Organic Cosmetic Ingredients Market (Updated Version Available)

Key Market Overview:

The organic cosmetic ingredients market is expected to grow at a CAGR of 6.5% from 2023-2030, with a market size of USD 1.06 billion in 2022. By 2030, the market is projected to reach USD 1.75 billion. This growth can be attributed to the increasing demand for organic and natural ingredients in cosmetic products, as consumers become more aware of the harmful effects of synthetic ingredients.

Organic cosmetic ingredients are derived naturally from vegetable origin and are grown biologically and without using synthetic elements or GMOs and are essential constituents in a wide range of organic cosmetics. Organic ingredients are replacing synthetic chemicals partly due to a shift towards sustainability. Such ingredients are highly efficient and are used in producing organic cosmetics in compliance with safety standards and regulations.
Organic cosmetic ingredients come in various forms botanical extracts, essential oils, natural colorants, natural emollients, natural surfactants, natural preservatives, and others. Products such as fish oil, aloe vera, jojoba oil, palm oil, kernel oil, and others are some of the major raw ingredients for manufacturing cosmetic products. Such ingredients are designed to be used in a wide range of natural ingredients in organic applications, such as skincare, haircare, makeup, body care, fragrance, and others. The end products are accompanied by a valid certification such as ecocert greenlife, COSMEBIO, BDIH, soil association, ICEA, COSMOS, and NATRUE which verifies their safety.

Medical Power Supply Report Coverage:

Report Attributes	Report Details
Study Timeline	2017-2030
Market Size in 2030 (USD Billion)	1.75 Billion
CAGR (2023-2030)	6.5 %
Base Year	2022
By Ingredient Type	Botanical Extracts, Essential Oils, Natural Colorants, Natural Emollients, Natural Surfactants, Natural Preservatives, and Others
By Application	Skincare, Hair care, Makeup, Body Care, Fragrance, and Others
By Geography	Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey] North America [United States, Canada, Mexico] Middle East & Africa [GCC, North Africa, South Africa] South America [Brazil, Argentina, Columbia, Chile, Peru]
Key Players	Clariant AG, Ashland Global Holdings Inc., Dow, BASF SE, Croda International Plc, Evonik Industries AG, A.G. Organica Pvt. Ltd., Solvay, India Essential Oils, Shiva Exports India

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Market Dynamics:

Driver:

Organic cosmetic ingredients are derived from herbs, fruits, and vegetables that are natural and environment-friendly. Due to the usage of natural ingredients in skin care products, the organic cosmetic ingredients market is likely to gain popularity globally.
The increasing demand for the ingredients is due to the growing awareness among the population about skincare. The organic cosmetic ingredients market is surging alongside the market for vegan, sustainable, and chemical-free products. Subsequently, the need for highly efficient, safe, and quality organic cosmetic ingredients is growing steadily.
Furthermore, the increasing prevalence of skin problems, as well as well-formulated organic ingredients in beauty products, is driving the need for highly efficient, reliable, and efficient organic products. As a result, the need for highly efficient, safe, and quality organic cosmetic ingredients is expected to witness rapid growth in the market.

Restraint:

The development and manufacturing costs of organic cosmetic ingredients are relatively high due to the specialized design, testing, and compliance requirements. These factors make it difficult for smaller players or those with limited resources to enter the market. Thereby, the usage of competitive ingredients derived from synthetic materials due to their cost-effectiveness hampers the growth of the organic cosmetic ingredients market.

Opportunities:

The increasing focus on sustainability and the reduction of synthetic products present in cosmetic products is likely to create opportunities for organic cosmetic ingredients that use natural elements such as herbs, fruits, and vegetables. This not only helps cosmetic ingredients manufacturers reduce their reliance on traditional synthetic products but also lowers their costs, thereby making such solutions highly attractive. As a result, a significant opportunity is presented for organic ingredients manufacturers to innovate and develop advanced solutions to meet the evolving needs of the cosmetics industry.

Organic Cosmetic Ingredients Market Competitive Landscape:

The market is highly competitive, with a large number of players operating at the global and regional levels. Key players compete on various parameters such as price, quality, innovation, customer service, and research and development to improve their products and expand their market share. Mergers, acquisitions, and partnerships are also common strategies employed by companies to enhance their market position and expand their product portfolio. Key players in the market include-

• Clariant AG
• Ashland Global Holdings Inc.
• Evonik Industries AG
• Dow
• BASF SE
• Croda International Plc
• A.G. Organica Pvt. Ltd.
• Solvay
• India Essential Oils
• Shiva Exports India

Recent Developments:

• In August 2022, BASF SE and Ingredi, a china-based supplier of natural actives and solutions for personal care, announce the signing of a partnership, including a strategic equity investment into Ingredi by BASF SE.

• In August 2021, Dow announces a strategic collaboration with Natura cosmetics brand for project Ybá in Brazil – a model of sustainable commercial-ecological-social development in the Amazon rainforest.

Methanol Market Segmentation:



By Ingredient Type

The ingredient type segment is categorized into botanical extracts, essential oils, natural colorants, natural emollients, natural surfactants, natural preservatives, and others. Natural emollients hold the largest market share in the year 2022. The favorable preference for natural emollients in applications such as skincare (face creams, cleansers, and scrubs), and haircare products such as shampoos and conditioners supports segmental growth. Essential oils are the fastest-growing ingredients due to their active properties owing to their presence in face products, body products, hair products, and fragrances. Hence, the growth in the sale of ingredients such as natural emollients, and essential oils is leading the organic cosmetic ingredients market.

By Derivatives types

This segment of the Methanol market is divided into Formaldehyde
Methanol-to-Hydrocarbons (MTH), Methanol-to-Gasoline (MTG), Methanol-to-Olefins (MTO), Methanol-to-Propylene (MTP), and Others. The formaldehyde segment holds the largest market share in the year 2022. This is attributed to their common usage in glues and resins, dyes, textiles, disinfectants, building materials, and automobile parts that require a higher level of volatility, cost-effectiveness, and good fixation properties.
However, the Methanol-to-Hydrocarbons (MTH) segment is expected to witness the fastest CAGR over the forecast period. This process is used to convert methanol to products such as olefins and gasoline. The fastest growth of this segment is due to their typical usage in research, industries, and others applications.

By Application

The application segment is classified into skincare, hair care, makeup, body care, fragrance, and others. The skincare segment holds the largest market share in the year 2022 due to the increasing awareness about natural ingredients and the rise in the number of companies producing organic cosmetic ingredients worldwide. The body care segment is the fastest-growing segment due to properties present in the product such as moisturizing, cleansing, nourishing, UV resistance, and others. As a result, this has led to a higher demand for efficient, sustainable, and high-performance cosmetics ingredients.

By Region

By region, the market is categorized into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America holds the largest market share in the year 2022. This is due to the high adoption of advanced organic products in the cosmetic ingredients sector and the growing need to improve the quality of cosmetics. The region is witnessing significant developments in the cosmetic ingredients industry, laboratory testing is conducted in multiple public institutions and companies, leading the market in the region. Growth in the organic cosmetic ingredients market contributed to the growing emphasis on sustainability and organic cosmetics in the region.



However, Asia-Pacific is expected to witness the fastest CAGR over the forecast period. This is attributed to the growing cosmetic industry in countries such as India, China, South Korea, and Japan is boosting the demand for advanced health-conscious products, which require reliable organic ingredients. Japan produces the most effective and high-quality natural ingredients. Moreover, several companies in the region are focusing on providing organic and affordable products, which is further driving the demand for organic ingredients.