The booming fashion and entertainment industries in developed and developing countries, including the U.S., India, France, and South Korea, upswing in the production of innovative cosmetic products, expanding urbanization level, rising demand for premium products, and rapid adoption of cosmetic products among the millennials are the major factors behind the growth of the global cosmetic chemicals market. Due to these factors, the market stood around $20.0 billion revenue in 2020, and is projected to witness significant growth during the forecast period (2021–2030).
Amidst the COVID-19 pandemic, cosmetics manufacturing and sales activities were hampered owing to the strict measures implemented by governments across the globe to curb the spread of the virus. Essentially, due to the implementation of lockdowns, the demand for cosmetic products witnessed a massive downfall, as their distribution network was ill-affected. Owing to these factors, there was a negative impact on the market for cosmetic chemicals.
The cosmetic chemicals market is classified into surfactants, anionic, cationic, non-ionic, amphoteric, emollients & moisturizers, colorants & pigments, emulsifying & thickening agents, and others, based on product type. Among these, the emollients & moisturizers category held the largest market share in 2020 due to the fact that emollients, such as olive oil, petrolatum, glycerin, mineral oil, and zinc oxide, are widely used in the production of moisturizers, creams, lipsticks, and lotions.
The cosmetic chemicals market is divided into skin care, hair care, make-up, fragrances, and others, on the basis of application. Among these, the skin care category held the major share in the market in 2020, and it would witness significant growth during the forecast period. This can be ascribed to the rising demand for face creams, sunscreens, and body lotions around the world and increasing research & development (R&D) activities by market players for the expansion of their product portfolio.
Geographically, Asia-Pacific (APAC) accounted for the dominating share in the market for cosmetic chemicals in 2020, and it would continue to grow in the upcoming years. This can be credited to the presence of a large number of small- and large-scale manufacturers of cosmetics and suppliers of the associated chemicals in the region. Moreover, market players are focusing on offering technologically advanced ingredients for improved cosmetic products.
Players in the cosmetic chemicals industry have been involved in product launches to enhance their market presence. For instance, in May 2020, BASF SE introduced Luviset 360, a new styling polymer that provides efficient styling performance in six different ways. The product provides a firm, flexible, and long-lasting hold with minimal flaking and offers anti-pollution property. Luviset 360 has been designed for a wide range of hair styling products, such as gels, creams, and waxes.
Major players in the global cosmetic chemicals market include The Dow Chemical Company, Givaudan S.A., Ashland Inc., Eastman Chemical Company, Lonza Group, BASF SE, LANXESS AG, Solvay S.A., Evonik Industries AG, Cargill Incorporated, Croda International Plc, and Bayer AG.