Freedonia Market Research Analyzes Cosmetic Chemicals Industry

Demand for cosmetic and toiletry chemicals in the US is forecast to rise 5.8 percent per year to $8.8 billion in 2012.  Growth will be aided by several factors including favorable demographics and trends in consumer preference (e.g., the popularity of organic and natural products).  Volume advances, while healthy overall, will be partially restrained by the use of higher value ingredients that are more effective at lower loadings. These and other trends are presented in Cosmetic & Toiletry Chemicals, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Growth in demand for active ingredients, such as enzymes, amino acids and peptides, will be propelled by continued gains in cosmeceutical skin care products and high value additives such as nanoscale ingredients.  Natural products, such as botanical extracts, soy protein, and natural fats and oils, are expected to achieve favorable growth, as their incorporation in various formulated products continues to increase.  Traditional cosmetic and toiletry chemicals, such as petroleum oils and commodity surfactants, will experience limited gains, primarily due to the popularity of water-based formulations in skin and hair care products, the increased use of natural ingredients, and a trend away from chemicals that have the perception of being harsh.

A handful of segments in the cosmetic and toiletry industry, including organic and natural products, male grooming, ethnic products, anti-aging and 50+ individuals, are poised for rapid growth.  Once a niche segment, organic and natural cosmetics and toiletries have hit mainstream America, with a variety of products now found on the shelves of mass merchandisers.  Increased concerns over health, as well as concern for chemicals’ unintended effects on the surrounding environment are driving growth in the organic and natural cosmetics and toiletries segment.  For men, products such as specialized facial cleansers and skin care items, higher value shaving products and hair care preparations will continue to emerge, providing opportunities for many ingredients, including moisturizing additives.  As more baby-boomers move into their fifties, the number of hair care, cosmetic and skin care products specifically formulated for gray hair and aging skin will increase.  Growth in this segment will bode well for active ingredients, delivery systems, and conditioning and moisturizing agents.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.