The growth of the cosmetics industry and the new challenges for formulation

cosmetics-industry-formulation-challenges

The cosmetics industry continues to expand, but its growth no longer depends solely on launching more products. Today, brands need to develop formulations that respond to more informed consumers, digital sales channels, new regulatory requirements and a clear expectation: products that are effective, pleasant to use and aligned with values such as transparency and sustainability.

For cosmetics and personal care manufacturers, this evolution creates an important opportunity: choosing ingredients that bring functionality, versatility and technical value from the formulation stage.

In this context, providers like Óleox play a strategic role: supporting the industry with high-purity oleochemical solutions of vegetable origin that help turn market trends into competitive products.

A market that remains dynamic

North America remains one of the most relevant regions for the beauty and personal care industry. The market is estimated to reach USD 155.41 billion in 2026 and grow at a compound annual growth rate (CAGR) of 4.58% through 2031. The United States accounts for the largest share of this demand, with 80.29% of regional revenues recorded in 2025.

This growth reflects a mature, large and highly competitive industry. For brands, it is no longer enough to participate in a category: they must differentiate themselves through formulas that combine performance, sensoriality, convenience and a clear value proposition.

For cosmetics and personal care manufacturers, this means that the conversation must go beyond simply launching products. It is about creating formulas that deliver performance, sensoriality, functionality and a clear value proposition.

The consumer is redefining formulation

Current demand is driving more complete products. Consumers are looking for hydration, softness, protection, skin barrier repair and a pleasant sensory experience, even in categories that previously focused on a single benefit.

This trend is especially visible in the convergence between skincare and makeup. Foundations with skincare benefits, lip oils, gentle cleansers, hybrid products and multifunctional formulas respond to more practical routines and greater attention to skin health. Globally, skincare was the largest cosmetics category in 2025, with a 43.4% market share.

From a B2B perspective, this requires ingredients that help formulate products with multiple functions without compromising stability, sensoriality or performance. An ingredient is no longer evaluated solely by its individual function: it must also add value within a complete formula.

Vegetable origin is gaining relevance

Interest in natural, vegan, more transparent formulations associated with responsible practices continues to grow. In North America, natural and organic ingredients are emerging as the fastest-growing segment within the beauty and personal care market, with a projected annual rate of 6.23% by 2031

However, vegetable origin alone does not guarantee a competitive proposition. Brands and manufacturers require ingredients that also offer consistency, technical performance, safety and reliable documentation.

This is where oleochemical solutions come into play. Derivatives of vegetable oils can help develop products with emollient, conditioning, lubricating, dispersing or texturizing properties, depending on the nature of the ingredient and the objective formulation.

For Óleox, the challenge and opportunity lies in communicating the value of its solutions from two angles:

  • Its vegetable origin and its potential to respond to current market expectations.
  • Its ability to provide technical functionality to personal care and cosmetic formulations.

Innovation must also be efficient

The beauty market moves quickly. Trends are born and validated on digital platforms, brands seek to reduce development times and consumers expect constant novelty. At the same time, manufacturers must comply with quality, safety, traceability and regulatory requirements.

In the United States, the implementation of the Modernization of Cosmetics Regulation Act (MoCRA, 2022) has reinforced the importance of having technical information, safety controls, documentation and more robust compliance processes

Therefore, an ingredient provider must not only offer product availability. It must also provide support so that its clients can make decisions with greater certainty during the development of a formulation.

Technical proximity, consistency between batches, clarity of documentation and logistical capacity become factors that directly influence the speed and viability of a launch.

The value lies in solving formulation needs

Although premium products continue to gain ground thanks to high-performance and innovation-driven propositions, the mass segment still represents the largest part of the North American market: 72.25% in 2025.

This means that the industry needs solutions for different types of projects:

  • High-volume formulas that require efficiency, consistency and cost viability.
  • Value-added products that seek a differentiated sensory experience.
  • Lines inspired by conscious care, vegetable origin or multifunctionality.
  • Developments that must quickly adapt to new consumer habits and hybrid categories.

In all cases, the selection of ingredients influences the final performance of the product, but also its manufacturing feasibility, its stability, its user experience and its communication potential.

Óleox: solutions for an evolving industry

The growth of the cosmetics industry represents an opportunity to develop more relevant, functional products aligned with the new priorities of the market.

To achieve this, brands need partners capable of understanding both consumer trends and the technical demands behind each formula. Óleox can contribute to this process with high-purity oleochemical solutions of vegetable origin designed to bring functionality and value to personal care formulations.

Because innovating in cosmetics does not only mean following a trend. It means transforming a market need into a solution that works, feels good and generates trust.

With Oleox, the potential of vegetable-origin ingredients becomes solutions for formulating beauty and personal care products with performance, versatility and purpose.

Explore Oleox and find vegetable-origin ingredients to drive the development of your products: infasa.com.mx/en/oleox

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