In recent years, personal care products have
undergone significant changes in terms of
claims, ingredients, and demand. According to
reports1, brands have used the term “organic”
more often than other claims, indicating the
naturalness of the product. But are these
products really organic?
In the personal care sector, marketing gimmicks are a major concern. A product cannot be considered organic
in its entirety just because one ingredient in the formulation can be marked as organic. A product may, for
instance, have contained some natural active ingredients,
but the use of other synthetic equivalents or the manufacturing process can readily refute the claim.
In recent years, plant-based ingredients have taken the
place of the primary functional ingredients, completely
altering the formulation to cater to the growing demand
for natural products from consumers.
Out of all the top technologies, botanicals, or ingredients
derived from plants, have the highest market value (about
40%). The market value is entirely due to consumer
demand and a widespread push by government bodies to
regulate or ban certain ingredients that have long been
used in many formulations.
The Ingredient Show
Europe and the United States are the two major economies
that produce and innovate the most in the botanical or
plant-based ingredient segment. However, demand is
higher in APAC, particularly in Japan and South Korea,
where consumers are always looking for plant-based ingredients as skincare is an important aspect of their
lifestyles.
Botanical ingredients can be used for a variety of skin
functions, including anti-aging (anti-wrinkle, skin brightening, antioxidant), anti-inflammatory, suncare, skin rejuvenation, barrier repair, and more. Bakuchiol, jojoba, plantbased ceramides, patchouli, and other ingredients are
widely used in anti-aging formulations. The anti-aging
ingredient category for botanicals is highly significant, with
an estimated market value of approximately $300 million
in 2023. Similarly, botanicals have a high-end market value
of approximately $650 million when it comes to moisturising. This clearly demonstrates the importance of plantbased ingredients and their acceptance across a variety of
skin concerns.
Ceramide is an essential component, particularly in moisturising products. They also are getting a plant-based re-formulation with the help of sources such as wheat, rice, and
sweet potatoes.
Botanicals are getting popular in suncare too. For instance,
sunscreens no longer contain oxybenzone or octinoxate
and instead include zinc oxide and titanium oxide, as they are safe for the user and the environment. Mineral-based
sunscreens, eco-friendly formulations, and other similar
claims have grown in popularity as a result of government-imposed restrictions. Sichuan University scientists
have stabilised sanshool, a natural compound from the
Zanthoxylum plant, to make it effective in sunscreens and
skincare. Sanshool absorbs UV light, but it is unstable in
products because of its chemical structure. To fix this,
researchers combined sanshool with plant-derived polyphenols (antioxidants from green tea, tea, and grapes). Tests
showed that the stabilised nanoparticles provided better
UV protection and long-lasting effectiveness as compared
to plain sanshool.
When it comes to market
projection, there is currently a very interesting mix
of consumers. On one hand,
the older population is
searching for anti-aging
products that work, and on
the other hand, the younger
generation is promoting/
using brands that offer
environmentally-friendly
products. Companies11 are investing in products that meet
both demands, resulting in a strong portfolio that targets a wide array of consumers.
Regulatory Aspect
Government agencies in the major economies have been assessing and reassessing the potential harm that each ingredient in the personal care industry poses. A list of ingredients, including retinol /retinyl acetate /retinyl palmitate, alpha arbutin, arbutin, 4-methylbenzylidene camphor (4-MBC), genistein, daidzein, kojic acid, triclosan, and triclocarban, was recently released by ECHA. While some of these ingredients are widely used in skincare
products, leave-in creams, body lotions, etc., the guidelines have clearly stated a maximum permissible amount that can be used moving forward.
Other ingredients, such as phthalates, DS and D6, hydroquinone, and parabens, have either been outright prohibited or have a usage limit in place in various economies,
including the US, Canada, Europe, and others. The industry
has been working nonstop to find natural substitutes for
these ingredients because of the stringent regulations and
retaining the market share.
How is the industry changing and adapting to the new demand?
Trends emerge quite firmly in the personal care sector
because it is overly focused on the needs of the consumer.
Although plant-based ingredients and claims are still relatively small in the skincare industry, their acceptance,
innovation, and prominence are rapidly increasing. Plantbased ingredients have been aggressively introduced by
numerous companies in a variety of end applications, such
as haircare and anti-aging.
Recently, a company2 introduced an oil derived from plants
that can be used in beauty and personal care products in
place of synthetic substances like lanolin and dimethicone.
The ingredient is a fantastic innovation and is perfect for
skincare, hair care, cosmetics, and more. A well-known
beauty actives company10 unveiled a fresh range of cosmetic
ceramides. These ceramides are primarily produced using
biotechnology and plant-derived ingredients.
A Tagua seed powder for cleansing and exfoliating the skin
was recently introduced to the market by an ingredient
specialist3. Many ingredients are being launched that
aim to improve the user’s
health; one such ingredient
is derived from the watercress plant. The active ingredient4 is ideal for increasing efficacy and
assisting the skin in healing
from psychological stress.
Bakchuoil has been making
the rounds in the personal
care industry, and recently, a company7 introduced a highly
regarded retinol alternative containing bakuchiol, a plantbased ingredient derived from the Psoralea corylifolia plant.
Bakuchiol is combined with other powerful ingredients
like alfalfa extract, acai stems cell extract, and rosehip oil
to deliver significant anti-aging benefits.
A leading ingredient manufacturer5 released an emollient
that is made of modified starch and sclerotium gum, a great
natural and plant-based alternative to petroleum jelly with
better shelf life. Many brand owners have also released
new products, slightlyin the premium price range, for consumers who are actively looking for plant-based ingredients. A well-known end-consumer brand6 recently released
cleansing bars made of plant-based squalene and aloe
extract.
Companies have been partnering with or merging with
brands that can offer plant-based ingredients or technology, making ingredient portfolios more eco-conscious. A
German-based group8 invested in a Chinese biotech company9 to create vegan collagen for hydrating, anti-aging,
and skin care creams, as well as other bioactive and cosmeceutical uses.
Over the years, ingredient suppliers12,13 have strategically
acquired businesses to create a portfolio of botanical products that reflects the market and consumer demand. The
tide is swiftly shifting towards plant-based ingredients, and
the criticality and importance of it can be easily observed
by these developments and innovations.
Conclusion
Businesses have been collaborating and formulating plantbased ingredients throughout the whole value chain in an
effort to capture a share of the natural skincare market.
From OEMs to ingredient makers, businesses have taken
their experiments in the botanical market very seriously.
In order to gain access to the greatest ingredients and technologies and to seize the market in its infancy, there have
been numerous mergers, acquisitions, and partnerships.
In order to offer higher concentrations of active ingredients,
improved efficacy, and performance, new plant extracts
are being developed. However, because botanical ingredients are currently only accessible at a premium price, wide-spread acceptance can only occur when the market is more
developed. This may hinder the industry’s rapid adoption.
Innovations, research, and development in the botanical
and plant-based fields will, however, be crucial and fastpaced in the upcoming months and years.
References:
- Mintel and ChemBizR Analysis
- Seiwa Kase’s Vistanol GDHR-Pure
- Praan Naturals
- Myoline by Silab
- Dove
- Cargill
- Kora Organics
- Evonik venture capital group
- Jland Biotech
- SphingoCare by Croda
- Berg+Schmidt and Ashland
- Evonik
- BASF
***
This article was originally published in the September edition of COSSMA.
