Consumers are increasingly looking for cosmetics that offer more than just aesthetic benefits. For instance, anti-pollution ingredients that protect the skin from environmental damage are growing consumer awareness about the benefits of functional cosmetic ingredients including anti-aging properties, sun protection, and skin hydration.
The functional cosmetic ingredients market was estimated to have acquired US$3.7 billion in 2022 and it is anticipated to register a 5.3% CAGR from 2023 to 2031. By 2031 the market is likely to gain US$5.9 billion.
What is driving the demand?
An aging population, mainly in developed countries, is leading the demand for anti-aging and skin rejuvenation products. It is also driving the demand for functional ingredients such as peptides, retinoids, and antioxidants for those seeking to maintain youthful skin.
The beauty and skincare industry is experiencing vigorous growth driven by changing beauty standards and the desire of self-care, and functional ingredients are vital to this growth as ingredients improve the efficacy of skincare products.
Global Key Market Trends:
The Skincare segment is expected to dominate the market growth – credited to consumer emphasis on skin, health, sun protection, natural and organic ingredients, and customization and personalization.
The Clean Beauty movement is driving the demand for cosmetic products made with safer, non-toxic ingredients. Consumers are dissecting ingredient lists and opting for products that exclude harmful substances.
Sustainability is still a key trend in the cosmetic industry. Appealing to environmentally conscious consumers, manufacturers are incorporating eco-friendly practices and sourcing sustainable ingredients.
Technology is increasingly changing the beauty industry, with apps and devices to analyze skin conditions and recommend products with specific functional ingredients becoming more dominant.
Market Trends for Functional Cosmetic Ingredients:
Cannabidiol (CBD) is gaining popularity for its potential skin-soothing and anti-inflammatory properties. That being said, CBD-infused cosmetic products are on the rise.
Products that protect and support a healthy skin microbiome are in demand as consumers become more aware of the importance of skin’s natural flora.
Sustainable and eco-friendly packaging is a growing trend with consumers favoring products with minimal environmental impact.
AI and AR technologies are being used to enhance the shopping experience through virtual try-ons and personalized skincare recommendations.
Thanks to the rise of the wellness category along with consumer interest in taking better care of the environment, functional cosmetic ingredients will continue to grow as more ingredients are being researched.