Functional Cosmetics Market to Reach USD 5.44 Billion by 2032, Driven by Rising Demand for Natural Ingredients and Regulatory Transparency – SNS Insider

SNS Insider Unveils Strategic Insights into the U.S. Functional Cosmetics Market’s Robust Growth-Worth USD 965.42 Million in 2024—While North America Dominates 32.7% of Global Market Share During Beauty Innovation Revolution.

Austin, June 10, 2025 (GLOBE NEWSWIRE) — According to SNS Insider, The Functional Cosmetics Market size was valued at USD 3.62 billion in 2024 and is expected to reach USD 5.44 billion by 2032, growing at a CAGR of 5.37% over the forecast period of 2025-2032.  

Evolving Consumer Preferences and Regulatory Reforms Fuel Growth in Functional Cosmetics with Emphasis on Safety, Transparency, and Natural Actives

The functional cosmetic industry is expanding on account of people’s favoring multi-tasking beauty products and bioactive agents. Regulations, such as the MoCRA 2022, demand transparency and safety of products, thus conferring trust via costumers. The US had USD 43 billion in cosmetics revenue in 2021 and high daily use. There is also growing consumer awareness of the dangers of chemicals and demand for natural concoctions, with 78 per cent of consumers worried about toxic ingredients. Ingredient suppliers are also following FDA GMP standards and the integrity and innovation of the market is increasing.

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The U.S. functional cosmetics market is worth USD 965.42 million in 2024, and will grow at a CAGR of 4.84% in 2025-2032.

Growth in the US functional beauty market is being fuelled by demands for MoCRA certification, increasing skin-health consciousness, and a recently found thirst for innovative US companies, such as Beautycounter and Drunk Elephant, where active-rich natural formulas and strict ingredient-transparency criteria are front of mind.

Major Players Analysis Listed in this Report are:

• L’Oréal S.A.
• The Estée Lauder Companies Inc.
• Procter & Gamble Co.
• Unilever PLC
• Shiseido Company Limited
• Beiersdorf AG
• Kenvue Inc. (formerly Johnson & Johnson Consumer)
• Amorepacific Corporation
• Kao Corporation
• Colgate-Palmolive Company

Functional Cosmetics Market Report Scope

Report Attributes	Details
Market Size in 2024	US$ 3.62 billion
Market Size by 2032	US$ 5.44 billion
CAGR	CAGR of 5.23% From 2025 to 2032
Base Year	2024
Forecast Period	2025-2032
Historical Data	2021-2023
Regional Analysis	North America (US, Canada, Mexico), Europe (Germany, France, UK, Italy, Spain, Poland, Turkey, Rest of Europe), Asia Pacific (China, India, Japan, South Korea, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (UAE, Saudi Arabia, Qatar, South Africa, Rest of Middle East & Africa), Latin America (Brazil, Argentina, Rest of Latin America)

Segment Analysis

By Type, Natural Ingredients dominated the Functional Cosmetics Market in 2024 with a 53.8% Market Share.

The natural-type segment dominated in 2023 as consumers looked for natural plant-based actives such as ceramides and hyaluronic acid instead of synthetic chemical ingredients. The growing influence of the FDA on harmful additives, along with increasing trust in natural ingredients, drove the segment growth, with botanical extracts being increasingly popular for their clinically proven advantages. This convergence of consumer demand and government backing has established natural materials as the key ingredients in functional cosmetics.

By Application, Alpha Hydroxy Acids (AHAs) dominated the Functional Cosmetics Market in 2024 with a 22.5% Market Share.

In 2023, Alpha Hydroxy Acids (AHAs) dominated the product-type segment with their ability to exfoliate, hydrate, and combat aging. Brands such as The Ordinary and Neutrogena have AHA products, making them more trusted by consumers. Growth has been fueled by endorsements from dermatology associations and rising US product launches. Evidence-led results and a wide range of usage in skin care routines have made AHAs preferred elements in functional cosmetics.

By Form, Creams & Lotions dominated the Functional Cosmetics Market in 2024 with a 38.5% Market Share.

In 2023, the creams and lotions dominated because of their hydrating feel, quick spreading properties, and ability to target the delivery of multiple actives. Brands such as CeraVe, Olay, and Clinique market products with ceramides and hyaluronic acid tailored to different skin types. Endorsements from dermatology associations and the availability of tele-dermatology kits for particular skin requirements have also added to their ascendance in the functional cosmetics sector.

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Functional Cosmetics Market Segmentation

By Type

• Natural
• Synthetic

By Product Type

• Alpha Hydroxy Acids (AHAs)
• Polyhydroxy Acids
• Beta Hydroxy Acid (Salicylic Acid)
• Hydroquinone
• Kojic Acid
• Retinoid
• L-Ascorbic Acid
• Others

By Form

• Cream & Lotion
• Gel
• Mask
• Powders
• Serums

By Functionality

• Conditioning Agents
• UV Filters
• Anti-Ageing Agents
• Skin-Lightening Agents
• Others

By Application

• Skin Care
• Hair Care
• By End-user
• Male
• Female

By Distribution Channel

• Online
  • Brand Websites
  • E-Commerce Websites
• Offline
  • Departmental Stores
  • Drugstores/Pharmacies
  • Specialty Stores

By Region, North America dominated the Functional Cosmetics Market in 2024, Holding A 32.7% Market Share. 

North America dominated the Functional Cosmetics Market in 2023 owing to early regulatory adoption, high skincare spending, and innovation by major players including Estée Lauder and P&G. The efforts to verify ingredients by FDA and GAO built trust and strengthened stakeholders’ collaboration among the different agencies, academia, and start-ups, and consequently accelerated the adoption of the new actives. Additionally, North America had robust e-commerce and telehealth platforms that further facilitated access to the products.

Recent Development

In May 2025, Shin-Etsu Chemical launched four new silicone ingredients to enhance cosmetic texture, hydration, and microplastic-free soft-focus effects.

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Table of Contents – Major Key Points

1. Introduction

2. Executive Summary

3. Research Methodology

4. Market Dynamics Impact Analysis

5. Statistical Insights and Trends Reporting

6. Competitive Landscape

7. Functional Cosmetics Market by Type

8. Functional Cosmetics Market by Product Type

9. Functional Cosmetics Market by Form

10. Functional Cosmetics Market by Functionality

11. Functional Cosmetics Market by Application

12. Functional Cosmetics Market by End-user

13. Functional Cosmetics Market by Distribution Channel

14. Regional Analysis

15. Company Profiles

16. Use Cases and Best Practices

17. Conclusion

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