North America Personal Care Specialty Ingredients Market Report

North America Personal Care Specialty Ingredients Market Analysis By Product (Active (Surfactant, Emollient, UV Absorbers, Conditioning Polymer, Antimicrobial), Inactive), By Region, And Segment Forecasts, 2014 - 2025

Published: December 2016  |  104 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-344-7

Industry Insights

North America personal care specialty ingredients market was worth USD 2.67 billion in 2015. Rising consumer awareness concerning the toxicity of synthetic chemicals used in beauty and personal care products and toiletries is anticipated to drive the regional market for the specialty ingredients over the next eight years.

In the past few years, there has been significant changes in the U.S. demographics. This has led to a substantial rise in demand for the multi-ethnic and multicultural products, especially in the fragrances and hair care segment. As the Hispanic community significantly outspends any other groups for numerous personal care and beauty products, this trend has been expanding across a variety of ethnic groups in the region.

U.S. personal care specialty active ingredient market by product, 2014 - 2025 (USD Million)

U.S. personal care specialty active ingredient market

In addition, the demand for products designed for explicit requirements and preferences have been increasing in the region from these consumer groups. The U.S. multicultural market has become a center of attention for novel product development and advertising strategies or campaigns owing to the presence of companies, such as L’Oréal, while retailers and other drugstores are focusing on greater shelf space to specific and ethnic beauty products and also collaborating with the celebrities on store-exclusive personal care product lines.

The increasing consumer awareness regarding synthetic chemicals in the cosmetics and toiletries coupled with the surging demand for the mild skin care products is anticipated to drive the natural personal care specialty ingredients demand in the region over the forecast period.

Technological development together with increasing multifunctional ingredients demand is anticipated to yield opportunities for industry players operating in the market. Moreover, increasing consumer spending towards high quality cosmetic products especially in Canada and Mexico is also expected to positively influence the industry over the forecast period.

One of the new developments is the enzyme-catalyzed process, which has the advantage of producing minimum wastage during processing of ingredients. Another advancement in terms of product development would be the micro-encapsulation process for delivery to the end-use product. It enhances the ingredient shelf life and the impact of the ingredients on finished products.

Product Insights

Inactive cosmetic ingredients dominated the industry while accounting for around 60% of the overall market revenue in 2015. The segment is projected to grow considerably in the near future in the regional market. Soaring penetration of inactive constituents is owing to its effectiveness in improving the quality of the individual components of the beauty products formulations. Moreover, its superior compatibility with numerous formulations is another key factor increasing its utilization across numerous hair and skin care products in the next eight years.

The active personal care specialty ingredients are anticipated to be the fastest growing ingredients with net worth estimated to reach just below USD 2 billion by 2025. High growth of active ingredients is the major factor responsible for the escalating demand for emollients and conditioning polymers in personal care products including lotions, creams, body washes, and gels.

In the active elements, conditioning polymers are projected to experience the highest growth in the near future and reach a net worth of USD 221.6 million by 2025 at an estimated CAGR of over 6.5% from 2016 to 2025. Changing consumer preference for multi-functional products has forced the formulators to extend products lines with both functionalities and other conditioning that includes anti-dandruff treatment and coloring.

The ongoing R&D investments in polyquaternium and protein containing ingredients to improve the consistency of hair conditioners are expected to create lucrative opportunities for the industry players in the near future. The U.S. and Mexico polyquaternium-based conditioning polymers market is hence expected to grow comprehensively in the near future.

Moreover, in the last few years there has been a shift in the consumer demand for environment-friendly and natural products. In order to cater to the evolving consumer cosmetics demand and to meet the stringent regulatory framework, personal care manufacturers in the region have come up with new and upgraded technologies.

The demand for products suited for specific purpose owing to the surging demand for personal care and hygiene is anticipated to steer industry growth over the forecast period. However, multi-functionality products have also managed to change the consumers’ perception towards cosmetic products.

The surging demand for multi-functional products is attributed to their numerous positive effects, and this trend in consumer behavior is expected to continue over the next eight years. However, the strict regulatory frameworks in Mexico, Canada and the U.S. are expected to restrict free import and marketing of these products.

North America personal care specialty ingredient market, by product, 2015, (USD Million)

North America personal care specialty active ingredient market

Regional Insights

The U.S. market is already occupied with large number of leading global players and owing to this the industry is highly competitive. Demand for anti-aging and multifunctional products are growing significantly owing to the increasing number of aging population in the region. Skin care products are expected to gain the highest share in the country over the forecast period.

In Mexico, the personal care products demand has been increasing slowly in the past few years owing to the rise in purchasing power and to an increased access to different types of credit that have allowed Mexicans access to better quality products.

However, the industry is extremely competitive. Many of the leading multinational brands have ventured into the market recently. The growing number of male consumers in the country coupled with the expansion of sales channels and increasing demand for organic and natural ingredient products are expected to be the major driving force in the Mexican market.

Competitive Insights

Key industry players include Clariant, Lubrizol, BASF, Vantage Specialty Ingredients, and Kao Specialties. The industry is highly competitive primarily due to the presence of key leading global players in the region. Acquisitions continue to concentrate on the manufacturing and the supplier base. Technological innovation and product improvements are the major strategies adopted by market players to increase share and sustain the competition over the long-term.

Report Scope

Attribute

Details

Base year for estimation

2015

Actual estimates/Historical data

2014 - 2015

Forecast period

2016 - 2025

Market representation

Revenue in USD Million and CAGR from 2016 to 2024

Regional scope

North America

Country scope

U.S., Canada, and Mexico

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

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Segments covered in the report

This report forecasts revenue growth and provides an analysis on the latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented the North America personal care specialty ingredients market on the basis of product and region:

  • Product Outlook (Revenue, USD Million, 2014 - 2025)

    • Active

      • Surfactant

        • Amphoteric

        • Anionic

        • Cationic

        • Non-ionic

        • Other

      • Emollient

        • Emollient Ester

        • Natural oil

        • Other

      • UV Absorber

        • Organic

        • Inorganic

      • Conditioning Polymer

        • Silicone

        • Polyquaternium

        • Conditioning Protein

      • Antimicrobial

        • Preservative

        • Bacteriostats

        • Antidandruff

      • Others

    • Inactive 

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

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