Hyperpigmentation is a common and major skin problem that affects people of all skin types. Despite the availability of various depigmentation active ingredients for skin hyperpigmentation disorder, none of them are completely satisfactory due to their poor permeability through the skin layer and significant toxicity, thereby causing severe side effects such as irritative dermatitis, erythema, itching, and skin flaking. Nanotechnology plays an important role in advancing the cosmeceutical formulation by improving the solubility, stability, safety, loading efficiency, and dermal permeability of the active ingredients. The aim of this review is to offer a comprehensive discussion on the application of various nanomaterials in improving cosmeceutical formulations used to treat hyperpigmentation. Focus is placed on elucidating the advantages that nanotechnology can bring to some common hyperpigmentation active ingredients such as hydroquinone, arbutin, kojic acid, azelaic acid, and retinoic acid to improve their efficacy in treating hyperpigmentation. Lastly, a total of 44 reported patents and articles of depigmenting compounds encapsulated by nanoparticles were filed and analyzed. Overall, lipid nanoparticles were found to be the most widely used nanomaterial in treating hyperpigmentation. Graphical abstract
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