Cosmetic Ingredients

Increasing awareness regarding clean label cosmetic products has given rise to the development of eco-friendly cosmetic products. Manufacturers are engaged in heavy research and development activities to bring out new ingredients to meet consumer demands. Countries in Asia Pacific has the highest demand for cosmetic ingredients, with India, China and Japan spearheading the growth for the same. According to Insights and Reports, the global cosmetic ingredient industry is expected to cross the US$ 30 billion market by the end of 2023.

Skincare and hair care cosmetic ingredients are expected to lead the cosmetic ingredient market throughout the forecast period. Rising demand for organic hair care products without ammonia, sulfur and paraben is witnessing a significant surge. Moreover, the demand for skin care products, especially anti-aging creams is expected to rise in the coming years as well. Rising demand for skin care products from the male population is one of the key factors supporting market growth for skincare products.

According to Insights and Reports, in 2016 the cosmetic and personal care segment witnessed a growth of more than 5% compared to the previous year. In U.S., average household expenditure on cosmetic products amounted to US$ 160 in 2016. Further, more than 30% of the households, with annual income of more than US$ 100,000, spent more than US$ 500 on cosmetic and personal care products.

India is key market for the growth of the cosmetic ingredients industry as well and has taken rapid strides in the past few years, as the manufacturers operating in this industry are focusing on incorporating specialty ingredients in personal care products. However, the per capita consumption of personal care products in India is less compared to China. Favorable demographic factors, rising beaut consciousness among the populace are some of the key factors supporting in the growth of the personal care industry in the country. Rising demand for nano technology and green chemicals in the country is expected to support the growth of the cosmetic ingredient industry in the future.