Personal care: Market Trends
Long regarded as a fragmented market, the value chain for personal care ingredients was expected to be worth over $30 billion in 2021. Several commentators have suggested that the industry is ready for consolidation. Jasleen Kaur, Content Lead and Brand Manager at ChemBizR, shows, how M&A tactics and contemporary trends are influencing the personal care sector.
The products of the personal care market, which are typically divided into categories such as skincare, haircare, and colour cosmetics, among others, involve complex formulations with a variety of ingredients chosen for their functions and efficacies.
A sizable portion of the active ingredients market, expected to be worth over $5 billion in 2021, belongs to the personal care sector and is also one of the most innovative, with high margins and growth prospects.
Customers’ increasing demand for products with clean labels, high efficacy, and observable results is pushing ingredient suppliers to develop a robust environment of technological competence and research, which is strongly backed by increased investments and M&A activities in the value chain.
These investments have a variety of objectives, some of which are important drivers
- Portfolio transformation to Natural Ingredients1,2,3 (away from crude oil-based chemicals)
- Capabilities enhancement in novel technological areas such as- Biotechnology4,5,6 (Blue, White & Green i.e.- Marine, Microbials & Plant origin), Delivery System Technologies, among others
- A “One-Stop” formulation shop with strong application expertise and customisation capabilities using a wide variety of ingredients, such as actives, surfactants, emulsifiers, preservatives, etc.
- Securing channels to the key and emerging markets of Brazil, India, China, Europe, the US and other SouthEast Asian countries.