Active Ingredients Market to Reach USD 6.2 Billion by 2032, Growing at 5.4% CAGR | Research by SNS Insider

Active Ingredients Market Surges with Innovations in Pharma, Cosmetics, and Agriculture, Driven by Demand for Sustainability, Natural Products & New Tech. AUSTIN, TX, UNITED STATES, January 23, 2025 /EINPresswire.com/ -- The global active ingredients market, valued at USD 3.9 billion in 2023, is projected to reach USD 6.2 billion by 2032, growing at a compound annual growth rate (CAGR) of 5.4% during the forecast period from 2024 to 2032.

The growth of the active ingredients market is primarily driven by the increasing demand for pharmaceutical and personal care products.

Active ingredients, which are the essential components responsible for the efficacy of formulations, are gaining traction due to advancements in biotechnology, increased focus on health and wellness, and the rising prevalence of chronic and lifestyle-related diseases.

A significant driver for market growth is the growing pharmaceutical industry, where active ingredients play a crucial role in drug formulation and manufacturing. Governments worldwide are investing in healthcare infrastructure and promoting research and development in pharmaceuticals, creating a robust demand for active ingredients. Additionally, the personal care industry’s shift toward natural and sustainable products has further boosted the market, as consumers increasingly prefer formulations with active botanicals and plant-based compounds.

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Key Players:
• AkzoNobel N.V. (Ampholak, Armeen)
• Ashland (Captivates, Natrosol)
• BASF SE (Irganox, Uvinul)
• Clariant (Genapol, Aristoflex)
• Croda International Plc (Crodarom, Crodamol)
• Dow Inc. (Carbopol, DOWSIL)
• DuPont (Delrin, Tyvek)
• Eastman Chemical Company (Aminox, Tamisolve)
• Evonik Industries AG (Tegosoft, Aerosil)
• FMC Corporation (Talstar, Capture)
• Givaudan (Vetivyne, Yogurtene)
• International Flavors & Fragrances Inc. (IFF) (RonaCare, Neutrazen)
• Johnson Matthey (Methoxo-catalysts, PGMs)
• Lanxess AG (Preventol, Bayferrox)
• Lonza (Geogard, Proxel)
• Merck KGaA (RonaFlair, Eusolex)
• Royal DSM (Panthenol, All-Q)
• Solvay (Rhodoline, Mackam)
• Sumitomo Corporation (Valent products, Kenja)
• Symrise AG (SymSave, SymRepair)

Segmental Analysis

By Source

The plant-based active ingredients segment accounted for 45% of the global market share in 2023. Plant-derived ingredients, such as alkaloids, flavonoids, and essential oils, are extensively used in pharmaceuticals and personal care due to their therapeutic properties and consumer appeal. Regulatory support for herbal and traditional medicine, especially in regions like Asia Pacific, is further driving this segment.

The synthetic source segment is also significant, driven by advancements in chemical synthesis and bioengineering. Synthetic sources are essential for producing active ingredients that cannot be efficiently extracted from natural sources. These include complex molecules like peptides and monoclonal antibodies.

By Application

In 2023, Cosmetics and Personal Care products held the largest application segment in the Active Ingredients Market at a 50% share of the market. The industry remains on track for significant expansion with an ever-growing consumer base who is interested in beauty, skincare, and wellness products. Ingredients that are functional form the core of these superior products, allowing for benefits like moisture, anti-aging, and protection from the sun. Active ingredients, including peptides, antioxidants and vitamins, are regularly used in skincare to target specific issues, such as fine lines and wrinkles and pigmentation. Likewise, haircare uses ingredients such as proteins and botanical extracts to strengthen and nourish hair. Increased consumer demand for clean, natural and sustainable beauty products and new formulations moving away from synthetic actives or less natural actives in cosmetics and personal care also drive the trend towards natural active ingredients. This has allowed companies like L'Oréal, L'Oreal, Johnson & Johnson, etc. to include active ingredients in these products which act on the skin and hair to get better-feeling skin and hair, appealing to consumers who are shifting towards demanding more quality effective & safe personal care products.

Market Segmentation and Sub-Segmentation Included are:

By Source
• Plant-Based
• Animal-Based
• Microbial-Based

By Type
• Natural
• Synthetic
• By Form
• Solid
• Liquid
• Gas

By Functionality
• Conditioning Agents
• Anti-ageing Agents
• Skin-lightening Agents
• UV Filters

By Application
• Pharmaceuticals
• Cosmetics & Personal Care
• Food & Beverages
• Agricultural Chemicals
• Others

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Regional Analysis

North America

North America held a market share of 35% in the active ingredients market in 2023. The region’s dominance is attributed to its advanced pharmaceutical industry, high healthcare expenditure, and strong consumer demand for premium personal care products. The U.S., in particular, is a key market due to its robust R&D ecosystem and regulatory framework. Recent initiatives, such as the expansion of domestic API production to reduce dependency on imports, are further propelling market growth. Moreover, US being the driving nation in this region is a major contributor to this market owing to high consumer base and demand for personal care products. For example, the U.S. skincare market was estimated to be worth around 16 billion U.S. dollars in 2023, where active ingredients are key components of commercial formulations Renowned companies, including BASF, Evonik and Dow are investing in novel actives to meet the growing demand of consumers for clean effective products. In addition, the demand for high-quality active ingredients in the region is also aided by the high regulatory standards and the growing number of consumers concerned about their product safety.

Recent Developments

• April 2024:BASF SE announced the launch of a new line of plant-based active ingredients for personal care products. These ingredients are designed to meet the growing demand for natural and sustainable formulations while offering high efficacy and safety.
• March 2024:Lonza Group unveiled an advanced API manufacturing facility in Switzerland. The facility focuses on high-potency APIs for oncology and other critical therapeutic areas, enhancing the company’s production capacity and global reach.
• January 2024:Givaudan introduced a new range of active cosmetic ingredients derived from marine algae. These ingredients are aimed at anti-aging and hydration solutions, catering to the premium skincare market.

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