Glycolic Acid Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Glycolic Acid Market Growth Drivers & Opportunities

Growing Cosmetics Industry Is Strongest Market Driver

• The biggest driver for the glycolic acid market is the growing cosmetics industry around the world.
• This chemical is a key ingredient in anti-aging, over-the-counter, and anti-pollution, and , penetrating the skin effectively due to its small molecular structure.
• This helps reduce the ill-effects of aging and pollution by exfoliating and cleansing the skin.
• Therefore, glycolic acid is widely used in anti-pollution and skincare creams, gels, facial cleansers, and scrubs to reduce the appearance and severity of acne hyperpigmentation, scars, fine lines, and other spots and marks on the skin resulting from aging.
• Moreover, numerous OTC toners, face masks, and creams contain glycolic acid, as do karyolitic products.
• As the demand for all these products rises due to the increasing incidence of dermatological conditions, the market will boom in tandem.
• As per studies, almost 9.5% of the global population and 50 million Americans suffer from acne, making it the eight-most-common health condition in the world.
• According to the World Eczema Council, 10% of the adults and 20% of the children globally are affected by atopic dermatitis.
• Almost 30% of the population is at risk for shingles, with the risk rising sharply after 50 years of age, as per the British Medical Journal (BMJ).
• The National Rosacea Society estimates the global prevalence of rosacea at 5.1%.
• Warts affects 10% of the people around the world and 20% of the schoolchildren.
• Up to 11.5% of the global population suffers from psoriasis, as per the World Health Organization.

Side-Effects of Glycolic Acid Hampers Market Growth

• Like most chemicals and almost all pharmaceutical ingredients, glycolic acid has a host of side-effects, some common and ignorable and others rare and serious.
• The chemical is generally indicated for addition in specific proportions to pharmaceutical and cosmetic formulation, failure to which may raise the risk of adverse effects.
• Some of the common ones include skin burns and stinging, which can occur even at low concentrations.
• Further, depending on its amount in the final formulation, it could cause redness, scabbing, crusting, flaking, dryness, and peeling of the skin, which may change the color tone.
• Therefore, it usually comes with restrictions for concentration, which all end-use companies must adhere to, or face the risk of penalties or the product being pulled off the market.

Biodegradable Polymers Made from Glycolic Acid Offer Opportunities

• With advancements in the healthcare sector, the role of bio-compatible has increased.
• Plastics are needed to offer structural support to the body, generally when used as a carrier for a therapeutic agent, such as drug.
• After their work is done, they are designed to naturally break down inside the body without causing any harm.
• The most-significant current application of bioplastics in the healthcare sector is tissue engineering, which widely utilizes polyphosphazenes, polyanhydrides, polyphosphoesters, polycaprolactone, polyurethanes, polylactide, and polycarbonates.
• Similarly, polylactide, polyamides, polyphosphoesters, poly(orthoesters), and polyacetals are used for drug delivery purposes.
• With further advancements, polyglycolic acid consumption as a biopolymer in the healthcare sector is increasing.
• This is because it is minimally toxic to the body and degrades easily after its purpose has been accomplished.
• Due to these attributes, the chemical is expected to be extensively used in resorbable sutures, drug delivery devices, and surgical fixation devices.
• In regard, to resorbable sutures, the rising number of surgeries around the world will offer lucrative business prospects to market players.

Glycolic Acid Market Analysis

Insights by Application

The personal care & cosmetics category accounts for the largest market share, of 35%, in 2024. It is also expected to witness the highest CAGR during the forecast period, of 6.8%.

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. As per Cosmetics Europe, the cosmetics industry of the continent registered retail sales worth EUR 96 billion in 2023.

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.

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, SkinCeuticals’ Glycolic 10 Renew Overnight cream helps in improving skin texture and skin radiance by 36%. This cream also facilitates minimizing fine lines and helps in younger-looking skin.

The following applications are covered in this report:

• Personal Care & Cosmetics (Largest and Fastest-Growing Category)
• Cleaning Disinfectant
• Dyeing & Tanning
• Others

Insights by Grade

During the forecast period, the demand for 99% glycolic acid is projected to grow at the highest CAGR, of 7.4%. The category also currently accounts for the largest share in 2024. 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. Apart from its high-volume consumption in the cosmetics sector on account of these attributes, its significant demand from the household cleaning agent, pharmaceutical, textile, and food & beverage sector leads to the popularity of this grade. Additionally, it is used as a cleaning agent in the oil & gas refining sector on account of its ability to offer environmental protection and its appreciable metal ion complexing attributes.

We have studied the below-mentioned grades:

• 99% (Largest and Fastest-Growing Category)
• 70%
• 30%
• Others

Regional Analysis

The APAC glycolic acid market is the largest, with 45% share in 2024, and it is expected to experience the highest growth rate, of 7.6%, during the forecast period. This can be attributed to the surging requirement for cosmetic products, such as anti-aging, toners, and moisturizers, and the surging focus of cosmetics players to increase their portfolio of glycolic acid-based 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.

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, such as L'Oréal Paris Revitalift Glycolic Acid Peeling Toner, L'Oreal Revitalift Glycolic Acid, Classic Anti-Wrinkle Eye Cream, and others. Furthermore, L'Oréal S.A. has 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. Almost all major regional countries regulate the safety of all cosmetics.

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.

In APAC, China is the largest consumer of glycolic acid, and the country market is expected to continue leading the regional market over this decade. China is known as the world’s second-largest beauty and personal care products market after the U.S. 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.

The geographical breakdown of the market is as follows:

• North America
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest and Fastest-Growing Country Market)
  • France
  • U.K.
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Largest and Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • Australia
  • South Korea
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest and Fastest-Growing Country Market)
  • South Africa
  • U.A.E.
  • Rest of MEA

Glycolic Acid Market Share

• The market is fragmented as a lot of companies produce various grades of glycolic acid for diverse applications.
• 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.

Glycolic Acid Market News

• In May 2024, China Petrochemical Corporation signed an agreement with Petroliam Nasional Berhad to develop the energy value chain, including upstream, chemicals and refinery, CCUS, new energy, engineering and technical services, along with the trade of crude oil, LNG, crude, refined products, non-fuel products, and specialty chemicals. The companies will also pursue technology licensing opportunities in plastic recycling and biofuels.
• In May 2024, Zhonglan Industry Co. established an office in Shanghai under the name Getchem Co. Ltd., transferring its export business to this site.
• In December 2023, CABB Group GmbH announced plans to invest over EUR 50 million to expand Kokkola, Finland, facility by 2025.
• In August 2023, PureTech Scientific LLC acquired the glycolic acid business of The Chemours Company.