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Growing demand from cosmetics industry will play a role in its CAGR of almost 8.77% between now and 2028.
June 28, 2024
The global glycolic acid market size is estimated to grow by $186.6 million from 2024-2028, according to market research firm Technavio.
The market is estimated to grow at a CAGR of almost 8.77% during the forecast period. Growing demand from cosmetics industry is driving market growth, with a trend towards development of new applications to manufacture shampoo for companion animals using glycolic acid. However, availability of inexpensive alternative products poses a challenge, analysts say.
The glycolic acid market is experiencing significant growth, with numerous companies producing and distributing this essential ingredient. This alpha-hydroxy acid is commonly used in cosmetics and skincare products due to its exfoliating properties. Moreover, the use of glycolic acid in anti-aging and skin lightening treatments is on the rise, analysts say.
Additionally, its effectiveness in improving the overall texture and tone of the skin is driving demand. The cost-effective nature of glycolic acid production and its wide range of applications make it a popular choice in the beauty industry. Furthermore, research and development efforts are focused on enhancing the efficacy and safety of glycolic acid products. Overall, the glycolic acid market is expected to continue its upward trend in the coming years.
The cosmetics industry’s shift towards cost-effective alternatives to glycolic acid, such as salicylic acid and lactic acid, is expected to negatively impact the glycolic acid market growth, analysts say. Salicylic acid, a keratolytic agent, effectively removes dead skin cells and treats acne, oily skin, and inflammatory hyperpigmentation. Lactic acid, a humectant, attracts moisture and is less irritating, making it a preferred choice in higher concentrations for its cost-effectiveness. These alternatives offer similar benefits to glycolic acid but with superior properties and lower costs.
The glycolic acid market faces several challenges in its production and application. The primary challenge is the high cost of production due to the complex process involved. Another challenge is the inconsistent supply of raw materials, particularly corncobs and sugarcane, which are key sources of glycolic acid. Renewable sources like fruit waste are being explored as alternatives. Regulations regarding the use of glycolic acid in cosmetics and food industries also pose challenges. Producers must adhere to strict guidelines to ensure safety and quality. Additionally, the increasing demand for organic and natural products calls for the development of sustainable and eco-friendly production methods.
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