EU Observatory for Nanomaterials 2025 forecast: Personal care to “boost” markets
08 Nov 2022 --- The latest European Union Observatory for Nanomaterials (EUON) report predicts the growth of the nanomaterial (NM) market within the continent from 2021 to 2025. The study identifies leading market operators and outlines a list of NMs on the market. The combined personal care and medicine sectors will lead to a “dominant segment” of 20.3%, it notes.
“NMs present unique, tuneable properties – via tuning of their size, surface properties or doping – and are used in a wide range of applications, such as personal care and consumer goods, in household products they are useful for stain removal,” outlines the report.
The care sector has begun to heavily rely on NMs due their antimicrobial potential, ability to pass tissues and be functionalized with other active substances, the report also stresses.
Currently, the largest segment is metal oxides, and growth will be driven by the nano clay, nanocellulose and carbon-based NMs. The personal care sector is expected to give the NMs market a “boost.” Metal oxides can be used in sunscreens and body care products. Nanocellulose are used in cosmetics as carriers for bioactive compounds, UV-blockers and for wound healing.
NovaMechanics initiated the study in 2021.
NM market in the next five years
The personal care sector heavily relies on NMs due their antimicrobial potential, ability to pass tissues, and be functionalized with other active substances.
The EU, EEA countries and Switzerland NMs market for 2020 was estimated at a volume of 140,000 tons and a value of €5,200 million (US$ 5,197 million).
In the next five years, the market is expected to grow at a “CAGR of 13.9% per volume and 18.4% per value creating strong positive socio-economic impact for the EU, EEA and Switzerland.”
The study was carried out last year, before the Ukraine war, so its impact on the study outcomes are unknown. However, Brexit did impact the five-year projection, and surprisingly, the COVID-19 pandemic was not flagged by interviewees to lead to a market slowdown.
Consumer power and perception
It is suggested that for the consumer market, the increase in NM-containing products and the effects of the COVID-19 pandemic on the buying power of households means that companies need to offer better deals. Additionally, more negative public opinions toward NMs force suppliers to provide better deals to expand their market share. “Therefore, the power of customers in the EU market is considered moderate.”
The ECHA also highlights that NMs are widely studied and used across sectors. However, NMs still require further evaluation and testing based on potential hazardous properties for consumer goods, like cosmetics.
“Specific uses include products for skin, hair, nails and more to deal with aging, hyperpigmentation, dandruff, and hair damage. The use of NMs is based on their ability to stay on or penetrate the epidermis and deliver specific substances at a controlled and sustained rate. Examples of NMs are metal oxides, liposomes, niosomes, nanoemulsions, microemulsions, solid lipid nanoparticles, nanostructured lipid carriers, and nanospheres,” outlines the study.
The drivers for growth are predicted to be technological advancements and public demand for functional, lightweight, and affordable state-of-the-art products.
Market sectors divided
The report gathered data from 1,168 NM organizations in the EU, EEA, and Swiss markets, of which 88 are NM producers, with 27.2% based in Germany, Spain (11%) and France (9.1%).
“Of the 1,054 EU, EEA and Swiss downstream users, Germany leads the market with 34.6%, followed by France (11.9%) and Sweden (7%). A rough estimate of 2,800 existing NM-containing products (excluding NMs production) indicate that Germany leads the market with 35.4%, followed by Switzerland with 20.4% and Sweden with 5.7%,” outlines the report.
Most organizations fell under manufacturing
The report gathered data from 1,168 NM organizations in the EU, EEA, and Swiss markets., medicine and life sciences, personal care, instrumentation and electronics.
Based on the number of NMs-related companies per market segment for the EU, EEA, and Swiss markets, the cosmetics and personal care companies totaled 95 at 9%. In the UK, this segment totaled 27 at 14.5%.
Additionally, based on the number of NMs-related companies in the EU, EEA, and Swiss markets market, medicine and life sciences and personal care segments would result in the highest segment of 33.9%, demonstrating the dynamic and potential of this market segment, shares the report.
Outlook for dendrimers
Dendrimers have been noted to be suitable for medicine and personal care and so are “expected to rise in the next five years with inhibiting factors being potential changes to regulation and costs for scaling up production,” shares the report.
According to commissioned research by the EUON, in 2020 the market volume of dendrimers was 0.06 kiloton with a market value at €1.04 million (US$1.039 million). Additionally, CAGR was at 15.7% and is expected to grow with a CAGR of 17.65%.
Despite the lack of data, the EUON report predicts that by 2025, the dendrimers market will have a volume of 0.12 kiloton and will be worth €2.34 million (US$2.346 million).
Nanocellulose in demand
Nanocellulose has several uses across sectors, including cosmetics and personal care, where a “continuous increase” is driving growth.
“On the other hand, nanocellulose materials have been found to induce hazardous effects in humans such as inflammatory effects, toxicity, inhibiting its growth opportunities,” flags the report.
Nonetheless, the EU nanocellulose market is considered the fastest-growing in the world, according to EUON’s commissioned sources. “In 2020, it had a volume of 0.33 Kilotons and a value of €27.58 million (US$27.58 million) . As a fast-growing market, the project CAGR for the basic scenario is estimated to be 20.05% and 19.4% CAGR per volume and value.”
In previous research, the promising prospect for nanocosmetics has heightened concerns over health issues due to toxicity risks.
Metal NM drives growth
Single metals such as Ag, Au, Ni, quantum dots and alloys of two or more metals are classified as Metal NM’s. Due to their antibacterial and other properties, they are used in medicine and cosmetics. However, the researchers flag “concerns about its use.”
“The substantial increase in demand for NMs in all the above sectors will drive growth, especially in the case of the NMs used in the energy and electronics sectors and medicine. This will also lead to even better manufacturing facilities and distribution lines, which will drive production costs down,” forecasts the researchers.
Nanoparticles like silver and zinc oxide, used in cosmetics, were flagged to have access to the brain and bypass its blood-brain barrier, which could negatively affect cellular function and brain health, found Dr. Eugenia Valsami-Jones, chair in environmental nanoscience at the University of Birmingham.
The study has not accounted for the impacts of the Ukraine war on the NM market.
Regulatory landscape and challenges
Current regulations do not easily allow the commercialization of NMs. This reason was perceived as a “significant barrier to growth” through surveys and interviews.
Additionally, regulatory changes and high scale-up costs were noted to dampen company interest in production.
“On the other hand, it was noted that a stricter regulatory regime can also help increase public trust in NM products. Among other factors hindering growth, respondents included the relatively negative public opinion toward nanomaterials,” outlines the study.
Different regulatory schemes and definitions of NM can also lead to a discrepancy.
Furthermore, an exhaustive list of NM personal care users across the EU, EEA & Switzerland and the UK markets can be found in the report.
By Venya Patel
