
  • Japan
  • India
  • South Korea 
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  •  Saudi Arabia
  • South Africa