Frost & Sullivan's recent analysis, Transformative Mega Trends Driving the Global Personal Care Active Ingredients Market, 2020, finds that the personal care active ingredients market is expected to reach $4.85 billion by 2025 from $3.9 billion in 2019, at a compound annual growth rate (CAGR) of 3.7%.

The growth of the market is driven by rising disposable income, increasing demand for clean and sustainable ingredients, and expanding online and offline distribution channels for personal care products.

The COVID-19 pandemic has adversely impacted the market as the demand for personal care products such as makeup, perfumes, moisturizers, and sunscreens declined during the global lockdown. However, the increasing popularity of beauty and cosmetic products among male consumers strengthens the demand for active ingredients. The shift in consumer behavior across the globe is propelling personal care companies toward manufacturing organic, plant-based and multifunctional products.

"Consumers are becoming more aware of the importance of hydrating, moisturizing, and anti-aging ingredients in their care products; thus, companies must invest in research and development (R&D) and innovate to meet consumers' requirements," said Prateeksha Kaul, Chemicals, Materials & Foods Research Analyst at Frost & Sullivan. "Anti-aging personal care products are expected to witness the highest growth of 6.5% between 2019 and 2025 due to the increasing aging population across the globe."

Kaul added: "Synthetic and harmful chemicals in personal care products such as Bisphenol A (BPA) and phthalates triggered a trend change in the industry. Consumers request cosmetic products that are free from ingredients such as parabens, phthalates, sodium lauryl sulfate (SLS), sodium laureth sulfate (SLES) and mineral oils. With the trend of a minimalist beauty approach, the demand for ingredients with multifunctional benefits and properties is expected to increase."