World consumers are nowadays more focused on their health and appearance. This trend is creating heightened demand for products formulated with natural and nutraceutical ingredients. Functional ingredients and innovative delivery systems are driving the new product development in the field of cosmetics. A significant number of innovative formulations are now being used in personal care with real consumer-perceivable benefits and optimized sensory attributes, resulting in an economic uplift of cosmetic industry. In fact, the U.S. market alone for novel cosmetic delivery systems has been projected to be more than $41 billion for the year 2007. Novel cosmetic delivery systems reviewed here possess enormous potential as next-generation smarter carrier systems.