TechNavio’s report, “The Global Chemicals for Cosmetics and Toiletries Market 2012-2016,” forecasts that market revenue will expand from $18.42bn to $21.91bn by 2016, with a CAGR of 4.43 per cent.
Growth will be driven by demand for bio-ingredients and skin care cosmeceuticals. The expansion will also gain momentum as market growth rate increases from 2.33 to 5.74 per cent.
The Americas are anticipated be the strongest area of growth; however, the Asia-Pacific region will also post a significant increase in strength.
A natural solution
Natural and bio-based technology will drive growth, with the increased emergence of nanotech as a mature technology propelling the market particularly strongly.
Other important areas include the increasing demand for anti-ageing and male grooming products, which are driving growth in a number of Asian markets.
Challenges which the industry will face in the future include growing health concerns and regulatory barriers, particularly in the fields of bio- and nano-tech, as well as high R&D costs.
Love the skin you’re in
Skin care markets are expected to continue to be an important component of the industry, particularly in the field of cosmeceuticals.
The strongest segment from 2011-15 will be facial care products, which are currently the largest driver of expansion.
Other areas driving growth will include sun care products, baby care products and skin care products for men, which are expected to show high increases over the next few years.
Key trends for the industry to take advantage of include the growing popularity of natural and organic products, increasing awareness of health and wellness, increasing acceptance of skin-whitening products and an increased focus on marketing.
The balance of power
The Asia-Pacific region will become a stronger player in the future, expanding from its current share of 26.7 per cent to hold 30.08 per cent of the market.
Its growth rate will also rocket to 7.53 per cent, giving it the fastest expansion of the three major regions covered.
The EMEA region, on the other hand, will post a smaller growth rate of 1.63 per cent and is not likely to grow quickly in the foreseeable future, according to TechNavio.