Organic and natural skin care products are breaking barriers of mainstream beauty products due to their effective restorative skin results. In the past few years, sales of organic cosmetic products have surged due to increased consumers preference for safe, non-GMO, and grown in herbicide free environment ingredients. In addition, the trend of eco-friendly and cruelty-free products also have become a rage among millennials. Increasing awareness among consumers regarding the adverse effects of chemical based cosmetic formulas has also favored the use of organic cosmetic products. In line with this, the demand for natural cosmetics has increased tremendously. As per the SOIL Association report, in 2018, the organic products market was valued at around USD 96.91 million in the U.K. Moreover, major players have started acquiring startups engaged in producing organic and natural skin care products. Recently, L’Oreal acquired Pulp Riot Hair.
Global organic cosmetic products market accounted for around USD 17,000 million in 2017 and is expected to grow at a CAGR of 12.5% during the forecast period, 2023-2031.
Global organic cosmetic products market is segmented by product type and distribution channel.
By product type, the market is segmented into facial care, hair care, make-up, and body care. Facial care segment is expected to grow at the fastest CAGR due to increasing demand for beauty products.
Based on the distribution channel, the market is segmented into a retail sale and online sale. The retail sale segment is expected to generate the highest revenue in the forecast period due to the easy availability of the product. Retail segment is the most preferred channel by several companies due to their high product penetration among consumers. Sephora is one of the prominent retail leaders worldwide. It has global reach with extensive beauty care products.
Geographically, the global organic cosmetic products market is segmented into five regions: the Americas, Europe, Asia Pacific, Latin America, and the Middle East & Africa (LAMEA).
The Americas is projected to dominate the global organic cosmetic products market backed by increased demand for luxury personal care products and increased adoption of organic cosmetics by millennial population. Mexico is one of the largest economies. As per the Mexican Chamber of Cosmetic Products (CANIPEC), the Mexican cosmetics market is estimated to be valued at USD 10.5 billion and is ranked 11th in the world.
Europe is the second largest market globally. This can be attributed to rising awareness about wellness care among the population. In 2018, anti-aging night skincare sales increased by 9% and the nighttime skincare market valued was at USD 53.77 million, SOIL association. In addition, an increasing number of vegan populations in the region is also influencing the choices of consumers. During 2013–2018, the market witnessed 175% growth in the number of vegan products.
Asia Pacific is expected to witness significant growth during the forecast period, 2019–2026. The countries in Asia represent some of the largest and high potential skin care markets. Increasing K-Beauty trends in the region are also driving the market growth. Presence of many popular organic brands has also reduced the market barrier across the region. For instance, in Japan, Shiseido, Kanebo, and SK-11 are popular for using natural ingredients such as seaweed, rice bran, and ground adzuki beans. In addition, increasing adoption of homegrown brands offering cost-effective products as compared to international counterparts is also flourishing the market growth. For instance, in India, KAMA, boutique, and Himalaya are some of the major natural products manufacturing brands competing with leading international players.
Growing demand for chemical-free beauty products is expected to drive healthy growth in the MEA market. Dubai, Kuwait, and Riyadh are some major cities in the region having high demand for organic products.
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