The characteristic feature of the global market for phenoxyethanol preservatives is the high level of fragmentation in the market. Although 50% of the market share was held by the top four players in the market in 2013, the remaining half of the market share is distributed amongst a large host of small and medium-sized players. It is evident that the small and medium-sized players are neck and neck with in the market, and these market players are expected to make ardent efforts to sustain themselves in the market. The dominance of the leading market players seems unchallenged, and hence, these top market players are expected to retain their strongholds in the market. The entry of new players into the market is smooth but sustaining themselves in the market is a challenging task. Mergers and acquisitions are expected to be the prime option of the leading market players to distinguish themselves from other prominent players. Furthermore, since the market is closely aligned with the chemical and pharmaceutical industries, the market players are expected to enter into signed contracts and agreements with the manufacturers of pharmaceutical and chemical companies. Tremendous new opportunities are expected to surface in the market over the coming years, and the ability of the market players to tap into those opportunities would decide the course of their growth.
Transparency Market Research (TMR) extends a succinct representation of the global market for phenoxyethanol preservatives by analysing its key dynamics. A report published by TMR foretells that the global phenoxyethanol market would expand at a steady CAGR of 5.9%over the period between 2014 and 2020. The market was valued at US$ 95.8 Mn in 2013 and is projected to escalate to a value of 143.2 Mn by 2020.
Cosmetics Industry to Drive Market Demand
Phenoxyethanol preservatives are extensively used in self-care products on account of the antibacterial properties of the former. In recent times, the cosmetics industry has undergone fundamental changes due to the demand of the customers for safe, non-toxic, and effective products. The cosmetics industry has fulfilled the needs of the customers by using antibacterial agents such as phenoxyethanol preservatives as they serve a range of other advantages as well. Personal care products such as face packs and dyes that need to be rinsed off also contain up to 5% concentration of phenoxyethanol. Colour cosmetics and eye make-up products also contain phenoxyethanol preservatives, and hence, the beauty industry has also become an ardent consumer of the market.
Request to view Sample Report:
Fear of Side Effects Hampers Market Growth
The popularity of phenoxyethanol preservatives has undoubtedly been on a rise across several industries. However, a large number of consumers have complained of negative side effects after using products that contain phenoxyethanol preservatives. This has been a matter of concern for the manufacturers of products that contain phenoxyethanol, and may contribute towards sluggish growth. The pharmaceutical industry is especially particular about testing the ingredients that are used in a product, and the possibility of adverse side effects of phenoxyethanol preservatives may result in abandoning of its usage.