The high demand for products containing natural and renewably sourced ingredients is expected to drive the US cosmetic and toiletry market along with demand for anti-aging products.
North American demand for cosmetic and toiletry chemicals is forecast to rise 4.9 percent per year to $9.4 billion in 2016 according to market researcher Freedonia, as consumers favor products with active ingredients to reduce the signs of aging and that are naturally sourced.
These product types are typically more costly than inactive or synthetic materials, which will also boost dollar gains, says Freedonia.
Botanical extracts are expected to post the most rapid gains in demand among cosmetic and toiletry chemicals through 2016, reflecting the favorable natural profile of extracts, which many consumers perceive as being more healthful and beneficial than synthetic chemicals.
In addition to natural ingredient content, consumers also increasingly expect dramatic, visible results from such products as anti-aging cosmetics and toiletries, driving demand for active ingredients such as enzymes and amino acids.
Emollients, moisturizing agents, and specialty additives are also expected to grow most rapidly in the coming years.
They will see the fastest growth in demand through 2016, according to the report, as consumers expect higher performance from their toiletries. Active ingredients in particular will see above average gains among specialty additives.
“High value raw materials with mass consumer appeal - such as exotic essential oils sourced from various global locations - are being increasingly utilized to invigorate sales,” says Freedonia.
Many of these products also benefit from the perception that they are less irritating and gentler than commodity chemicals.
Niche poised for rapid growth
The report also claims that several consumer segments are historically under-served or not directly served by available personal care items, and are now seeing more targeted formulations designed for their specific needs.
“For example, men's products are a niche poised for rapid growth over the coming years, as society slowly lifts the taboo of male grooming with multifunctional toiletries (e.g., body wash that also serves as shaving gel),” says the report.
Ethnic markets have already begun to experience large growth as cosmetics and shampoos formulated for African Americans, Asian Americans, and Hispanics have entered the market.
Younger and older consumers are also seeing more products geared toward their developmental physiology - such as face soaps for adolescents and anti-wrinkle creams for those older in years.