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Active cosmetics market to record $8bn-plus revenue by 2027

Source:Arizton Advisory & Intelligence     Date:2022-12-02
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Arizton's latest research report indicates that the active cosmetics market will grow at a CAGR of 12.6% from 2021-2027. The demand for skin care and hair care products is growing as skin concerns and personal care are becoming mainstream, thereby presenting an opportunity for the market to grow. In recent years, the cosmetics industry has enthusiastically adopted nanotechnology by taking inspiration from its early involvement in biotechnology and bioscience. Several nano-based products have been developed by exploiting various nanomaterials of different compositions, shapes, and sizes. These were mainly chosen for their ability to overcome common limitations of cosmetics by enhancing penetration, improving the stability of ingredients, controlling the release of active ingredients, and functioning themselves as active agents. The application of plant-active ingredients in functional cosmetics often has several issues, such as poor solubility and stability, low skin permeability, and skin irritation, which limit the application of plant-active ingredients in functional cosmetics. Nanocarrier technology is expected to solve these problems and expand the application of plant-active ingredients in active cosmetics.

 

To make the most of the opportunities, market vendors should focus more on the growth prospects in the fast-growing segments while maintaining their positions in the slow-growing segments


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Shift toward halal cosmetics impacting the market

Several Asian and Middle Eastern countries are now mandating the adoption of halal cosmetics. For instance, Indonesia announced that the sale of only halal products will be allowed in the market (the cut-off date for cosmetics is October 2026) and is aiming to be the major player in the halal cosmetics market, which is ultimately anticipated to increase the adoption and usage of active ingredients in halal cosmetics.

 

DSM, a global science-based company, specializes in nutrition, health, & bioscience portfolio, including fully traceable vegan ingredients with a full range of skin actives, vitamins, Ultraviolet (UV) filters, and performance ingredients for a variety of personal care applications. Its PENTAVITIN, STIMU-TEX AS, PEPHA AGE, and ALP-SERUM ingredients are of particular interest to brands that seek to enhance their offering to the halal market in Asia. The need for halal cosmetics has increased due to the myriad of non-halal ingredients used in popular brands of cosmetics in the market.

 

The COVID-19 pandemic brought a substantial shift to online shopping. Online distribution channel sales made less than 10% of global distribution during the pre-pandemic period. Customers preferred to buy cosmetics from trusted drug stores and pharmacies. Furthermore, the shipping cost of a single product often increases the overall price, making the purchase unnecessarily expensive. Shiseido witnessed over 40% contribution of e-commerce platforms to its sales in the Americas, Europe, and Middle East & Africa in 2021. The company increased its share in e-commerce across Asia during the pandemic. In recent years, e-commerce penetration only augmented slightly, the online share is predicted to increase to about 47% in the US by 2023.

 

There is a high focus on developing active cosmetics in the form of powder and bars. L'Oréal is highly focused on developing dermo-cosmetics and is one of the leading companies in the dermo-cosmetics segment. Companies are highly focused on inorganic growth through M&As. In recent years, leading companies in the market have made many acquisitions to strengthen their active cosmetics portfolios.


 As the demand for halal cosmetics is rising in Middle Eastern countries and highly developed countries, several companies are now focusing on developing active cosmetics with active ingredients derived from plants. Increasing halal certifications can also be witnessed among several companies based in the Middle East, APAC, North America, and Europe. Active cosmetics vendors face huge competition with many established vendors and emerging companies to become highly competitive in the market. Vendors actively engage in strategic acquisitions and partnerships for inorganic growth and invest in R&D activities. Strategic partnerships and acquisitions remain an important competitive strategy for key players to expand their product portfolio and gain market share.

 

The report considers the present scenario of the global active cosmetics market and its market dynamics for 2022−2027. It covers a detailed overview of several market growth enablers, restraints, and trends. The study covers both the demand and supply sides of the market. It also profiles and analyzes leading companies and several other prominent companies operating in the market.


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