Active Ingredients Market

Global Active Ingredients Market Size (2024 to 2032)

The size of the global Active Ingredients Market was valued at USD 4.0 billion in 2023, and the global market size is estimated to reach USD 8.13 billion by 2032 from USD 4.33 billion in 2024, growing at a CAGR of 8.2% from 2024 to 2032.

MARKET DRIVERS AND RESTRAINTS

The growth in the market is facilitated by the continuous growth of the population across the globe and the rising demand of consumers for their appearance needs. In addition to this, growing concerns for aging skin and the need for an even skin tone are also contributing to the increase in the use of cosmetic active ingredients.

The market is invested in various applications such as hair care and conditioning agents but among them, the skincare application dominates because of the increasing demand for anti-aging, skin lightening, and sunscreen products because of the rising consumer understanding related to health and skincare. Further, the growing demand for grooming products for men is increasing the demand for skin and hair care products, hence, leading to rising demand for active ingredients across the world.

The global active ingredient market comprises the functionality of several categories that include conditioning agents, UV filters, anti-aging agents, skin-lightening agents, etc. The other products covered in the industry are cleansing agents, soothing agents, self-tanning agents, anti-acne, antioxidants, emollients, and so on. The conditioning agent segment accounted for the largest share of the market in 2019. The reason is the low cost and wide usage of conditioning agents in skin care and hair care applications, making it more suitable to use in the cosmetics industry. Despite this fact, the anti-aging segment is determined to witness the highest CAGR between 2020 and 2025. The aging baby boomers are expected to drive the market for anti-aging agents by using more anti-aging cosmetic products to improve their skin conditions. All these factors play a crucial role in the development of the global active ingredients market.

MARKET CHALLENGES

On the other hand, the active ingredients market industry is affected by volatile prices and alternatives. In addition, the fluctuations in the supply of oils in the perfume industry can hamper industry growth to some extent. The trade issues between the USA and China are also likely to affect the trading market. Besides, the health impacts of artificial ingredients have been scrutinized and the hazards related to them have been debunked. This slows down the growth opportunity for the industry in developed regions like Europe and North America.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Active Ingredients Market By Functionality

Among the different functionalities, the conditioning agent segment accounted for the largest market share in the year 2018. The wide applications and cheap cost of the conditioning agents in both hair care and skin care applications make them more suitable for the cosmetic industry. However, the segment of the anti-aging agent is anticipated to witness the highest CAGR in the aforementioned forecast period.

Global Active Ingredients Market By Application

The rapidly rising demand for anti-aging, skin lightening, and sun protection products from consumers make the skin sector of application the fastest growing among the mentioned applications. Also, the newly emerging demand for men’s grooming products adds to the demand for active ingredients in skincare and hair care products.

REGIONAL ANALYSIS

The Asia Pacific region is expected to post the fastest growth, expanding at a CAGR of 6.7% during the conjecture period of 2020 to 2025. This increasing growth rate is attributed to the high availability of raw materials and growing demand from different industry verticals. The surge in demand for cosmetic products in several Asian countries like Korea, Japan, India, etc., offers immense opportunities for the active ingredients market in this locale.

Europe is the largest market for active ingredients, and it is also forecasted to register a CAGR of 4.6% during the forecast period. Countries such as Germany, France, and Switzerland are expected to account for the largest share of the market in Europe by 2025. The increasing disposable income & consumption levels and the growing purchasing power of European consumers will help the active ingredients industry to grow stronger in the country.

North America with its aging population offers lucrative growth potential for the players in the active ingredients market. Similarly, the rising need for anti-aging products is determined to drive the business demand in the areas of Latin America and the Middle East, and Africa.

KEY PLAYERS IN THE GLOBAL ACTIVE INGREDIENTS MARKET

AkzoNobel N.V. (The Netherlands), Beiersdorf AG (Germany), BASF SE (Germany), L'Oréal S.A. (France), Ashland Inc. (U.S.), Sumitomo Group (Japan), Seppic SA (France), Evonik Industries AG (Germany), Sederma GmBH (Germany), Clariant AG (Switzerland), Dow DuPont (U.S.), Aurobindo Pharma (India), Pfizer Inc. (U.S.), Novartis AG(Switzerland) and Lonza (Switzerland) are the leading shareholders of the Global Active Ingredients market. These companies are currently focused on expansion strategies to improve their market value and position.

RECENT HAPPENINGS IN THE MARKET

• Tel Aviv, a Kanabo Research company based in Israel, presented the results of its pre-clinical trial, which can potentially make the company provide a safe remedy for some sleep disorders like insomnia, without any risk of an overdose.
• BASF, a chemical company based in Germany, has revealed its four new active ingredients at Cosmet’Agora held in Paris. These products will work to tackle skin-specific care like anti-wrinkle, anti-aging, dark spots, and oily skin.
• Rahn, a cosmetics company based in Switzerland, has launched a new product which is reportedly the first carbon-neutral 'nutribooster' for hair and skin. The product called Collective is made by the combination of microalga Chlorella and white lupin both of which are good sources of amino acids, proteins, and carbohydrates.

DETAILED SEGMENTATION OF THE GLOBAL ACTIVE INGREDIENTS MARKET INCLUDED IN THIS REPORT

This research report on the global active ingredients market has been segmented and sub-segmented based on functionality, application, and region.

By Functionality

• UV Filters
• Conditioning Agents
• Skin Lightening Agents
• Anti-Aging Agents
• Others

By Application

• Skin Care
• Hair Care
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa