Glycolic Acid Market Report

Technical advancements and technological innovations in the formulations and use of glycolic acid present an excellent opportunity for the players in the glycolic acid market. For instance, the use of glycolic acid in the production of polyester fibres enhances dye absorption and improves fabric strength. As textile manufacturers seek to improve the performance of their cloth, there is potential for glycolic acids in environment-friendly textile solutions and advanced fibre technology, as glycolic acid is a biodegradable fruit acid. Additionally, there is a great deal of applications of glycolic acid in dermatology, which gives a break to the companies in the research and development of the products.

For instance, the American Society for Dermatologic Surgery (ASDS) reports that nearly 56% of consumers express interest in non-surgical aesthetic treatments, a trend that supports the growth of glycolic acid applications in medical and cosmetic dermatology. Moreover, the growing trend towards sustainability and eco-friendly products offers additional opportunities for glycolic acid. Companies are increasingly focused on developing environmentally friendly formulations and production methods.

While glycolic acid has major usage in the personal care industry, it faces some notable challenges as consumer preferences and strict regulatory compliance. As excessive use of glycolic acid causes irritability to the human skin, this discomfort can hinder the growth of the market. Cosmetic and food ingredients are rigorously controlled in several countries across the world as it directly impact on the health of individuals. Even if glycolic acid is considered safe, there are strict regulations on the amount of use of glycolic acid. For instance, the Cosmetic Ingredients Review (CIR) evaluated the safety of glycolic acid and concluded that products for general use containing up to 10% fruit acid (lactic acid or glycolic acid) at a pH greater than 3.5 are considered safe. According to the former EU Scientific Committee (SCCNFP), the content of glycolic acid should not exceed 4%, with a pH value greater than 3.8.

Similarly, the scientific opinion of EFSA deals with the risk assessment of the substance glycolic acid and concludes that there is no safety concern for the consumer if the substance is used for manufacturing polyglycolic acid for indirect food contact behind polyesters such as polyethylene terephthalate (PET) and polylactic acid (PLA) and direct food contact of a blend of PGA up to 3% w/w in PET and PLA. Products containing glycolic acid must adhere to specific safety assessments and labeling requirements, which can increase production costs and limit market entry. Non-compliance with these regulations can result in costly fines or bans, affecting manufacturers’ ability to market glycolic acid products effectively.

Major players in the cosmetics industry are trying to develop new multifunctional products according to consumer preference to stay ahead in the competitive market. For instance, in May 2024, L'Oreal, a global manufacturer of hair color, permanents, body and skin care, cleansers, makeup, and fragrance, announced the launch of its Glycolic-Bright, the instant whitening serum designed to unveil skin's natural luminosity in Kuala Lumpur, Malaysia. Additionally, in August 2024, Era Organics, a pioneer in organic and natural skincare, announced the launch of its Glycolic Acid Chemical Peel. This treatment is specifically designed for women aged 25 to 70 who seek the benefits of a professional skincare experience without leaving their homes. The peel is formulated to address wrinkles, clogged pores, blemishes, and the signs of premature aging, offering a comprehensive resurfacing treatment that exfoliates, smooths, revitalizes, and hydrates the skin. In addition, in February 2024, the House of Lakmē, India’s first skincare and makeup brand, launched its Glycolic Illuminate range, a revolutionary skincare line infused with the potent power of Glycolic Acid for an enhanced visage driven by its commitment to empower every woman to embrace her inherent radiance. 

Similarly, in April 2024, the Inkey List, the pioneering British brand that specializes in science-backed, results-focused products at accessible prices, unveiled two products powered by chemical exfoliation to tackle myriad body skin concerns. INKEY Body includes a Glycolic Acid Exfoliating Body and a PHA Exfoliating and Hydrating Water Cream, which aim to bridge the knowledge gap of why chemical exfoliation is the key step that is missing in most body care routines. Similarly, in June 2024, Living Proof launched a skin care-inspired Scalp Care Exfoliator, priced at US$ 38, to gently remove flaking and excess oil in 5 minutes. The exfoliator's packaging features a twist-cap applicator for precise dosage application, rendering the product usable for all hair types and styles.

The lightweight pre-shampoo formulation comprises of a blend of glycolic acid, BHAs, and PHs for cleansing and exfoliation, and DSM-Firmenich's Pentavitin prebiotic for a hydration boost and reduced sebum. Similarly, in June 2023, The Chemours Company, a global chemistry company with leading market positions in Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials entered into a definitive agreement to sell its Glycolic Acid business for US$ 137 million in cash to PureTech Scientific Inc., a company founded and backed by Iron Path Capital, a private equity firm focused on lower-middle market investments across the specialty industrial and healthcare sectors.

The Asia Pacific is the fastest growing market of glycolic acid with countries of South Korea, China and Japan, due to consumer demand for exfoliating and anti-aging products. With the South Korean influence on personal care products, K-beauty influences the biggest on the glycolic acid market. In South Korea, for Home use peeling only 10% glycolic acid and 2% Salicylic acid are permitted by law. Consequently, DIY skin care products and overnight treatments containing glycolic acid are growing popular. Additionally, higher percentages of these acids are being used by medical professionals in their clinics.

North America holds an important position in the glycolic acid market driven by its significant use in cosmetic products as well as in cleaning agents. In particular, the United States market for glycolic acid has been fuelled by consumer preference for anti-aging products, as according to the National Library of Medicine of the National Institute of Health, people in the United States are experiencing premature skin aging. Additionally, the first product containing glycolic acid as an active ingredient was registered by the U.S. Environmental Protection Agency (EPA)as a disinfecting cleaner and a disinfectant or sanitizer for non-food contact, hard non-porous surfaces in residential and public access premises. Moreover, glycolic acid is approved by the FDA as an indirect food additive for use in food packaging adhesives. The combination of cosmetics, household, and pharmaceutical industries drives the market of glycolic acid in North America.

The glycolic acid market in Europe is characterized by its strong consumer demand, regulatory rigor, and focus on innovation. Europe’s strong focus on dermatological and professional skincare treatments contributes to the demand for glycolic acid. The prevalence of high-end salons and dermatology clinics offering glycolic acid peels and treatments underscores the ingredient's significance in the professional segment. Countries in Europe such as France is known for its skincare and hair care products market.