The global market share of specialty ingredients designed to improve the performance of personal care products’ formulations has increased from 40-45% over the past few years, according to the Kline Personal Care Ingredients: Global Market Analysis study. The study is a detailed analysis of the global market for ingredients, divided into eight categories: surfactants, emollients, rheology modifiers, conditioning polymers, UV absorbers, fixative polymers, preservatives and emulsifiers, providing information on over 130 ingredients used in personal care products. The study analyzes the key regional markets: Brazil, China, Europe, India, Japan, Southeast Asia and the United States.
The growing popularity of multifunctional cosmetics has led to increased consumption of special ingredients that have multiple functions associated with a single ingredient, for example, consumption of PEG derivatives (polypropylene), that act as rheology modifier and have emulsifying properties.
Skin and hair care are the main segments of greater consumption of ingredients and have similar market shares in most of the above regions, except in Brazil, where hair care leads with over 50% market share. This reflects the market share of the categories that lead the ingredients ranking: emollients, driven by the skin care segment; surfactants – the main ingredient in all segments and conditioning polymers with greatest use in the hair care segment.
Synthetic ingredients dominate the personal care products’ ingredients market with a 60% market share. However, natural ingredients have risen to the fore in recent years and their share of the market has gained prominence. Consumers have easy access to information on cosmetic products’ ingredients, mainly due to the Internet and social media. One of the main trends is a greater awareness: consumers continuously and increasingly seek information on ingredients, reflecting a move toward a greener lifestyle and choices designed to minimize contact with potentially health-damaging toxins. Consumer choice also leans toward the benefits of using natural ingredients. However, natural ingredients are more prone to microbial contamination and face compatibility problems with other ingredients in various formulations, something that may adversely affect growth in the ingredients market.
A focus on the overview of global suppliers of ingredients for personal care products shows relative fragmentation. Three different types of suppliers in the sector can be identified, even if BASF, Dow Corning, Croda and Ashland are the world’s main suppliers of ingredients.
1. Multinational suppliers, such as BASF and Croda, are present in almost all categories of ingredients and consequently present within most formulations. 2. Suppliers such as Dow Corning have a strong presence, though in few types of ingredients, such as the conditioning polymers category. Specialized providers such as Huber and Roquette have global leadership positions, with great consumption of hydrated silica and sorbitol, respectively. 3. Regional suppliers, such as Guangzhou Tinci in China or Seiwa Kasie in Japan, are strong in their respective regions.
Global expectation is that the personal care products ingredients market will grow at an annual rate of 2.8% between 2015 and 2020, exceeding US$ 10 billion by 2020. Taking each ingredients category separately, that of UV absorbers will be leading this growth trend, followed by the preservatives and rheology modifiers category.
Factor-Kline will take part in the next edition of in-cosmetics Latin America. Come visit us at our booth and take the opportunity to learn about trends and developments in the ingredients market by watching the presentation “Challenges and opportunities in Brazil’s personal care ingredients market”.