Glycolic Acid Market Demand Analysis by Application (Personal Care & Cosmetics, Cleaning Disinfectant, Dyeing & Tanning), Grade (99%, 70%, 30%) – Forecast to 2030

Market Overview

The global glycolic acid market size was valued at $309.3 million in 2021, and it will grow at a CAGR of 7.7% during 2021–2030, to reach $604.4 million by 2030. In the European market, France contributed the highest revenue in 2021. This is driven by the growing usage of glycolic acid as a cleaning disinfectant in the cosmetics, oil & gas, and electronics industries.

Personal Care & Cosmetics Application Dominates the Market

As per the analysis, the personal care & cosmetics category accounted for the largest market share, of 58.2%, in 2021. This is because glycolic acid is widely used in personal care and skincare products, such as anti-aging creams, wrinkle removal products, toners, moisturizers, and other hair care products.

Additionally, the growing awareness for personal cleanliness, combined with rising disposable income and surging desire among individuals to improve their look, is driving the demand for skincare products, which is ultimately increasing the need for glycolic acid. For instance, the sales of cosmetic products across the world accounted for $80.73 billion in 2020, in which the skincare segment held a 42% share and the hair care segment held a 22% share.

Moreover, major players in the personal care & cosmetics sector are investing in innovative technologies in order to improve their glycolic acid-based product portfolios in the skincare segment, as this chemical is a scientifically proven anti-aging ingredient that helps in youthful-looking skin. For instance, in February 2019, SkinCeuticals announced Glycolic 10 Renew Overnight cream, which helps in improving skin texture and skin radiance by 36%. This cream also facilitates minimizing fine lines and helps in younger-looking skin.

Glycolic acid used as a cleaning disinfectant is the second-largest application category in the market, generating $87.0 million revenue in 2021. This is because it offers several benefits as a cleaning agent in household cleaning, institutional cleaning, and industrial cleaning.

Apart from being the prime ingredient in skincare, glycolic acid is also significantly used in industries like dyeing and tanning, oil and gas, and electronics. It has been utilized as concrete removers, boiler cleaners, and dairy farm tank cleaners. This is because of its main characteristics such as small size, strong acidic property, an affinity for chelating calcium, and natural biodegradability.

APAC Market To Grow at Highest Rate

The APAC glycolic acid market is expected to experience the highest growth rate, of 8.1%, during the forecast period. This can be attributed to the surging requirement for cosmetic products in the region. The demand for personal care products is rising because of the increase in the working woman population, a shift in their lifestyle, and a surge in awareness of their physical appearance. Moreover, working women perceive skincare products to be a necessity providing them confidence in their appearance. Women between the ages of 20 and 40 years have the highest percentage of cosmetic usage in the region.

In APAC, China is the largest consumer of glycolic acid, and the country market is expected to grow at a CAGR of 8.3% during 2021–2030. China is known as the world’s second-largest beauty and personal care products market after the U.S. As per a government source, the retail sales value of cosmetics accounted for $52.3 billion in 2020 in the country. Moreover, people’s inclination toward protecting their skin from pollution and dirt, and thus, they are investing in good skincare products and hair products, in to order look presentable during corporate meetings.

On the other hand, Europe is the largest market for glycolic acid. This is ascribed to the increasing sales of beauty products, such as anti-aging, toners, moistures, and other cosmetic products, and the surging focus of cosmetics players to increase their portfolio of glycolic acid-based products. Major players, including L’Oréal and Unilever who constantly investing in technologies to build advanced skincare products and improve customer experience, offer products that contain glycolic acid like L'Oréal Paris Revitalift Glycolic Acid Peeling Toner, L'Oreal Revitalift Glycolic Acid, Classic Anti-Wrinkle Eye Cream, and others. Furthermore, in June 2021, L'Oréal S.A. subscribed to google cloud's vertex AI platform to speed up the production of its AI models for cosmetic services.

The demand for glycol-based personal care products is expected to skyrocket, as government regulations tighten in the region. Cosmetics are governed by different regulatory systems in different nations and areas. The European Union (EU), for example, regulates the safety of all cosmetics. These rules are applied at the national level, and each European country has a governing body in charge of ensuring compliance.

Glycolic acid is derived from natural products, such as fruits and sugarcane, and this organic product helps in meeting the cosmetic guidelines. Moreover, the demand for glycol-based cosmetic products is rising due to social media marketing, which allows to personally interact with existing and potential customers, build brand awareness, and directly target customers with marketing campaigns.

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99% Grade Purity Category Is Projected to Witness Fastest Growth

During the forecast period, the demand for 99% glycolic acid is projected to grow at the highest CAGR, of 8.1%. This can be because it helps in reducing fine lines and wrinkles, stimulating the production of skin cells to renew the sun-damaged skin, and improving the skin tone; and its various applications, such as skin peels, day creams, and skin lighting creams.

To Increase Market Share, Companies Involved in Various Strategic Developments

Major players in the market have been involved in product distribution through a direct distribution network spread across major markets, worldwide. The establishment of a direct distribution network increases the profit margins of the companies and boosts their market share. In addition, the companies might also opt for a third-party distribution network in order to serve the demands in new markets.

On the other hand, small companies in the market operate their businesses through a combination of direct distribution and third-party distribution networks, in order to increase their revenue and sales. The companies do not generally have high distribution margins and cater to the demands in a region close to the area of their operations.

Moreover, players operating in the glycolic acid market have been involved in product launches, collaborations, and mergers and acquisitions. For instance:

• In February 2021, NeoStrata launched the NeoStrata Glycolic Renewal Serum. This helps in preventing uneven skin, acne, and hyperpigmentation.
• In March 2021, Chemours announced the launch of Glyclean D, which is used as a hard surface disinfectant.

 Top Manufacturers in the Glycolic Acid Market Are:

• The Chemours Company
• China Petrochemical Corporation (Sinopec Group)
• CABB Group GmbH
• Zhonglan Industry Co.
• Water Chemical Co.
• CrossChem LP
• Avid Organic

Market Size Breakdown by Segment

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

Based on Application

• Personal Care & Cosmetics
• Cleaning disinfectant
• Dyeing & Tanning

Based on Grade

• 99%
• 70%
• 30%

Geographical Analysis

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