Upcycled Cosmetic Ingredients Market Size, Share & Industry Analysis, By Application (Skincare, Haircare, Color Cosmetics, and Others), and Regional Forecast, 2024-2032

The global upcycled cosmetic ingredients market size was valued at USD 243.30 million in 2023. The market is anticipated to grow from USD 254.66 million in 2024 to USD 400.12 million by 2032, exhibiting a CAGR of 5.81% during the forecast period of 2024-2032. Asia Pacific dominated the upcycled cosmetic ingredients market with a market share of 39.53% in 2023.

Upcycled cosmetic ingredients, including coffee grounds, fruit seed oils, fruit extracts, and others, are rich in natural bio-actives and extensively used in cosmetic products. Beauty product users prefer products with minimal environmental impact. Continual manufacturers’ efforts to upcycle food-produced components, support the production of differentiated beauty products, cater to specific skincare needs, and favor market growth. For instance, by the end of 2022, Farmacy, The Procter & Gamble Company-owned beauty brand, was able to produce its complete range of beauty products from the repurposed components. The company produces such ingredients from the upcycling process, which involves the usage of approximately two tons of food waste annually.

The COVID-19 pandemic-related lockdown measures have significantly disrupted the global upcycled cosmetic ingredients industry. Delays in delivery and increased transportation costs of natural ingredients severely posed challenges to the manufacturer conducting business operations. However, greater eco-conscious consumers’ choices of beauty products made of recycled or repurposed procedures supported the upcycled cosmetic ingredients growth after the ease in lockdown restrictions.

Upcycled Cosmetic Ingredients Market Trends

Growing Popularity of Cosmetics made of Plant-based Ingredients Favor Market Growth

CBD skincare products are extensively popular among millennial and generation-Z consumers. The increasing manufacturers’ utilization of repurposed cannabis components in beauty products creates newer market growth opportunities. In addition, increasing usage of hemp, plum kernels, and others in producing plant-based products and higher youngsters’ preference for the utilization of products made of farm-to-produce repurposed raw materials accelerate worldwide market growth.

Upcycled Cosmetic Ingredients Market Growth Factors

Advancements in Development of Upcycled Bio-active Ingredients to Drive Market Growth

Advancements in the development of upcycled bio-active ingredients for skin care and color cosmetic applications drive the demand for upcycled ingredients among beauty innovation centers worldwide. For instance, the Upcycled Beauty Company is revolutionizing the beauty industry by repurposing food waste into potential repurposed skincare components. Furthermore, in July 2024, NoPalm Ingredients, a Dutch biotechnology firm, invested USD 5.45 million (EUR 5 million) to produce sustainable palm oil from the repurposed industrial food waste stream. From such an investment, the company will be able to supply sustainable palm oil to beauty product manufacturers located across Europe.

Rising Demand for Sustainable and Safer Ingredient-based Cosmetics to Accelerate Market Growth

Rising consumer demand for sustainably made and ethically sourced beauty products and greater awareness of the usage of gluten-free and paraben-free beauty items positively contributed to the market growth. In addition, increasing manufacturers’ partnerships with food waste collectors or installing upcycling facilities to produce further upcycled bioactive ingredients will support the development of the market. For instance, in October 2022, BioVeritas invested USD 65 million to install an upcycling facility for food and agricultural waste for further development of the components for diverse applications, including beauty products, flavors, and fragrances.

RESTRAINING FACTORS

Higher Cost of Beauty Products Made of Upcycled Ingredients to Limit Market Growth

The higher cost of beauty products made of upcycled active ingredients limits the demand for them among beauty product manufacturers. In addition, higher R&D costs involved in formulating repurposed components for beauty applications restrain the global upcycled cosmetic ingredients market growth. According to Cosmetics Europe, a personal care association, in 2022, total R&D spending by manufacturers in the European cosmetics industry reached USD 2.51 billion (EUR 2.35 billion).

Upcycled Cosmetic Ingredients Market Segmentation Analysis

By Application Analysis

Higher Spending on Upcycled Skincare Ingredients Development Result in Skincare Segment to Lead Market

The market analysis can be conducted based on various application areas, including skincare, haircare, color cosmetics, and others. The skincare segment exhibited a major market share in 2023. Its significant share is attributed to the higher beauty manufacturers’ spending on developing formulations of repurposed skincare components to ultimately provide functional skincare benefits to users. Natura & Co., a Brazilian cosmetic giant, is planning to spend USD 100 million on sustainability initiatives, including the sourcing of the components from waste. The skincare segment is slated to depict the fastest growth rate during 2024-2032.

Haircare and color cosmetic segments will grow at a considerable rate during 2024-2032. The increasing prevalence of hair caries and growing global millennials' awareness of the haircare benefits of using eco-friendly haircare beauty products create newer opportunities for the manufacturers to produce upcycled hair care ingredients, driving haircare segmental revenues.

The color cosmetics segment is anticipated to showcase moderate growth during the forecast period. In April 2024, Kaffe Bueno unveiled KLEANSTANT, a new upcycled bio-based anionic surfactant rich in antioxidant properties used in makeup removal, face cleanser, and hand & body wash product applications. Increasing development of advanced bioactive components for the production of makeup products drives color cosmetics segmental growth.

The others segment includes various application areas, such as oral care, deodorants, and others. This segment broadens beauty & personal care manufacturers' necessities of sourcing upcycled components for the production of sustainable oral care and grooming products.

REGIONAL INSIGHTS

Based on region, the global market for upcycled cosmetic ingredients is segregated into North America, Europe, the Asia Pacific, South America, and the Middle East & Africa.

Asia Pacific was valued at USD 96.18 million in 2023 and exhibited a significant market share in 2023. The region’s highest share is attributed to the significant beauty product manufacturers’ spending on sourcing or producing beauty components to produce beauty products further. In addition, the growing base expansion of prominent companies, including Givaudan, Symrise AG, and others in the Indian and Southeast Asian personal care component industries, favor market growth in the region. For instance, in July 2021, Givaudan, a global fragrance chemical manufacturer, signed a joint venture agreement with Privi Speciality Chemicals Limited to strengthen its production capabilities of specialty fragrance components in India.

North America exhibited a considerable global upcycled cosmetic ingredients market share due to the higher demand for innovative upcycled components in the production of hair care products in the U.S. and Canada. In addition, growing beauty products manufacturing facilities in the U.S. and Canada support the consumption of components obtained from the upcycling ingredients in the region. For instance, in February 2022, International Flavors & Fragrances Inc. (IFF)’s Health & Biosciences division achieved an Upcycled Food Association’s (UFA) Upcycle Program certification for its three GENENCARE OSMS personal care bio-actives to strengthen its distribution capabilities of specialty materials in the U.S.

In November 2022, the European Commission (EC) launched a new Corporate Sustainability Reporting Directive (CSRD) to require 50,000 European firms to report on their resource use and circular economic performance by 2025. These industry authorities’ efforts to mandate the development of sustainability reports create newer opportunities in the production of sustainable beauty products, driving Europe’s market growth.

Growing awareness regarding the usage of sustainable personal care products and advancements in the development of upcycled and recycled cosmetic ingredients in Brazil, UAE, and South Africa support the future development of the market in South America and the Middle East & Africa.

KEY INDUSTRY PLAYERS

Companies Focus on Product Launch to Gain a Competitive Edge

Leading market players, such as Givaudan, Symrise AG, Groupe OLVEA, and P2 Science, a biochemistry firm, focus on launching innovative formulations of upcycled cosmetic ingredients to cater to the specific skincare needs of consumers. In addition, they focus on establishing partnerships with cosmetic manufacturers and chemical distributors to increase their product reach in the worldwide markets. These companies’ initiatives positively contribute to market growth and the development of a global circular economy. For instance, in March 2021, Givaudan launched Omegablue, a cosmetic ingredient created from upcycling wild blueberries for advanced skin repair needs.

LIST OF TOP UPCYCLED COSMETIC INGREDIENTS COMPANIES:

• Givaudan (Switzerland)


• Symrise AG (Germany)


• Groupe OLVEA (France)


• Mibelle AG (Switzerland)


• P2 Science, Inc. (U.S.)


• RAHN AG (Switzerland)


• Lignopure GmbH (Germany)


• Sophim (France)


• Actylis (U.S.)


• The Upcycled Beauty Company (U.K.)


• Cargill, Incorporated (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2024: Lignovations, a developer of high-performance materials, and IMCD, a formulator and distributor of specialty chemicals, extended their partnership to introduce innovative LignoGuard® SPF Booster in Germany. LignoGuard is derived from upcycled lignin and can be extensively used in eco-friendly and sustainable cosmetics.


• February 2024: Biesterfeld Spezialchemie GmbH, an international distributor of specialty chemical products, food, and pharmaceutical ingredients, extended its strategic partnership with International Flavors & Fragrances Inc. (IFF) to strengthen its ingredients business presence in the Brazilian personal care & beauty sector. Apart from this, the company will be able to expand its business in the Polish, Turkish, and Ukrainian markets. Biesterfeld Spezialchemie is distributing a GENENCARE bioactive portfolio of products, made using upcycled procedures.


• April 2024: Dow, Inc., a specialty chemical solutions provider for beauty and personal care, launched ECOllaboration, a collection of four key ingredients that include Maizecare clarity polymer, Dowsil 979 emulsion, Ecosmooth rice husk cosmetic powder, Ecosense sl-60 hl surfactant and Ecosense sl-60 ha surfactant, and Ecosmooth universal fluid 1100. The company produces ingredients derived from sustainable sourcing using upcycled procedures.


• August 2022: Dow, Inc. established a partnership with BSB Nanotechnology Joint Stock Company, a Vietnamese nanotechnology engineering services business, to produce low-carbon ingredients for makeup formulations. The partnership has allowed Dow, Inc. to produce cosmetic powders from upcycling the EcoSmooth rice husk.


• May 2021: SEPPIC, a French chemical company, acquired EPI France, a manufacturer and developer of active ingredients for the beauty care and nutria-cosmetics industries. The acquisition has strengthened SEPPIC’s ability to supply high-quality botanical extracts and other active ingredients for the French beauty markets.

REPORT COVERAGE

The upcycled cosmetic ingredients market research report analyzes the market in-depth and highlights crucial aspects, such as prominent companies, product forms, and product application areas. Besides this, the report outlooks key trends and competitive landscape and highlights significant industry developments. In addition to the aspects mentioned earlier, it encompasses several factors contributing to the market's growth.

Report Scope & Segmentation