Personal Care Ingredients Market By Ingredient Type (Emollients, Surfactants, Conditioning Agents, Preservatives, Rheology Modifiers, UV Absorbers, Antioxidants, Fragrances, Colorants, Other), By Application (Skin Care, Hair Care, Oral Care, Fragrances, Bath & Shower), By Form (Powders, Liquids, Gels, Creams, Oils, Other), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Personal Care Ingredients market accounted for USD 13.85 Billion in 2024 and is expected to reach USD 25.75 Billion by 2035, growing at a CAGR of around 5.8% between 2025 and 2035.  The personal care ingredients market includes a broad (and still expanding) array of materials and compounds that are used in the creation of personal care products for the hair, body, and face, as well as oral hygiene products and cosmetics. Such components may be emollients, surfactants, preservatives, natural extracts, and other components with various functions, for example, the ability to moisturize, cleanse, or improve the stability of the product. There is a need in the market for adequately performing products that are safe, innovative, and contain natural elements, with a recent trend towards better sustainability. Since consumers are beginning to realize the importance of using personal care products, brands are fashioning new formulations to suit consumers, thus making the market interesting and competitive.

Report Scope:

Market Dynamics

Increasing Awareness of Skin and Hair Care Benefits

A growing understanding of the advantages of personal care ingredients such as skin and hair care is a major factor contributing to market expansion. Customers nowadays are more conscious about their skin and hair care, and therefore when they seek some skin/hair care products or a particular line, it targets their problem area. The awareness and importance of skin care regimes coupled with hair care regimes have been enhanced due to social media influences, especially popular beauty gurus. Now consumers look for products that provide some specific results, for example, a cream containing active substances, a serum for wrinkles, or a shampoo for damaged hair. This growing awareness is also contributing to the desire for efficacious products from nature and science because people are selective about what they put on their bodies. Therefore, specific brands are gradually paying attention to researching and creating new formulas to meet the demands of better consumers, thus promoting the expansion of this category.

Second, consumer awareness has shifted a little more in this respect, and now the consumer is more proactive, whereas rather than running to products that solve problems, the consumer is more willing to take products that can prevent the problem from occurring in the first place. Thus, there has been a raised interest in products that offer more than one benefit in a single product, which I call multifunctional products because such an approach gives brands a chance to meet the consumer’s need for time- and cost-efficient means of personal care. This behavior not only leads to higher sales but also forces constant evolution within the market since organizations attempt to provide consumers with a higher level of solutions that correspond with their expanding awareness and demand.

Rising Urbanization and Disposable Income Boosting Product Consumption

Rising disposable income and a growing population moving to urban areas, there is increased demand for products that will incorporate personal care ingredients. The trend towards urban population density is occurring, and people want to look good with improved standards in personal care, involving mainly the beautification processes. It emerges that the consumers in the urban regions have better actual and discretionary income, and this can buy classy personal care and beauty products to enhance their health. Through understanding this demographic, consumers find themselves more willing to spend high amounts on products that are branded and new in formulation, different from the traditionally used ingredients. Moreover, with life in an urban environment considered fast life, people appreciate the convenience and multipurpose products meeting their needs. This discovery is proving persuasive because as disposable income rises, different brands are developing new products that are quickly adopted in the urban market, something that will fuel the personal care ingredients market even further.

High Costs Associated with Premium Natural Ingredients

The main limitation in the personal care ingredients industry is the expensive nature of procuring quality natural ingredients. Due to consumers’ awareness of healthy products, a trend of natural and organic products is emerging, these luxury ingredients, including plants from other countries, natural essential oils, and renewable materials, cost much more than synthetic ones. Natural products during cultivation, extraction, and processing undergo a lot of effort, which takes much time and makes the production expenses high. Also, marks, such as organic or fair trade, which may be crucial for promoting high-quality natural products, raise costs. Such higher costs are recovered through consumers, and therefore natural personal care products became expensive, thus leading to restricted access to the population. Despite the tremendous advances in technology, advanced materials, and more effective production processes, cost continues to be a major constraint that manufacturers of consumer and industrial goods must grapple with to meet the demands of quality, cost-effective, and sustainable products. In addition, natural ingredients are influenced by supply chain conditions, for example, bad weather conditions that adversely affect crop growth, leading to increased prices. These fluctuations pose a major problem for manufacturers trying to maintain steady profit margins for the increasing market in luxury organic skin and hair care products.

Innovation in Sustainable and Biodegradable Personal Care Ingredients

The need for green products is changing old and newly formulated personal care ingredients’ outlook to sustainable and biodegradable components. It has prompted the consumer to start paying attention to the environmentally friendly or environmentally sensitive products used in the beauty and personal care processes. This has led to a reduction in water pollution by the development of biodegradable surfactants, emulgents, and preservatives that can break easily in water and soil. Large organizations are turning attention to sourcing raw materials from renewable plant sources and the use of green chemistry in formulating these ingredients. Legal forces such as environmental laws, particularly in the European region, are also extending pressure on brands to minimize direct carbon impacts while providing products with smaller synthetic compounds and more natural ones. When sustainability becomes one of the important factors affecting consumer decisions, those corporations that can introduce some novelties in this sphere will be able to appeal to the increasing green-buying public.

Growing Popularity of Customized and Tailored Personal Care Solutions

The trend of individuality and personal shoppers for such beauty and spas is changing the way people use beauty products and services. Rather than relying on available public products, customers are now looking for specific solutions for their skin and hair types and for such issues as dry skin, sensitivity, or aging skin. New possibilities like AI and ML have made it possible for brands to create personalized formulations based on information obtained from quizzes, skin images, or even genetic information tests. Such a tendency is especially preferred in skincare and hair care, as people are looking for products customized according to their characteristic profiles. Indeed, brands are sustaining inventions where clients obtain tailor-made product recommendations or formulations consisting of periodical updates of individual needs. The fact that customers can be targeted brings higher brand loyalty and satisfaction because the customer feels that the products being used were chosen specifically for him/her.

Industry Experts Opinion

“The partnership will also include participation in regional and international meetings and scientific workshops related to cosmetics safety as well as the exchange of scientific research to expand the utilization of NAMs and NGRAs. Through working together, ICCS will develop standardized best practice guidance on the use and understanding of NAMs and NGRAs to further their regulatory acceptance. By collaborating, we hope to foster a synergistic research-sharing relationship that underscores the safety of ingredients used in cosmetics,”

•  Bart Heldreth, Executive Director, CIR.

“Cosmetics are one of the most studied and safest product categories on the market. Cosmetic companies put their ingredients and products through years of development and assess them for safety before they are allowed anywhere near our shelves and our bodies. Not only do companies do this because safety is their highest priority, but also because the UK has strict laws dedicated to cosmetics.”
         - Dr Emma Meredith, Director-General at CTPA and a pharmacist

Segment Analysis

Based on ingredient type, the personal care ingredients market is further divided into emollients, surfactants, conditioning agents, preservatives, and others. Emollients are a major component in skin care since they are known to soften the skin. Surfactants are widely used in washing products such as shampoo and body wash, while conditioning agents are an added feature in hair care products. Conservatives are used to prolong the shelf life, while UV stabilizers are used as natural sunscreen. These ingredients meet both traditional and innovative product trends for natural products, pushing for sustainable solutions.

Based on the application, the Market is divided into skin care, hair care, oral care, makeup, fragrances, sun care, and bath and shower products. The largest segment still underlines skin care with the increasing importance of the customers for effective recipes against aging and dry skin. Silk and hair care is also a very large segment because of the increasing use of conditioners and treatment products. In sun care products, we see a trend of growing consumer protection against UV rays increasing its usage and makeup products due to the increasing trend of customized solutions for beauty products. Every application segment caters to changing customer demands for high-quality, clean-label, effective, and safe products.

Regional Analysis

Europe is the world’s leading and dominant region. This is mainly because the personal care ingredients market is consolidated with key players like BASF SE, Clariant, and Croda International, added to the regulatory compliances governing the cosmetic and personal care industries. Consumers in Europe are also shifting their trend in their approach to natural and organic substances, thereby compelling the formulation of efficacious ingredients. Further, the area boasts highly technical manufacturing and research capacities in personal care ingredients more than anywhere else in the world.

The Asia-Pacific is the most promising area within this market, being headed by China, India, and South Korea, among others. Economic development, growing population density, improvements in disposable income levels, and heightened product consciousness are driving the development of this market in the region. The expanding middle-aged population, together with social media, increases the use of beauty products and personal care products, hence creating a market for improved ingredients.

Competitive Landscape

The Personal Care Ingredients market is highly competitive due to its large numbers and product and service offerings, strong technologies, and global operation. The Personal Care Ingredients Market has a lot of large players that currently hold a large market share. Market leaders are BASF SE, Clariant, Ashland, as well as Evonik Industries, owing to their strong focus on the implementation of research and development of environmentally friendly and highly effective additives. These firms take advantage of a strong supply chain, partnerships, and cooperation with key personal care brand stakeholders. BASF SE stands out for providing a broad portfolio of solutions for confectionery as well as acting to meet the emerging trend towards natural formulations. Croda International can also create a broad range of specialty ingredients for the personal care industry category as per innovative and ethical standards, which primarily makes it a market favorite. These aspects allow those companies to maintain their interest in consumer preferences and bring in sustainability factors that set them apart in various industries.

Personal Care Ingredients Market, Company Shares Analysis, 2024

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Recent Developments:

• In May 2023, BASF SE announced the launch of a new range of natural emollients specifically designed for sensitive skin care products. These emollients are derived from renewable sources and offer excellent moisturizing properties while being gentle on the skin.
•  In February 2023, Croda International Plc announced its agreement to acquire Solus Biotech from Solus Advanced Materials for KRW350 billion (about £232 million). Solus Biotech is renowned for its premium biotechnology-derived

Report Coverage:

By Ingredient Type

• Emollients
• Surfactants
• Conditioning Agents
• Preservatives
• Rheology Modifiers
• UV Absorbers
• Antioxidants
• Fragrances
• Colorants
• Other

By Application

• Skin Care
• Hair Care
• Oral Care
• Fragrances
• Bath & Shower

By Form

• Liquids
• Gels
• Creams
• Oils
• Other

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

•  Eastman Chemical Company
• Clariant
• Cargill Inc
• Solvay S.A.
• BASF SE
• Lonza Group Pvt. Ltd
• Ashland Inc
• Evonik Industries AG
• LyondellBasell Industries Holdings B.V.
• Croda International Plc
• Wacker Chemie AG
• Dow
• Nouryon
• Ikeda Corporation
• Elementis Plc

Frequently Asked Questions (FAQs)