TAGS: Skin Care Hair Care Natural/ Organic
The global organic personal care market size was estimated at USD 13.33 billion in 2018 and is projected to register a CAGR of 9.4% from 2019 to 2025.
Demand for Skin & Hair Care Drive Market
Increasing demand for cosmetics and skin and hair care coupled with rising need for environment- and animal-friendly products is expected to drive the growth. Rising R&D expenditure to introduce improved plant and animal extracts into various products is expected to further promote the product demand. Furthermore, stringent regulations promoting the use of organic materials in skin care industry are likely to propel market growth.
The market includes a wide variety of products for the protection of hair, skin, and oral health, along with cosmetics, oils, body sprays, perfumes, and masculine and feminine hygiene product among others. Technological innovations aimed at development of cost-effective product lines by companies such as Aveda Corporation, The Body Shop, Estée Lauder, and Amway, are expected to remain key drivers for market growth over the forecast period.
Growing awareness regarding various benefits of organic products as compared their synthetic counterparts has resulted in an upsurge in their demand over the last few years.
Organic & Natural Personal Care - A Major Part of Cosmetics Sector
Organic products are derived from natural resources and are free from harmful chemicals. This has prompted manufacturers to introduce new products and to focus on research and development. As a result, organic and natural personal care market has become a major part of cosmetics and wellness sector over the past few years. This trend is expected to continue over the forecast period.
Growing demand has resulted in an increase in the availability of these products across various distribution channels such as supermarkets, malls, and drugstores. In addition, rise of online market where consumers can access a wide range of products from any part of the world has been a primary reason for increase in the level of accessibility and is expected to remain a key contributing factor for growth0. E-commerce channels give consumers the opportunity to gain access to products that would otherwise not be available in their local stores and malls, which has made them especially popular in emerging markets.
Growing popularity is the key factor driving demand for natural products. Growth of distribution channels in urban areas has made these products easily accessible to consumers. As these products reflect the growing aspirations of consumers for better hygiene, health, and beauty in modern times, their adoption has exhibited significant growth. Oral care and other niche products are expected to slowly grow in prominence with the help of R&D efforts by various manufacturers.
Consumers these days are willing to pay high prices for premium products. Customers prefer more expensive organic products, especially in countries such as U.S., China, Japan, and India. This is due to organic products promoted as being inherently better in comparison to conventional synthetic products. However, there has been a shift in consumer behavior in the recent past, owing to the sluggish economy, wherein consumers are keen to purchase products at discounted prices.
Product Insights
On the basis of product, the organic personal care market is categorized into cosmetics, oral care, skin care, and hair care among others. In 2018, the skin care segment led the global market. Exponentially rising skin concerns and anti-aging pursuit is a major driving force, which in turn influences consumer preference and demand positively. Rising awareness regarding natural ingredients for providing UV protection is expected to fuel product demand over the forecast period.
Organic ingredients are incorporated in cosmetic products including lipsticks, nail polishes, fragrances, and bronzing powders. Growing consumption of these products in China, Brazil, and India in light of increasing population of working class women is expected to promote the growth.
In addition, increasingly changing lifestyles in various economies and rising demand for sun and skin care products due to changing climatic conditions, is expected to positively impact the growth. A shift in preference toward organic and natural beauty products, particularly in European and North American countries, is expected to foster market growth. Furthermore, rising demand for organic, herbal, and natural beauty products has created growth opportunities for manufacturers to innovate and develop new products in accordance with consumer preferences.
Regional Insights
North America was the leading segment in 2018, and is expected to continue its dominance over the forecast period. Increasing consumption in Mexico on account of rising awareness regarding positive effects of natural ingredients such as turmeric and neem is expected to have a positive impact on the market. Favorable regulatory support in Mexico to facilitate new investments at domestic level is expected to open new avenues over the forecast period.
Cosmetics industry has witnessed an exponential rise over the past years. Skin care is the largest category. Both women and men use products such as moisturizing lotions, fairness creams, anti-aging creams, and sun protection creams and lotions, on a daily basis. Organic skin care products have been showing the highest penetration across all the regions; however, these products are gaining significant popularity in Asia Pacific.
Organic Personal Care Market Share Insights
The market is characterized by the presence of various major players catering to the global demand. The companies majorly compete on the basis of product since the players have similar portfolios. Players use the cost advantage approach and sell their products. The market is witnessing fast growth in Asia Pacific and North America, attributed to the increasing demand from the rising youth population in key economies such as U.S., Mexico, China, and India.
Manufacturers have been laying high emphasis on expanding their footprints in an attempt to increase product share and drive revenues. Companies are expanding their services in Middle East, Asia Pacific, and Africa to cater to the growing needs of the emerging economies. Countries such as China and India are expected to provide new expansion opportunities for players over the forecast year owing to the rising population.
Source: Grand View Research