Global Market Outlook On Lotion

The rising demand for skin care products across all regions is expected to increase the demand for lotion ingredients.

Personal Care Ingredients Market Value and Forecast (2016-2021F)

  • The personal care ingredients market by application includes Skin care, Hair care, Oral care, Color Cosmetic. Skin care in which lotions are predominantly used is the largest downstream application occupying ~25 percent market share in 2016
  • The most common ingredients used in lotions include antimicrobials like preservatives, conditioning polymers like silicones, emollients and  emulsifiers
  • Asia Pacific is  the largest consumer of personal care ingredients and will continue to generate the highest demand till 2021

Lanolin Market Overview

Lanolin’s demand CAGR is expected to be high for the next few years owing to surge in demand from the Asian market.

Global Lanolin Market Demand (2016-2021F)

  • Asia Pacific is emerging as the dominant region with a demand share of ~35 percent . Rising consumer disposable income, willingness to spend on high end personal care products and expanding medical sector in emerging economies of Asia Pacific are the major factors propelling lanolin demand
  • China and India together collectively accounted for over 60 percent of the consumption in Asia Pacific

Despite concerns regarding the toxic makeup of lanolin, the ingredient’s risk is expected to be  low  owing to it being a naturally sourced ingredient and customer preference to look for green ingredients in their skin care products.

Global Lanolin Demand by Downstream Applications

  • The personal care and cosmetics sector is the major downstream application of lanolin owing to lanolin’s ability to act as an emollient.  Increasing working women’s population and rising awareness about feminine hygiene are the factors driving demand from the personal care sector.
  • It is predominantly used in skin lotions & creams, shampoos, soap, hair products and lip gloss offering superior moisturizing properties to dry skin
  • It is also used in baby care products such as nipple lotions &  creams and pharmaceutical products. Availability of hypoallergenic grades for skin treatment has increased its demand in the pharmaceutical segment

Drivers

  • Natural ingredient – Lanolin is a waxy substance obtained from the sheep’s fur. It Is used to protect the animal’s skin and keep it moist
  • Rising demand from the Personal Care industry.
  • Lifestyle related health conditions  and high prevalence of diseases is promoting the need for natural ingredients in pharma products

Constraints

  • Refining process Lanolin refining process is complicated and varies greatly between different companies, the chemicals used  and the degree of purity in the process. It is also expensive
  • Toxic makeup of Lanolin – Despite Lanolin being naturally sourced from sheep, it can also contain impurities like sweat, dirt, dust, pollen, fecal matter, etc. Sheep fur is also sprayed directly with pesticides to treat mites  and pests which further affects the purity of lanolin

Carbomer Market Overview

The demand for carbomer as a lotion ingredient is expected to be high up to 2021 as is evident by the high demand CAGR owing to its inherent swelling property coupled with low toxicity and non-hazardous nature.

  • Carbomers are homopolymers of acrylic acid cross-linked with polyalkenyl polyethers. Their major downstream industries include personal care products and  pharmaceutical & hygiene applications
  • They are used as thickeners and stabilizers owing to their unique ability to swell to many times their original volume by absorbing and retaining water. They are used in various skin, hair, nail, makeup and oral care products
  • Carbomers are chemically similar and differ only in molecular weight and viscosity. They are associated with different numbers such as Carbomer 910, 934, 940, 941 and 934P which are indicative of different molecular weights

Mineral Oil Market Overview

Owing to non-renewable feedstock (petroleum by-product) and consumer preference for natural oils in their skin care products, the use of cosmetic grade mineral oil in lotions is expected to decrease in the next few years.

Drivers

  • Healthy downstream demand – Mineral oil is used in Pharmaceuticals, Personal Care, Food and Industrial Applications which are all expected to witness buoyant demand up to 2021
  • It is classified into three grades based on the end use industry – Pharmaceutical, Personal/Cosmetic and Industrial grade
  • Significant industrial growth in various emerging economies such as Tanzania , Ethiopia  , Maldives, Myanmar, Cambodia, Bangladesh, Phillippines is expected to boost the growth of industrial grade mineral oil

Constraints

  • Non-renewable feedstock & crude oil price volatility – Mineral oil is a mixture of liquid hydrocarbons, paraffinic and naphthenic in nature obtained from petroleum
  • Contaminated with Toxins – Unpurified mineral oil contains impurities which are carcinogenic in nature. Despite cosmetic grade being certified by USP and BP, there are concerns regarding the toxicity despite reports /studies producing inconclusive results
  • Clogs pores– Mineral oil is considered comedogenic which means it can clog pores and increase the risk of acne and blackheads. It also acts as an occlusive agent and forms a physical barrier over the skin with a tendency to retain existing  bacteria on the skin