Cosmetic Chemicals Market - Databook 2025 to 2034

The global cosmetic chemicals market size was estimated at USD 24,390 million in 2024 and is projected to be worth around USD 48,880 million by 2034, growing at a CAGR of 7.2% from 2025 to 2034.

Highlights of the Cosmetic Chemicals Market

• North America dominated the global cosmetic chemicals market in 2024.
• Asia Pacific is anticipated to grow at the fastest rate in the market during the forecast period.
• By product type, the emollients & moisturizers segment held a dominant presence in the market in 2024.
• By product type, the surfactants segment is projected to experience the highest growth rate in the market between 2025 and 2034.
• By application, the skin care segment is expected to grow at the fastest rate in the market during the forecast period of 2025 to 2034.
• By application, the hair care segment accounted for a considerable share of the market in 2024.

Industry Valuation and Growth Rate Projection

Cosmetic chemicals are integral to personal and cosmetic products' properties, enhancing texture, aesthetics, shelf life, and product performance. Among some of the most common cosmetic product ingredient categories are colorants, surfactants, emollients, preservatives, and rheological modifiers. The rising demand for such products among consumers interested in high quality and premium, especially incorporating natural ingredients, has decided the market growth. Manufacturers are researching all possible safe and sustainable natural and synthetic alternatives to satisfy consumer demand for skin and health products.

Cosmetic ingredients can be either derived from industrial processes or extracted from natural sources. These include emulsifiers, preservatives, thickening agents, moisturizers, and fragrance or color agents. Synthetic chemicals may originate from natural sources but are deemed synthetic because they have undergone extremely complex processing. Natural ingredients are primary but can be from plant, mineral, animal, or microbial sources.

About 1,500 chemical substances are recognized as cosmetic ingredients around the globe. The most widely used materials in cosmetic formulations are thickening agents, carrier powders, pigments, emollients, moisturizers, and film formers. The cosmetic chemicals market is fragmented, with many small and medium companies supplying various natural and inorganic raw materials.

Cosmetic Chemicals Market: Stats and Figures

• In 2020, the worldwide Cosmetic Chemicals market was estimated to be worth USD 19.38 billion.
• The share of makeup in the cosmetics industry is 16%. The predicted worth of skincare in this industry is around 145.2 billion USD.
• Today, more than 10,000 chemicals are used to create cosmetics, with only 11 being restricted by the FDA (Food and Drug Administration).
• The shift toward sustainability in the cosmetics industry is illustrated by the burgeoning market for natural ingredients, projected to expand from USD $642 million in 2022 to USD $1,095 million by 2030.

How AI Has Benefitted the Market

• Better Calibrated Product Quality: AI systems now tend to identify product quality deviations and change production parameters in real time.
• Cost Efficiency Improvement: This includes reduced resource usage or improved energy efficiency and waste material reduced by AI-driven process optimization.
• Increased Speed in Scaling Up & Time to Market: AI helps simulate and enjoy the refinement of processes before actual production, and this drastically cuts lead times and moves products sooner.
• Decreases Waste & Sustainable Manufacturing: AI tuning processes and predictive analytics minimize waste and environmental impact for eco-friendly practices.

Industry Leader Announcements

• Rajen Mariwala, Managing Director of Eternis.:

“As we step into 2025, I speak on behalf of the team at Eternis in expressing my excitement with this significant milestone of completing another overseas acquisition in our growth journey”,

• Alexandre Reeber, president and CEO of Core Biogenesis:

"Our focus has been on growth factors, essential proteins naturally found in the skin that diminish with age, contributing to the aging process.”

Geographical Insights

The global cosmetic chemicals market is experiencing significant growth, with North America maintaining its position as the dominant region while APAC emerges as the fastest-growing market.

North America

The cosmetic chemicals market is dominated by North America because of the high demand for personal care and beauty products. In the US, consumer perception is changing with a greater focus on health, wellness, and self-care. The manufacturers are creating new enterprise strategies that integrate biotechnology, pharma, and nutritional solutions. Demand for skincare products has been driving an increasing awareness, with the majority of consumers willing to pay for premium formulations perceived as effective. Consumers are interested in products that reflect their values, sustainable manufacturing process, clean labeling, and natural ingredients. With that, major companies are searching for raw materials derived from plants, marine sources, and other unconventional natural resources. New brands are lured into the market on the backs of the changing consumer dynamics and the attraction of clean beauty. This has led to increased investment in research and development of products that support market growth.

Asia-Pacific

Asia-Pacific is expected to be the fastest-growing region within the cosmetic chemicals industry. Urbanization, increasing spending capacity by the consumer, and shifting preferences in beauty are stimulating demand for cosmetic products of good quality and standards. Consumers have become more aware of skincare routines, embracing a host of personal care remedies to suit their needs.

Europe

On the other hand, Europe is experiencing slow yet steady growth in the cosmetic chemicals market, essentially supported by a mature beauty industry that keeps evolving. Consumers are conscious of the constituents of their skincare and cosmetics and demand that brands are accountable. Therefore, companies also invest in innovation to develop their formulations with tight adherence to regulatory frameworks and environmental goal attainment in the region.

Recent Developments:

• Eternis Fine Chemicals Ltd has acquired Sharon Personal Care, acquiring 100% shares. Sharon PC has innovation labs, manufacturing facilities in Italy and Israel, distribution sites in the US, Italy, Germany, and France, and a global distribution network.
• A new online Master Class course by the Animal-Free Safety Assessment Collaboration (AFSA) has attracted over 1,200 participants from 70 countries since its launch in 2023. The course, which focuses on cruelty-free testing of cosmetics and chemicals without animals, has been hailed as a game-changer in the field.

Competitive Landscape

The cosmetic chemicals market is highly competitive, with leading pharmaceutical companies such as Lonza Group, Lanxess, Dow Chemical Company, BASF SE, P&G Chemicals, Bayer AG., and Cargill Incorporated in the market.

• Company Name: P&G Chemicals
• Year of Incorporation: 1837
• Headquarters: Cincinnati, Ohio, USA

P&G's fiscal year 2024 net sales were $84.0 billion, a 2% increase from the prior year. The company's net earnings attributable to P&G were $14.9 billion, and its diluted net earnings per common share were $6.59.

• Company Name: Bayer AG.
• Year of Incorporation: 1863
• Headquarters: Leverkusen, Germany

According to Bayer's latest financial reports, the company's current revenue (TTM ) is ₹4.310 Trillion, a decrease over the revenue in the year 2023, which was ₹4.308 Trillion.

• Company Name: BASF SE
• Year of Incorporation: 1865
• Headquarters: Mannheim, Baden, Germany

In 2023, BASF SE's annual revenue was €68.9 billion. For the full year 2024, BASF expects sales to be around €65.3 billion. This represents a decrease from the previous year.