Decoding the Glycolic Acid Market Insights for Investors and Stakeholders

Glycolic Acid Industry Overview

The global glycolic acid market size was valued at USD 281.2 million in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 9.1% from 2023 to 2030. Growing demand for glycolic acid-based skin and hair care products is expected to drive the market over the forecast period. Furthermore, increasing use of the compound in emulsion polymers and additives for inks and paints is expected to propel the demand over the forecast period. Glycolic acid is present in fruits, such as beet, pineapple, and unripe grapes. Growing production of formaldehyde coupled with technological advancements to optimize the production technology is expected to boost the market growth further.

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In addition, rising expenditure on R&D has resulted in an increased scope of application, which is expected to drive product demand over the forecast period. However, high awareness levels about the negative effects of glycolic acid, such as skin allergies, are expected to restrain the market growth to some extent. Stringent regulations imposed by regulatory bodies, such as the European Union, regarding product usage in cosmeceutical formulations, are also likely to hinder growth. On the other hand, the rising popularity of natural cosmetics is likely to positively affect the industry dynamics over the years to come.

The rising need for online cosmetics and personal care products such as moisturizers, body wash, fragrances, scrubs, lipsticks, sunscreens, and others has encouraged many companies or manufacturers to develop a broad sales network, which is anticipated to drive the market. With the advent of the e-commerce sector and the growth of social media, consumer demand for high-end, unique, and novel cosmetics has also emerged. Glycolic acid is a vital element in the manufacturing of the above-mentioned goods, which is anticipated to propel industry growth, coupled with rising consumer healthcare awareness. The rising demand for glucosides in biopolymers usage, due to their harmless and excellent recyclability, represents a significant potential for glycolic acid producers. Hence, it acts as an opportunity for the manufacturers in the market.

However, the excessive use of acids in personal care & cosmetic products can damage the skin. It results in skin irritation, swelling, itching, and skin burning. In addition, chemical peeling frequently can make the skin more sensitive to UV rays and make people more prone to sunburn. If inhaled at high amounts for a prolonged time, it can harm the lungs and liver, and create respiratory ailments. Furthermore, the increasing consumer inclination toward organic products as a substitute can limit market growth.

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Recent Developments

• In June 2023, a global chemical company, The Chemours Company, known for its expertise in performance materials, titanium technologies, and thermal & specialized solutions, reached a deal to sell its business related to glycolic acid. The business will be sold for a cash amount of USD 137 million to PureTech Scientific Inc. Through this acquisition, PureTech Scientific aims to establish itself as a leading global player in the organic synthesis of ultra-high purity alpha hydroxy acids, catering to the specialty chemical and life sciences industries. The completion of the transaction is anticipated to take place in the third quarter of 2023, subject to regulatory approvals and customary closing conditions.

• In November 2021, The Chemours Company introduced Glyclean D, a powerful disinfectant and cleaner with a proven ability to deactivate the SARS-CoV-2 virus, along with other viruses and bacteria. This innovative product is registered with the U.S. Environmental Protection Agency (EPA). The formulation of Glyclean D incorporates a 70.0% concentration of glycolic acid (GA), which is an EPA-approved antimicrobial ingredient specifically designed for use in liquid, nonporous hard surface disinfectants. Remarkably, Glyclean D stands out as an effective disinfectant derived from natural sources. In contrast to harsh and corrosive chemicals like quats or bleach, Glyclean D is both biodegradable and environmentally friendly, offering a more sustainable option that prioritizes the well-being of individuals and the environment.