The global functional cosmetic ingredient market is predicted to grow at a CAGR of 5.7% during the forecast period. The overall industry value is estimated to reach USD 6,232.1 million by 2034. The market is valued at USD 3,580 million in 2024.
| Report Attribute | Details |
|---|---|
| Functional Cosmetic Ingredient Market Revenue (2024) | USD 3,580 million |
| Anticipated Market Value (2034) | USD 6,232.1 million |
| Value-based CAGR (2024 to 2034) | 5.7% |
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The global demand for functional cosmetic ingredients, in terms of value, was around USD 2,881.1 million in 2019. The overall demand surged at 4.3% CAGR from 2019 to 2023. The market reached USD 3,409.5 million in 2023.
| Attributes | Details |
|---|---|
| Functional Cosmetic Ingredient Market Size (2019) | USD 2,881.1 million |
| Market Size (2023) | USD 3,409.5 million |
| HCAGR (2019 to 2023) | 4.3% |
The beauty ingredient industry outlook has completely transformed in the last decade with continuous improvements in cosmetic research and technology to develop bioactive beauty components. In the coming decade, discoveries that are expected to result in bio-engineered beauty components with unique formulas, increased stability, and efficacy could strengthen the market further.
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People nowadays want their personal grooming regimens to be quick and easy, as cosmetic compounds with multiple functions can treat many skincare or cosmetic issues at once. Functional skincare compounds are also in line with professional women's fast-paced lifestyle, as they seek efficient and time-saving fixes at workplaces.
Nowadays, the relationship between general wellbeing and skincare is becoming more widely known and customers are better aware of active ingredients in cosmetics and their potential advantages. So, to appeal to customers who are health-conscious, beauty care brands are including functional cosmetic ingredients that provide long-term skincare advantages.
As eco-friendly and sustainable practices are receiving more attention in all sectors, functional cosmetic ingredients that support environmental consciousness and well-being are becoming more popular. The need for ecological, ethical, and organic performance skincare ingredients is growing among consumers, which is fueling the share of cosmetics brands that uphold all these ideals.
A list of four countries that are forecasted to play a crucial role in the advancement of the global functional cosmetic ingredient market is tabulated below.
| Countries | CAGR (2024 to 2034) |
|---|---|
| United States | 4% |
| Australia | 6.6% |
| China | 5.8% |
| India | 7.6% |
The United States is expected to maintain its dominant market share by advancing at a moderate CAGR of 4% over the course of the projection period.
The United States is the hub for research and development in cosmetics, leading to the creation of innovative functional ingredients tailored to particular skin and hair requirements. Strict rules also guarantee the safety and effectiveness of functional skincare ingredients for users, helping the industry to expand beyond boundaries of the country.
As per the geographical survey for functional cosmetic ingredient industries, the market in Australia is poised to expand at a 6.6% CAGR through 2034.
After the entry of many multinational companies producing cosmetic products in the last few years, the bioactive cosmetics market dynamics have altered significantly in Australia. Volatile organic compound (VOC)-free, readily biodegradable, eco-friendly surfactant solutions derived from active materials are already starting to gain traction in the regional personal care products sector.
China is forecasted to increase its production of functional cosmetic compounds at a 5.8% CAGR over the next ten years.
After gaining a substantial share of the global chemical market, China is vying to capture the global market for safe chemicals, including active cosmetic compounds, over the coming decade. However, a general trend toward natural or organic goods is anticipated to cast a spell on Chinese industries to comply with environmental requirements.
The demand for functional cosmetic ingredients in India is projected to increase at a CAGR of 7.6% through 2034.
The demand for self-care and shifting beauty standards in India are driving the functional cosmetic ingredient industry, followed by rapid expansion of the skincare and beauty industries. In India, beauty experts, as well as social media influencers, have also played a significant role in shaping consumer preferences for multifunctional beauty products.
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Based on the ingredient type, emollients and moisturizers significantly contribute to the rising sales of functional cosmetic ingredients. The segment holds a 21.9% revenue share in 2024.
| Attributes | Details |
|---|---|
| Top Ingredient | Emollients and Moisturizers |
| Market Share in 2024 | 21.9% |
Customers highly demand moisturizers and deep hydration from active cosmetic compounds, which assist in preventing dry skin and preserving the integrity of the skin. However, the aging population in many emerging economies is pushing up the demand for skin-rejuvenating cosmetic products, strengthening the anti-aging cosmetic ingredients segment.
The primary application of functional cosmetic ingredients is for manufacturing skincare products. The skin care product segment is expected to hold a 41.9% share of the market in 2024.
| Attributes | Details |
|---|---|
| Top Application Type | Skin Care Product |
| Market Share in 2024 | 41.9% |
The functional cosmetic market for skincare applications is forecasted to retain the dominance of this segment during the forecast years as well. However, as consumers worldwide are now prioritizing the use of bio-functional active ingredients for wholesome body care, the hair care and oral care segments are also booming.
Greater emphasis on personalization and customization by functional cosmetic ingredient suppliers is an emerging trend in the beauty product industry. The use of targeted skincare ingredients based on certain skin types, climates, genetics, or preferences also fosters brand recognition and loyalty for even new market players.
Key players in the market are focusing on innovation and research and development to manufacture products that can be customized as per consumer demands. They also emphasize the adoption of various marketing strategies and mergers and collaborations to foster growth in the market.
Recent Developments
| Attribute | Details |
|---|---|
| Estimated Market Size (2024) | USD 3,580 million |
| Projected Market Size (2034) | USD 6,232.1 million |
| Anticipated Growth Rate (2024 to 2034) | 5.7% |
| Forecast Period | 2024 to 2034 |
| Historical Data Available for | 2019 to 2023 |
| Market Analysis | USD million or billion for Value and Units for Volume |
| Key Regions Covered | North America; Latin America; Europe; Middle East & Africa (MEA); East Asia; South Asia and Oceania |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, Spain, Italy, France, United Kingdom, Russia, China, India, Australia & New Zealand, GCC Countries, and South Africa |
| Key Segments Covered | By Product Type, By Material, By Packaging Format, By End Use, and By Region |
| Key Companies Profiled | BASF SE; Dow Inc.; Croda International Plc; Ashland Global Holdings Inc.; Clariant International Ltd.; Evonik Industries AG; Givaudan SA; Lonza Group Ltd.; DSM Nutritional Products AG; Solvay SA; Lubrizol Corporation; Innospec Inc.; Eastman Chemical Company; Wacker Chemie AG; Seppic SA |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The global functional cosmetic ingredient market is expected to grow at a 5.7% CAGR through 2034.
The functional cosmetic ingredient market is expected to reach USD 6,232.1 million by 2034.
The global functional cosmetic ingredient market was valued at USD 3,409.5 million in 2023.
BASF, Dow, and Croda are a few of the leading suppliers of functional ingredients.
The market in India is expected to record a 7.6% CAGR through 2034.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Function 5.1. Conditioning 5.2. Moisturizing 5.3. Colouring 5.4. Anti-aging 5.5. Skin-brightening 5.6. Others 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application 6.1. Skincare 6.2. Anti-aging products 6.3. Body Care 6.4. Hair Care 6.5. Others 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 9. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 10. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 11. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 12. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 13. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 14. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Connect Chemicals 17.2. The Good Scents Company 17.3. BASF SE 17.4. Dow 17.5. Ashland, Inc. 17.6. Stepan Company 17.7. Evonik Industries AG 17.8. Gattefosse 17.9. Lucas Meyer Cosmetics 17.10. Nouryon 18. Assumptions & Acronyms Used 19. Research Methodology
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Functional Cosmetic Ingredient Market
