Global Phenoxyethanol Market Report By Product Type (Phenoxyethanol P5, Phenoxyethanol P25), By Application (Home & Personal Care, Pharmaceuticals, Dyes & Inks, Paints & Coating, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Phenoxyethanol Market size is expected to be worth around USD 333.5 Million by 2033, from USD 193.4 Million in 2023, growing at a CAGR of 5.6% during the forecast period from 2024 to 2033.

The Phenoxyethanol Market deals with the production and commercial application of phenoxyethanol, a versatile glycol ether used primarily as a preservative in personal care products. Its efficacy against bacteria, yeasts, and mold makes it a preferred choice in cosmetics, pharmaceuticals, and household cleaners.

The Phenoxyethanol market is experiencing a notable expansion, driven by its widespread application as a preservative in personal care products and its emerging uses in sensitive skin formulations. Recognized for its efficacy in preventing microbial growth without compromising product safety and aesthetics, Phenoxyethanol is becoming a preferred choice among manufacturers and consumers alike.

Recent strategic developments in this sector underscore the growing market demand. In January 2023, BASF SE announced an enhancement of its production capabilities for Phenoxyethanol in North America. This expansion is a direct response to the increasing demand for personal care products that are both effective and gentle on the skin. BASF’s initiative to boost production not only aims to meet current market needs but also to anticipate future demand trends.

Further illustrating the market’s dynamism, DowDuPont introduced a new line of high-purity Phenoxyethanol in March 2023, specifically formulated for use in products targeting sensitive skin. This launch addresses a critical market segment that demands hypoallergenic and non-irritating ingredients, reflecting a broader industry shift towards product safety and consumer health consciousness.

These developments are representative of the Phenoxyethanol market’s response to consumer preferences for safer, more sustainable beauty solutions. As manufacturers continue to innovate and improve product offerings, Phenoxyethanol is positioned to play a key role in the evolution of preservatives within the beauty and personal care industry, aligning with global trends towards health, safety, and environmental sustainability.

Key Takeaways

• The Phenoxyethanol Market was valued at 193.4 Million in 2023, and is expected to reach 333.5 Million by 2033, with a CAGR of 5.6%.
• Phenoxyethanol P5 dominates with 69.7% due to its prevalent use in personal care and cosmetics.
• Home & Personal Care application segment leads with 41.2%, driven by high consumer demand for safe preservatives.
• APAC region holds 36.7% market share, reflecting strong industrial growth and consumption.

Driving Factors

Increasing Demand from the Cosmetics and Personal Care Industry Drives Market Growth

The demand for phenoxyethanol in the cosmetics and personal care industry significantly influences its market growth. This compound, known for its antimicrobial properties, is essential in various products, including and skin care products.

With the global cosmetics market projected to grow by 5% annually, the need for effective preservatives like phenoxyethanol escalates. Major brands such as L’Oréal rely heavily on phenoxyethanol to ensure product safety and longevity. This trend is supported by rising disposable incomes and a shift towards natural and organic personal care solutions, driving further adoption of phenoxyethanol across this sector.

Growing Application in Pharmaceutical and Healthcare Sectors Drives Market Growth

Phenoxyethanol’s role in the pharmaceutical and healthcare sectors is expanding due to its preservative efficacy in products like injectables and topicals. As global health awareness increases and the population ages, the demand for pharmaceutical products escalates, particularly those preserved with phenoxyethanol to ensure safety and stability.

The market for these products is expected to see substantial growth, with an anticipated increase in chronic diseases and healthcare spending. Companies like Johnson & Johnson incorporate phenoxyethanol in their formulations, emphasizing its importance in medical applications.

Rising Demand from the Home and Personal Care Industry Drives Market Growth

The use of phenoxyethanol as a preservative extends into the home and personal care industry, impacting market growth due to heightened hygiene awareness and urban lifestyle changes. The demand for household cleaners and laundry care is on the rise, with key players like Procter & Gamble integrating phenoxyethanol into their products to ensure microbial safety and product integrity.

The growth of urban populations and the increasing focus on cleanliness contribute to the robust demand for phenoxyethanol, underscoring its critical role in everyday home care products.

Restraining Factors

Stringent Regulations and Safety Concerns Restrain Phenoxyethanol Market Growth

Phenoxyethanol is classified as an irritant and subject to various regulations and safety guidelines in different regions. The European Union, for example, has set specific concentration limits for phenoxyethanol in cosmetic products. In 2017, the European Scientific Committee on Consumer Safety (SCCS) raised concerns about phenoxyethanol’s potential to cause skin sensitization and recommended restricting its use in leave-on cosmetic products.

These regulatory measures increase compliance costs and limit the formulation options for manufacturers, thereby hindering the growth of the phenoxyethanol market. The increased scrutiny and need for compliance make it challenging for companies to use phenoxyethanol extensively.

Availability of Alternative Preservatives Restrains Phenoxyethanol Market Growth

The availability of alternative preservatives poses a challenge to the growth of the phenoxyethanol market. Alternatives such as parabens, formaldehyde-releasing preservatives, and natural preservatives like grapefruit seed extract and potassium sorbate are often preferred by manufacturers. Factors like cost, effectiveness, and regulatory requirements influence this choice.

For instance, some companies have started using sodium benzoate and potassium sorbate in their personal care products due to concerns over the potential risks associated with phenoxyethanol. This competition from alternative preservatives reduces the demand for phenoxyethanol, limiting its market growth.

Product Type Analysis

Phenoxyethanol P5 dominates with 69.7% due to its widespread use in cosmetics and personal care products for its effective preservative qualities.

In the Phenoxyethanol market, there are primarily two product types: Phenoxyethanol P5 and Phenoxyethanol P25. Phenoxyethanol P5 holds the majority market share of 69.7%, primarily because it is extensively used as a preservative in the cosmetics and personal care industry. Its effectiveness in preventing the growth of bacteria and fungi in products such as shampoos, sunscreens, and lotions makes it a preferred choice among manufacturers aiming to ensure product safety and extend shelf life.

The dominance of Phenoxyethanol P5 is also attributed to its favorable safety profile, which complies with global regulatory standards, allowing its use in various markets around the world. This compliance has facilitated its adoption across a broad range of consumer products, further cementing its status as the leading segment.

Phenoxyethanol P25, while used in similar applications, contains a higher concentration of phenoxyethanol and is generally utilized in scenarios requiring stronger preservative action. However, its market share is smaller due to more stringent regulations and a limited range of applicable uses compared to P5.

Despite P5’s preeminence, P25 plays a critical role in applications that demand higher efficacy or where product formulations can tolerate stronger concentrations without compromising safety. Both segments are crucial for meeting diverse industry needs, ensuring products are effectively preserved while adhering to safety standards.

Application Analysis

Home & Personal Care dominates with 41.2% due to high consumer demand for hygiene and beauty products and strict regulatory standards for product safety.

Phenoxyethanol is utilized across various applications, with the dominant segment being Home & Personal Care, which commands a 41.2% market share. This segment includes a wide array of products such as skin care, hair care, makeup, and bath products. The dominance of Home & Personal Care is largely due to the increasing consumer demand for personal hygiene and beauty products, which has risen significantly in recent years. Consumers’ growing awareness regarding the importance of effective and safe preservatives in personal care products drives the demand for phenoxyethanol in this segment.

Furthermore, the strict regulatory environment governing preservatives ensures that manufacturers prefer using ingredients like phenoxyethanol that meet safety standards without compromising product efficacy. This regulatory compliance has fostered trust among consumers, further boosting product demand.

Other application segments include Pharmaceuticals, where phenoxyethanol is used as a preservative in vaccines and topical solutions; Dyes & Inks, where it helps prevent microbial growth in inks and dye formulations; and Paints & Coatings, where it is added to extend the shelf life and stability of the products.

The ‘Others’ category, which comprises smaller and niche markets, also benefits from the versatile properties of phenoxyethanol, making it suitable for various industrial applications. This includes its use in cleaning products and adhesives, where preservation against microbial contamination is crucial.

Each application segment contributes to the overall market growth by fulfilling specific industrial needs, with the Home & Personal Care segment leading due to its broad market penetration and the essential role of preservatives in consumer products. Collectively, these applications underscore the importance and versatility of phenoxyethanol across multiple industries, maintaining its high demand and essential status in the global market.

Key Market Segments

By Product Type

• Phenoxyethanol P5
• Phenoxyethanol P25

By Application

• Home & Personal Care
• Pharmaceuticals
• Dyes & Inks
• Paints & Coating
• Others

Growth Opportunities

Growing Demand for Eco-Friendly and Sustainable Products Offers Growth Opportunity

As global consumer awareness of environmental impact intensifies, the demand for eco-friendly and sustainable alternatives in preservatives is on the rise. Phenoxyethanol, known for its safety and biodegradable properties, is well-positioned to meet this demand. This compound is increasingly favored in industries such as cosmetics and personal care, where it is used as a gentler alternative to harsher chemicals like parabens.

By promoting phenoxyethanol’s eco-friendly attributes, companies can attract a consumer base that prioritizes environmental responsibility. Brands emphasizing the use of phenoxyethanol are gaining a competitive edge, as seen with personal care brands that market this preservative as a natural and environmentally friendly option. This trend not only helps in retaining health-conscious customers but also aligns brands with broader global sustainability efforts, enhancing their market potential.

Expansion in Emerging Markets Offers Growth Opportunity

The rapid urbanization and economic growth in emerging markets such as Asia-Pacific, Latin America, and the Middle East are creating fertile grounds for market expansion, particularly for consumer products that incorporate preservatives like phenoxyethanol. As disposable incomes rise and lifestyles evolve in these regions, there is a notable increase in consumption of cosmetics, personal care, and household products, all of which require effective preservation to maintain product safety and longevity.

Companies can harness this opportunity by broadening their distribution networks and tailoring marketing strategies to meet the local consumer preferences in these markets. For example, global giants like Unilever and L’Oréal are actively expanding their footprints in countries like India and China, capitalizing on the burgeoning demand. Such strategic expansions not only provide growth opportunities but also build a robust presence in potentially lucrative markets.

Trending Factors

Rise of Halal and Natural Cosmetics Are Trending Factors

The rise of halal and natural cosmetics is a significant trend impacting the phenoxyethanol market. This trend is particularly strong in Muslim-majority countries and among consumers seeking environmentally friendly and ethical products.

While phenoxyethanol is a synthetic preservative, manufacturers can leverage this trend by obtaining halal certifications for their products or formulating with natural alternatives. Some companies have successfully introduced halal-certified cosmetic lines that include phenoxyethanol as a preservative, meeting the demand for halal products while ensuring product safety and efficacy. This approach can expand the market by appealing to a broader, more diverse consumer base.

Increasing Demand for Clean-label Products Are Trending Factors

The increasing demand for clean-label products is driving changes in the phenoxyethanol market. Consumers are becoming more conscious about the ingredients in their products, seeking minimal and easily recognizable components. Phenoxyethanol, despite being a synthetic preservative, can still be part of this trend through transparency and education.

Manufacturers can highlight the safety and effectiveness of phenoxyethanol on product labels and provide information about its benefits. Personal care brands adopting this strategy have started to emphasize phenoxyethanol as a clean and safe preservative, addressing consumer concerns and maintaining market relevance. This trend promotes market growth by aligning with consumer preferences for clean-label transparency.

Regional Analysis

APAC Dominates with 36.7% Market Share in the Phenoxyethanol Market

APAC’s strong 36.7% market share in the phenoxyethanol market, valued at USD 70.9 billion, is primarily driven by the region’s extensive manufacturing infrastructure and high demand in cosmetics and personal care industries. The region benefits from cost-effective production capabilities and strategic supply chain dynamics. Additionally, favorable government policies in countries like China and India support the chemical sector’s growth.

The market dynamics in APAC are influenced by the region’s rapid economic growth, increasing consumer spending power, and the rising awareness of preservatives’ benefits in product safety and shelf life. The booming cosmetics sector in APAC, alongside increasing export activities, significantly enhances the demand for phenoxyethanol as a preferred preservative due to its efficacy and mild impact compared to other preservatives.

North America: North America holds a market share of 29.8%, equating to a market value of USD 57.636 billion. This region’s market is driven by robust regulations requiring safe and effective preservatives in consumer products and an advanced chemical industry. North America’s focus on non-toxic and environmentally friendly preservatives further supports the demand for phenoxyethanol.

Europe: Europe accounts for 26.5% of the phenoxyethanol market, translating to USD 51.245 billion. High standards for product safety and quality, along with a substantial market for cosmetics and pharmaceuticals, drive the demand in Europe. Additionally, European manufacturers are leading in adopting sustainable and ethical production methods, appealing to consumer preferences.

Middle East & Africa: Holding 3.2% of the market, MEA’s market value stands at USD 6.184 billion. While smaller in scale, the region shows growth potential due to increasing industrialization and a growing interest in personal care products, particularly in Gulf countries.

Latin America: Latin America’s market share is 3.8%, with a value of USD 7.349 billion. The growth in this region is spurred by rising consumer income levels and a growing demand for personal care products. Local production and export of cosmetics are also gradually increasing, supporting the use of phenoxyethanol as a key preservative.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

The Phenoxyethanol Market is dominated by several influential companies. BASF SE and Lanxess AG lead the market with their extensive product portfolios and strong R&D capabilities. N.V. Organics Pvt. Ltd. and Akema Fine Chemicals leverage their innovative solutions and global reach to maintain competitive positions.

Lonza Group and Galaxy Surfactants Limited focus on quality control and expanding their production capacities. Triveni Interchem Pvt. Ltd. and Clariant International Ltd. emphasize sustainable practices and strategic partnerships. Ashland Global Holding Inc. and Haihang Industry Co. Ltd. invest heavily in advanced technologies to enhance product quality.

Du Pont de Nemours Inc. and Jinan Haohua Industry Co. Ltd. maintain robust market positions through strong customer relationships and market-driven strategies. Symrise and Dow Chemical Company drive market growth through continuous product development and strong supply chains. Schülke & Mayr GmbH focuses on high-quality standards and innovative solutions.

These companies collectively drive market growth by ensuring high-quality phenoxyethanol, meeting global demand and promoting industry stability. Their strategic positioning, commitment to innovation, and strong supply chains influence market trends and set industry standards. Through continuous improvement and strategic initiatives, these market leaders shape the future of the phenoxyethanol market.

Market Key Players

• BASF SE
• Lanxess AG
• N.V. Organics Pvt. Ltd.
• Akema Fine Chemicals
• Lonza Group
• Galaxy Surfactants Limited
• Triveni Interchem Pvt. Ltd.
• Clariant International Ltd.
• Ashland Global Holding Inc.
• Haihang Industry Co. Ltd.
• Du Pont de Nemours Inc.
• Jinan Haohua Industry Co. Ltd.
• Symrise
• Dow Chemical Company
• Schülke & Mayr GmbH

Recent Developments

• June 2023: BASF’s Performance Chemicals division saw a 7.5% increase in global production, driven by robust demand in China, which expanded by 7.5%. However, production in the European Union declined by 7.6%, and the United States saw a 1.0% decrease, reflecting the overall weak demand for industrial goods.
• April 2023: Lanxess’s Advanced Industrial Intermediates segment reported a 3% increase in sales, driven by strong demand for high-quality industrial intermediates across diverse end-use industries, including food, healthcare, consumer goods, and agriculture.

Report Scope