The glycolic acid market is expected to grow at a compound annual growth rate of 5.30% over the analyzed period to reach a market size of US$477.485 million in 2026 from US$332.687 million in 2019. Glycolic acid is a plant-driven substance that is clinically proven to be an effective skin treatment solution. This substance has anti-aging properties and is safe to use on sensitive skin. Owing to these features, it is widely used as a prime ingredient in several cosmetic products. It is derived from plants such as sugar beets, sugarcane, and pineapple and is effective in dealing with acne problems. The prime reason driving the growth in the market is the surging demand for natural skincare and personal products. Furthermore, its wide usefulness in textile dyeing and finishing operation provides a stable market growth prospect. Moreover, increasing innovation in the skincare industry will also boost the market growth. However, the production of glycolic acid leaves formaldehyde as a residual. Formaldehyde has a negative impact on the human body and its presence in the end product severely damages users' health, constraining the market for glycolic acid.
Surging demand for natural cosmetic and personal care products will drive the market growth of glycolic acids during the forecasted period.
One of the key drivers of the glycolic acid market is the rising favourability of natural personal and cosmetic products. Owing to its varied skincare benefits, glycolic acid has found a significant position in the global cosmetic industry. Glycolic acid has been proven to be an effective skin treatment ingredient and has anti-aging properties. The acid is safe to use on sensitive skin and deals with acne and other skin problem efficiently. Moreover, in addition to these properties, glycolic acid is biodegradable, metoxyacetic acid-free, and non-flammable, making it an ideal element in the dyeing industry. It is exempted from the volatile organic compound (VOC) category, which supports its growth in the chemical industry. Also, the fall in the market of chemical products owing to the drastic effects of chemicals on skin and health has supported the market growth of natural products, increasing the demand for glycolic acids.
Based on industry, the market is segmented into households and industry. The Industrial application of glycolic acid is predicted to have a dominating role in the global market. Further, the rising use of natural products provides market opportunities for the industry. Growing disposable income and self-consciousness has increased the usage of chemical-free, natural products among the users. This includes natural skincare, personal care, and cosmetic products. Furthermore, growing internet penetration and rise in natural product e-commerce have opened several growth alternatives for the market. The launch of e-commerce brands, such as Nykaa, Purple, Tabao, and others has increased the natural product reach and hence their demand which facilitates market growth. Increasing social media influence that encourages usage of natural products also favors the market growth during the forecasted period.
Production formaldehyde substance hinders the market growth.
Predominately, glycolic acid has been produced by two methods- carbonylation of formaldehyde or by glycolonitrile as a prime material. Both these procedures involve the production of formaldehyde as a residual. Formaldehyde is a harmful sensitive substance that can cause immune system damage when exposed internally. Moreover, formaldehyde is linked with the development of cancer in humans. Furthermore, this substance may irritate the eyes and the skin on regular application. While formaldehyde is a residual product, its accidental mixture with glycolic acid has the potential to cause severe damage to the users. Hence, the extraction of glycolic acid needs utmost safety and advanced technology, which constrains the market prospects.
Cosmetic Grade glycolic acid will have a significant market share during the forecasted period.
Based on grade type, the glycolic acid is segmented into industrial grade, cosmetic grade, medical grade, and technical grade. Industrial and medical-grade glycolic acid is projected to dominate the market owing to the large application of glycolic in industries and medical research. However, the cosmetic grade glycolic acid is predicted to grow at a significant rate. The rising demand for natural cosmetic products is the prime reason driving the demand for this segment growth. Further, a significant increase in global average disposable income accompanied by a surge in the standard of livings has resulted in an increase in the adoption of natural cosmetic and skincare products, which will support the market growth.
The European region will have a significant share in the global glycolic acid market. The Asia Pacific market, however, is projected to grow at the fastest rate.
Based on geography, the glycolic acid market has been segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific region. The European glycolic market is projected to hold a significant share during the forecasted period. Europe is the prime user of natural skincare and cosmetic products. Increasing demand for them will support the market growth. The Asia Pacific region, however, is predicted to grow at the fastest rate. A rise in disposable income along with surging demand for natural products will drive in-market prospects. The booming textile industry will also hold a significant share in the region’s growth. Further, rising internet penetration and wider choice availability to the consumers provide a noteworthy opportunity to the market. Internet penetration has also resulted in an increase in the e-commerce sector and the emergence of new business platforms providing stale growth to the market. Increasing awareness and rising standard of living also play a crucial role. India, China, Japan, South Korea, Singapore, and Thailand are prime markets in the region.
Covid Pandemic Insights.
The coronavirus pandemic negatively impacted the market for glycolic acid. Containment measures adopted by the government resulted in a halt in economic operation and an increase in global unemployment rates. Loss of source of income and uncertainty regarding the lockdown increased expenditure on necessity goods, reducing the expenditure on comfort and luxury goods. This significantly reduced the demand for cosmetics and other products, and hence the demand for glycolic acid. Disruption in the supply chain further hindered the industry activity.
|Market size value in 2019||US$332.687 million|
|Market size value in 2026||US$477.485 million|
|Growth Rate||CAGR of 5.30% from 2019 to 2026|
|Forecast Unit (Value)||USD Million|
|Segments covered||Grade, Industry, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||CrossChem Limited, The Chemours Company, CABB Group, Hefei TNJ Chemical Industry Co. Ltd., BASF, Merck KGaA|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global glycolic acid market?
A1. Glycolic Acid Market was valued at US$332.687 million in 2019.
Q2. What will be the glycolic acid market size by 2026?
A2. The glycolic acid market is expected to reach a total market size of US$477.485 million by 2026.
Q3. What are the growth prospects for the glycolic acid market?
A3. The global glycolic acid market is expected to grow at a CAGR of 5.30% during the forecast period.
Q4. What factors are anticipated to drive the glycolic acid market growth?
A4. The prime reason driving the growth in the glycolic acid market is the surging demand for natural skincare and personal products.
Q5. Which region holds the largest market share in the glycolic acid market?
A5. The European region is projected to hold a significant share in the glycolic acid market during the forecasted period.
Hefei TNJ Chemical Industry Co. Ltd.
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