Functional Cosmetic Ingredients Market Size

Functional Cosmetic Ingredients Market size was valued at around USD 3.3 billion in 2022 and is estimated to register over 3.3% CAGR between 2023 and 2032. Consumers are increasingly seeking cosmetic products with natural and sustainable ingredients. Functional cosmetic ingredients derived from plants, fruits, and botanical extracts are in high demand due to their perceived safety and eco-friendliness.

The rise in the aging population and the desire for youthful, radiant skin drive the demand for functional ingredients like peptides, antioxidants, and collagen boosters known for their anti-aging properties.

Meeting stringent regulatory requirements and safety standards for cosmetic ingredients can be challenging. Ingredient manufacturers must ensure their products are safe for consumers and comply with various regulations in different regions. Incorporating functional ingredients into cosmetic formulations may lead to compatibility issues or stability challenges, affecting the product's overall performance and shelf life.  Consumer preferences in the beauty and personal care industry change rapidly. Ingredient manufacturers and cosmetic brands must keep up with these evolving trends and develop innovative ingredients to stay competitive.

COVID-19 Impact

During the pandemic, consumers focused on essential items, and there was a decline in demand for cosmetic products, including functional ingredients. Consumers prioritized health and hygiene products over non-essential beauty items. The closure of retail outlets and salons during lockdowns reduced the demand for cosmetic products. Functional ingredients used in professional beauty treatments and salon services were particularly impacted.

Functional Cosmetic Ingredients Market Trends

Consumers are increasingly seeking clean and natural beauty products. Functional cosmetic ingredients derived from plants, fruits, and botanical extracts are gaining popularity due to their perceived safety and eco-friendliness. There is a growing demand for multifunctional cosmetic ingredients that offer multiple benefits in a single product. Ingredients with anti-aging, moisturizing, and soothing properties are particularly sought after. Consumers are looking for personalized beauty products tailored to their individual needs.

Functional Cosmetic Ingredients Market Analysis

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Based on product, the functional cosmetic ingredients market is segmented as emollients and moisturizers, antioxidants, sunscreen agents, anti-aging agents, whitening agents, anti-inflammatory agents, peptides and proteins, botanical extracts, vitamins and minerals, others. Emollients and Moisturizers held a majority market value of USD 0.7 billion in 2022. The primary demand driver for emollients and moisturizers is their ability to hydrate and moisturize the skin. Consumers seek products that keep their skin moisturized, soft, and supple, especially for dry or dehydrated skin types.

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Based on application, the functional cosmetic ingredients market is segmented as skin care product, hair care products, oral care products, makeup products, others. Skin care products held a dominant market share of around 40% in 2022. The skincare segment is one of the primary application areas for functional cosmetic ingredients. Demand is driven by consumers seeking products with moisturizing, anti-aging, brightening, and soothing properties to address various skin concerns.

Based on functionality the functional cosmetic ingredients market is segmented as moisturizing and hydrating, anti-aging and wrinkle reduction, sun protection, skin brightening and whitening, acne treatment and oil control, hair repair and nourishment, color enhancement and pigmentation, dental health and whitening, others. Moisturizing and Hydrating segment is anticipated to grow at 4.7% CAGR till 2032. Consumers seek functional cosmetic ingredients that provide deep hydration and moisturization, helping to combat dry skin and maintain skin barrier integrity.

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U.S. dominated the North American region with majority functional cosmetic ingredients market share and a revenue of USD 0.7 billion in 2022. North American consumers have a strong emphasis on skincare and personal care routines. They seek functional cosmetic ingredients that offer specific benefits to address various skin and hair concerns.

Functional Cosmetic Ingredients Market Share

Some of the major market players operating in the functional cosmetic ingredients market are

• BASF SE
• Dow Inc.
• Croda International Plc
• Ashland Global Holdings Inc.
• Clariant International Ltd.
• Evonik Industries AG
• Givaudan SA
• Lonza Group Ltd.
• DSM Nutritional Products AG
• Solvay SA
• Lubrizol Corporation
• Innospec Inc.
• Eastman Chemical Company
• Wacker Chemie AG
• Seppic SA
  

Functional cosmetic ingredients Industry News:

• In November 3, 2022, Clariant's Rootness Awake, a cutting-edge and potent active ingredient that fights eye bags and under-eye circles, received Gold at the BSB Innovation Awards, a distinguished European honor with a long 20-year history, in the Environment and Actives categories.
  
• On March 29, 2022, in response to the growing need of consumers for inclusive and sustainable solutions, Dow Personal Care launched five new technologies and its ECOllaboration Concepts Collection.
  

Functional cosmetic ingredients market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million & Units from 2018 to 2032, for the following segments:

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By Ingredient

• Emollients and Moisturizers
• Antioxidants
• Sunscreen Agents
• Anti-Aging Agents
• Whitening Agents
• Anti-Inflammatory Agents
• Peptides and Proteins
• Botanical Extracts
• Vitamins and Minerals
• Others

By Application

• Skin care product
• Hair care products
• Oral care products
• Makeup products
• Others

By Functionality

• Moisturizing and Hydrating
• Anti-Aging and Wrinkle Reduction
• Sun Protection
• Skin Brightening and Whitening
• Acne Treatment and Oil Control
• Hair Repair and Nourishment
• Color Enhancement and Pigmentation
• Dental Health and Whitening
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Indonesia
  • Malaysia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Egypt