Cosmetic Chemicals - The term is used for the ingredients found in the cosmetics products to prevent microbial growth. These ingredients help in increasing shelf-life of the products due to presence of various preservatives while enhancing the appearance of the user. The demand for cosmetic products is surging across the globe on account of rising disposable income, changing consumer buying behavior and efficient packaging being some of the key factors driving the Global Cosmetic market. Cosmetic product manufacturers are also investing in understanding the consumer buying pattern and selecting the appropriate target audience for their offerings. To meet this objective, there has been upswing in research and development and marketing budgets to find the ideal chemical composition to manufacture a marketable product. This has swelled the demand for cosmetic chemicals, the market of which is expected to witness compound annual growth rate of 4.03% over the next five years.
Huge demand for cosmetic products is arising from the Asia Pacific region, which will likely experience exponential growth due to the presence of some of the world's fastest growing economies, burgeoning population, rising disposable income and more purchasing power of the consumers. Entry of some of the world's biggest cosmetic manufacturers like L'Oreal, Unilever, Proctor and Gamble and several others has further contributed to this trend. Though Europe and North American region and will continue to dominate the market, developing economies will present key opportunities for the cosmetic product players.
Asia Pacific Cosmetic Market
Source: Knowledge Sourcing Intelligence
The market for cosmetics has been continuously evolving. There is constant need for the cosmetic manufacturers to track this trend and expand their product lines to remain competitive. The products which were mainly focused towards women appearance have been overtaken by the evolving preferences of men. Similarly, the demand from the older population for anti-ageing creams, lotions and other products are also gaining traction. The preferences are not limited to the complete products, but also towards the chemical composition of the same. The awareness about the harmful affects of certain chemicals, government and industry regulations, activism of animal and other right groups are some of the factors which have led to renewed attention towards usage of natural ingredients in the cosmetic products.
Asia Pacific is the fastest growing market for natural cosmetic products total sales are expected to cross US$ 1 billion by the end of 2017. China is the biggest market for these products in the region, while Japan is the second largest market. The different retail channels, smartphone and internet penetration and increasing ad spend by the companies have further provided significant impetus to the market. The region will be key to revenue growth of major and small players, with market expected to become highly competitive over the next 5 years.