Why Are Cosmetic Chemicals Being Innovated by Major Companies?

“Today the global beauty industry is a $532 billion business.”, said an article published by Forbes in September 2019. Growing steadily, the industry is spreading its wings in developing and underdeveloped countries too, on account of the rising disposable income here. Moreover, as people come under the influence of the Western culture, they are thinking more about how they look and taking steps to improve their physical appearance. For many, beauty and good looks are confidence boosters, especially those working in the media & entertainment and corporate sectors.

Due to these factors, the cosmetic chemicals market, which already valued around $20.0 billion in 2020, will grow substantially during 2021–2030, as per market research firm P&S Intelligence. This is because cosmetics are widely applied for enhancing the look of the face and maintaining general body hygiene. The range of products included under cosmetics is wide: from shampoos and conditioners to foundations and ointment. As each cosmetic product is designed for a specific purpose, the variety of chemicals used in their production is extensive as well.

As most cosmetic products are easily available at retail stores, supermarkets/hypermarkets, pharmacies, and online stores, they witness huge sales around the world. Moreover, most of these products are available over the counter (OTC), which makes them easily accessible to the masses. Plus, with the growth of the e-commerce industry due to the increasing internet and smartphone penetration, cosmetic companies are witnessing an increasing product demand around the world.

As a result, the consumption of surfactants, colorants & pigments, emollients & moisturizers, emulsifying & thickening agents, and other types of chemicals is rising for the production of cosmetics. Among these, emollients and moisturizers witness the highest consumption because of their importance in skin moisturizers, body lotions, lipsticks, and face creams. As these products can often lead to dry skin (except for moisturizers), moisturizing agents are used in them to keep the skin moist, while emollients keep the skin smooth.

Apart from just increasing their cosmetic production, companies are also looking to innovate their products. With people becoming aware of the detrimental effects cosmetics can have on the skin, they are turning to those with natural and less-harmful ingredients. As a result, chemical companies are also having to enhance their offerings for cosmetic and personal care companies. For this, the biology of the skin, teeth, hair, and oral cavity is being studied, so that chemicals that are more effective yet skin friendly can be created.

Currently, Asia-Pacific (APAC) is the largest cosmetic chemicals market, as it is the most-populous region in the world. This creates a huge demand for cosmetic products and, in turn, of the chemicals that go into them. Moreover, loads of regional and Western chemical companies have manufacturing plants here. These companies are undertaking research studies for better ingredients and focusing on low-cost raw material procurement. Additionally, South Korea is said to have one of the largest cosmetics industries in the world, and it, along with Singapore, China, Hong Kong, and Japan, exports a high volume of cosmetics.

Thus, as people’s rising appearance consciousness and growing media & entertainment sector push the demand for cosmetics, the consumption of the chemicals that are utilized in their production will surge too.