The Personal Care Ingredients Market is projected to increase by $3.04 billion from 2024-2028, according to a report. The market is anticipated to grow at a compound annual growth rate (CAGR) of approximately 4.2% during the forecast period. This growth is primarily driven by the rising demand for multifunctional personal care products. Companies are focusing on launching new products to meet changing customer preferences and maintain competitiveness in this dynamic market. However, the stringent government regulations concerning BPC products and their ingredients may pose a challenge. Major players in the market include Ashland Inc., BASF SE, Clariant AG, Croda International Plc, Dow Inc., Evonik Industries AG, Givaudan SA, ICHIMARU PHARCOS Co. Ltd., Innospec Inc., Kobo Products Inc., Koninklijke DSM NV, Kraton Corp., Merck KGaA, Nouryon, SEPPIC SA, Solvay SA, Stepan Co., Symrise Group, The Lubrizol Corp., and Vantage Specialty Chemicals.
There has been a rising focus on product innovation in the personal care ingredients market. Companies are investing significantly in research and development to create ingredients that offer enhanced benefits such as anti-aging, UV protection, and improved health for skin and hair. For example, in 2023, BASF launched Epispot, a sustainably sourced cosmetic ingredient that addresses common skin concerns and enhances beauty and self-confidence for those with blemish-prone skin. Similarly, Evonik introduced the biotech-based vegan collagen Vecollage Fortify L in 2024, catering to the growing demand for plant-based alternatives. The continuous thrust on new product launches is anticipated to bolster the growth of the global personal care ingredients market during the forecast period.
The market also presents a significant trend in the use of specific ingredients across various sectors. For instance, Xanthan gum and Guar gum are popular rheology modifiers in makeup and bath products. Active and inactive ingredients are becoming a center of focus amid growing concerns about false labeling and pollution. Inorganic and organic rheology modifiers including Polyquaternium and Protein-based ingredients are gaining popularity in body washes, lotions, gels, creams, and other multi-functional products.
However, navigating the regulations that vary by region could be challenging for the growth of the global personal care ingredients market. In the European Union, the REACH regulation requires extensive testing and documentation for chemical substances used in personal care products, which can be time-consuming and costly. In contrast, US FDA’s regulation is less stringent but still involves rigorous quality control and testing, ensuring that the products are not misbranded or adulterated.
The Personal Care Ingredients Market involves a range of components such as surfactants, rheology modifiers, emulsifiers, and emollients. Surfactants reduce surface tension, enabling effective cleansing in personal care formulations. Rheology modifiers control the flow and texture of products. Emulsifiers help stabilize oil-in-water or water-in-oil emulsions, while emollients provide skin conditioning and moisturizing benefits.
Finally, the personal care ingredients market faces several challenges. Toxic wastes from manufacturing processes and raw material prices pose environmental and financial concerns. Viscosity regulation is vital for various personal care formulations, and the demand for organic rheology modifiers and emulsifiers is growing due to the clean beauty movement. At the same time, inorganic ones continue to be dominant because of their cost-effectiveness.
