Cosmetic Chemical Sales Growing with Rising Per Capita Income

From $457.734 in 1960, the global per capita income has risen to $10,910.084 in 2020. This means that on average, people have more to spend than 60 years ago. As a result, the sale of several products and services that were earlier only purchased via the wealthy, such as electrical appliances, consumer electronics, and automobiles, are being widely bought by the middle and even lower classes. Another kind of products that are now gaining a widening customer base are cosmetics.

Thus, P&S Intelligence expects the cosmetic chemicals market size, which was already $20.0 billion in 2020, to grow significantly in the years to come. Cosmetic is anything with or without actual health benefits that is used to enhance the appearance. Apart from the rising disposable income, the increasing appearance consciousness is propelling the usage of such products. The surge in the appearance consciousness is attributed to the growth in the influence of the Western culture via TV shows, magazines, and social media. 

Further, the increasing population of teenagers and young adults is driving cosmetic sales. Compared to children and older adults, teenagers and young adults are more social. The average teenage lifestyle has begun to be characterized by get-togethers, parties, eating out, and clubbing. At such social events, appearance is considered important, and people spend a substantial time in front of the mirror. Hence, the sale of moisturizers, hair removers, makeup products (including foundations, nail polishes, lipsticks, and eyeshadows), hair gels and mousses, lotions and creams, and shampoos and conditioners is burgeoning.

As a result, among all kinds of cosmetics — skincare, haircare, makeup, and oral care products and fragrances — skincare products are in the highest demand. This is also because skin health and texture are considered important markers of physical beauty. Moreover, with the growing trend of bold clothing, wherein more of the skin is exposed than in traditional clothing, teens and young adults are using skincare products in abundance, to impress their peers. This is also why among the different types of chemicals, the consumption of emollients and moisturizers is the highest in cosmetic production.

Further, with time, people have become aware of the ill-effects chemicals can have on the skin, which is why they are going for cosmetics marketed as organic and natural. This is prompting key cosmetics companies as well as chemical firms, such as The Dow Chemical Company, Ashland Inc., Givaudan S.A., Eastman Chemical Company, BASF SE, Lonza Group, LANXESS Deutschland GmbH, Solvay S.A., P&G Chemicals, Evonik Industries AG, Croda International Plc, Cargill Incorporated, and Bayer AG, to engage in extensive research and development (R&D) to come up with products that carry the same functional characteristics as conventional ones, but do not harm the skin.

Asia-Pacific is the dominant cosmetic chemicals market across the globe. Although North America and Europe have a higher disposable income and brand awareness, APAC registers the highest cosmetics sales because of its huge population. Therefore, to target the regional populace with cost-effective products, major cosmetics companies have their production plants here, which propels the consumption of the various chemicals that go into such products. Within the region, China is the largest cosmetics chemical consumer as it is home to the factories of many cosmetics manufacturers.

Hence, with the growing cosmetics production, the demand for associated chemicals will boom.

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