Current Industry Status and Demand Outlook for Bio-based Cosmetics

08.04.23 12:32 AM By WenZi

The use of biological methods instead of chemical methods to produce chemical products has many advantages over chemical synthesis methods, such as low cost, high efficiency of material conversion, low pollution emissions, and mild production conditions. People are constantly pursuing green production processes and high quality product ingredients. Focusing on the bio-based field, Chikung is also constantly focusing on its downstream cosmetic applications. In this issue, we will share the industry background trends, innovative products, challenges and outlook in the bio-based cosmetic field in order to bring valuable references.

Bio-based Cosmetics Industry Background

When you think of the petrochemical industry, you may not associate it with one of its product categories, cosmetics, but cosmetics are arguably the most common and most exposed fossil product area we have. Basically, cosmetics contain about 15-20 ingredients, and if you use at least 5 cosmetics a day, this means that about 75-100 chemicals are applied to your skin, and the vast majority of them are petrochemical derivatives.

While oil-based ingredients are present in all personal care areas, virtually even decorative cosmetics rely on petroleum byproducts. Decorative cosmetics include any chemical formulation that alters the color and emphasis of facial features, such as foundation, lipstick, eyeliner, eye shadow and blush. It constitutes the third largest cosmetics sub-market after skin and hair care.

The marketing of non-essential consumer goods has seriously undermined the environmental sustainability of the industry, while at the same time, consumers have developed consumer anxiety and are increasingly choosing more environmentally friendly products.

Petrochemical-based ingredients for use in cosmetics

Although millions of tons of petrochemicals are produced annually, most people are unfamiliar with the petrochemical-based ingredients found in cosmetics around the world.

Polyethylene glycol is a water-oil combined fossil-based moisturizer and emulsifier with a global capacity of about 21 million tons. The EU is known to import or manufacture 10,000 to 100,000 tons of the preservative phenoxyethanol annually.

Phenoxyethanol is a preservative with low skin sensitivity, and although its safety remains controversial, it is found in almost all cosmetics such as eye shadow, mascara, eyeliner, foundation, concealer and blush.

Acrylate copolymer is a common petrochemical ingredient most commonly used as a stabilizer for hair styling products to avoid moisture. It has multiple functions and can be used as a film-forming agent, hair styling agent, suspending agent and antistatic agent. It is sometimes used as a waterproofing agent for cosmetics and as an adhesive for nail products. It is widely used in the cosmetic industry, such as eye shadow, mascara, eyebrow pencil, lipstick, lip balm, nail polish, hair dye, hairspray, body wash, sunscreen and anti-aging serum.

Bio-based cosmetics are a sustainable alternative to petrochemical-based cosmetics

Although these chemicals are excellent for skin beautification and their products' own preservation properties, manufacturers are taking into account a growing number of market and environmental factors and are constantly looking for alternatives. Over the past five years or so, the fashion industry has come under increasing regulation and scrutiny for environmental sustainability. A similar situation is likely to occur in the cosmetics industry as consumers begin to realize that the environmental costs of spending in the beauty industry are quite high.

One of the biggest changes in the personal care sector is the growing demand for organic and bio-based cosmetics.

Bio-based cosmetics are cosmetics made from plants, animals, microorganisms, enzymes, insects or agricultural crops. As with any bio-based product, different biomaterials have different levels of sustainability. While by definition all biomaterials are made from renewable resources, some biomaterials are more innovative considering the impact of crops on land use and biodiversity. 100% bio-based and organic cosmetics, on the other hand, are made with ingredients that do not contain synthetic pesticides or chemical fertilizers.

Bio-based innovation of green cosmetic ingredients

One way for the bio-based cosmetics industry to grow is through the launch of innovative consumer-oriented cosmetic brands that bring bio-based cosmetic essentials to market.

The most typical company is Youthforia, which makes all its cosmetics free of fossil fuels and derived ingredients. Izzy, a zero-waste cosmetics company, recently launched a carbon-neutral mascara.




Founded by millennials and targeting the most eco-conscious consumer segment, Generation Z, these companies publish their green credentials on the platforms of their social media marketing campaigns.

However, while a focus on sustainable branding is part of the industry's development, developing and scaling up green formulations of essential manufacturing ingredients is the most effective way to phase out a large number of petrochemical-based cosmetics.

There is a wide variety of cosmetics on the market, and the basic number of products for our body use is relatively small. Products that come into direct skin contact often have universal requirements: long shelf life, smooth texture, biocompatibility, velvety texture that can be absorbed by the skin, etc.

As a result, we can find chemical ingredients recurring in the cosmetics category. For formulating companies accustomed to using petrochemical-based additives and dyes, offering more environmentally friendly products is a challenge they are currently facing. By seeking high performance, low cost biological feedstocks for a number of innovative strategic ingredients, it is possible to differentiate these companies from their peers. Due to the increased scale of industrial demand, several high-value application components used in related industries also naturally help companies expand their product lines.

Take a common petrochemical component: butanediol (1,3-BG) as an example. It is a colorless, viscous liquid that has many benefits for the skin and is often used as a moisturizer and solvent in cosmetics. It is commonly used in eyeliners, concealers and foundations, and sometimes in lipsticks and mascaras.

Many companies are also already innovating green chemicals, such as butanediol (1,3-BG), which is produced by oxidizing ethylene (a petrochemical product). However, it has a variety of applications: as a moisturizer, solvent and emollient, butylene glycol is used not only in decorative cosmetics, but also in skin care and hair care. In addition to being a product ingredient in its own right, butylene glycol can also be used as a chemical reagent in green manufacturing. This is because butylene glycol is a solvent and can help extract difficult-to-extract chemicals from plant sources.

Genomatica has developed a new bio-based cosmetic product, Brontide BG, using butylene glycol. The company conducted a life cycle assessment of the environmental impact of petroleum-derived products and found that oil-based substances have a 103% higher global warming potential and an 85% higher energy demand than their bio-based counterparts.

Clariant, on the other hand, uses bio-based base ingredients to address carbon emissions in the cosmetic value chain. At the beginning of the year, Clariant launched Vita, a 100% bio-based polyethylene glycol product with the same efficacy as fossil products. Polyethylene glycol is an emulsifier that is an important ingredient in many cosmetic products. The mass production of this material can effectively reduce carbon emissions associated with the supply chain.

Nevertheless, bio-based products with the same efficacy as fossil products still have the problem of environmental pollution. Bio-based cosmetic ingredients that are no different from petrochemicals still take just as long to break down (or are difficult to break down) after they have been washed away by use. Biodegradable products should be a priority strategy for companies entering this space.

Challenges for the bio-based cosmetics industry

Reducing the market for petrochemical-based cosmetics requires a fundamental approach: providing key substitutes for essential petrochemical ingredients. However, it is important to note that organic substances tend to have an attractive effect on microorganisms, providing them with protein content, and can compromise product safety.

The enhanced microbial properties of many organic chemicals can make it difficult for biological alternatives in the cosmetics industry to enter the market. Once a biological alternative is used, the entire formulation needs to be reconsidered to prevent rapid product degradation or health risks.

This is especially true when it comes to preservatives. The biggest issue for manufacturers is how to create organic preservatives that resist, rather than encourage, microbial growth.

Currently, fossil-based phenoxyethanol is the preservative of choice in the cosmetic manufacturing industry, with few bio-based alternatives to rival it. Chemipol's Sensicare line, however, is one of the few natural antibacterial alternatives on the market.

Demand outlook for the bio-based cosmetics industry in the post-epidemic era

Despite the challenges faced by the bio-based cosmetics industry, it remains an attractive area for sustainable innovation. Although decorative cosmetics are considered non-essential, they are resilient to the slowing pace of the market in an epidemic economy.

The global market growth rate plummets from 5.5% to -8% in 2020, but figures for 2021 quickly rebound to 2019 levels, reaching 8.2% as the epidemic gradually eases. The rapid recovery from the epidemic does not portend a return to pre-epidemic levels of market consumption habits. According to a Kantar survey of 20 European countries, demand for natural scenery has surged after the epidemic.

This segment of the consumer market grows from 18% of the total beauty sales in 2017 to nearly a quarter of the total sales in 2021. North Asia is expected to be the hot spot in the bio-based cosmetics sales market. Currently, consumers in China, Japan, South Korea, and Taiwan account for 35.1% of the overall cosmetic market.

In response to changing consumer preferences in the post-epidemic market, producers are responding to trends and investing in scale up and innovation to reap market rewards over a longer period of time.