Elodie Alves
Senior Analyst, Chemicals + Materials
Valued at nearly USD 20 billion, the specialty personal care ingredients market is expanding steadily despite challenges that continue to shape global dynamics. Over the past two years, this industry has undergone significant shifts driven by increased interest in sustainable solutions, and cost and regulatory pressures.
Economic Pressures
The global economic crisis has led to high inflation, and despite some anticipated improvements through 2025, the impact on ingredients, formulations, and the cost of finished products remains significant.
The recent imposition of strict tariffs and global geopolitical tensions have created an environment of uncertainty in the personal care industry. Effects on ingredient costs may have a domino effect on the supply chain, reshaping the supplier landscape, influencing brand strategies, and changing consumer purchasing behavior.
Key regions, including Europe, the United States, and China, record slower-than-anticipated growth, facing issues such as oversupply and increased competition within the personal care ingredients market.
Consumer Expectations
Consumer demand for transparency and eco-friendly alternatives is pushed back with increased cost-sensitivity. Global uncertainty among consumers leads to change in purchasing habits, reducing unnecessary expenses by shifting away from premium to more standard options, with an increasing focus on high-efficacy products.
This situation poses further challenges regarding new developments and innovation, especially in the mass-market sector where cost-sensitivity continues to grow.
Emerging Opportunities
Despite these challenges, the personal care ingredients market continues to foster dynamic prospects. Growth continues to be driven by sustainable solutions and science-backed claims. While core categories such as emollients and surfactants dominate the market, natural oils and esters, and sulfate-free and naturally derived surfactants are gaining traction as greener solutions.
Insights That Power Strategy
Kline & Company’s upcoming Personal Care Ingredients 2025: Global Market Analysis and Opportunities study helps industry participants navigate this evolving landscape. The comprehensive research provides insights into more than 250 ingredients used in personal care formulations—covering demand trends, pricing, regulations, and supplier positioning.
Subscribers will gain data-driven perspectives to answer pressing questions, such as the following:
- How have the U.S. tariffs impacted global ingredients sales and supplier dynamics?
- How is the demand for alternative preservation systems affecting traditional preservatives?
- Which ingredients have benefited from regulatory changes on cyclomethicone and scrutiny on silicone?
- Is the sulfate-free trend still affecting surfactants despite rising cost concerns?
- Has the adoption of biosurfactants in personal care formulations grown as expected?
- How are regulations and scrutiny on organic UV absorbers impacting the UV protection segment?
- Has the preference for emollient esters over mineral oils spread from Europe to other regions?
Whether you are a supplier, distributor, or new market entrant, this study helps you to understand the global personal care ingredients market, identify regions with higher growth potential, and make informed decisions that strengthen your sales and marketing strategies.
