Press release
Learn details of the ASEAN Cosmetic Chemicals Market Forecast and Segments, 2014-2020
The growing beauty products market has been increasing the demand for value-enriched cosmetics. The market is flooded with various cosmetic chemicals. Cosmetic chemicals are the basic ingredients found in cosmetic products including soap, shampoo, lipstick, mascara, deodorants and other beauty products (excluding the products listed under therapeutic goods). At present, various cosmetic business enterprises use more than 5000 different chemical compositions to offer selected cosmetic products. Based on its end use applications, cosmetic chemical have been further divided into surfactants, emollients, conditioning polymers, and UV absorbers. These chemical-based products contain preservatives which hinder microbial growth and thereby offer longer shell life to the cosmetics. In addition, these chemicals contain a variety of vitamins, antioxidants, minerals, herbs, hormones, and fragrances. This vast range of cosmetic chemicals allows business cosmetics to deliver different types of cosmetics in the market, thereby offering a vibrant market to cosmetic industries.Their use is widely found in personal care products. A wide range of applications ranging from anti-ageing cream to shampoo is driving the cosmetic chemical market to its zenith. Companies these days are focusing on organic grade cosmetic chemicals as they are considered to be a healthier option when compared to commodity surfactants and petroleum oils. The cosmetic chemicals market has been segmented into skin care products, make up products, hair care products and fragrance products. Among all its market segments, cleaning agents and foaming agents are the enduse applications that account for the largest percentage of the market. Skin care products accounted for 31% of global cosmetic market in year 2013. Though cosmetic chemicals offer many options to formulate cosmetics depending on different skin types, the market is shifting towards natural surfactants primarily because of the rising safety concerns of sulfate-based surfactants.
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Globally, North America is the largest market for cosmetic product consumption. It accounted for 21.2% of global market share in 2012. USA with US$ 54.89 billion in 2012 is the biggest cosmetic market. However, with the rising dominance of non-western beauty culture in Eastern region, the market share is set to shift towards ASEAN region. Ethnic and cultural diversity in APAC, and particularly in ASEAN region,are driving the cosmetics market vertically upwards. Growing consumer class in ASEAN region from 67 million population to 125 million population by 2025 will offer a lucrative market for various business cosmetic business channels. A large consumer base, ample natural resources, availability of cheap labor and easing of policies such as FDI by government, are the main driving factors for the cosmetic chemicals market in ASEAN markets.
In the ASEAN region, the cosmetic market has been witnessing a double digit growth every 5 years. GDP at the constant price shows a vertically upwards trend in these regions. The rise in the middle class population in Thailand, Indonesia, Vietnam, Myanmar, and Philippines is the major driving factor for the growth of this sector, while in Malaysia and Singapore, wealthy segments contribute largely to it. Skin care products are set to witness exponential growth in the ASEAN market, thereby offering lucrative business opportunities in the cosmetic chemicals market.
There is a flood of suppliers in cosmetic chemicals which results in a fragmented market. However, the demand for premium personal care products has led to consolidation of the market, thus leading to high competitiveness among the dominant players in this market. The prominent players of cosmetic chemicals market include Dow Chemical Company, BASF SE, Bayer AG, Givaudan SA, Merck KGaA, Shell Chemical and Berkshire Hathaway Inc.
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With the new emerging markets such as ASEAN, BRIC, and MEA, the future seems optimistic for cosmetic chemicals companies. Together, these regions offer a large market owing to the high population of youth in the age group of 15-39 years. Though the market seems promising in the long run, companies have to spend lump sum amounts on R&D to comply with the government’s regulatory demands.
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