Market Research Report; Cosmetic & Toiletry Chemicals
US demand to approach $7 billion in 2008
US demand for cosmetic and toiletry chemicals is projected to near $7 billion by 2008. Gains will be driven by factors such as the use of active ingredients designed to both enhance appearance and to counter the effects of aging. Growth will also reflect a greater demand for plantderived ingredients and specialty additives offering protection from sun, heat, wind, pollution, smoke and other threats to healthy skin and hair.
Demand in volume terms is projected to record more modest gains through 2008. Advances will be restrained to some extent by the growing popularity of water-based and non-aerosol formulations in skin and hair care products and the use of higher value ingredients that are more effective at lower loadings.
The incorporation of active ingredients -- such as plant acids and enzymes -- into toiletries and cosmetics, as well as their focus in marketing efforts, has become one of the most compelling factors driving growth in the otherwise mature US market. Growth in demand for active ingredients is projected to approach double digits, propelled by strong demand in so-called cosmeceutical skin care products and high value additives such as nanoscale ingredients.
The emergence of products created as a result of nanotechnology is expected to have a substantial effect on the industry. Among the first such products to establish a market presence are polymers used as delivery systems for vitamins and other actives, and inorganic pigments used in sunscreens.
Plant-derived, other natural ingredients find favor with producers and consumers
Organic ingredients are expected to remain an important component of the cosmetic and toiletry chemical market, both in product formulation and reformulation, and in terms of marketing impetus that is so critical to manufacturers looking to retain or expand their respective shares of the market. The fastest growth, approaching or exceeding double-digits annually, is expected for small-volume herbal extracts that have established themselves as safe and effective ingredients in nutraceutical products. However, the high cost of many botanical extracts and issues of quality control and standardization will restrain further gains.
Biotechnology may hold the key to increasing the availability and improving the consistency and quality of plant source materials. However, labeling policies regarding genetically modified materials may affect product preferences, as consumers have generally expressed wariness about such materials.
Ingredient makers seek growth in cosmetics and toiletries market
A key to gaining or retaining market share in the cosmetic and toiletry chemical market is supplying materials used in finished products that compete in growing or traditionally underserved market niches. Among such areas are the ethnic hair and skin care markets, as nonwhite populations are expected to register faster growth through the next decade. Also, the teen segment has above average growth potential, as incomes of teenagers are rising more rapidly than for the population as a whole. More >>
Study coverage
Cosmetic & Toiletry Chemicals, a new Freedonia study, presents historical data plus forecasts to 2008 and 2013 in current US dollars by product, function and market segment. This study also details key regulatory issues, analyzes market share data, and profiles more than 30 industry participants.
The Freedonia Group. "Cosmetic & Toiletry Chemicals." . 02.2004. Global Information, Inc.. 26 03.2004
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