“Personal care ingredients will play a vital role in the economic recovery of countries post COVID-19,” says Kunal Mahajan, project manager in Kline’s Chemicals & Energy practice in a blog entitled ‘Personal Care Ingredients: Where the Opportunities Lie Post COVID-19’.
Demand for colour cosmetics, hair styling and sun care products declined significantly due to the effects of lockdown, with knock-on effects on the ingredients used in them. These markets bounced back in 2021; they have yet to regain 2019 levels but their further recovery is expected to drive market growth this year.
By contrast, ingredients used in products like soaps, shampoos and hand sanitisers boomed in 2020 and have continued to grow in 2021. These include preservatives, surfactants, emollients and conditioning polymers.
The pandemic had a major effect on supply chains and even now raw material sourcing remains “bumpy” thanks to shortages of containers, longer lead times and significant prices increases. In some instances, local suppliers have benefitted.
“Within the colour cosmetics segment, we look for a wave of consumers using more sophisticated and dramatic makeup, particularly related to eyes and lips,” Mahajan says. Consumers are now seeking “to emerge from their cocoons in a very dramatic way”, while their return to the office will boost demand for hair styling products. Sun care products will recover as travel opportunities return.
Partly because of the increased focus on self-care during the pandemic, ‘clean beauty’ continues to surge. As well as plant-based, organic and naturally occurring ingredients, consumers are looking at ingredients that are produced in a sustainable manner and are locally and ethically sourced, such as plant-derived proteins.
Raw material shortages may have dampened down the drive to sulfate-free surfactants, but this remains a trend, with alkyl polyglucosides being the preferred alternatives. Some amino acid-based surfactants, like glutamates and sarcosinates, are also experiencing increased demand.
Finally, a similar trend toward milder ingredients is being seen in antimicrobials. Increasing regulations, limitations in use, and public scrutiny over formaldehyde donors, parabens, isothiazolinones and halogen organic compounds, are leading to their substitution. Benzyl alcohol and organic acids will see the major growth at their expense.
The 11th edition of Kline’s 'Personal Care Ingredients: Global Market Analysis' will be published shortly. This will cover the consumption, supply, and pricing of ingredients used in personal care formulations, and will also evaluate drivers and restraints affecting the market and build a five-year forecast model, covering market opportunities in the post-COVID world.
