The market is forecast to grow at a Compound Annual Growth Rate (CAGR) of 2.2 percent through to 2014, according to Kline’s latest study, Global Personal Care Ingredients 2010: Market Analysis and Opportunities.
Since the beginning of 2005 strong growth spiralled into a decline in total sales by 2009. This reflected the troubled economic and retail conditions and meant that sales of personal care ingredients climbed by only 3 percent during the period.
Kline’s prediction underline the fact that it sees a marked uptick in the personal care segment by 2011 – 2012, a phenomenon that Kline researcher Gillian Morris refers to as a ‘full recovery’.
Surfactant and conditioning polymers lead the way
In terms of volume, the market was estimated to have reached a figure of 355m lbs in 2009, making it the second largest global market, behind that of Europe.
Looking at the type of ingredients that are driving the segment, the most popular are conditioning polymers, used to improve texture and formulation consistency, and estimated to account for around one third of all cosmetic ingredients sold in the US, by volume.
Surfactants, which are most often used in skin care products to allow easier spread, as well as enabling easier formulation of liquids, accounted for 23 percent of the total volume of ingredients in the category last year.
Green surfactants emerge as a key trend
Kline notes that in the surfactants category, demand for Alkyl polyglucosides (APG) has grown well above average growth rates on account of the fact that this type of ingredients complies with demands for greener formulations.
The growth of this natural-based surfactant formed an important part of all round sales growth in natural personal care ingredients that was estimated to have reached 8 percent in 2009.
“Although there is still perceived issue with performance of natural ingredients prohibiting their usage in many formulations, the opportunities for growth surpass those more traditional ingredients, creating a forum for innovation," said Anna Ibbotson, Industry Manager, Chemicals & Material practice at Kline."