Driven by shifting consumer preferences, technological leaps, and a growing emphasis on sustainability, the personal care ingredients industry is experiencing a wave of innovation and transformation. From personalized skin care solutions to the rise of “skinification” in hair care, the trends shaping the personal care ingredients market are redefining how we think about personal care products.
In this dynamic landscape, brands are leveraging digital technologies to offer customized products that cater to individual needs. Sustainability is no longer a buzzword but a core value, with upcycling and biodegradable ingredients leading the charge. Minimalism and multifunctional ingredients are simplifying beauty routines, while the concept of well-aging is replacing traditional anti-aging narratives in some regions. Men’s grooming is gaining momentum, and the competition between local and foreign suppliers is driving quality and innovation to newer heights.
As we delve into these trends, based on Kline + Company’s recently published study Personal Care Ingredients: Global Market Analysis, it’s evident that the future of personal care ingredients is bright, exciting, and full of opportunities for those ready to embrace change.
Customization and Personalization
One of the most prominent trends in the personal care ingredients market is the increasing demand for customized and personalized products. As competition intensifies, formulators are offering tailored solutions to meet the unique needs and preferences of consumers. Consumers view customized products as a way to express their individuality, and companies like SkinKraft and MeuQ are leading the charge by developing personalized skin care solutions.
Digital technologies, especially artificial intelligence (AI), are playing a crucial role in this trend. Personal care brands are leveraging AI to understand consumers’ skin types, tones, and other characteristics, enabling them to provide more accurate and effective solutions. This approach goes beyond traditional demographic factors like age, ethnicity, and gender, allowing for a more nuanced understanding of consumer needs.
For example, in cases where the AI identifies acne-prone skin, ingredients such as azelaic acid and niacinamide are commonly recommended. If the AI diagnoses issues with the skin barrier, products containing ceramides are likely to be suggested. This means that customers can get products that are more targeted to their needs, and brands and ingredient suppliers will have a richer database to determine which ingredients they should focus on in their portfolio.
Skinification of Hair Care
The concept of “skinification” is blurring the lines between skin care and hair care. Healthy scalp leads to healthy hair, and this understanding has brought scalp health into focus for active ingredient suppliers and personal care formulators. Ingredients traditionally used in skin care, such as hyaluronic acid, are now being incorporated into hair care products to add density and resistance to hair.
This trend is reshaping the hair care category by bringing skin care claims to hair products. Consumers are increasingly looking for hair care solutions that offer the same benefits as skin care, such as hydration, moisture retention, and protection against environmental damage.
Sustainability and Upcycling
Sustainability continues to be a major driver in the personal care ingredients market. Consumers are becoming more aware of the environmental impact of their choices and are seeking products made with sustainable ingredients. This has led to the trend of “upcycling,” where waste products from other industries are repurposed for use in personal care products. For example, TEGO Natural Citrus by Evonik is derived from a byproduct of the food industry.
The focus on sustainability is also driving the demand for biodegradable ingredients. Personal care formulators are increasingly looking for ingredients that do not harm the environment, aligning with consumers’ preferences for eco-friendly products.
Minimalism and Multifunctional Ingredients
Consumers are gravitating toward simpler product formulations and beauty routines, a trend known as “skinimalism.” This trend is driven by the desire to reduce time and money spent on personal care, as well as the increasing cost of ingredients due to high labor and energy costs. As a result, suppliers and formulators are researching new benefits of existing ingredients to simplify formulations and create multifunctional products.
This trend is expected to benefit preservative boosters, such as 1.2-Hexanediol, more than other categories. Additionally, shorter ingredient lists make it easier for consumers to understand and trust the products they use. The focus on minimalism also aligns with the broader sustainability trend, as fewer ingredients and products lead to resource conservation.
Well-Aging vs. Anti-Aging
The concept of well-aging is gaining traction as an alternative to traditional anti-aging products. The senior generation, particularly in markets like the U.S., Europe, Japan, and South Korea, is becoming a significant customer base for personal care products. Unlike previous generations, today’s seniors are more active and have a different lifestyle. They are less interested in fighting the signs of aging and more focused on maintaining healthy, beautiful skin as they age.
Well-aging products aim to delay the visible signs of aging, such as loss of smoothness, dryness, and discoloration, by keeping the skin fresh, hydrated, and healthy. This approach resonates with seniors who seek emotional care and positive claims rather than over-promises of reversing aging.
Men’s Grooming
Men’s grooming is another growing segment in the personal care ingredients market. The search volume for “men skin care routine” has increased significantly in recent years, indicating a rising interest among men in personal care products. Men are using more beauty products to improve their appearance, texture, and skin health.
This trend is prompting the creation of products specifically designed to meet men’s needs, thereby further segmenting the market. As men become increasingly aware of their grooming routines, the demand for high-quality, effective personal care products is anticipated to grow. Ingredients such as vitamin C, niacinamide, and hyaluronic acid are likely to benefit from this increased demand.
Competition Between Local and Foreign Suppliers
Recent supply chain disruptions have led to formulators prioritizing local suppliers over foreign ones. As the situation normalizes, foreign suppliers are striving to regain the market share they lost during the pandemic. This has intensified competition between local and foreign suppliers in the personal care ingredients market. Competition has further strengthened due to increased price sensitivity, which has opened the market to cheaper suppliers.
As European suppliers are facing increased expenses due to high material and energy costs, it is making it difficult for them to compete with the often cheaper, alternatives offered by foreign companies. This competition is expected to drive innovation and improve the quality of personal care products available to consumers as European suppliers strive to maintain their market share by focusing on efficiency and cost-effective solutions.
What Does the Future Hold?
The trends we’ve explored—customization, skinification, sustainability, minimalism, well-aging, and men’s grooming—are not mere buzzwords. They represent a fundamental shift in how consumers interact with personal care products.
In this dynamic landscape, the key to success lies in understanding and anticipating consumer needs. It’s about creating products that resonate on a personal level, whether through tailored skin care solutions or sustainable ingredients that align with eco-conscious values. The rise of multifunctional ingredients and the adaptation of skin care routines and ingredients into hair care are pushing the boundaries of innovation, offering consumers more value and simplicity in their routines.
Moreover, the competition between local and foreign suppliers is heating up, driving quality and innovation to new heights. This competitive spirit is beneficial for consumers, who can expect better products and more choices.
As we look to the future, it’s clear that the personal care industry must continue to adapt and innovate. By staying attuned to these trends and embracing the changes they bring, companies can not only meet but exceed consumer expectations, paving the way for a more personalized, sustainable, and exciting future in personal care.
