Personal care ingredients market to reach $18.5B by 2031

Allied Market Research says the global personal care ingredients market was worth $10.4 billion in 2021 and is projected to hit $18.5 billion by 2031. Growth is being driven by higher consumer spending, premium beauty demand and rising interest in cleaner ingredient options.

Why it matters: - The personal care ingredients market is expanding as consumers spend more on skincare, cosmetics and hygiene products. - Rising demand for premium and natural formulations is pushing manufacturers to innovate across ingredient categories. - The market outlook signals opportunity for ingredient suppliers, brand owners and investors tied to beauty and wellness.

What happened: - Allied Market Research valued the global personal care ingredients market at $10.4 billion in 2021. - The market is projected to reach $18.5 billion by 2031. - The report forecasts a 6.0% compound annual growth rate from 2022 to 2031. - The release highlights rising disposable income, improving living standards and stronger consumer purchasing power as key growth drivers.

The details: - Synthetic ingredients accounted for nearly two-thirds of global revenue in 2021 and are expected to keep the lead through 2031 because of broad use and cost efficiency. - Natural ingredients are projected to grow the fastest, with a 6.1% CAGR, as demand rises for clean-label and sustainable formulations. - Skin care was the largest application segment in 2021, generating more than one-third of total market revenue. - Toiletries are expected to be the fastest-growing application segment, with a 6.7% CAGR. - UV absorbers held the largest ingredient share in 2021, with more than one-fourth of global revenue, supported by use in sunscreen and skincare. - Rheology control agents are projected to post the fastest ingredient growth, with a 7.3% CAGR, as brands seek better texture, stability and performance. - The report also covers emollients, surfactants, emulsifiers, antimicrobials, hair fixative polymers and conditioning polymers. - North America was the largest regional market in 2021, contributing nearly one-third of global revenue. - Asia-Pacific is expected to record the highest regional CAGR at 6.5% by 2031. - Europe and LAMEA were also analyzed for growth opportunities.

Between the lines: - Concerns about side effects from chemical-based ingredients are slowing some demand and pushing manufacturers toward safer, naturally derived alternatives. - The split between synthetic leadership and faster natural growth suggests the market is moving in two directions at once: scale and cost on one side, cleaner-label positioning on the other. - Companies in the sector are using partnerships, collaborations, acquisitions, product innovation, joint ventures and geographic expansion to defend share and reach new customers. - Major market players include BASF SE, Croda International Plc, Clariant AG, The Lubrizol Corporation, Dow Inc., J.M. Huber Corporation, Ashland Global Holdings Inc., KCC Corporation, Solvay S.A. and Evonik Industries AG.

What's next: - Asia-Pacific demand is expected to keep rising as urbanization, incomes and middle-class consumption increase. - Ingredient makers are likely to keep investing in cleaner, more functional formulations as consumers scrutinize product safety and performance. - The market’s next phase will likely favor suppliers that can balance premium claims, regulatory expectations and cost efficiency.

The bottom line: - Personal care ingredients are set for steady growth through 2031, with premiumization, wellness awareness and cleaner formulations driving the next leg of expansion.