Demand for cosmetic and toiletry chemicals in the US is forecast to rise 4.9 percent per year to $9.4 billion in 2016. Gains will be aided by healthy increases in sales of cosmetic and toiletry products, particularly those appealing to baby boomers, who favor products with active ingredients to reduce the signs of aging; and to consumers who prefer that their personal care products be sourced from renewable and natural materials. These product types are typically more costly than inactive or synthetic materials, which will boost dollar gains. At the same time, volume demand advances will be somewhat restrained by these products’ efficacy at lower loadings than traditional chemical ingredients. These and other trends, including market share and product segmentation, are presented in Cosmetic & Toiletry Chemicals, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Botanical extracts are expected to see the fastest gains in demand among cosmetic and toiletry chemicals through 2016. These advances will reflect the favorable natural profile of extracts, which many consumers perceive as being more healthful and beneficial than synthetic chemicals. Traditional materials, such as petroleum-based oils and waxes, will see limited gains going forward as consumers increasingly prefer products formulated with recognizable ingredients, such as those they may find in their own kitchens (e.g., essential oils, aloe vera). In addition to natural ingredient content, consumers also increasingly expect dramatic, visible results from such products as anti-aging cosmetics and toiletries, driving demand for active ingredients such as enzymes and amino acids. Products with the best growth potential include those with active, natural formulations.
High value raw materials with mass consumer appeal -- such as exotic essential oils sourced from various global locations -- are increasingly being utilized to invigorate sales. Many of these products also benefit from the perception that they are less irritating and more gentle than commodity chemicals. Emollients and moisturizing agents, and specialty additives will see the fastest growth in demand through 2016, as consumers expect higher performance from their toiletries. Active ingredients in particular will see above average gains among specialty additives.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.