The value of the global cosmetic ingredients market was $31.5 billion in 2021, according to a report by Vantage Market Research.
Cosmetic Ingredients Market - Global Industry Assessment & Forecast projects a 5.3% compound annual growth rate in the years to 2028, when the market is projected to reach $42.9 billion.
Vantage said the major drivers of the market are the increasing demand for natural and organic cosmetics, rising per capita expenditure on personal care, and the growing awareness about the benefits of using cosmetics.
Consumers are becoming more aware of the harmful effects of synthetic chemicals used in cosmetics and are therefore demanding products that are made from natural ingredients.
This trend is especially strong, it added, in developed countries such as the US, Canada and Germany, where consumers are willing to pay premium prices for natural and organic cosmetics.
In addition, the growing middle class in emerging economies such as China and India is leading to an increase in disposable incomes, which is further fueling the demand for cosmetics.
“Cosmetics not only improve appearance but also have several other benefits such as protecting skin from UV rays and keeping it hydrated,” said Vantage.
“As people become more aware of these benefits, they are increasingly using cosmetics daily, which is boosting the demand for cosmetic ingredients,” it added.
In another new report, Vantage put the value of the global cosmetic preservatives market at $394.6m in 2021 and is projected to reach $562.9m by 2028.
Vantage found the trend for naturals is expected to fuel the demand for preservatives such as botanical extracts and essential oils over synthetic preservatives in the coming years.