Cosmetic ingredients are used in the formulation of various cosmetic products such as skin care, hair care, makeup and fragrance. Key ingredients used in cosmetic products are moisturizers, emulsifiers, surfactants, emollients, preservatives and rheology modifiers. Cosmetic ingredients provide properties such as hydration, cleansing, protection, nourishment and anti-aging benefits to the skin and hair. Rising consumer preference for multifunctional and natural ingredients based cosmetic products is boosting the demand for premium quality cosmetic ingredients in Malaysia.
The Malaysia Cosmetic Ingredients Market is estimated to be valued at US$ 72.9 Mn in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the Malaysia Cosmetic Ingredients are BASF, Evonik, DKSH Holding Ltd., AVARES (M) SDN BHD, TCT Nutraceuticals Sdn Bhd and Among Others. With increasing disposable incomes and presence of multinational cosmetic brands in Malaysia, consumer demand for premium skincare and colour cosmetics is rising rapidly. Key players are focusing on developing multifunctional and natural ingredients to cater to the growing demand. Technological advancement in microencapsulation and nanotechnology has led to the development of highly effective and targeted delivery of ingredients in cosmetic formulations.
Market Trends
Growing preference for organic and natural cosmetic ingredients: Consumers in Malaysia are showing increased inclination towards natural and organic cosmetic products due to rising health and environmental concerns. This is driving cosmetic brands to use more plant-based active ingredients in formulations.
Innovation in active delivery systems: Companies are investing in R&D to develop advanced delivery systems like liposomes, nanotechnology and microencapsulation to improve efficacy and stability of cosmetic ingredients. Techniques like nanoemulsions help provide better penetration and controlled release of active agents.
Market Opportunities
Rising popularity of customization: Players can leverage opportunities in customization space by allowing consumers to choose ingredients, fragrances and textures of their preference while ordering products online.
Increasing demand from multi-functional cosmetics: There is significant scope for ingredients that can deliver multiple benefits like anti-aging, whitening, hydration in a single product. This growing trend can help drive higher ingredient consumption.
Impact Of COVID-19 On Malaysia Cosmetic Ingredients Market
The COVID-19 pandemic impacted the Malaysia cosmetic ingredients market significantly. During the peak of lockdowns in 2020-21, production and supply chains were disrupted majorly. Strict restrictions on travel and transportation made it difficult to procure raw materials from international suppliers. Demand from cosmetic manufacturers also dropped sharply as cosmetic stores remained closed for several months. However, with the development of vaccines and reopening of economies from early-2022, the market is showing signs of recovery. Manufacturers are restarting operations at full capacity and trying to clear pending orders.
Though production and sales declined in 2020-21, the demand for skincare and haircare products increased as people spent more time at home. This provided opportunities to cosmetic ingredient suppliers to develop new formulations for personal care needs. Suppliers also focused on digital marketing and partnerships with e-commerce platforms to sustain sales. Going forward, cosmetic companies are expected to emphasize on immunity-boosting, anti-aging and natural ingredients to cater to changing consumer preferences in the post-pandemic era. Overall, the long-term outlook remains positive driven by rising spending power, increasing cosmetic culture and expansion of modern retail in Malaysia.
Geographical Regions With High Market Concentration
The Malaysia cosmetic ingredients market remains highly concentrated in the western states of Peninsular Malaysia, especially Selangor and Kuala Lumpur regions. This is due to the presence of major cosmetic producers, private laboratories, and supply chain networks in these areas. According to industry sources, more than 60% of the total market value is generated from Selangor and Kuala Lumpur alone. Other significant markets include Johor because of proximity to Singapore market and Penang due to strong manufacturing base. Going forward, states in East Malaysia like Sarawak and Sabah are expected to witness faster growth as urbanization increases consumer spending on personal care products in these regions.
Fastest Growing Regional Market
The East Malaysia region, comprising states of Sarawak and Sabah, represents one of the fastest growing markets for cosmetic ingredients in Malaysia. Despite having a lower overall market size currently compared to western states, East Malaysia is expected to showcase strong double-digit CAGR over the forecast period. This rapid growth can be attributed to rising disposable incomes, growing young population and expanding retail chains in this region. As living standards improve in East Malaysia with government support, expenditure on personal and beauty care is increasing significantly. Brands are also improving their visibility in East Malaysia through intense promotion of advanced skincare and anti-aging products. This makes it an emerging hotspot which suppliers are targeting through customized product offerings.
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Author Bio:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163 )
What Are The Key Data Covered In This Malaysia Cosmetic Ingredients Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the Malaysia Cosmetic Ingredients's growth between 2024 and 2031.
:- Accurate calculation of the size of the Malaysia Cosmetic Ingredients and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- Malaysia Cosmetic Ingredients Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market's competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of Malaysia Cosmetic Ingredients vendors
FAQ’s
Q.1 What are the main factors influencing the Malaysia Cosmetic Ingredients?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top Malaysia Cosmetic Ingredients companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the Malaysia Cosmetic Ingredients’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
