Report

The global active cosmetics market is expected to grow at a CAGR of 13.10% from 2024 to 2030.

RECENT VENDORS ACTIVITIES

- In 2024, Givaudan's Active Beauty -one of the leading market players launched Iluminyl 388- a highly potent skin-brightening prebiotic with active ingredients to target multiple skin pigmentation pathways and is reinforced by prebiotic activity to cater to the requirements of diverse skin types.
- In 2024, Clariant Acquired Lucas Meyer Cosmetics, which offered active cosmetics products. Lucas Meyer Cosmetics was part of International Flavors & Fragrances till 2023.
- In 2023, L'Oreal rebranded its Active Cosmetics business to Dermatological Beauty to stand more clearly as a dermatologist's brand. As consumers become more aware of cosmetic ingredients and their benefits, the company wanted to be clearer about their brand and product's ingredients.

KEY TAKEAWAYS

- By Product: In 2024, the liquid segment held the largest market share of over 58%. Liquid forms of active cosmetics, with their ease of rapid absorption, dispersion, and high effectiveness, are gaining significant popularity among cosmetic users.
- By Consumers: The women segment holds the largest share and shows the highest growth of 13.22% during the forecast period. There is a huge demand for active cosmetics among women due to high awareness, positive attitude of ready-to-pay more for personal care, and cultural and traditional interests.
- By Application: The skincare segment accounted for the largest global active cosmetics market share. The growing awareness, as well as concern about ingredients contained in skincare cosmetics, is one of the leading factors that accelerate the demand for skincare active cosmetics.
- By Distribution Channels: In 2024, the drug store/pharmacies segment accounted for the largest market share. Consumers majorly trust cosmetic products that are backed by clinical studies and sold through pharmacies as they are majorly formulated for dermatological occasions.
- By Geography: APAC accounted for the largest share of over 36% in the global active cosmetics market. In APAC, people give more importance to the natural ingredients that nurture skin health compared to other regions, thus helping market growth.
- Growth Factor: The global active cosmetics market is set to grow due to the growing attention of consumers towards cosmetic ingredients and the surge in demand for organic and natural beauty products.

SEGMENTATION & FORECAST

- By Product
o Liquid
o Cream
o Others
- By Consumers
o Women
o Men
- By Application
o Skincare
o Haircare
o Others
- By Distribution Channels
o Drug Store/Pharmacies
o Mass Merchandisers
o Online
o Department Stores
o Others
- By Geography
- APAC
o China
o Japan
o India
o South Korea
o Australia
- Europe
o Germany
o France
o UK
o Italy
o Spain
o Netherlands
- North America
o US
o Canada
- Latin America
o Brazil
o Chile
o Mexico
o Columbia
o Argentina
- Middle East & Africa
o Saudi Arabia
o UAE
o South Africa
o Turkey

MARKET TRENDS & DRIVERS

Hyaluronic Acid - An Emerging Active Cosmetic Ingredient

The growing popularity of active cosmetics led to the increasing emergence of new active ingredients development in the cosmetic industry. Of these, some of the active cosmetic ingredients are hyaluronic acid, retinol, ceramides, niacinamide, and alpha-hydroxy acids; some others have become the center of attraction across the active cosmetic industry. Among all these emerging active cosmetic ingredients, hyaluronic acid has become a major choice among vendors as well as consumers. Hyaluronic acid will become a popular active cosmetic ingredient in 2024. It is a humectant ingredient that can hold 1000 times its weight in water, making it an excellent moisturizer. These properties make it one of the popular active cosmetic ingredients and are expected to be one of the most popular choices in upcoming years.

Growing Attention of Consumers Towards Cosmetic Ingredients

Since the COVID-19 pandemic, consumers have become more ingredient-conscious/ingredient-savvy, often scrutinizing product labels to avoid potentially harmful or irritating chemicals. Also, consumers are willing to pay a premium for potential ingredients, rather than just relying on general cosmetic claims. The demand for clean cosmetic products developed without some controversial ingredients like sulfate, parabens, and phthalates has surged. Vendors are acknowledged by offering and formulating products to fulfill consumers' requirements and provide more effective and comprehensive ingredient lists on product labels. Recently, vegan and cruelty-free products have become one of the major choices among consumers. There is growing attention toward vegan and cruelty-free cosmetic products, with consumers looking for brands that do not test on animals or use animal-derived ingredients.

Growing Attention and Ready-to-Spend Approach On Cosmetics

Worldwide, beauty and cosmetics approaches are considered essential by consumers after the COVID-19 pandemic from 2020 to 2022. The increasing cost of living seems to have shifted peoples' spending priorities, growing focus on wellness and self-care over the past 3 years. Health and beauty spending has increased by 7% since the COVID-19 pandemic. Direct-to-consumer (DTC) cosmetic brands and beauty influencers are both adapting and influencing buyer preferences and their spending on cosmetics.

Surge in Demand for Organic and Natural Beauty Products

Natural cosmetics are defined as products made from natural sources, containing minimum levels of synthetic substances, such as petrochemicals and parabens. Organic describes ingredients that are grown, harvested, and processed in a way fitting the United States Agriculture Department's (USDA) standards for organic agricultural products. There has been a recent surge in all-natural and organic cosmetic products. The growing adoption of chemical-free cosmetics, along with the rising disposable income and increasing standards of living in developing countries, is fuelling the demand for natural and organic personal care products.

INDUSTRY RESTRAINTS

Challenges Associated with Securing Quality and Effective Ingredients

Worldwide, the growing attention towards quality cosmetic ingredients and associated effects creates huge challenges for vendors to secure safe ingredients. Active ingredients used for active cosmetics are unique, costly, and rare to secure. One of the major challenges when it comes to sourcing or securing quality ingredients is ensuring timely delivery for suppliers while also balancing cost and quality. To ensure a streamlined supply of active cosmetics, ingredients vendors need to develop or source raw materials. The ingredients used in active cosmetics are costly to secure and source and the vendors need to invest significant costs that are challenging for small and medium-sized vendors.

SEGMENTATION INSIGHTS

INSIGHTS BY PRODUCT

The global active cosmetics market by product is segmented into liquid, cream, and others. In 2024, the liquid segment holds the largest market share of over 58%. Liquid active cosmetics are becoming more popular because they absorb quickly, spread easily, and work effectively. They can also hold different ingredients in one form, making the products more effective. Liquid cosmetics are better for young skin that needs more hydration. Most active cosmetic ingredients come in liquid form, which helps the market grow. Many botanical, organic, and natural extracts, such as plant, vegetable, and fruit oils, are mostly available in liquid form. They can be used in cosmetic products without changing their state, which further boosts market growth.

INSIGHT BY CONSUMERS

The global active cosmetics market by consumers is categorized into women and men. The women segment accounted for the largest share and showed significant growth, with the fastest-growing CAGR of 13.22% during the forecast period. Women are the main consumers of active cosmetics. Their choices, knowledge, and preferences vary widely. More than 80% of women around the world use at least one cosmetic product. Most women spend mainly on skincare, especially anti-aging products, followed by whitening products. The demand for active cosmetics is high among women, as seen in their growing interest in natural and herbal products. The demand for active cosmetics among women is high due to greater awareness, willingness to spend more on personal care, cultural and traditional preferences, and the growing number of female social media and internet users. These factors have contributed to the rising demand for active cosmetics.

INSIGHTS BY APPLICATION

Based on the application, the skin care segment accounted for the largest share of the global active cosmetics market. Active cosmetic ingredients have become popular in recent years for skincare. The growing awareness, as well as concern about ingredients contained in skincare cosmetics, is one of the leading factors that accelerate the demand for skincare active cosmetics. Skincare becomes an essential part of many women's daily routines. Skincare products contain several ingredients, each serving a particular purpose. Of these, active ingredients are the key players in skincare products. Their application is growing in cosmetic products as they address specific skin concerns such as aging, acne, hyperpigmentation, and others. Furthermore, the development and discoveries of advanced ingredients, such as retinol and hyaluronic acids, are becoming more popular in recent years for facial skincare. These advancements are increasing the application of active cosmetics in skincare categories.

INSIGHTS BY DISTRIBUTION CHANNEL

Based on the distribution channel, the drugstore/pharmacy segment dominates and holds the largest share of the global active cosmetics market. Drug stores and pharmacies are the main sellers of active cosmetics. These products contain active ingredients with clinically proven benefits for skin and hair care. Consumers trust cosmetics backed by clinical studies and sold in pharmacies, as they are often made for dermatological needs. With growing awareness of skincare and haircare, the demand for government-approved personal care products and dermo-cosmetics is increasing. As a result, many consumers prefer buying active cosmetics from pharmacies, knowing they are formulated for specific skin and hair concerns.

GEOGRAPHICAL ANALYSIS

APAC accounted for the largest share of over 36% in the global active cosmetics market and shows the highest growth during the forecast period. The Asia-Pacific (APAC) region is a major market for active cosmetics and is expected to see strong revenue growth in the future. People in this region prioritize natural ingredients that promote skin health more than in other regions. Consumers in APAC focus on achieving radiant skin, which drives the demand for active cosmetics. China is the largest market in the region, with a large consumer base and high awareness of cosmetic ingredients. This has led to significant market growth in the country.
Europe holds the second-largest global active cosmetics market share. This growth is mainly driven by increasing spending on beauty and personal care products and services, rising attention towards organic and natural ingredient-based cosmetic solutions, and a shift towards science-driven cosmetic product innovations.

COMPETITIVE LANDSCAPE

The global active cosmetics market report contains exclusive data on 29 vendors. Leading brands are improving product efficiency and strengthening their market position. They have a strong brand image and a wide global presence. To stay competitive, they focus on strategies such as new product launches, advanced ingredient development, and acquisitions. These efforts help them expand their capabilities and gain a higher revenue share in the market. L'Oreal, Givaudan, Croda International, International Flavors & Fragrances, and Shiseido are some of the top companies with the highest market share in the global active cosmetics market. These companies provide high-quality and reliable active cosmetic solutions that meet consumer needs and international regulations.

Key Vendors

o L'Oreal
o Croda International
o Givaudan
o International Flavors & Fragrances (IFF)
o Shiseido

Other Prominent Vendors

o Active Lux Cosmetics
o AQ Cosmetics - Aquatonales
o Air Liquide Healthcare
o BASF Personal Care and Nutrition
o Beiersdorf
o Casida
o CLARIANT
o Coty
o Cosmetics Bulgaria
o DSM
o Evonik
o FOOTNESS
o Environ
o GalBaia, Natural Dermathecary
o Gattefosse
o Laboratoires Expanscience
o LipoTrue
o Lonza
o Naolys
o Nouryon
o Robertet Group
o Sabinsa
o sober care GmbH
o Skinbetter Science

KEY QUESTIONS ANSWERED:

1. How large is the global active cosmetics market?
2. Which product type of active cosmetics will dominate the market growth?
3. Which region will have the highest growth in the global active cosmetics market?
4. What are the factors driving the global active cosmetics market growth?
5. Who are the major players in the global active cosmetics market?