Active Ingredients Market: Current Analysis and Forecast (2022-2028)

Active Ingredients Market: Current Analysis and Forecast (2022-2028)

The active ingredients market is expected to register a CAGR of approx. 5% over the period of 2022-2028. Active ingredients are the components in products that are responsible for the favorable benefits experienced by customers. Agrochemicals, cosmetics, and medicine manufacturers all frequently use active compounds. Ceramides, niacinamide, hyaluronic acid, retinol, hydroquinone & kojic acid, salicylic acid, and alpha-hydroxic acid are a few of the important active chemicals utilized in personal care & cosmetics products, among many more. The growing demand for active ingredients can be attributed to the rise in demand for the anti- aging product by the elderly population across the globe. For instance, according to the OECD, in United states, the elderly population increased from 15.61% in 2017 to 16.83% in 2021 by total population. Owing to the glaring statistics due to the rising elderly population the demand anti-ageing product is boosted across the globe is leading to the growing demand for active ingredients and would contribute to the growth of the market in the forthcoming period as well. Furthermore, the active ingredients market is anticipated to grow on account of the rise in demand for men’s grooming products which is increasing the demand of skin and hair care products through rise in demand for active ingredients. In addition, increasing awareness among consumers about the good effects of personal care products drives market growth. However, some of the restraints in the market, including the high costs of raw materials are impeding the growth of this market all over the world.

• Based on the products, the active ingredients market is segmented into conditioning agents, UV filters, skin lightening agents, anti- ageing agents, and others. The conditioning agents segment accounted for a significant market share and it is estimated that it will grow rapidly during the projected timeframe. Conditioning agents are growing due to the low cost and wide applicability of conditioning agents in skin and hair care products.
• Based on the applications, the market is fragmented into hair care, skin care, and others. The skin care segment grabbed a considerable market share, and it is expected to grow at a significant CAGR during the forecast period. Skincare is being increasingly used as a term that umbrellas a range of products that promise to slow, pause, or reverse aging.
• For a better understanding of the market adoption of active ingredients, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, and Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. Europe constitutes a major market for the active ingredients industry owing the rising frequency of preventable chronic diseases, increased government focus on generic medications, rising government focus on generic medications whereas rising demand for cosmetic section and skin care products in this region.
• Some of the major players operating in Akzo Nobel NV, BASF SE, Ashland Inc, Seppic SA, Evonik Industries AG, Clariant AG, Lucas Meyer Cosmetics, Sederma Inc, Gattefosse, Lonza Group Ltd. among others. Several M&A’s along with partnerships have been undertaken.