TAGS: Sustainability / Natural Cosmetics
According to a latest report by Fact.MR., the global cosmetic chemicals market is poised to top USD 30 Bn by 2031, expanding at above 6% CAGR. Growth is primarily fueled by a flourishing global cosmetics industry, as consumers augment spending on personal care products amid surging disposable incomes.
Consumption of Organic Cosmetics
Historically, sales of cosmetic chemicals increased at a CAGR of a little under 5% to reach a valuation of almost USD 20 Bn by 2019. The market surpassed USD 21 Bn in 2020; however, COVID-19-induced depression limited prospects in the first half of the previous fiscal. Massive store closures declined cosmetic products sales, disrupting the supply of cosmetic chemicals for further production.
Future sales prospects are expected to be majorly influenced by heavy consumption of organic cosmetics. As sustainability concerns aggrandize, consumers are consciously weaning away from inorganic cosmetic products, preferring natural alternatives. Growth is especially poignant across the skincare and haircare products segment, with major cosmetic giants striving to offer 100% organic products.
Key Takeaways from the Study
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Skincare & haircare to emerge as primary application areas, accounting for over 30% revenue
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By product, emollients, skincare & moisturizers to remain top-selling, reaching nearly US$ 11 Bn by 2031
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Demand for surfactants and single-use additives to collectively expand at over 11% CAGR until 2031
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Organic cosmetic chemicals comprise bulk of U.S. sales, reaching almost US$ 6 Bn in 2020
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Market in China to reach a valuation of nearly US$ 7 Bn by 2031, expanding at nearly 9% CAGR by 2031
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Japan and Canada are other noteworthy markets, expanding at CAGRs exceeding 3% and 5%, respectively
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Mushrooming trends in the global cosmetics & personal care industry amid enhanced consumer spending are prompting key manufacturers to bolster R&D capacities to launch new products, thereby stimulating demand for high-grade cosmetic chemicals,” said a Fact.MR analyst.
Source: Fact.MR.