June 18, 2024
Zinc Oxide Market

Zinc Oxide Market Is Estimated To Witness High Growth Owing To Wide Application In Cosmetics

Zinc oxide is a white powder primarily used as an active ingredient in sunscreen and cosmetic products due to its powerful sunblocking abilities. It helps protect the skin from both UVA and UVB rays. Zinc oxide physically blocks UV rays by scattering and reflecting them away from the skin while remaining transparent on the skin. This physical mode of sun protection reduces the risk of sunburn and premature skin aging.

The Global zinc oxide market is estimated to be valued at US$ 6.34 Mn in 2024 and is expected to exhibit a CAGR of 4.2% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the zinc oxide market are MorphoSys US Inc., Bristol Myers Squibb, Karyopharm Therapeutics, F. Hoffmann-La Roche AG, Merck & Co., Inc., Gilead Sciences, Inc., and Novartis AG. These players are focusing on new product launches and strategic collaborations to strengthen their market position.

The key opportunities in the zinc oxide market include increasing demand from the cosmetic industryowing to rising consumer awareness regarding sun protection. Additionally, growth of end-use industries such as automotive, rubber, and pharmaceutical is anticipated to fuel the overall market growth during the forecast period.

On the technological front, the increasing adoption of nanoparticle zinc oxide with particle sizes below 100 nm is expected to revolutionize sunscreen products. Nanoparticle zinc oxide provides enhanced UV protection, a transparent appearance, and a smooth after-feel compared to conventional zinc oxide.

Market Drivers

Stringent regulations regarding UV protection in personal care products across major countries is a key factor driving the zinc oxide market. For instance, the US FDA mandates sun protection products to pass specific tests to claim broad-spectrum coverage from UVA and UVB rays. Additionally, the increasing usage of zinc oxide in rubber production due to its reinforcing properties is also contributing to the market growth. Zinc oxide improves various physical and mechanical properties of rubber such as tensile strength and tear resistance.

Current Challenges in Zinc Oxide Market

The zinc oxide market has witnessed some significant challenges in the recent past. One of the major issues faced is pricing volatility. As zinc is a key raw material for manufacturing zinc oxide, fluctuations in zinc prices directly impact production costs for zinc oxide manufacturers.ho are dependent on Asian markets, mainly China and Korea, for raw material supply. Any disruptions in mines or changes in government policies of these countries can strain raw material supply. Additionally, increasing environmental regulations around the world pose a challenge for manufacturers to meet new emission standards and reduce toxicity of their operations. Substitute products like titanium dioxide also pose competition to some applications of zinc oxide. Overall, fluctuating costs, dependency on key markets, and evolving compliance needs create a challenging business environment for zinc oxide producers.

SWOT Analysis
Strength: Zinc oxide is a widely Zinc Oxide Market Share  used chemical with applications across multiple industries like rubber, cosmetics, ceramics etc. providing stable revenues.

Weakness: High dependency on China and global commodity price volatility increases supply risks.

Opportunity: Expanding end use sectors like pharmaceuticals and emerging technologies provide new growth prospects.

Threats: Strict environment regulations and easy availability of substitutes are major threats to established applications of zinc oxide.

Geographical Regions
North America and Europe currently hold around half of the global zinc oxide market share, driven by developed end use industries and stronger demand from pharmaceutical, personal care sectors. However, the Asia Pacific region is witnessing the fastest growth led by expanding manufacturing sectors, construction activities and rising per capita incomes in major countries like China and India. As infrastructure and consumer industries flourish, the zinc oxide demand is projected to increase sharply in Asia Pacific region over the coming years.

Fastest Growing Region
Asia Pacific region is poised to be the fastest growing regional market for zinc oxide during the forecast period. This is due to many factors like rapidly developing economies, increased investment in end use industries like construction, manufacturing, pharmaceuticals etc. in countries like China, India which are major consumers globally. Rising domestic demand accompanied with capacity additions across value chain is driving the zinc oxide consumption higher in Asia Pacific compared to mature markets of North America and Europe.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it