Functional Cosmetics Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Functional Cosmetics Market is Segmented By Type (Conditioning Agents, Sun Protection Agents, Anti-Aging Agents, Skin Lightening Agents, Others), By Ingredient (Natural, Synthetic), By Form (Solid, Liquid), By Application (Skincare, Haircare, Others), By End-User (Female, Male, Unisex), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Functional Cosmetics Market Report Overview

The Global Functional Cosmetics Market report analyzes the global market size, shares, recent trends, competitive intelligence, and future market outlook. Functional cosmetics are beauty and personal care products that offer additional benefits beyond traditional cosmetic effects, such as anti-aging, sun protection, hydration, and skin repair. The market is driven by the rising consumer demand for multi-functional and value-added skincare and cosmetic products. In Asia Pacific, the Global Functional Cosmetics Market is experiencing rapid growth. Key players in the market include L'Oréal S.A., Estée Lauder Companies Inc., Shiseido Company, Limited, and other prominent players.

Functional cosmetics include skincare, anti-aging, and hair care products, among others, incorporating functional ingredients with properties that impact the final cosmetic product's form, texture, consistency, aroma, and delivery mechanism. The functional ingredient is an inactive substance that helps over-the-counter medications work by giving primary skin benefits and assisting the active ingredient's performance. Surfactants, conditioning and moisturizing agents, colorants, fragrance compounds, and other products are commonly found in functional cosmetics. In a skincare formulation, functional cosmetic components are frequently thought of as carriers for transferring active or performance elements.

Functional Cosmetics Market Scope and Summary

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Source: DataM Intelligence Analysis (2023)

Functional Cosmetics Market Dynamics and Trends

The rapid growth of the healthcare sector and the demand for functional cosmetics in the respective market act as a major market booster that drives the global functional cosmetics market. However, the difficulty in manufacturing high-performance functional cosmetics is expected to restrain the respective market.

Growing demand for natural multi-functional ingredient

Functional cosmetics are specialty chemicals added to cosmetic skincare products to improve their functionality. Ingredients including anti-aging agents, exfoliators, conditioning agents, and UV agents are a few examples of multi-functional products utilized in functional cosmetics.

Natural functional cosmetics are getting more popular among consumers and manufacturers. The rise of environmental and health awareness may be seen in the behavior of both manufacturers and consumers. The data obtained in Hungary using an online questionnaire in 2018 revealed that health and environmental awareness is expected to become a significant trend for producer and consumer behavior in the functional cosmetics market.

The demand for better functionality and various benefits from a single product is the primary reason behind the growing utilization of natural multi-functional ingredients in functional cosmetics. For instance, creams and post-shave moisturizers that offer UVA and UVB radiation protection currently utilize natural multi-functional ingredients such as sandalwood, sesame seed oil, sunflower oil, coconut oil, saffron, jojoba oil, shea butter, and vitamin E oil that offer skincare benefits with sun protection features.

Natural functional cosmetics are expected to have a much broader palette in the future due to the growing demand for green cosmetics components that don't harm the body in the long run and ecologically friendly production processes.

Stringent government regulations associated with functional cosmetic ingredients and a high price range for organic ingredient

Functional cosmetic products are currently under strict scrutiny in terms of the ingredient utilized in them due to the serval negative impact of these ingredients on the body. For instance, mercury utilized as a functional cosmetic ingredient to reduce black spots and improve skin tone is found to have a seriously destructive impact on the brain, kidneys, and liver. As a result, governments and regulatory bodies globally, such as the Center for Food Safety and Applied Nutrition, U.S., have imposed stringent regulations regarding the ingredient utilized in functional cosmetics. As a result, a paradigm shift toward utilizing natural alternatives to address the concerns connected with synthetic cosmetics that are harsh on the skin is gaining global momentum.

Even though the plans to escape stringent government regulations and address the global change in consumer preference, employing natural ingredients appear as an easy solution, the high cost of natural ingredients could increase the final price of the cosmetic products, which could lower the demand for functional cosmetic products, thereby hampers the growth of the global functional cosmetic market. Therefore, stringent government regulations associated with functional cosmetic ingredients and a high price range for organic ingredients is a major restraints that could lower the overall market prospects of the global functional cosmetics market.

COVID-19 Impact on Functional Cosmetics Market Growth

Although the COVID-19 pandemic caused disruptions in the functional cosmetics market's production, supply chain of raw materials and finished products and caused an overall all demand decrease in demand, due to the growing health and beauty awareness, market boom of e-commerce, and influx of social media, the functional cosmetics market stayed afloat during the COVID-19 pandemic.

However, the functional cosmetics industry will continue to be appealing to customers in the long run. Since the COVID-19 problem accelerated the trends such as the expansion in the use of functional cosmetics among the middle class and the use of e-commerce, the global functional cosmetics market is expected to return to its former glory once the restrictions associated with the pandemic subsides. Further, as consumers globally demonstrate the simple joys of a "self-care Sunday" or a lipstick brush before a Zoom conference to bring them comfort, the functional cosmetics market would expect a rise in demand.

Furthermore, as the concept of "beauty" was expanding, becoming increasingly global and interwoven with people's sense of well-being, the respective tendencies are unlikely to change due to COVID-19 and the functional cosmetic market would make a major comeback in the post-pandemic scenario.

Functional Cosmetics Market Segment and Shares

The global functional cosmetics market is segmented by type, ingredient, form, application, end-user, and region.

The increasing desire to appear flawless and the growing population and demand for male-specific products in the skincare sector allows the respective sector to dominate the application segment of the global functional cosmetics market

Based on application, the global functional cosmetics market is segmented into skincare, hair care, and others.

The skincare sector is expected to dominate the application segment of the global functional cosmetics market. The use of functional cosmetics in skincare applications primarily addresses issues such as UV protection, wrinkles, blemishes, acne, aging, and frown lines, among others. Because humans have a universal need to appear well, skincare products are highly demanded globally. The importance of having a healthy, beautiful complexion is a primary driving force behind the rising demand for beauty and skincare products. An increase in male-specific cosmetic products and a growing population are likely to drive up demand for the skincare cosmetics segment in the global functional cosmetics market.

Source: DataM Intelligence Analysis (2023)

Functional Cosmetics Market Geographical Analysis

Emphasis on personal aesthetics and desire to appear young among the region’s elderly and youth alike accounts for the dominance of Europe in the region's segment of the global functional cosmetics market

Due to a rising emphasis on personal aesthetics combined with a rapidly aging population striving to remain youthful, Europe is predicted to account for considerable revenue shares and dominate the regional segment of the global functional cosmetic market. Over the projected period, the functional cosmetic market is expected to rise due to an increase in the desire of younger people to prevent the earliest signs of aging and the higher price for functional cosmetics in Europe. Moreover, the region's inclination toward natural & organic personal care and easily biodegradable products could also be considered a factor for the region's dominance over others in the respective market.

Source: DataM Intelligence Analysis (2023)

Functional Cosmetics Companies and Competitive Landscape

The global functional cosmetics industry is extremely saturated in terms of the number of global and local players. As there are many significant competitors, the market may be considered fragmented. Significant companies employ market approaches such as mergers, acquisitions, product launches, contributions, and collaborations to stay ahead of the competition and recognition in the respective markets BASF SE, Ashland Global Specialty Chemicals Inc, Stepan Company, Nouryon Chemicals Holding B.V., Clariant AG, Evonik Industries AG, Eastman Chemical Company, Lucas Meyer Cosmetics Canada Inc, Columbia PhytoTechnology LLC, and SEPPIC SA.

For instance, on August 3, 2020, Lamesoft, a naturally derived and biodegradable substance, was launched by BASF SE. The product is a functional compound employed to keep ingredients stable in skin and hair-washing regimens.

BASF SE

Overview: BASF SE is a chemical company established in Germany that produces chemicals for a variety of industries. Transportation, chemicals, construction, electronics & power, energy & resources, furniture & wood, home care, and cleaning, agriculture, and other industries are among the company's 13 product categories. The company has 6 global locations and 241 additional industrial sites in over 90 countries. In 2020, the BASF Group generated around US$ 68,625 million in revenue.

Product Portfolio:

• Uvinul A Plus: The respective product is one of the few photostable UVA filters available on the market that is capable of reliably blocking the harmful UVA rays of the sun while also providing excellent free radical and skin damage protection. The oil-soluble granule has exceptional formulation flexibility, is preservative-free, and performs well at low concentrations. Uvinul A Plus is perfect for long-lasting sun care and anti-aging skincare products.

Key Development:

• For instance, on August 18, 2020, BASF SE made investments to open a new production line in its plant located in Kaohsiung, Taiwan. The investment is aimed to increase the output of Uvinul A Plus, a UVA protection ingredient that finds applications in a variety of sun and skin products.

Why Purchase the Report?

• To visualize the global functional cosmetics market segmentation by type, ingredient, form, application, end-user, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the global functional cosmetics market by analyzing trends and co-development.
• Excel data sheet with numerous data points of functional cosmetics market-level with four segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as Excel consisting of key products of all the major market players

The global functional cosmetics market report would provide approximately 77 tables, 78 figures, and almost 180 pages.

Target Audience 2023

• Functional Cosmetics Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies
• Logistics companies
• Distributors/ Suppliers