The global glycolic acid market size is anticipated to reach USD 499.4 million in 2024. It is estimated to grow at a CAGR of 4.6% during the forecast period to reach a value of USD 782.9 million by 2034.
The smallest hydroxy acid is glycolic acid, also known as hydroxyacetic acid (AHA). It is available in a crystalline solid that is hydrophobic, colorless, and odorless and is readily soluble in water and other solvents. Glycolic acid is isolated from sugar beets, sugarcane, cantaloupe, pineapple, and immature grains and is associated with sugar crops.
It finds a variety of applications across a wide spectrum of end-use industries including personal care, chemicals, and agriculture. These industries are among the leading consumers of glycolic acid across the globe.
Glycolic acid is a type of alpha hydroxy acid, along with citric acid and lactic acid. It is projected that glycolic acid will generate between 19% and 21% of alpha hydroxy acids' global sales in 2023.
| Attributes | Description |
|---|---|
| Estimated Global Glycolic Acid Market Size (2024E) | USD 499.4 million |
| Projected Global Glycolic Acid Market Value (2034F) | USD 782.9 million |
| Value-based CAGR (2024 to 2034) | 4.6% |
By 2034, the global demand for glycolic acid is probable to increase 2.2 times from current levels, reflecting a robust growth trajectory driven by varied applications across multiple industries. The surge in demand is prominently fueled by the expanding skincare and cosmetic sectors, where glycolic acid's efficacy in exfoliation and anti-aging treatments continues to attract consumer interest.
Pharmaceutical industry's growing need for glycolic acid in drug formulations and delivery systems further contributes to this upward trend. Industrial improvements in production processes and improved availability of glycolic acid also support this anticipated growth.
As of 2024, Asia-Pacific, North America, and Europe are estimated emerge as the leading region in the industry. In Asia-Pacific, rising disposable incomes and heightened beauty standards are estimated to drive demand, especially in countries like China and India.
North America and Europe benefit from well-established industries and increasing consumer awareness of the benefits of glycolic acid. Hi-tech progresses in production processes and inventions in applications further support this extension, positioning the glycolic acid market for significant development in the coming decade.
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The table presents the estimated CAGR for the global glycolic acid market over semi-annual periods ranging from 2023 to 2024. The analysis presents businesses with a better understanding of the growth over the year by divulging crucial shifts in performance and growth patterns of the industry. The first half (H1) of 2023 spans from January to June. The second half or H2 includes July to December.
Figures showcased in the below table exhibit the growth rate for each half from 2023 to 2024. The industry is estimated to grow at a CAGR of 4.3% in the first half (H1) of 2023. The second half of the same year is projected to witness a substantial surge in the CAGR at 5.1%.
| Particular | Value CAGR |
|---|---|
| H1 | 4.3% (2023 to 2033) |
| H2 | 5.1% (2023 to 2033) |
| H1 | 4.4% (2024 to 2034) |
| H2 | 4.8% (2024 to 2034) |
Moving in the following period, from H1 2024 to H2 2034, the CAGR is projected to drop to 4.4% in the first half (H1) and then rise to 4.8% in the second half (H2). In the first half (H1), the market is estimated to witness an increase of 30 BPS while the second half (H2) is also predicted to experience an increase of 30 BPS.
Increasing Demand for Glycolic Acid in Personal Care and Cosmetics to Augment Growth
Glycolic acid is a skin moisturizing exfoliator that has been witnessing an increasing demand. Dermatologists use glycolic acid to treat hyperpigmentation, acne, and other skin issues. It is widely used as a lightning multitasking agent due to its capability to dissolve melanin and make skin look less wrinkled. The acid has several cosmeceutical preparations including skin creams, body lotions, oil treatments, and blackhead treatments.
Peeling treatments are a widespread way to treat facial skin, and glycolic acid is an essential ingredient in these procedures as peels containing glycolic acid offer anti-inflammatory, keratolytic, and antioxidant properties. This is expected to boost the growth of the glycolic acid market.
Increasing consumer awareness, coupled with rising per capita disposable income and enhancing living standards, are prominent reasons fostering a rise in the demand for the product, particularly in developing countries.
Expanding Industrial Applications Drive Increased Utilization
Glycolic acid, known for its efficiency as a chelating agent and cleaning compound, is increasingly being utilized to address the growing needs for proficient cleaning and processing in these sectors.
In water treatment, glycolic acid's ability to chelate metal ions makes it a valuable component in formulations designed to enhance water clarity and prevent scale formation. As industries and municipalities invest in improving water treatment services to meet stricter environmental regulations and improve water quality, the demand for glycolic acid as a water treatment agent is expanding.
As water treatment and textile sectors grow, the requirement for glycolic acid intensifies, resulting in boosted production and sales. This shift also promotes investment in research and development to enhance glycolic acid formulations and applications.
For instance, in January 2023, the global chemical company BASF announced the launch of a new glycolic acid-based product line specifically designed for industrial water treatment applications.
High Production Costs Likely to Hinder Expansion and Accessibility
Glycolic acid, a key component in various industrial and consumer products, including cosmetics, pharmaceuticals, and textiles, requires sophisticated manufacturing processes and high-quality raw materials. These factors contribute to its elevated production costs, which can impact its affordability and accessibility in different sectors.
In emerging regions, where budgets are often limited and cost-effectiveness is a priority, the high production costs of glycolic acid can be challenging. The cost of manufacturing glycolic acid is influenced by several factors, including the costs associated with the production equipment, energy consumption, and the need for stringent quality control measures. These factors collectively contribute to a higher price point, which may be prohibitive for industries with limited financial resources.
Rising Health and Environmental Concerns May Restrict the Scope
Health concerns are mainly related to the use of glycolic acid in consumer products. High concentrations can cause skin irritation, burns, and sensitivity, prompting regulatory bodies to set stringent guidelines on its usage. For instance, the USA Food and Drug Administration (FDA) and the European Commission have imposed limits on the concentrations of glycolic acid in over-the-counter products. These regulations are driven by concerns over potential adverse effects, which can lead to consumer reluctance and reduced demand.
Environmental concerns also play a crucial role in constraining the market. The production and disposal of glycolic acid involve significant environmental considerations. Manufacturing processes can contribute to pollution if not managed properly, and the degradation of glycolic acid can have negative effects on ecosystems.
As environmental regulations become stricter, manufacturers may face higher compliance costs and pressures to adopt sustainable practices. This includes transitioning to green chemistry approaches or developing biodegradable alternatives, which could further impact the market.
Principal Consultant
The global glycolic acid industry was valued at USD 158.3 million grew at a CAGR of 3.4% during the historical period. Growth was positive as it reached USD 477.4 million in 2023.
From 2019 to 2023, the global glycolic acid market witnessed steady growth, driven by increasing demand across various end-use industries, including cosmetics, pharmaceuticals, and industrial applications.
The cosmetic sector, in particular, experienced a prominent uptick in glycolic acid usage due to its approval in anti-aging and skin exfoliation products. This period also observed progressions in industrial expertise, leading to higher product value and productivity. Key organizations participated heavily in research and development to cater to evolving consumer preferences and regulatory standards, boosting overall sales.
The COVID-19 pandemic had a significant effect on the global glycolic acid industry during 2020 and 2021. While certain sectors, such as cosmetics, encountered temporary disruptions due to supply chain issues and reduced consumer spending, the pharmaceutical sector experienced elevated demand for glycolic acid as a crucial component in sanitizers and disinfectants.
As the global economy started to recover in 2022, the industry rebounded robustly, fueled by renewed consumer confidence and the resumption of cosmetic and personal care product sales.
The industry is anticipated to reach USD 499.4 million by 2024 and is further predicted to grow at a CAGR of 4.6% during the forecast period. It is estimated to reach USD 782.9 million by 2034.
Looking ahead, the global glycolic acid sector is projected to witness robust growth during the assessment period. The growing prominence on skincare and personal wellness is estimated to drive sustained demand for glycolic acid in cosmetic formulations. Inventions in skincare technologies and the introduction of new and effective products will likely further bolster expansion.
The pharmaceutical sector is also anticipated to continue driving glycolic acid demand, mainly for its use in drug inventions and medical applications. The expanding global population and advancements in healthcare will likely increase the need for glycolic acid in various therapeutic products.
Nascent industries, particularly in Asia-Pacific and Latin America, are projected to be significant evolution drivers for the glycolic acid sector over the next decade. These regions are undergoing rapid urbanization, heightened consumer expenditure, and an increasing emphasis on personal care, all of which will boost glycolic acid usage. Companies will be required to adjust their approaches to accommodate these diverse sectors, addressing local preferences and regulatory standards.
Tier 1 companies dominate the glycolic acid market with a global market share of around 55% to 60%. These manufacturing leaders, each producing annual revenues exceeding USD 1,000 million, are famous for their high production capacity, wide product portfolios, and advanced technological capabilities.
Their extensive global presence and strong consumer base further solidify their dominance. Key players in tier 1 include Chemours Company, DuPont, China Petrochemical Corporation (Sinopec), CABB Group. These businesses leverage cutting-edge technologies and fulfil with stringent regulatory standards to maintain their competitive edge.
Tier 2 companies are mid-sized players with revenues ranging between USD 100 and 1,000 million. They have a strong regional presence and play a significant role in local markets. They have a solid industry expertise and technological capabilities. They, however, may not possess extensive global reach or cutting-edge technologies seen in Tier 1 companies.
Noteworthy entities in this tier include CrossChem, Phibro Animal Health Corporation, Hebei Chengxin Co., Ltd, Shandong Xinhua Pharma Co., Ltd, Zhonglan Industry Co., Ltd, Alfa Aesar (Thermo Fisher Scientific), and Haihang Industry Co., Ltd. These firms are well-regarded for their regional influence and adherence to regulatory requirements.
Tier 3 comprises of small-scale enterprises with revenues below USD 50 million and 100 million. These companies typically cater to local demand and operate within limited geographical presence. They are often a part of a less formal sector compared to their Tier 1 and Tier 2 counterparts, and are characterized by a lack of extensive organization.
Notable companies in Tier 3 include Mehul Dye Chem Industries, Griffin International, Chauhan Pharmachem Pvt. Ltd, Shanxi Jinjin Chemical Co., Ltd, Triveni Chemicals. These firms focus on specialized local markets and are distinguished by their smaller scale and informal operational structure.
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The below section offers businesses with an overview of the industry. It consists a detailed examination of the emerging trends and opportunities on a country-by-country basis. This country-specific analysis of the dynamics of the industry is anticipated to assist organizations in understanding the complex nature of the industry.
The analysis consists of key factors, potential challenges, and forecasts impacting the demand, production, and consumption of the industry within each country. This section aims to help companies in making informed decisions and developing strategies customized to individual countries.
India is predicted to dominate the country-wise growth in the industry during the assessment period with an anticipated CAGR of 6.4%. China, United States, and Japan are estimated to follow behind India to become the leading countries in the industry with projected CAGRs of 5.9%, 4.8%, and 4.6% respectively.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 6.4% |
| China | 5.9% |
| United States | 4.8% |
| Japan | 4.6% |
| Germany | 4.4% |
As India's economy grows, an expanding central session is leading to higher disposable incomes and a greater inclination to spend on personal care products. Urbanization also plays a significant role, providing people in urban areas with access to a wider range of skincare and cosmetic products, thereby boosting glycolic acid consumption.
Increased consumer awareness about the benefits of skincare and cosmetic products containing glycolic acid is contributing to this demand. Known for its exfoliating and rejuvenating properties, glycolic acid is increasingly sought after in both high-end and everyday skincare routines. This awareness is fueled by exposure to global beauty standards through media and digital platforms, prompting consumers to seek out products that promise enhanced skin health and appearance.
For example, in early 2023, The Himalaya Drug Company launched a new range of skincare products featuring glycolic acid, highlighting its exfoliating benefits. This product launch reflects the growing interest in glycolic acid-based formulations tailored to Indian consumers' needs.
In China, the intensifying healthcare sector and increasing focus on pharmaceuticals are significantly driving the demand for glycolic acid in dermatological treatments. The country’s healthcare reforms, coupled with rising healthcare expenditure, have urged the development of new dermatological products. Glycolic acid is highly required after for its efficiency in treating common skin concerns such as acne, hyperpigmentation, and signs of aging, making it a valuable component in both prescription and over-the-counter products.
A critical factor behind this trend is the growing consumer awareness and demand for high-quality skincare solutions. As China’s middle class grows and consumer preferences shift towards scientifically-backed skincare products, the demand for glycolic acid has surged. This increased focus on skincare has prompted pharmaceutical companies to innovate and integrate glycolic acid into their offerings to meet rising consumer expectations.
For instance, in 2023, L’Oreal China announced the incorporation of glycolic acid into several new skincare products. This move reflects the company's strategy to leverage glycolic acid’s benefits to cater to the growing consumer interest in effective anti-aging solutions.
Glycolic acid witnessed a significant rise in popularity in the United States. This trend reflects a consumer interest in skincare products that deliver visible results and cater to diverse skin types.
In recent years, the clean beauty movement has highly influenced the usage of glycolic acid. Brands in the country are increasingly formulating products that not only contain glycolic acid but also emphasize natural ingredients and sustainable practices. For instance, brands like The Ordinary and Paula’s Choice offer glycolic acid products that highlight transparency in formulation and ingredient sourcing, appealing to health-conscious consumers.
The rise of skincare influencers on social media platforms has amplified awareness and education about glycolic acid. Tutorials and reviews showcasing the various benefits of glycolic acid serums and peels have driven demand. Products like Drunk Elephant's T.L.C. Framboos Glycolic Night Serum have gained immense popularity for their dual-action formulation, which combines glycolic acid with other beneficial ingredients to enhance efficacy.
The increasing availability of glycolic acid in both professional treatments and at-home products also supports this trend. Spas and dermatology clinics frequently incorporate glycolic acid peels in their offerings, while at-home products make it accessible to a broader audience.
The below section offers organizations with insightful data and analysis of the two leading segments. Segmentation of these categories is likely to help businesses in understanding the dynamics of the industry and investing in beneficial zones.
Analysis of the growth is predicted to assist businesses in gaining a thorough understanding of the trends, opportunities, and challenges. This examination is projected to help companies in navigating the complex environment of the business world and making informed decisions.
Technical grade is predicted to emerge as a leading product grade with a value share of 38.5% in 2024. By end-use, personal care is predicted to dominate with a value share of 44.3% in 2024.
| Segment | Technical Grade (Product Grade) |
|---|---|
| Value Share (2024) | 38.5% |
Technical grade glycolic acid is a dominant product grade due to its multipurpose applications across various industries. It is frequently used in non-consumer applications such as industrial cleaners, textile processing, and certain chemical formulations. The technical grade is valued for its effectiveness and cost-efficiency, making it suitable for bulk applications where high purity is not a critical requirement.
This grade offers a balance between performance and economic viability, which drives its widespread use in manufacturing processes. The versatility of technical grade glycolic acid supports its significant presence in the market, catering to diverse industrial needs while maintaining competitive pricing.
| Segment | Personal Care (End Use) |
|---|---|
| Value Share (2024) | 44.3% |
Personal care is estimated to emerge as a dominant end use with a value share of 44.3% in 2024. The personal care industry benefits from growing consumer awareness about skincare and the increasing preference for high-performance cosmetic ingredients. Innovations in glycolic acid formulations continue to expand its applications, reinforcing its leading role in enhancing skincare routines and products.
Key players in the industry include Chemours Company, DuPont, Sigma-Aldrich Corporation (Merck), China Petrochemical Corporation (Sinopec), CABB Group, and CrossChem. The competitive landscape of the glycolic acid market is characterized by significant advancements and strategic maneuvers by key players to capitalize on emerging opportunities.
Companies in both developed and developing countries are actively enhancing their manufacturing capabilities and exploring new trends to meet the evolving demand for glycolic acid across various applications.
Leading players are leveraging strategic partnerships and joint ventures to co-develop innovative products and strengthen their resource bases. These collaborations are pivotal in advancing the industry's technology and product offerings. Additionally, prominent players are expanding their geographical presence to tap into new markets and enhance their competitive edge.
The introduction of new products is a critical strategy employed by significant players to address the growing need for advanced solutions in different end-use sectors. This continuous innovation helps meet diverse customer requirements and sustain market relevance.
Industry Updates
Grade is segmented into Technical Grade, Pharma Grade and Industrial Grade.
Natural and synthetic are the two sources.
End-use is segregated into personal care, chemicals, oil and gas, textile, pharmaceuticals, agriculture, electronics and others.
The industry is spread across North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, and the Middle East and Africa.
The market is projected to reach USD 499.4 million in 2024.
The industry is predicted to reach a size of USD 782.9 million by 2034.
Chemours Company, DuPont, Sigma-Aldrich Corporation (Merck), China Petrochemical Corporation (Sinopec), CABB Group, and CrossChem.
The acid is being progressively used in personal care products and by the pharmaceutical sector.
It is projected to experience a CAGR of 4.6% during the assessment period.
India is estimated to dominate with a CAGR of 6.4% during the forecast period.
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