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 US$ 6,232.1 million by 2034. The market is valued at US$ 3,580 million in 2024.
| Report Attribute | Details |
|---|---|
| Functional Cosmetic Ingredient Market Revenue (2024) | US$ 3,580 million |
| Anticipated Market Value (2034) | US$ 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 US$ 2,881.1 million in 2019. The overall demand surged at 4.3% CAGR from 2019 to 2023. The market reached US$ 3,409.5 million in 2023.
| Attributes | Details |
|---|---|
| Functional Cosmetic Ingredient Market Size (2019) | US$ 2,881.1 million |
| Market Size (2023) | US$ 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) | US$ 3,580 million |
| Projected Market Size (2034) | US$ 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 | US$ 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 |
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| 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 US$ 6,232.1 million by 2034.
The global functional cosmetic ingredient market was valued at US$ 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 1.1. Global Market Outlook 1.2. Demand-side Trends 1.3. Supply-side Trends 1.4. Technology Roadmap Analysis 1.5. Analysis and Recommendations 2. Market Overview 2.1. Market Coverage / Taxonomy 2.2. Market Definition / Scope / Limitations 3. Market Background 3.1. Market Dynamics 3.1.1. Drivers 3.1.2. Restraints 3.1.3. Opportunity 3.1.4. Trends 3.2. Scenario Forecast 3.2.1. Demand in Optimistic Scenario 3.2.2. Demand in Likely Scenario 3.2.3. Demand in Conservative Scenario 3.3. Opportunity Map Analysis 3.4. Product Life Cycle Analysis 3.5. Supply Chain Analysis 3.5.1. Supply Side Participants and their Roles 3.5.1.1. Producers 3.5.1.2. Mid-Level Participants (Traders/ Agents/ Brokers) 3.5.1.3. Wholesalers and Distributors 3.5.2. Value Added and Value Created at Node in the Supply Chain 3.5.3. List of Raw Material Suppliers 3.5.4. List of Existing and Potential Buyer’s 3.6. Investment Feasibility Matrix 3.7. Value Chain Analysis 3.7.1. Profit Margin Analysis 3.7.2. Wholesalers and Distributors 3.7.3. Retailers 3.8. PESTLE and Porter’s Analysis 3.9. Regulatory Landscape 3.9.1. By Key Regions 3.9.2. By Key Countries 3.10. Regional Parent Market Outlook 3.11. Production and Consumption Statistics 3.12. Import and Export Statistics 4. Global Market Analysis 2019 to 2023 and Forecast, 2024 to 2034 4.1. Historical Market Size Value (US$ Million) & Volume (Tons) Analysis, 2019 to 2023 4.2. Current and Future Market Size Value (US$ Million) & Volume (Tons) Projections, 2024 to 2034 4.2.1. Y-o-Y Growth Trend Analysis 4.2.2. Absolute $ Opportunity Analysis 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Function 5.1. Introduction / Key Findings 5.2. Historical Market Size Value (US$ Million) & Volume (Tons) Analysis By Function, 2019 to 2023 5.3. Current and Future Market Size Value (US$ Million) & Volume (Tons) Analysis and Forecast By Function, 2024 to 2034 5.3.1. Conditioning 5.3.2. Moisturizing 5.3.3. Colouring 5.3.4. Anti-aging 5.3.5. Skin-brightening 5.3.6. Others 5.4. Y-o-Y Growth Trend Analysis By Function, 2019 to 2023 5.5. Absolute $ Opportunity Analysis By Function, 2024 to 2034 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application 6.1. Introduction / Key Findings 6.2. Historical Market Size Value (US$ Million) & Volume (Tons) Analysis By Application, 2019 to 2023 6.3. Current and Future Market Size Value (US$ Million) & Volume (Tons) Analysis and Forecast By Application, 2024 to 2034 6.3.1. Skincare 6.3.2. Anti-aging products 6.3.3. Body Care 6.3.4. Hair Care 6.3.5. Others 6.4. Y-o-Y Growth Trend Analysis By Application, 2019 to 2023 6.5. Absolute $ Opportunity Analysis By Application, 2024 to 2034 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 7.1. Introduction 7.2. Historical Market Size Value (US$ Million) & Volume (Tons) Analysis By Region, 2019 to 2023 7.3. Current Market Size Value (US$ Million) & Volume (Tons) Analysis and Forecast By Region, 2024 to 2034 7.3.1. North America 7.3.2. Latin America 7.3.3. Western Europe 7.3.4. Eastern Europe 7.3.5. South Asia and Pacific 7.3.6. East Asia 7.3.7. Middle East and Africa 7.4. Market Attractiveness Analysis By Region 8. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 8.1. Historical Market Size Value (US$ Million) & Volume (Tons) Trend Analysis By Market Taxonomy, 2019 to 2023 8.2. Market Size Value (US$ Million) & Volume (Tons) Forecast By Market Taxonomy, 2024 to 2034 8.2.1. By Country 8.2.1.1. USA 8.2.1.2. Canada 8.2.2. By Function 8.2.3. By Application 8.3. Market Attractiveness Analysis 8.3.1. By Country 8.3.2. By Function 8.3.3. By Application 8.4. Key Takeaways 9. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 9.1. Historical Market Size Value (US$ Million) & Volume (Tons) Trend Analysis By Market Taxonomy, 2019 to 2023 9.2. Market Size Value (US$ Million) & Volume (Tons) Forecast By Market Taxonomy, 2024 to 2034 9.2.1. By Country 9.2.1.1. Brazil 9.2.1.2. Mexico 9.2.1.3. Rest of Latin America 9.2.2. By Function 9.2.3. By Application 9.3. Market Attractiveness Analysis 9.3.1. By Country 9.3.2. By Function 9.3.3. By Application 9.4. Key Takeaways 10. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 10.1. Historical Market Size Value (US$ Million) & Volume (Tons) Trend Analysis By Market Taxonomy, 2019 to 2023 10.2. Market Size Value (US$ Million) & Volume (Tons) Forecast By Market Taxonomy, 2024 to 2034 10.2.1. By Country 10.2.1.1. Germany 10.2.1.2. UK 10.2.1.3. France 10.2.1.4. Spain 10.2.1.5. Italy 10.2.1.6. Rest of Western Europe 10.2.2. By Function 10.2.3. By Application 10.3. Market Attractiveness Analysis 10.3.1. By Country 10.3.2. By Function 10.3.3. By Application 10.4. Key Takeaways 11. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 11.1. Historical Market Size Value (US$ Million) & Volume (Tons) Trend Analysis By Market Taxonomy, 2019 to 2023 11.2. Market Size Value (US$ Million) & Volume (Tons) Forecast By Market Taxonomy, 2024 to 2034 11.2.1. By Country 11.2.1.1. Poland 11.2.1.2. Russia 11.2.1.3. Czech Republic 11.2.1.4. Romania 11.2.1.5. Rest of Eastern Europe 11.2.2. By Function 11.2.3. By Application 11.3. Market Attractiveness Analysis 11.3.1. By Country 11.3.2. By Function 11.3.3. By Application 11.4. Key Takeaways 12. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 12.1. Historical Market Size Value (US$ Million) & Volume (Tons) Trend Analysis By Market Taxonomy, 2019 to 2023 12.2. Market Size Value (US$ Million) & Volume (Tons) Forecast By Market Taxonomy, 2024 to 2034 12.2.1. By Country 12.2.1.1. India 12.2.1.2. Bangladesh 12.2.1.3. Australia 12.2.1.4. New Zealand 12.2.1.5. Rest of South Asia and Pacific 12.2.2. By Function 12.2.3. By Application 12.3. Market Attractiveness Analysis 12.3.1. By Country 12.3.2. By Function 12.3.3. By Application 12.4. Key Takeaways 13. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 13.1. Historical Market Size Value (US$ Million) & Volume (Tons) Trend Analysis By Market Taxonomy, 2019 to 2023 13.2. Market Size Value (US$ Million) & Volume (Tons) Forecast By Market Taxonomy, 2024 to 2034 13.2.1. By Country 13.2.1.1. China 13.2.1.2. Japan 13.2.1.3. South Korea 13.2.2. By Function 13.2.3. By Application 13.3. Market Attractiveness Analysis 13.3.1. By Country 13.3.2. By Function 13.3.3. By Application 13.4. Key Takeaways 14. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country 14.1. Historical Market Size Value (US$ Million) & Volume (Tons) Trend Analysis By Market Taxonomy, 2019 to 2023 14.2. Market Size Value (US$ Million) & Volume (Tons) Forecast By Market Taxonomy, 2024 to 2034 14.2.1. By Country 14.2.1.1. GCC Countries 14.2.1.2. South Africa 14.2.1.3. Israel 14.2.1.4. Rest of MEA 14.2.2. By Function 14.2.3. By Application 14.3. Market Attractiveness Analysis 14.3.1. By Country 14.3.2. By Function 14.3.3. By Application 14.4. Key Takeaways 15. Key Countries Market Analysis 15.1. USA 15.1.1. Pricing Analysis 15.1.2. Market Share Analysis, 2023 15.1.2.1. By Function 15.1.2.2. By Application 15.2. Canada 15.2.1. Pricing Analysis 15.2.2. Market Share Analysis, 2023 15.2.2.1. By Function 15.2.2.2. By Application 15.3. Brazil 15.3.1. Pricing Analysis 15.3.2. Market Share Analysis, 2023 15.3.2.1. By Function 15.3.2.2. By Application 15.4. Mexico 15.4.1. Pricing Analysis 15.4.2. Market Share Analysis, 2023 15.4.2.1. By Function 15.4.2.2. By Application 15.5. Germany 15.5.1. Pricing Analysis 15.5.2. Market Share Analysis, 2023 15.5.2.1. By Function 15.5.2.2. By Application 15.6. UK 15.6.1. Pricing Analysis 15.6.2. Market Share Analysis, 2023 15.6.2.1. By Function 15.6.2.2. By Application 15.7. France 15.7.1. Pricing Analysis 15.7.2. Market Share Analysis, 2023 15.7.2.1. By Function 15.7.2.2. By Application 15.8. Spain 15.8.1. Pricing Analysis 15.8.2. Market Share Analysis, 2023 15.8.2.1. By Function 15.8.2.2. By Application 15.9. Italy 15.9.1. Pricing Analysis 15.9.2. Market Share Analysis, 2023 15.9.2.1. By Function 15.9.2.2. By Application 15.10. Poland 15.10.1. Pricing Analysis 15.10.2. Market Share Analysis, 2023 15.10.2.1. By Function 15.10.2.2. By Application 15.11. Russia 15.11.1. Pricing Analysis 15.11.2. Market Share Analysis, 2023 15.11.2.1. By Function 15.11.2.2. By Application 15.12. Czech Republic 15.12.1. Pricing Analysis 15.12.2. Market Share Analysis, 2023 15.12.2.1. By Function 15.12.2.2. By Application 15.13. Romania 15.13.1. Pricing Analysis 15.13.2. Market Share Analysis, 2023 15.13.2.1. By Function 15.13.2.2. By Application 15.14. India 15.14.1. Pricing Analysis 15.14.2. Market Share Analysis, 2023 15.14.2.1. By Function 15.14.2.2. By Application 15.15. Bangladesh 15.15.1. Pricing Analysis 15.15.2. Market Share Analysis, 2023 15.15.2.1. By Function 15.15.2.2. By Application 15.16. Australia 15.16.1. Pricing Analysis 15.16.2. Market Share Analysis, 2023 15.16.2.1. By Function 15.16.2.2. By Application 15.17. New Zealand 15.17.1. Pricing Analysis 15.17.2. Market Share Analysis, 2023 15.17.2.1. By Function 15.17.2.2. By Application 15.18. China 15.18.1. Pricing Analysis 15.18.2. Market Share Analysis, 2023 15.18.2.1. By Function 15.18.2.2. By Application 15.19. Japan 15.19.1. Pricing Analysis 15.19.2. Market Share Analysis, 2023 15.19.2.1. By Function 15.19.2.2. By Application 15.20. South Korea 15.20.1. Pricing Analysis 15.20.2. Market Share Analysis, 2023 15.20.2.1. By Function 15.20.2.2. By Application 15.21. GCC Countries 15.21.1. Pricing Analysis 15.21.2. Market Share Analysis, 2023 15.21.2.1. By Function 15.21.2.2. By Application 15.22. South Africa 15.22.1. Pricing Analysis 15.22.2. Market Share Analysis, 2023 15.22.2.1. By Function 15.22.2.2. By Application 15.23. Israel 15.23.1. Pricing Analysis 15.23.2. Market Share Analysis, 2023 15.23.2.1. By Function 15.23.2.2. By Application 16. Market Structure Analysis 16.1. Competition Dashboard 16.2. Competition Benchmarking 16.3. Market Share Analysis of Top Players 16.3.1. By Regional 16.3.2. By Function 16.3.3. By Application 17. Competition Analysis 17.1. Competition Deep Dive 17.1.1. Connect Chemicals 17.1.1.1. Overview 17.1.1.2. Product Portfolio 17.1.1.3. Profitability by Market Segments 17.1.1.4. Sales Footprint 17.1.1.5. Strategy Overview 17.1.1.5.1. Marketing Strategy 17.1.1.5.2. Product Strategy 17.1.1.5.3. Channel Strategy 17.1.2. The Good Scents Company 17.1.2.1. Overview 17.1.2.2. Product Portfolio 17.1.2.3. Profitability by Market Segments 17.1.2.4. Sales Footprint 17.1.2.5. Strategy Overview 17.1.2.5.1. Marketing Strategy 17.1.2.5.2. Product Strategy 17.1.2.5.3. Channel Strategy 17.1.3. BASF SE 17.1.3.1. Overview 17.1.3.2. Product Portfolio 17.1.3.3. Profitability by Market Segments 17.1.3.4. Sales Footprint 17.1.3.5. Strategy Overview 17.1.3.5.1. Marketing Strategy 17.1.3.5.2. Product Strategy 17.1.3.5.3. Channel Strategy 17.1.4. Dow 17.1.4.1. Overview 17.1.4.2. Product Portfolio 17.1.4.3. Profitability by Market Segments 17.1.4.4. Sales Footprint 17.1.4.5. Strategy Overview 17.1.4.5.1. Marketing Strategy 17.1.4.5.2. Product Strategy 17.1.4.5.3. Channel Strategy 17.1.5. Ashland, Inc. 17.1.5.1. Overview 17.1.5.2. Product Portfolio 17.1.5.3. Profitability by Market Segments 17.1.5.4. Sales Footprint 17.1.5.5. Strategy Overview 17.1.5.5.1. Marketing Strategy 17.1.5.5.2. Product Strategy 17.1.5.5.3. Channel Strategy 17.1.6. Stepan Company 17.1.6.1. Overview 17.1.6.2. Product Portfolio 17.1.6.3. Profitability by Market Segments 17.1.6.4. Sales Footprint 17.1.6.5. Strategy Overview 17.1.6.5.1. Marketing Strategy 17.1.6.5.2. Product Strategy 17.1.6.5.3. Channel Strategy 17.1.7. Evonik Industries AG 17.1.7.1. Overview 17.1.7.2. Product Portfolio 17.1.7.3. Profitability by Market Segments 17.1.7.4. Sales Footprint 17.1.7.5. Strategy Overview 17.1.7.5.1. Marketing Strategy 17.1.7.5.2. Product Strategy 17.1.7.5.3. Channel Strategy 17.1.8. Gattefosse 17.1.8.1. Overview 17.1.8.2. Product Portfolio 17.1.8.3. Profitability by Market Segments 17.1.8.4. Sales Footprint 17.1.8.5. Strategy Overview 17.1.8.5.1. Marketing Strategy 17.1.8.5.2. Product Strategy 17.1.8.5.3. Channel Strategy 17.1.9. Lucas Meyer Cosmetics 17.1.9.1. Overview 17.1.9.2. Product Portfolio 17.1.9.3. Profitability by Market Segments 17.1.9.4. Sales Footprint 17.1.9.5. Strategy Overview 17.1.9.5.1. Marketing Strategy 17.1.9.5.2. Product Strategy 17.1.9.5.3. Channel Strategy 17.1.10. Nouryon 17.1.10.1. Overview 17.1.10.2. Product Portfolio 17.1.10.3. Profitability by Market Segments 17.1.10.4. Sales Footprint 17.1.10.5. Strategy Overview 17.1.10.5.1. Marketing Strategy 17.1.10.5.2. Product Strategy 17.1.10.5.3. Channel Strategy 18. Assumptions & Acronyms Used 19. Research Methodology
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Functional Cosmetic Ingredient Market
