Global Active Cosmetics Market - Focused Insights 2025-2030

MARKET INSIGHTS

The global active cosmetics market was valued at USD 11.12 billion in 2024 and is expected to reach USD 23.28 billion by 2030, growing at a CAGR of 13.10% during the forecast period. The market is changing quickly due to discoveries and developments in advanced active ingredients, increased awareness of active cosmetics and their health benefits, and the growing use of the internet and social media, which is boosting market growth. Additionally, the use of new technologies in manufacturing, the shift to organic and natural ingredients, and the rise of ocean-based cosmetic ingredients are expected to create strong growth opportunities in the future.

MARKET DEFINITION

Active cosmetics is a personal care solution with specific ingredients that support product targets a specific skin concern. The ingredients are scientifically tested and proven to benefit the skin and hair. Active ingredients concern the substances that fulfill the purposes of cosmetics for long-term improvement of skin and hair complexion. Active cosmetics are particularly formulated to identify several skin and hair issues, such as overcoming skin damage, working anti-aging, removing impurities, treating hair roots and scalp, hair texture, etc.

MARKET TRENDS & DRIVERS

Hyaluronic Acid – An Emerging Powerhouse in Active Cosmetics

The rising demand for active cosmetics has led to the development of new active ingredients in the cosmetic industry. Some of the key ingredients include hyaluronic acid, retinol, ceramides, niacinamide, and alpha-hydroxy acids, with certain ingredients gaining more attention than others. Among these, hyaluronic acid has become a top choice for both brands and consumers. Hyaluronic acid is expected to be a leading active cosmetic ingredient in 2024. As a humectant, it can hold up to 1000 times its weight in water, making it an excellent moisturizer. These properties have made it a popular ingredient, and it is expected to remain a top choice in the coming years.

Growing Attention of Consumers Towards Cosmetic Ingredients

Since the COVID-19 pandemic, consumers have become more ingredient-conscious/ingredient-savvy, often scrutinizing product labels to avoid potentially harmful or irritant chemicals. Also, the consumers are willing to pay a premium for potential ingredients, rather than just relying on general cosmetic claims. The demand for clean-cosmetic products those developed without some controversial ingredients like sulfate, parabens, and phthalates- has surged. Where vendors are acknowledging by offering and formulating products to fulfill consumers' requirements and provide more effective and comprehensive ingredient lists of product labels. Recently, vegan and cruelty-free products are become one of the major choices among consumers. The growing attention towards vegan and cruelty-free cosmetic products, with consumers highly looking for brands that do not test on animals or use animal-derived ingredients.

Increasing Focus and Willingness to Invest in Cosmetics

Since the COVID-19 pandemic (2020-2022), beauty and cosmetics have become essential for consumers. Despite the rising cost of living, people have prioritized wellness and self-care over the past three years. Health and beauty spending has grown by 7% since the pandemic. Direct-to-consumer (DTC) cosmetic brands and beauty influencers continue to adapt to changing trends while shaping consumer preferences and spending habits in the cosmetics industry.

INDUSTRY RESTRAINTS

Challenges in Sourcing High-Quality and Effective Ingredients

Globally, the increasing demand for high-quality cosmetic ingredients presents major challenges for vendors in securing safe and effective materials. Active ingredients used in cosmetics are unique, expensive, and often difficult to obtain. One of the biggest challenges in sourcing these ingredients is ensuring timely delivery while maintaining a balance between cost and quality. To keep the supply chain efficient, vendors must develop or source raw materials carefully. Since these ingredients are costly, small and medium-sized vendors face significant financial challenges in securing and sourcing them.

GLOBAL ACTIVE COSMETICS MARKET INSIGHTS

• By Product: In 2024, the liquid segment holds the largest global active cosmetics market share of over 58%. Liquid active cosmetics are becoming more popular due to their fast absorption, easy application, and ability to combine multiple ingredients. They are ideal for young skin needing extra hydration. Many active ingredients, including botanical and natural extracts, come in liquid form, driving the market growth. Since these ingredients can be used without modification, they further boost the industry's expansion.
• By Consumers: The global active cosmetics market by consumers is categorized into women and men. The women segment accounted for the largest share and shows significant growth, with the fastest-growing CAGR of 13.22% during the forecast period. Women are the main consumers of active cosmetics. Women’s choices, knowledge, and preferences vary widely, with over 80% using at least one cosmetic product. Skincare, especially anti-aging and whitening products, is their top spending category. The demand for active cosmetics is high among women due to growing awareness, interest in natural products, and a willingness to invest in personal care. Cultural influences and the rise of female social media users have further fueled this demand.
• By Application: Based on the application, the skin care segment accounted for the largest share of the global active cosmetics market. Active cosmetic ingredients have gained popularity in skincare in recent years. Growing awareness and concern about skincare ingredients are key factors driving demand for active cosmetics. Skincare has become an essential part of many women’s daily routines, with products containing various ingredients, where active ingredients play a crucial role. Their use is increasing as they target specific skin concerns like aging, acne, and hyperpigmentation. Additionally, advancements in ingredients like retinol and hyaluronic acid have further expanded the use of active cosmetics in skin care.
• By Distribution Channels: Based on the distribution channel, the drugstore/pharmacy segment dominates and holds the largest share of the global active cosmetics market. Drug stores and pharmacies are the primary sellers of active cosmetics, as these products contain clinically proven ingredients for skin and hair care. Consumers trust pharmacy-sold cosmetics because they are often designed for dermatological needs and backed by clinical studies. With increasing awareness of skincare and haircare, the demand for government-approved personal care and dermo-cosmetics is rising. Many consumers prefer purchasing active cosmetics from pharmacies, knowing they are formulated for specific skin and hair concerns.

GEOGRAPHICAL ANALYSIS

APAC accounted for the largest share of over 36% in the global active cosmetics market and shows the highest growth during the forecast period. The Asia-Pacific (APAC) region is a key market for active cosmetics and is expected to see strong revenue growth. People in this region prefer natural ingredients that support skin health more than in other parts of the world. The demand for active cosmetics is high as consumers focus on achieving radiant skin. China is the largest market in the region, with a large consumer base and strong awareness of cosmetic ingredients, driving significant growth.

COMPETITIVE LANDSCAPE

The global active cosmetics market report contains exclusive data on 29 vendors. Top brands are enhancing product effectiveness and strengthening their market position. They have a strong reputation and a global reach. To stay ahead, they focus on launching new products, developing advanced ingredients, and making acquisitions. These strategies help them grow their capabilities and increase their market share. Leading companies in the global active cosmetics market include L’Oréal, Givaudan, Croda International, International Flavors & Fragrances, and Shiseido.

RECENT VENDORS ACTIVITIES

• In 2024, Givaudan's Active Beauty -one of the leading market players launched Iluminyl 388- a highly potent skin-brightening prebiotic with active ingredients to target multiple skin pigmentation pathways and is reinforced by prebiotic activity to cater to the requirements of diverse skin types.
• In 2024, Clariant Acquired Lucas Meyer Cosmetics which was offering active cosmetics products. Lucas Meyer Cosmetics was part of International Flavors & Fragrances till 2023.