Global demand for personal care ingredients is projected to reach 17.6 billion US$ by 2020 at a compound annual growth rate (CAGR) of 5.4% from 2015 to 2020, found a recent report by Markets and Markets [1].

Emerging economies

Personal care ingredients have applications such as skin care, hair care, oral care, with skin care application accounting for 43.8% the market, the largest market share in terms of value in 2014.

Asia-Pacific is forecast to be the fastest growing market in the next five years, with China, Japan, India, and South Korea dominating the region. “The lifestyle of the consumers in major developing economies such as China and India is changing with the increasing income and purchasing power. With a rising middle class population, the consumer goods and services market in the emerging economies will provide vast opportunities for all businesses concerning personal care products,” explains Markets and Markets.

From synthetics to naturals

According to the research firm, the market growth will be driven by demand for surfactants, conditioning polymers, emollients, rheology control agents and for multi-functional ingredients. Conditioning polymers are expected to witness highest growth rate of 7.3%, from 2015 to 2020. Conditioning polymers are majorly used in hair care products, which are expected to see a steep growth.

Markets and Markets also forecast the personal care ingredients market to progressively shifting from synthetic chemicals to bio-based and natural ingredients.