{"id":14452,"date":"2023-06-21T06:05:16","date_gmt":"2023-06-21T12:05:16","guid":{"rendered":"https:\/\/www.ulprospector.com\/knowledge\/?p=14452"},"modified":"2023-08-03T09:22:06","modified_gmt":"2023-08-03T15:22:06","slug":"pcc-how-the-specialty-active-ingredients-market-is-performing-in-asia","status":"publish","type":"post","link":"https:\/\/ulprospector.ul.com\/14452\/pcc-how-the-specialty-active-ingredients-market-is-performing-in-asia\/","title":{"rendered":"How the Specialty Active Ingredients Market is Performing in Asia"},"content":{"rendered":"

\"organicEurope and the United States are historically the two largest markets for specialty actives in the personal care ingredients<\/a> market, according to the latest research by Kline & Co. but how are markets in Asia faring?<\/p>\n

\u201cChina is driving the use of active ingredients due, in part, to consumers shifting to mid- to high-end personal care products that are, in addition, more often produced locally,\u201d says Nikola Matic, Vice President of Kline\u2019s Chemicals & Materials practice. Meanwhile, he notes, Japan is a mature market where actives consumption is strong but growth limited, India has high-growth potential in the mid-term, and South Korea is a trend-setting market.<\/p>\n

The supplier landscape<\/h2>\n

Worldwide, the supplier landscape for specialty actives is fragmented, with no supplier having more than a 10% share. Global suppliers lead the market, but local suppliers are important in some markets \u2013 including China\u2019s.<\/p>\n

\u201cDue to\u00a0growing demand from local brands,\u00a0local manufacturing of active ingredients is becoming important, and local leaders have emerged in most of the categories,\u201d says Matic. \u201cChinese suppliers are gaining market share thanks to suppliers like Freda, which has been on the rise for a few years.\u201d<\/p>\n

In addition, global suppliers are looking at partnerships and\/or local manufacturing to alleviate geopolitical uncertainty.<\/p>\n

Find noted Specialty Active Suppliers on UL Prospector:<\/h3>\n

BASF<\/strong><\/a>
\n<\/strong>DSM<\/strong><\/a>
\n<\/strong>Croda<\/strong><\/a>
\n<\/strong>Givaudan<\/strong><\/a>
\n<\/strong>Lubrizol<\/strong><\/a>
\nFreda
\n<\/strong>Ashland<\/strong><\/a><\/p>\n

Characteristics of the key Asian markets<\/h2>\n

Botanicals<\/a> and biotechnology<\/a> actives currently lead the market for specialty actives in Asian markets.<\/p>\n

\u201cThe biotechnology category is even stronger in China than in the rest of the world,\u201d says Matic. \u00a0Synthetic peptides are also growing quickly in the country due to the local manufacturing of molecules that went off-patent.<\/p>\n

According to Kline, some of the most prominent market drivers Kline is observing in China include technology skin care, a growing concept that involves developing new active ingredients based on new technologies for skin care products<\/a>. Typical actives that are considered technology skin care belong to biotechnology<\/a> actives and peptides<\/a>.<\/p>\n

The \u201cskinification\u201d of hair care<\/a> is also becoming popular. \u201cConsumers have begun to understand that healthy hair is the result of a healthy scalp, and they now perceive scalp care<\/a> as an extension of their skin care routine,\u201d says Matic. The result: an increasing number of hair care products containing popular skin care ingredients such as hyaluronic acid<\/a> and glycolic acid<\/a>. Olaplex, for example, has already brought the skinification of hair to its products via its\u202fNo.5 Bond Maintenance Conditioner, which contains hydrolyzed hyaluronic acid<\/a>.<\/p>\n

In addition, unhealthy lifestyles\/stress\/pollution is driving demand for products to prevent hair loss<\/a> or soothe sensitive skin<\/a> via anti-inflammatory properties. Also on the rise: Clean beauty, as consumers seek more natural and sustainable products, and skin microbiome balance, with celebrities actively promoting the concept and its relevant actives.<\/p>\n

Finally, Matic says, regulatory challenges are affecting the market. They include the National Medical Products Administration restricting live cell usage in skin care products; this restricts further development of the market for probiotics, stem cell extracts, and more.<\/p>\n

In India, the market remains pseudo-commodity-driven, with vitamin derivatives and high-volume biotech taking center stage.<\/p>\n

\u201cIndia is still commodity-driven, with larger-volume products in the most demand,\u201d says Matic, noting that the region represents a small market, with just 1% of global demand. \u201cThere\u2019s an extremely fragmented supplier base, notably in botanicals. Consumer awareness and understanding of ingredients in personal care formulation is growing which in turn makes the presence of active ingredients increasingly desirable for educated consumers.\u201d<\/p>\n

For its part, Japan also represents a minor market at 1% of global demand, with a share of biotech that\u2019s smaller than elsewhere.<\/p>\n

\u201cThere\u2019s a strong share of botanicals<\/a>, and marine<\/a> ingredients double the share of the global average due to their role in Japanese traditions,\u201d Matic says. Market drivers include Japan\u2019s aging population and young consumers leaning toward natural products and botanicals.<\/p>\n

What\u2019s expected in the future?<\/h2>\n

India and China are expected to be the fastest-growing market for the specialty actives industry by a
\nlarge margin, with South Korea and Japan lagging behind.\u00a0 When it comes to growth in consumption of specialty actives, peptides<\/a> and biotechnology<\/a> are expected to increase faster than the average market growth for specialty actives. They\u2019ll be followed by botanicals<\/a>, marine ingredients<\/a>, and synthetic actives.<\/p>\n

Kline is a leading global management consulting and market research firm offering a complete spectrum of services. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer product industries for more than 60 years. Currently, Kline offers three analyses covering the personal care ingredients<\/a> market: Delivery Systems in Personal Care: Market Analysis and Opportunities<\/em>, Personal Care Ingredients: Global Market Analysis, <\/em>and Specialty Actives in Personal Care: Global Market Analysis and Opportunities.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Europe and the United States are historically the two largest markets for specialty actives in the personal care ingredients market, according to the latest research by Kline & Co. but how are markets in Asia faring? \u201cChina is driving the … Continued<\/a><\/p>\n","protected":false},"author":93,"featured_media":11559,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","footnotes":""},"categories":[5],"tags":[],"ppma_author":[1292],"class_list":{"0":"post-14452","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-care-cosmetics-cleaners","8":"entry"},"yoast_head":"\nHow the Specialty Active Ingredients Market is Performing in Asia<\/title>\n<meta name=\"description\" content=\"Europe and the United States are the largest markets for specialty actives in personal care. 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