Impact of Coronavirus (Covid-19) Pandemic

on the Cosmetic Ingredients Industry

Winning Product Categories
• As stated, hand soaps and hand sanitizers are perceived as the most
necessary and are predicted to continue to see a sharp incline for
quite some time due to high usage. Everyday basics like baby care, 
deodorants and antipers­pirants, lip care, personal cleansing,
multicultural hair care and shampoos, and conditioners are also
expected stay the course with similar usage to that before the
pandemic and minimal impact.
Losing Product Categories
• Deemed as “optional,” facial skin care, hair coloring, nail polish,
shaving products and sun care are expected to experience a slight
decline. However, since self-care has been rising due to consumers
staying home, these categories may not see as sharp a decline.
• Fragrances, hair styling products, makeup and men’s skin care are
predicted to suffer the most due to social distancing from COVID-19.
INGREDIENT GROUP COVID-19 GROWTH OUTLOOK

Key ingredients of the formulation “chassis,” antimicrobials are essential and therefore will continue to be used across all
Antimicrobials
product categories.

Surfactants are largely used in rinse-off formulations (hair care and cleansers), which are proven to be more resilient products
Surfactants
during recessions.

Typically used in skin care formulation, this group also includes a significant proportion of humectants used in oral care
Emollients
products (40% in volume). Emollients could be impacted by a decline in professional and premium consumer products.

Ingredients mainly used in oral care. Skin care, and hair care products account for a third of overall volumes. While there will
Rheology Control Agents
be some mild moderation in consumer frequency of use, stable moderate growth is expected.

Three-quarters of volumes are used in skin care products (leave-on); decline is anticipated due to a fall-off in sales of premium
Emulsifiers
skin care, mitigated by mass, masstige and budget products

These ingredients are mainly used in hair care, followed by skin care, antiperspirant, and deodorant products. Categories will
Conditioning Polymers
be mainly impacted by the pressure on leave-on hair care products.

Sun care products will suffer from the negative impact on recreational activities and tourism; therefore, UV absorbers will
UV Absorbers
likely be among the deepest impacted.

The consumption of hair fixative polymers— used in hair styling products—is expected to drop due to both a decline in
Hair Fixative Polymers
consumer product uses and salon services. This ingredient category could be among the most adversely impacted.

Formulated in makeup and hair colorants, ingredient consumption will dip due to a decline in use/frequency of use and a sharp
Color Cosmetic Ingredients
decline in the professional salon industry.
Natural cosmetic ingredients
to gain popularity in post-
Covid-19 era
https://www.premiumbeautynews.com/en/natural-cosmetic-
ingredients-to,16748
• The coronavirus pandemic is raising demand for natural ingredients
from the personal care industry. According to Ecovia Intelligence,
consumers are increasingly looking for natural and organic products
with the aim to protect their health. The market research firm
expects demand to remain buoyant after the current crisis.
• In the context of the current pandemic consumers try to improve
their personal immunity and natural ingredients with antibacterial
and antiviral qualities are the most sought after, according to Ecovia
Intelligence.
• From Australian lemon myrtle to CBD
• Australian companies, for instance, are reporting a surge in demand
for lemon myrtle (Backhousia citriodora), which is used in hand
sanitizers and cleaning products. Australian Native Products, the
largest producer, is therefore planting 180,000 new lemon myrtle
and anise myrtle (Syzygium anisatum) trees to ramp up production.
• Tea tree oil (Melaleuca alternifolia oil), well-known for its
antibacterial and antiviral properties, is also experiencing a
coronavirus boost. It is used in a wide range of personal care and
home care products. Based in New South Wales, Gelair has developed
a line of tea tree oil-based cleaning products for the maritime
industry. Virus fears are leading commercial ships and cruise liners to
use Gelair products to decontaminate ducted ventilation systems.
• Already well established in the personal care industry, aloe vera is
also experiencing high demand. During the pandemic, the use of the
ingredient has extended while companies were massively producing
hand sanitizers, and some consumers were doing the same at home,
says Ecovia. Seeing the shift in purchasing behaviour, the American
supplier Desert Harvest has started producing hand sanitizers for the
first time. Amyris, a producer of sustainable ingredients, has also
launched natural hand sanitizers under its Pipette brand. The natural
essential oils company EO Products has increased production of its
hand sanitizers 16-fold since the virus outbreak.
• Other natural ingredients in high demand include eucalyptus oil,
propolis, and oregano. Asian ingredient suppliers are reporting a
spike in demand for eucalyptus oil. In Indonesia, the Agriculture
Ministry is actively using eucalyptus oil to help stop the transmission
of the coronavirus. It has developed ointments, balms, inhalers and
diffusers.
• Ecovia Intelligence also notes the popularity of cannabidiol (CBD)
 is continuing during the coronavirus crisis. “CBD is featured in many
new product launches, including hand sanitizers, creams, lotions and
balms. The UK online retailer Alphagreen is reporting a doubling of
interest in CBD-based products since the virus outbreak. Consumers are
buying CBD products to help give them relieve from anxiety, insomnia
and pain.”
• As Covid-19 is changing the way we eat, meet and clean, the pandemic
will impact a large array of markets, including cosmetic and personal
care products. “Expect to see more natural ingredients in the products
we use,” concludes Ecovia Intelligence.
• In a report from HatchBeauty Brands, the company observed trending ingredients according to online searches during a three-month
span (January-March 2020). The top three ingredients were vitamin C, echinacea and elderberry.
• Vitamin C has reportedly risen 101%, search-wise, since 2019 and is continuing to rise at an accelerated rate. The company also noted
an average of 306,051 weekly searches on the ingredient during the January to March 2020 timeframe.
• Echinacea increased by 69% in online searches from 2019 to 2020 and saw an average of 144,696 weekly online searches in the first
quarter of 2020. Finally, elderberry drew an average of 10,458 searches weekly in the first quarter, up 124% over 2019.
• Previously: Demand for Hand Soap Set to Soar from COVID-19
• Additional “ingredients to watch for,” according to HatchBeauty Brands, include:
• Cordyceps: To improve immunity by activating cells and certain chemicals in the immune system.
• L-Glutamine: Linked to protein synthesis. It is naturally made by the body and glutamine levels drop when the body fights illness or
injury. Therefore, supplementing with l-glutamine is thought to promote immune health.
• MSM: Has been shown to reduce inflammation, benefiting overall immune function.
• Krill oil: A source of omega-3 fats, which also has been shown to reduce inflammation.
• Beetroot concentrate: Helps the immune system to function because it contains vitamin C, folate, manganese, iron and phytoche­micals.
• Quercetin: In addition to boosting immune function, it also acts as an antiviral agent, which is specifically applicable now.
• Epicor Fermentate: This is a whole food ferment, which is a natural ingredient composed of fibers, polyphenols, vitamins, amino acids
and beta-glucans. These all work together to boost immunity.
• Monolaurin: Mostly benefits the digestive tract, which boosts immunity since the human body fights off infection largely through the
gastroin­testinal system.
• AHCC: An effective, well-absorbed, study-backed mushroom extract that boosts immunity by defending the body against viral and
bacterial infections.
• PQQ (Pyrroloq­uinoline quinone): Is an antioxidant and vitamin B-like compound found in soil and plants said to boost the production of
mitochondria in cells.
• Predicting the Post-Pandemic Future of Personal Care Ingredients
(PCI)
• Without a doubt, the personal care industry will experience declines
across the globe in 2020. For ingredients, Kline forecasts modest
growth as global economies work toward recovery over the next
several years. Kline’s assessment of the expected CAGR for personal
care ingredients for 2018 through 2023 is based on a U-shape
recession, followed by a rebound expected in 2021. Several scenarios
have been developed, here is the likelihood one:
• In our just-published add-on report to 
Kline's Personal Care Global Market Analysis - Personal Care
Ingredients: Impact of COVID-19 on the Global Market, Kline
provides its forecasts to 2023 for more than 10 ingredient categories
covering best-case, most-likely case, and worst-case scenarios, with
supporting assumptions and rationale.
• Yann Pencolé provides strategic business intelligence services to
Kline’s clients in Europe as well as globally. He is based in Kline
London office.
• https://www.cosmeticsandtoiletries.com/marketdata/segments/Cos
metic-Winners-and-Losers-from-COVID-19-Ingredients-and-Products-
572163711.html

• https://www.cosmeticsandtoiletries.com/marketdata/segments/How-
COVID-19-is-Impacting-4-Different-Beauty-Categories-571678541.htm
l

• https://klinegroup.com/articles/covid-19-beauty-ingredients-face-a-to
ugh-road-ahead/