The global market for such ingredients was valued at $7.46bn in 2014, but according to the latest report from Transparency Market Research, that figure is estimated to reach $11.76bn by 2023.
This growth will be driven by a CAGR of 5.2% in the forecast period 2020 to 2023, growth that is expected to be driven by further expansion in developing markets, as well as continued demand in categories such as naturals and organics, and dedicated skin care products, in particular anti-aging face treatments.
This compares to research from a wide selection of market research companies that suggests growth in the overall global market for cosmetics and personal care products should be in the region of 3.5 to 4.5% over the next five years, and by most estimates is expected to top a value of $500 billion by 2020.
Surfactants lead the way
The research for the report divides ingredients into seven principle categories - surfactants, conditioning polymers, emollients, rheology control agents, emulsifiers, antimicrobials, and others (UV absorbers and hair fixative polymers).
The report points to the fact that it is the surfactants category that continues to be the mainstay for the overall market, accounting for more than 30% of the global ingredients market in 2014.
In the future, the researchers estimate that it will be demand for surfactants for skin care and hair care products that will see the biggest rise, on the back of increasingly sophisticated and technologically advanced formulations.
Secondary to this, the report also points to the fact that demand for conditioning polymers for hair care products is also likely to be a growth trend in the coming five years.
India and China will head global demand
In terms of regional demand, the market researchers point to significant growth in the Asia Pacific region, and in particular the India and China markets as being the main drivers behind the growth as those markets continue to see population growth combined with greater per capita spending power.
In Europe and North America, demand is expected to be steady, with growth at the lower end of the spectrum as these mature economies continue to face challenges of sustaining economic growth and manufacturing industries.
The research also points out that the biggest players in the global personal care ingredients market will continue to be BASF SE, Evonik, Akzo Nobel, Ashland, Dow Corning Corporation, Lonza Group, Croda International, Solvay Wacker Chemie, and Clariant.
These players are expected to continue to buy up smaller businesses, particularly ones operating in the active ingredient and natural and organic arenas.
However, over the past year there has also been some moves from multinaitonal fragrance players wanting to expand their footprints in the cosmetic ingredients arena, with Givaudan buying up Swiss-based Induchem and IFF buying Canada-based Lucas Meyer.