The global wheat germ oil for cosmetics market size was estimated at USD 6.22 billion in 2017 and is expected to register at a CAGR of 4.6% over the forecast period. The growth of the cosmetics industry worldwide, driven primarily by the rising demand for anti-aging solutions, is expected to drive the market growth.
Wheat germ oil is one such product, which is a great source of folic acid and vitamins B6 and E. This composition makes it a great anti-aging agent. Vitamin E is said to treat dry skin, eczema, and conditions that deteriorate the skin and accelerates aging. It has antioxidant properties, owing to which it is utilized in several anti-aging products like skin serums, creams, and lotions. The vitamin E present in wheat germ oil is converted to retinol by the human body, which reduces the effects of aging. All these factors are anticipated to propel the product demand in the near future.
Increasing disposable incomes along with a rising number of consumers across the world giving importance to personal grooming and skincare regime have resulted in increased expenditure on cosmetic products. Anti-aging products have gained a majority of share in the cosmetic industry owing to their skin tightening and rejuvenating properties. Rising demand for organic products is another factor influencing consumer trends.
Further implementation of regulations favoring the use of environment-friendly ingredients in the cosmetics industry has awakened consumer interest in products made using natural ingredients. The industry has witnessed a sharp increase in demand for 100% plant-based products that are devoid of synthetic fragrances and animal-derived components. As a result, the majority of the population is turning to organic products to gain health benefits.
Wheat germ oil for the cosmetics market is characterized by integration across the value chain from the supply of raw materials to the manufacture of wheat germ oil. Companies, such as Archer Daniels Midland, Bunge, Cargill, and DuPont are engaged in manufacturing raw material intended for the production of wheat germ oil. Integration across numerous stages of the value chain results in a continuous supply of raw materials and low manufacturing cost. However, the rising demand coupled with the expanding cosmetics industry is anticipated to create new growth avenues over the forecast period. This, on the other hand, is expected to lead to a surge in the raw material prices.
The global sales of natural beauty and personal care products have witnessed a spike of almost 10% in 2018. In emerging economies, such as Brazil and India, the market is dominated by a large number of cosmetics containing synthetic and toxic ingredients on account of lack of consumer knowledge and awareness regarding the cosmetic composition.
However, the market is dominated by a high proportion of products with synthetic and chemical content in emerging economies, such as Brazil and India, where consumer knowledge and awareness is relatively low regarding ingredients. The market is expected to witness tremendous growth with the introduction of all-natural and genuine products produced using rare essential oils. Increasing desire to benefit from naturally sourced products is backed by high purchasing power and rising growing consumer awareness regarding the adverse effects of harmful chemicals present in cosmetics.
In terms of region, North America accounted for a market of USD 2.34 billion in 2017 and is anticipated to register a CAGR of 4.5% over the forecast period. In North America, Mexico is one of the largest economies after Brazil, in terms of beauty products. Mexico has a free trade agreement enclosed with almost 46 nations, which is expected to attract foreign investments.
However, personal care manufacturers are establishing their manufacturing units and are introducing different distribution channels. As a result, wheat germ oil is anticipated to find application in organic personal care products. In addition, the demand for hair care products has increased in North America due to the adoption of grooming products, especially among men. Hair and nail extensions have become quite popular, which is projected to positively impact the market in the forthcoming years.
Asia Pacific accounted for USD 935.4 million in 2017 and is expected to expand at a CAGR of 5.8% during the forecast period. The incremental growth rate in Asia Pacific is aligned with the increasing geriatric population in countries, such as India and China, rising disposable incomes resulting in a high standard of living, number of the working female population.
Huge demand for Chinese wheat germ oil coupled with the presence of a large consumer base for the skincare market is expected to propel the demand for the product. Various government initiatives, including subsidies, tax cuts, and an increased in FDI limit to develop the manufacturing sector, are attracting major global players to expand their operations in the country.
Europe is expected to account for USD 3.69 billion by 2025 and is anticipated to grow at a CAGR of 4.3% over the forecast period. The growth of the personal care market in Germany, Italy, and France on account of rising awareness regarding natural ingredients is anticipated to augment the demand product demand from the cosmetics industry. Moreover, the presence of organizations, such as the European Federation of Essential Oils (EFEO) has benefitted the essential oil industry growth in Europe.
The key market players include CONNOILS, Gustav Heess GmbH, Henan Kunhua Biological Technology Co., Provital Group, GNLD International Limited, NOW Foods, and others. These companies also have long-term contracts with raw material suppliers as well as research institutes for product innovation.
Major companies have established their dominance with higher integration throughout the value chain. These companies also have long-term contracts with raw material suppliers as well as research institutes for product innovation. However, the strong impact of wheat prices and increased investments to meet to various labeling requirements are expected to shrink the profit margins of manufacturers of cosmetic products over the forecast period.
The rising popularity of e-commerce portals, including Made-in-China and Alibaba, as a medium to purchase industrial commodities and consumable items, is expected to encourage the buyers to choose it as a new distribution for wheat germ oil. Cash-on-Delivery and service benefits are expected to be the key features driving the growth of e-commerce portal service providers in the near future. However, a large number of buyers operating in personal care and cosmetics sectors are expected to sign annual bulk supply contracts with key industry participants.
Manufacturers aim to achieve optimum business growth and establish a strong market position through the implementation of various strategies, such as acquisitions, joint ventures, production capacity expansions, new product launches, promotion of key product brands, and significant R&D investments.
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2018 - 2025
Volume in Kilotons, Revenue in USD Million & CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Central & South America, MEA
Revenue forecast, company share, competitive landscape, growth factors and trends
U.S., U.K., China, India, Brazil
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global wheat germ oil for cosmetics market report on the basis of region:
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Central & South America
Middle East & Africa
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