The global shift in demand from synthetic to natural active ingredients due to their more benign impact on human health and the environment is drawing considerable investments to the personal care active ingredients market. The current share of natural active ingredients in the total market is 25 percent to 30 percent, but this is expected to double by 2023, triggering a series of technological innovations aimed at countering the inherent instability of biological ingredients.

Global Personal Care Active Ingredients Market, Forecast to 2023 is part of Frost & Sullivan’s Future of Health, Beauty and Packaging Growth Partnership Subscription. The study covers ingredients for moisturizing, ultraviolet (UV) filters, anti-aging, exfoliating, conditioning, antimicrobial, and others.

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Natural ingredients’ susceptibility to microbial contamination and incompatibility with other ingredients compel manufacturers to employ technologies such as encapsulation. Controlled release technologies are also popular since they enhance the effectiveness of natural ingredients and widen margins by using highly effective, specialized active ingredients rather than commodities.

“The preference for natural ingredients is particularly strong among consumers from India and China, who have been exposed to traditional Ayurvedic and Chinese medicines,” said Frost & Sullivan Visionary Science Principal Analyst Raghu Tantry. “Although personal care companies such as Natura Cosméticos and the L’Oréal Groupe offering natural products have reported a significant  increase in sales, companies need to be prudent when making claims on the labels as they are closely watched by regulators.”

Active ingredients application in personal care is expanding beyond moisturizing and sun protection in body care to anti-pollutant and anti-oxidant protection in hair care. Furthermore, ethnically diverse regions are presenting new opportunities to active ingredients and cosmetic manufacturers; for example, there is a huge market for halal beauty products in the Middle East and skin whitening ingredients in Asia-Pacific.

“The market is witnessing the rise of several regional players; however, most of them are looking to compete against the majors on price rather than innovation,” observed Tantry. “To stay afloat in such a competitive market, active ingredient manufacturers have to focus on R&D, establish effective distribution channels, and collaborate with personal care product manufacturers to better understand their pipeline of new products.”

As price pressures are high, participants need to arrive at the optimum mix of cost leadership, innovation and diversification in their business strategies. Lastly, they have to support their customers with credible research and track consumer markets to make the most of the abundant opportunities in the global market.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. 

Global Personal Care Active Ingredients Market, Forecast to 2023


Jaylon Brinkley
Corporate Communications – North America
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