Cosmetic Active Ingredients Market to reach $21 Billion by 2031; Rising consumer demand for natural and sustainable ingredients, growing demand for products containing AHA, BHA and hyaluronic acid, growing social media influence and rising demand for

The Cosmetic Active Ingredients Market size is estimated to reach $21 Billion by 2031, growing at a CAGR of 7.5% during the forecast period 2025-2031, according to a recent report published by IndustryARC, titled, “Cosmetic Active Ingredients Market- By Type (Natural, Synthetic), By Ingredient Type (Moisturizing Ingredient, Anti-aging Ingredient, Exfoliating Ingredients, UV Ingredient, Antimicrobial Ingredient, Others), By Functionality (Anti-Aging, Skin Brightening, UV Protection, Hydration and Moisturization, Anti-Acne and Anti-Inflammatory, Exfoliation, Others), By Application (Skin Care, Hair Care, Color Cosmetics, Others),By Geography – Opportunity Analysis & Industry Forecast, 2025-2031”

 

Rising consumer demand for natural and sustainable ingredients is a key driver in the cosmetic active ingredient market. People are increasingly aware of environmental impacts and prefer products with eco-friendly, ethically sourced ingredients that are safe for skin and planet. This shift, coupled with regulatory and brand commitments to sustainability, is shaping innovation and transparency in the industry.

 

 

In 2024, the APAC region led the global cosmetic active ingredient market, driven by the influence of social medi, popularity of K-beauty a and the increasing awareness of natural ingredients. Companies like BASF, Croda and Ashland have expanded their focus on the APAC market due to its high demand for products that cater to skin health including anti-aging and sun protection. Ashland reported significant interest in biofunctional products in APAC particularly those addressing skin hydration and elasticity needs while BASF’s investments are directed toward sustainability and local innovation hubs to better serve this region’s unique demands. 

 

 

 

Social media platforms significantly drive the demand for cosmetic active ingredients by shaping beauty trends and consumer preferences. Influencers and beauty bloggers frequently highlight the benefits of active ingredients like retinol, niacinamide and peptides, promoting their effectiveness in achieving clear, radiant skin. Viral skincare routines and before-and-after testimonials create awareness and encourage product exploration among audiences. The accessibility of platforms like Instagram, YouTube, and TikTok amplifies this impact, with content reaching millions of potential buyers globally. For example, COSRX, a skincare brand, unveiled its latest TikTok campaign: the #PatThePeptide challenge in March 2024. Within just one week of its launch, the #PatThePeptide TikTok Challenge ignited a phenomenal response, resulting in the rapid depletion of COSRX's The 6 Peptide Skin Booster Serum across multiple sales platforms including COSRX's US TikTok Shop, COSRX.com, Amazon US and Ulta.

 

 

A key driver in the cosmetic active ingredient market is the rapid advancement in technology, especially in biotechnology and green chemistry. Innovations in these areas allow for the development of sustainable, high-performance ingredients that cater to the increasing consumer demand for eco-friendly products. Biotechnology enables the creation of bio-identical ingredients from renewable resources, while green chemistry techniques reduce the environmental impact of traditional chemical processes. These advancements also contribute to the rise of personalized beauty, where active ingredients are tailored to specific skin types or concerns, improving product effectiveness. As consumer awareness about environmental issues increases, the beauty industry is leveraging these technological breakthroughs to offer products that are not only more effective but also gentler on the planet according to L'Oréal’s company reports.

 

 

 

 

 

• In April 2024, Evolved by Nature announced that it would be debuting two bioactive ingredients at the New York Society of Cosmetic Chemists Suppliers Day in May. The ingredients, Activated Silk 33B and Activated Silk 27P are two sustainable peptides.
• In March 2024, Givaudan Active Beauty announced Neuroglow, a breakthrough active ingredient that is crafted by green fractionation from Persicaria tinctoria.
• In July 2023, Croda acquired the personal care ingredient unit of South Korea’s Solus Advanced Materials for $280 million. The business, Solus BioTech, uses fermentation to make lipids used in lotions, cosmetics and hair care products. 

 

 

Key companies profiled in the Cosmetic Active Ingredients Market are BASF SE, Evonik Industries, Ashland Global Holdings Inc., Clariant AG, Croda International Plc, DSM firmenich, Wacker Chemie AG, Symrise AG, Givaudan SA, Arxada and Others

 

 

Personal Care Ingredients Market- The Personal Care Ingredients market size is forecast to reach around $8.34 billion by 2030, after growing at a CAGR of 7% during 2024-2030.  Increasing awareness about personal care and growing disposable income in major developing nations has led to a higher demand for Personal and beauty care products and is expected to remain key growth driver during the period of study.

 

Flavors & Fragrances Market  - The global flavors and fragrances market valued $28.2 billion as of 2018 and expected to grow at a CAGR of 4.90% during the forecast period 2019-2025. The flavors and fragrances market is estimated to observe a growth over the forecast period due to rising demand of flavors and fragrances in several sectors such as food & beverages, pharmaceutical, cosmetic products and toiletries.

 

Aroma Ingredients Market- The Aroma Ingredients market size is estimated to reach US$6.8 billion by 2027 and is forecasted to grow at a CAGR of 5.3% during the forecast period of 2022-2027. Factors such as increase in demand for home care products and new product launches related to cosmetics & personal care are driving the growth of the aroma ingredients industry.

 

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