Glycolic Acid Market Size & Overview:

The Glycolic Acid Market size was USD 349.07 million in 2024 and is expected to reach USD 648.92 million by 2032 and grow at a CAGR of 8.06% over the forecast period of 2025-2032.

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The glycolic acid market analysis indicates that expanding industrial applications are significantly contributing to market growth. The increasing application of glycolic acid in a manifold number of industries, including textiles, water treatment, oil and gas, and electronics, among others, is attributable to the versatility and effectiveness of the component. Glycolic acid is used as a dyeing and tanning agent in the textile industry, which increases the amount of uptake and fastness of dye, hence improving the quality and durability of textile material. Additionally, cost-effective production and export capabilities in emerging economies are strengthening global supply chains.

For instance, according to the United Nations COMTRADE database, India's exports of tanning and dyeing extracts, tannins, derivatives, and pigments were valued at approximately USD 3 billion in 2023. 

Due to its chelating ability, it finds significant application in the water treatment process as it can remove scale and mineral deposits from pipes and equipment and thus increase the efficiency of water treatment systems.

Glycolic Acid Market Dynamics

Drivers

• Surging Demand in Skincare and Personal Care Products Drives Market Growth

A major reason behind the glycolic acid market growth is the increasing need for skincare and personal care products. Glycolic acid is a powerful alpha-hydroxy acid (AHA) known for its ability to exfoliate skin by sloughing off dead skin cells and encouraging skin regeneration. As a result, the skin texture is enhanced, the fine lines are reduced, and the complexion brightens, making it a popular ingredient in skincare formulations. Moreover, the booming number of consumers' awareness of these advantages, along with a rapidly growing trend of personal care and grooming services, has increased the demand for products containing glycolic acid, which drives glycolic acid market growth. Moreover, glycolic acids companies focused on the newly launched expansion and invested in various applications.

For instance, in February 2024, the House of Lakmē launched its new skincare range, the Glycolic Illuminate Collection. Developed with the intent to deliver that dewy, lit-from-within skin, this collection focuses on the exfoliating benefits of glycolic acid that can meet different skin concerns.

Moreover, the combination of social media and beauty influencers has skyrocketed the trend of products like this, further molding consumer preferences and purchasing decisions. This, in turn, is propelling manufacturers to expand their product portfolios with glycolic acid-based offerings, which are in line with the evolving needs of the skincare market.

Restrain

•   Skin Irritation and Sensitivity Issues May Hamper the Market Growth

Skin irritation and sensitivity are major challenges facing the glycolic acid market, as while effective exfoliation can bring visible results, there is also a potential to damage the skin barrier, especially when used at high concentrations or in poor formulations. Due to the highly acidic nature of glycolic acid products, excessive acidity or frequent use, especially on sensitive or compromised skin, can commonly lead to redness, stinging, peeling, and even dermatitis. Glycolic acid is also associated with risks that demand a battery of safety testing and restrictions on the concentration level, usually below 10% for over‐the‐counter products in many regions, complicating formulations and raising costs to manufacture.

Trends

• Innovative Formulation Technologies are Driving the Market Growth

New developments in formulation technologies are pushing the glycolic acid market by addressing its historic drawbacks, skin irritation, and stability issues and enabling further potential uses. Controlled-delivery systems (e.g., encapsulation systems such as liposomes or polymer-based microspheres) and time-release matrices mitigate surface pH spikes, allowing for treatment with less pain while maintaining efficacy through gradual glycolic acid delivery. Advanced methods of emulsification and nanotechnology also enhance the homogeneity of the product, leading to peel strength and skin penetration. Glycolic acid production is also receiving large amounts of investment in the U.S., with funding and innovation grants from the US government.

For instance, Lygos, Inc. has received 3 SBIR grants to mitigate the cost, purity, and sustainability barriers to bio-based glycolic acid production.

These awards include: ($500,000) National Science Foundation (NSF) to create CO₂-fixation technologies for enhanced microbial biochemical production; ($150,000) U.S. Department of Energy (DOE) to resolve purity and cost challenges with glycolic acid manufacture; and ($100,000) U.S. Department of Agriculture (USDA) to design biological technologies to produce specialty acids. This investment helped to enhance the glycolic acid market trends in the market.

Glycolic Acid Market Segmentation Analysis

By Grade

Cosmetic grade held the largest glycolic acid market share, around 67%, in 2024. This is due to it being mostly used in mineral and personal care products. Lactic acid, as an AHA (alpha-hydroxy acid), is well-known and is loved for its powerful exfoliating properties that sweep dead skin cells away for a vibrant, younger-looking appearance. Thus, it has become an extremely common ingredient in a variety of cosmetic formulations ranging from cleansers to serums and moisturizers to anti-aging products and beyond. As interest in self-care and beauty grows, the demand for skincare products that provide solutions for fine lines, acne, and pigmentation has been increasing, further driving the rise in popularity of cosmetic-grade glycolic acid.

Technical Grade held a significant market share because its purity requirements are low, and most of the time, it is used in industrial applications.  Mainly, it is utilized in textile, cleaning products, water treatment, and manufacturing processes with this grade of glycolic acid. Glycolic acid is used in the dyeing and tanning processes in the textile industry. It helps improve the uptake of dyes by fabrics and also improves the color fastness of the fabric. In the water treatment industry, it is utilized for its chelating properties, which help in dissolving mineral deposits, along with enhancing the performance of treatment processes.

By Application

The personal care & dermatology held the largest market share, around 54%, in 2024.  It is owing to rising consumer demand for effective skincare treatments, coupled with the rapid popularity of glycolic acid-based products and glycolic acid beauty products owing to their exfoliating properties. Glycolic acid is among the most potent alpha-hydroxy acids (AHA) and can be found in many skincare products, including cleansers, toners, peels, serums, and moisturizers. That property, in addition to its capacity to unblock pores, its ability to regenerate the skin, and its ability to treat fine lines, wrinkles, and hyperpigmentation, singled it out from the rest of the ingredients that were being used in topical treatments available over-the-counter and from professional dermatologists.

Industrial held a significant market share owing to its versatile utilities in the production of diverse products. Glycolic acid is a generic multiplicity at all times in industries like textiles, water treatment, and cleaning. It functions as a dyeing and tanning agent and is widely used in the textile industry, aerospace, and leather to improve the fastness of color and improve the quality of fabrics. Glycolic acid is also prized for its chelating ability in water treatment, helping to eliminate mineral salt deposition and scale in pipes and equipment, thus efficiently promoting the running of systems.

Glycolic Acid Market Regional Outlook

Asia Pacific held the largest market share, around 39%, in 2024. This is owing to the rapid industrialization in the region, the developing manufacturing base, and the rising demand for personal care products. The growth of the market in countries like China, India, and Japan is primarily due to their increasing production of cosmetics, textiles, and pharmaceuticals. High demand for glycolic acid in skin care and dermatology complement products is attributed to increasing consumer awareness about skin health, along with the rising trends for anti-aging as well as acne treatment products. Glycolic acid is also extensively used in several industrial processes in the Asia Pacific manufacturing sectors, such as textiles and water treatment.

In 2024, CrossChem introduced a new line of glycolic acid-based skin care products specifically developed for sensitive skin with lower irritation. This new range is taking hold in the market, achieving more than 10% of the total CrossChem skincare sales within six months.

North America held a significant market share and is the fastest-growing segment in the forecast period. It is due to the widespread use in the cosmetics and skincare sector, especially among the key players of the region, that has made it one of the largest market shareholders. In North America, the increase in consumption of glycolic acid is due to the growing knowledge of skin health and the increasing demand for quality skin care. Additionally, the surge in the availability of over-the-counter pain relief and anti-inflammatory medication like paracetamol is expected to drive demand in the pharmaceutical industry and, ultimately, in the North America glycolic acid market.

U.S. glycolic acid market size was USD 67.16 million in 2024 and is expected to reach USD 137.85 million by 2032 and grow at a CAGR of 9.41% over the forecast period of 2025-2032. Glycolic acid is widely used in anti-aging and exfoliating topical products in the U.S., which has a leading skincare and cosmetic-based market, contributing a double-digit growth to the market. Growing cognizance about skincare advantages among consumers and a shift towards higher-grade, scientifically validated personal care product formulations are some of those aspects propelling glycolic acid adoption in personal care applications.

In September 2024, Walgreens broke into the high-end skincare game with a glycolic acid purifying cleanser to meet the increasing demand from consumers for effective skincare without overspending.

Europe held a significant market share over the forecast period. Glycolic acid is broadly used in anti-aging, exfoliating, and skin-brightening products in the well-established cosmetics and personal care industry in the region. Mid to high-quality skincare products have high demand in France, Germany, and the UK market, with rich culture and tradition for natural and efficient ingredient products. On top of this, the increasing market demand for clean beauty and dermatologically tested products has accelerated the use of glycolic acid in formulations.

In February 2021, the French government subsidized METabolic EXplorer (METEX) with US USD 10.12 million, enabling the company to establish and operate a glycolic acid production plant in France. This strategic move has bolstered METEX's position in the European market.

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Key Players

The glycolic acid market companies include The Chemours Company, CABB Group GmbH, China Petrochemical Corporation (Sinopec), CrossChem Limited, Phibro Animal Health Corporation, Avid Organics Pvt. Ltd., Mehul Dye Chem Industries, Zhonglan Industry Co., Ltd., Shandong Xinhua Pharmaceutical Co., Ltd., and Saanvi Corp.

Recent Development:

• In 2023, Glyclean D launched a new glycolic acid cleaner for institutional and home use, a biodegradable solution for multiple cleaning needs.

• In 2023, GlySmart Complex A, a smart-release glycolic acid complex, was developed for people with sensitive skin to provide more effective results with less irritation.