Cosmetic Ingredients Market to Soar in the Near Future Owing to Growing Consumer Adoption

In the midst of the COVID-19 outbreak, the chemical sector is focused on keeping corporate operations operating while also guaranteeing worker safety. Companies are capitalising on rising demand for products such as disinfectants and personal protective equipment to recover losses caused by a fall in demand for certain products. Many major firms in the chemical sector have expanded their operations to include the manufacture of safety products. Companies are turning to innovative manufacturing technologies to lessen their reliance on labour.

The global cosmetic ingredients market was valued at US$ 17,374.2 Mn in 2019 and is predicted to reach US$ 23,595.58 Mn by the end of 2027, growing at a CAGR of 4.0% during the forecast period (2020 to 2027).

They are rapidly implementing advanced digital capabilities to combine supply chain and logistics to ensure optimal product delivery. Industry leaders are looking for real-time information about their supply chains in order to identify possible weaknesses, particularly in terms of location, and reinforce them. Financial disclosures are being expanded beyond the standard financial statements to address the risks that have arisen as a result of the COVID-19 outbreak.

Natural cosmetic ingredients are becoming more popular among producers, and this trend is gaining traction in the market. For example, in June 2019, BASF Care Creation launched three new active ingredients for the beauty market that leverage the unique qualities of the rambutan tree (Nephelium lappaceum) to provide unprecedented skin hydration and rejuvenation to today's globally conscious customers. As a result, the increasing use of natural cosmetic components is expected to drive market expansion.

The increased number of mergers and acquisitions throughout the world to expand their presence in the beauty business is expected to boost cosmetic ingredient market growth. For example, Givaudan stated in November 2019 that it had inked an agreement to acquire Indena's cosmetic business in order to boost Active Beauty's global capabilities in botanical active cosmetic ingredients. Over the projection period, such a merger and acquisition is expected to boost market growth.