Natural Personal Care Ingredients Market

Updated on : March 19, 2024

Natural Personal Care Ingredients Market

The global natural personal care ingredients market size was valued at USD 5.3 billion in 2023 and is projected to reach USD 7.9 billion by 2028, growing at 8.3% cagr from 2023 to 2028. One of the major reasons for making a positive outlook for the natural personal care ingredients market is the evolving lifestyle across worldwide, mounting popularity of natural products, and growing online purchase of personal care products. Also, technological advancements in the natural personal care industry are pushing the market. Due to these reasons, the consumption of natural personal care ingredients has grown significantly.

To know about the assumptions considered for the study, Request for Free Sample Report

Natural Personal Care Ingredients Market Dynamics

Driver: Evolving lifestyle across worldwide

The global shift towards more health-conscious and environmentally-friendly lifestyles is serving as a significant driver for the natural personal care ingredients market. As people become increasingly aware of the potential health risks associated with synthetic chemicals in traditional personal care products, there is a growing demand for natural alternatives. Consumers are seeking products that are made from plant-based or organic ingredients, which are perceived as safer and more sustainable. This trend is fueled by a desire for products that align with ethical values, such as cruelty-free manufacturing practices and eco-friendly packaging. As a result, manufacturers are responding to this demand by formulating products with natural ingredients, driving the growth of the natural personal care ingredients market worldwide.

Restraints: Limited shelf life of natural personal care ingredients

The natural personal care ingredients market faces a notable challenge due to the restricted shelf life of its components. Unlike synthetic counterparts, natural ingredients deteriorate more swiftly, impacting not only the formulation process but also the stability and efficacy of the final products. This issue presents manufacturers with hurdles in preserving the freshness and quality of natural ingredients, potentially leading to increased production expenses and shorter product durations. Furthermore, retailers and consumers may exhibit reluctance to stockpile natural personal care items, fearing ingredient degradation and expiration, thereby dampening overall demand. Consequently, the limited shelf life of natural personal care ingredients acts as a deterrent to market expansion, impeding the industry's growth potential.

Opportunities: Mounting demand for male cosmetics

The mounting demand for male cosmetics presents a prime opportunity for the natural personal care ingredients market. As men increasingly prioritize grooming, there's a rising need for products tailored to their needs. Natural ingredients, free from harsh chemicals, align perfectly with this trend, offering effective and sustainable solutions. By catering to the male demographic's preferences for safer products, the natural personal care ingredients market stands to capitalize on this expanding market segment.

Challenges: Lack of consistency of natural personal care ingredients

The lack of consistency in natural personal care ingredients poses a notable challenge for the market. Unlike synthetic counterparts, natural ingredients are subject to fluctuations in quality and composition due to environmental factors and agricultural practices. This variability can complicate efforts to maintain product quality and uniformity, leading to difficulties in formulation and ensuring consumer satisfaction. Manufacturers must implement stringent sourcing and quality control measures to address these challenges and deliver reliable natural personal care products.

Natural Personal Care Ingredients Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of natural personal care ingredients. These companies have been in business for a while and have a broad range of products, cutting-edge technologies, and robust international sales and marketing networks. Prominent companies in this market include BASF SE (Germany), Croda International Plc (UK), Ashland Inc. (US), The Lubrizol Corporation (US), Evonik Industries AG (Germany), Dow Inc. (US), Symrise AG (Germany), and among others.

Based on ingredient type, active ingredients was the largest ingredient type of natural personal care ingredietns market in terms of value, in 2022.

Active ingredients is largest ingredient type of the natural personal care ingredients market, due to their efficacy, active ingextracted primarily from botanical sources. Despite their higher prices compared to other ingredients, their potency in delivering specific benefits like anti-aging or hair strengthening makes them highly sought after by consumers seeking natural alternatives. However, the complex extraction process contributes to their elevated costs. Therefore, active ingredients is the largest ingredient type of natural personal care ingredients market.

Based on application, skin care was the largest segment of natural personal care ingredients market, in terms of value, in 2022.

Skin care stands as the largest application segment within the natural personal care ingredients market, owing to its extensive range of products and the utilization of nearly all types of natural ingredients. From moisturizers to cleansers, serums to masks, skin care encompasses a wide range of products catering to various skin types and concerns. Natural personal care ingredients play a pivotal role across this spectrum, serving as emollients for hydration, surfactants for cleansing, preservatives for product stability, and more. The versatility and efficacy of natural ingredients in addressing diverse skin care needs have propelled their widespread adoption by consumers seeking safer, eco-friendly alternatives. Thus, the skin care is the largest application of natural personal care ingredients market.

Europe accounted for the largest market share for the natural personal care ingredients market, in terms of value, in 2022.

Europe holds the largest share of the natural personal care ingredients market, driven by shifting customer preferences towards eco-friendly and sustainable products. Also,this region boasts the presence of industry giants like BASF SE, Croda International Plc, and Syensqo, renowned for their innovative formulations and commitment to quality. European consumers are increasingly opting for natural ingredients, aligning with the principles of these manufacturers, who prioritize environmentally friendly practices. This convergence of changing consumer demands and the presence of established industry leaders solidifies Europe's dominance in the natural personal care ingredients market.

To know about the assumptions considered for the study, download the pdf brochure

Key Market Players

BASF SE (Germany), Croda International Plc (UK), Syensqo (Belgium), Ashland Inc. (US), Symrise AG (Germany), The Lubrizol Corporation (US), Evonik Industries AG (Germany), Dow Inc. (US), and among others, these are the key manufacturers that secured major market share in the last few years.

Read More: Natural Personal Care Ingredients Companies

Natural Personal Care Ingredients Market Report Scope

This report categorizes the global Natural Personal Care Ingredients Market based on ingredient type, application, and region.

On the basis of ingredient type, the Natural Personal Care Ingredients Market has been segmented as follows:

• Emollients
• Surfactants
• Preservatives
• Sugar Polymers
• Rheology Modifiers
• Active Ingredients
• Others

On the basis of application, the Natural Personal Care Ingredients Market has been segmented as follows:

• Skin Care
• Hair Care
• Make-up
• Oral Care
• Others

On the basis of region, the Natural Personal Care Ingredients Market has been segmented as follows:

• Asia Pacific
• Europe
• North America
• Middle East & Arica
• South America

Recent Developments

• In May 2023, BASF SE partnered with BEAUTYSTREAMS to further expand its D’lite digital service for the personal care industry.
• In July 2023, Croda International Plc has completed the acquisition of Solus Biotech, a global leader in biotechnology-derived active ingredients for beauty care and pharmaceuticals.
• In September 2021, Symrise AG enters a strategic partnership with Kobo Products Inc. to broaden its presence in UV filters and decorative cosmetics.
• In October 2023, Ashland introduces an innovative addition to its repertoire with the launch of Gantrez soja under the new transformed vegetable oils technology platform. This advanced delivery system is specially formulated for toothpaste and mouthwash applications.
• In January 2024, The Syensqo made an investment of USD 2.1 million in Bioeutectics through Syensqo’s venture capital fund. Bioeutectics is founded in 2019, provides natural and high-performance solvents for cosmetics, and other industries.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst