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From Wikipedia

Cosmeceuticals refers to the combination of cosmetics and pharmaceuticals. Cosmeceuticals are cosmetic products with biologically active ingredients purporting to have medical or drug-like benefits.

I was wondering what ingredients being "biologically active" means?

In cosmetics that are not cosmeceuticals, are their ingredients not "biologically active"?

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Chemists usually marks as biologically active compounds, that have clear effect on living being in small amounts. For example, methane is not biologically active, but potassium cyanide clearly is. Of course, the borderline is quite blurry and can move if context changes.

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    $\begingroup$ Also, in the cosmetics industry, such phrases may be marketing and have nothing to do with real or perceived benefits. $\endgroup$ – Ben Norris Nov 27 '12 at 11:35
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In pharmacology, assuming that's what you are asking about, biological activity or pharmacological activity describes the beneficial or adverse effects of a drug on living matter. Of course, the substance doesn't have to be a drug, it can be natural, like snake venom.

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