Global Functional Cosmetic Ingredients Market Insights Forecasts to 2032

• The Global Functional Cosmetic Ingredients Market Size was valued at USD 3.8 Billion in 2022
• The Market Size is Growing at a CAGR of 5.9% from 2022 to 2032
• The Worldwide Functional Cosmetic Ingredients Market Size is expected to reach USD 6.87 Billion by 2032
• North American Market is expected to Grow the fastest during the forecast period

The Global Functional Cosmetic Ingredients Market Size is expected to reach USD 6.87 Billion by 2032, at a CAGR of 5.9% during the forecast period 2022 to 2032.

Functional cosmetic ingredients are unique chemicals used in cosmetic skincare products that enhance functionality. They are made up of mixtures of chemical compounds that are either derived from natural sources or created synthetically. They serve a variety of functions such as for personal hygiene and skin care are also applicable to cleanse or protect the body or skin. Functional cosmetics used to enhance or change someone's appearance (makeup) can be used to cover up blemishes, enhance one's facial features (such as eyebrows and eyelashes), and add appearance to a person's face. People with acne-prone skin are more likely to experience breakouts because of the harsh ingredients in makeup products. Active ingredients in functional cosmetics are frequently intended to target specific skin concerns or deliver specific results. Antioxidants, vitamins, minerals, peptides, hyaluronic acid, retinol, and botanical extracts are an instance of active ingredients. Depending on the product's purpose, it may address anti-aging, moisture, brightening, firming, acne-fighting, or skin-sensitivity issues. Cosmetic ingredients that help with sun protection, skin brightening & whitening, acne treatment & oil control, hair repair and nourishment, color enhancement & pigmentation, moisturizing & hydrating, and anti-aging & wrinkle reduction skin are functional ingredients that are readily available in the marketplace.

Driving Factors

Functional cosmetics have been rising in acceptance as a result of their main focus on skin problem prevention. The demand for ingestible beauty products is growing around the world with dietary supplements, fortified foods, and nutritional beverages. The market is benefiting from increased demand for multifunctional ingredients, as well as increased demand for anti-aging, skin whitening, and sun protection. Functional cosmetics used in skin care applications provide protection from harmful sun rays, wrinkles, blemishes, acne, aging, front lines, and other factors. A desire for even-toned, light-coloured skin is the main factor behind of demand for skin whitening/lightening products. Organic products are becoming increasingly popular in North America, Europe, and, most notably, the Asia-Pacific region, with India, China, and Japan leading the way. The rising middle-class population's standard of living, strong economic growth, and increased per capita spending on organic beauty products are the key factors driving global demand for these products.

Restraining Factors        

Consumers' skeptical thinking is a psychological phenomenon in which individuals doubt the dependability, authenticity, or reliability of marketing promises, products, or services. Different products and services are created to meet specific consumer requirements and desires in a functional cosmetics market. These markets are characterized by competition, innovation, and a steady flow of information. However, the abundance of options and information can lead to customer confusion and skeptical thinking. This skeptical thinking may be due the several factors, including prior experiences, information overload, and the influence of social networks.

Market Segmentation

By Functionality Insights

The moisturizing & hydrating segment dominates the market with the largest revenue share over the forecast period.

On the basis of functionality, the global functional cosmetic ingredients market is segmented into sun protection, skin brightening & whitening, acne treatment & oil control, hair repair and nourishment, color enhancement & pigmentation, moisturizing& hydrating, anti-aging& wrinkle reduction. Among these, the moisturizing & hydrating segment is dominating the market with the largest revenue share over the forecast period. Moisturizing & hydrating products have become an essential part of consumers' self-skincare routines, as it is critical to keep skin hydrated. Moisturizing & hydrating products provide effective skin benefits such as smoothing and softening skin, increasing skin hydration, improving and maintaining skin characteristics quality, and preventing loss of moisture. Moisturising products also deliver ingredients to the skin such as Vitamin C, hyaluronic acid, retinol, and others. There are products for every skin type, including dry, oily, and combination skin. Many customers are willing to spend money on skincare and expand their skincare routines.

By Ingredient Insights

The conditioning agents segment is witnessing significant CAGR growth over the forecast period.

On the basis of Ingredients, the global functional cosmetics ingredients market is segmented into conditioning agents, antioxidants, sunscreen agents, anti-aging agents, whitening agents, anti-inflammatory agents, peptides & proteins, botanical extracts, vitamins & minerals. Among these, the conditioning agents segment is witnessing significant growth over the forecast period. Conditioning agents are moisturizers which consist of various lubricants and oils. Hair styling gels, shampoos and conditioner serums, sprays for hair and conditioning products, gels, facial spray mists, skin toners, creams, lotions, and fabric softeners are all examples of conditioning agents. Conditioning agents are helpful in skincare and hair care products as a result of their low cost and benefits.

By Application Insights

The skin care products segment is expected to hold the largest share of the global functional cosmetic ingredients market during the forecast period.

Based on the application, the global functional cosmetic ingredients market is segmented into skincare products, hair care products, and oral care products. Among these, the skin care product segment is expected to hold the largest share of the functional cosmetic ingredients market during the forecast period. Acne, black spots, scars, dullness, and tanning have all led to an increase in the demand for skin nourishment products. Skin-brightening products, toners, and scrubs are becoming increasingly popular among the younger generation. Improvements in lifestyles and consumer spending patterns on premium beauty care products are expected to drive the growth of the skincare product market.

Regional Insights

Europe dominates the market with the largest market share over the forecast period.

Europe is dominating the market with the largest market share over the forecast period. This region is a center for cosmetic research and development, resulting in the creation of novel functional ingredients that address specific skin and hair needs. In the European Union, stringent regulations ensure the safety and efficacy of cosmetic ingredients, providing consumer confidence as well as market growth opportunities for compliant products. The Europe personal care market has already begun concentrating on VOC-free, easily biodegradable, eco-friendly surfactant products made with renewable raw materials. The trend towards natural products is expected to continue during the forecast period in order for manufacturers to meet environmental regulations.

North America is expected to grow the fastest during the forecast period. They are increasingly concerned about sustainability and ethical sourcing, preferring products made with eco-friendly practices and cruelty-free ingredients. Increased health consciousness, including concerns about skin health and UV protection, fuels demand for cosmetics containing functional ingredients such as sunscreens and antioxidants. The United States dominated the North American region, holding the majority of functional cosmetic ingredients market share and generating revenue.

List of Key Market Players

• Evonik Industries AG
• Gattefosse
• Lucas Meyer Cosmetics
• Eastman Chemical Company
• Emery Oleochemicals
• Vantage Specialty Chemicals
• United-Guardian Inc.
• Connect Chemicals
• The Good Scents Company
• BASF SE
• Dow
• Ashland, Inc.
• Stepan Company

Key Market Developments

• In September 2023, Gattefossé introduced Gatuline® RC, a new active ingredient that has been clinically proven to reduce the appearance of wrinkles and fine lines.
• In November 2022, Clariant's Roots Awake, a cutting-edge and potent active ingredient that combats eye bags and under-eye circles, received Gold at the BSB Innovation Awards, a prestigious European honor with a 20-year history, in the Environment and Actives categories.

Market Segment

This study forecasts global, regional, and country revenue from 2020 to 2032. Spherical Insights has segmented the global functional cosmetic ingredients market based on the below-mentioned segments:

Functional Cosmetic Ingredients Market, Functionality Analysis

• Sun Protection
• Skin Brightening & whitening
• Acne Treatment & Oil Control
• Hair Repair & nourishment
• Color Enhancement & pigmentation
• Moisturizing& Hydrating
• Anti-Aging& Wrinkle Reduction

Functional Cosmetic Ingredients Market, Ingredient Analysis

• Conditioning agents
• Antioxidants
• Sunscreen Agents
• Anti-Aging Agents
• Whitening Agents
• Anti-Inflammatory Agents
• Peptides & Proteins
• Botanical Extracts
• Vitamins & Minerals

Functional Cosmetic Ingredients Market, Application Analysis

• Skin care products
• Hair care products
• Oral care products

Functional Cosmetic Ingredients Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa