The three mature markets—Europe, the United States, and Japan—are the only ones below the average global growth. Other markets, such as India and Southeast Asia (SEA), may be small, but with an enormous potential. India’s personal care ingredients are forecast to increase more than twice as fast as the global average, surpassing all other high growth markets, such as SEA and Brazil.
The “natural” trend continues to be among the most important in the personal care industry. In the United States, in 2018, the natural personal care market records the strongest growth in the last five years, according to Kline’s Natural Personal Care: U.S. Market Analysis and Opportunities report. Consequently, organic or natural-perceived ingredients, such as benzoates and benzoic acid, natural gums, cellulosics, emollient esters, natural oils, and alkyl polyglucosides, are increasingly gaining importance.
With the release of various exotic oils and butters as a way of replacing mineral oil and silicone in some cases, emollients show strong growth. Moreover, natural oils are increasing in importance because ingredients derived from what consumers eat are appealing for them. Properties of certain emollients, such as skin smoothing or a non-greasy feel, will also continue to drive their consumption. In the United States, emollients are forecast to achieve the fastest growth during the period of 2018 - 2023.
There are not only regulatory pressures, but also marketing tactics affecting certain ingredients. “For instance, regulatory body approves the use of parabens within limits; however, the claim ‘paraben-free’ creates a negative perception of an ingredient for consumers, an image that these ingredients are harmful,” comments Carlos Ruiz, senior analyst at Kline. “In the following years, a guidance on “free from” claims shall occur, which will only be allowed if an ingredient is banned based on a regulation.”
In contrast, some consumer trends restrain growth in some ingredient categories. For instance, natural-looking hair trend is slowing down the use of hair fixative polymers. However, hair fixative polymers are still forecast to see the strongest growth in India.
The search for simpler formulations with as few ingredients as possible to maintain product effectiveness may be linked to a more conscious consumption from the consumer’s perspective. From an industry point of view, this movement is to reduce costs by using multifunctional ingredients as well as simplify processing through the use of less ingredients. This also leads to a movement towards multifunctional ingredients and the emergence of blends in all ingredient groups.
Current and new consumer trends create interesting dynamics on the personal care ingredients market. Inclusive beauty gives way to growth of ingredients used in customized foundations, such as titanium and iron oxides. UV absorbers grow the fastest in Europe due to heightened consumer awareness of harmful effects to sun exposure. However, in the United States, UV absorbers, such as Diethylamino Hydroxybenzoyl Hexyl Benzoate, Ethylhexyl Triazone, Bisoctrizole, and Bemotrizinol, have not been approved by the FDA, limiting the development of the US sunscreen market. As a result, growth, trends, and regulations vary from one market to another.