There is a continual increase in world demand for cosmetics and personal care products that’s also behind increased sales of ingredients (raw materials) used in these products. The value of sales of personal care product ingredients HAS reached USD 9.0 billion globally in key regions such as Europe, the United States, Brazil, China, Japan, Southeast Asia, India and the rest of the world, according to the Personal Care Ingredients: Global Market Analysis report. By 2020 this figure will exceed USD 10.0 billion. However, industry regulations plus the fluctuations in consumer preferences and increasing competition, coupled with the emergence of innovative products, are redefining the business on a global scale.
Based on the findings of our research, we have identified important trends in consumer experience that, in turn, are already affecting the personal care ingredients products’ market.
- Multipurpose products surging high
Consumers’ extremely hectic and time-crunched lifestyles lead them to simplify their daily beauty routines, making multipurpose products grow in popularity as they offer several benefits at once, such as anti-aging, cleansing, moisturizing, antioxidant, UV protection, etc. Consequently, this trend has increased consumption of multipurpose ingredients, seeing as the consumer wants, for example, makeup products for skin care and sunscreen to have UV protection, since customers are already aware of the harmful effects of UV radiation. Thus, there is an increase in demand for UV absorbers, which has spotlighted this group of the ingredients as the fastest growing in the ingredients market.
- Efficient and moderate – the winning formula
Consumers are seeking efficiency and smoother products. When it comes to hair care, water-based products are more sought than solvent-based products as they cause less damage to hair over time and are easy to use. Thus, formulators tend to use “softer” ingredients, and one example is the preference for sulfate-free anionic surfactants over traditional surfactants such as lauryl ether sodium sulfate. This trend is also prominent among antimicrobials, in which it is expected that the use of ingredients such as parabens, triclosan and formaldehyde-releasing preservatives will decrease in the future. Thus alternative ingredients such as organic acids (benzoic acid / benzoates or sorbic acids / sorbates) and boosters are used more often.
- The natural challenge
This desire for lighter and softer products, associated with growing awareness of the use of synthetic chemicals in cosmetics and personal care products, will continue to drive the global personal care industry. This trend is also reflected in an increase in consumption of natural ingredients.
We can cite the example of the makers who indicate the use of natural ingredients in sun protection products made from cinnamon bark oil, oat extract, and soybean oil, whose property is to increase the FPS. This attracts consumers. However, products made with natural ingredients are more prone to microbial attack and also to problems of compatibility with other ingredients, in various formulations. This creates challenges for manufacturers of products with a surfactant base, such as shampoos that are not compatible with other natural ingredients.
- Plants yes, animals no
Although natural ingredients derived from plants are on the rise, animal-origin ingredients are losing their popularity due to a growing negative attitude to these products’ production process. Consumers are turning to products manufactured by greener, sustainable, ethical and socially responsible brands. Products containing animal ingredients come under lists prohibited for ethical reasons. Thus, it is expected that the use of lanolin and its derivatives will see a decrease particularly in Europe and India.
- Regional Discrepancies in ingredients due to legislation
The use of potentially hazardous ingredients that are being evaluated by legislative bodies should decrease in developed markets, but this varies according to region. For example, it is expected that the use of parabens will decrease in the United States but not in other regions, although the growth of this ingredient is slower. Ingredients such as BNPD or triclosan are expected to decline in most regions, but will see some growth in some developing regions, such as India. The dividing line lies in awareness of the harmful effects of these ingredients, which is very high in advanced economies, where product composition is under constant surveillance by governmental and independent organizations. In these markets industry regulations play a large role in determining future market structure. For example, the European Commission has set a maximum concentration of 0.0015% of CIT / MIT and MIT in rinse-off products for the skin and banned its use in leave-on products such as body lotions and creams.
The global market for personal care products’ ingredients tends to experience changes due to several factors, particularly the preference for lighter ingredients, consumer desire for natural ingredients, legislation that affects the use of some ingredients and the increased use of innovative ingredient with multipurpose characteristics.
Factor-Kline will be attending 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, watching the presentation “Challenges and opportunities in the personal care ingredients market in Brazil.”