Organic Skin Care Market

Market Overview

The global organic skin care market size was valued at USD 9.82 billion in 2021, and it is anticipated to reach USD 21.21 billion by 2030 at a CAGR of 8.93%.

Items considered organic skincare are those that do not include any chemicals, preservatives, or additives of any kind in their composition. Skincare products that are one hundred per cent organic do not include any preservatives and, as a result, have a shelf life of three to six months. Because organic skincare products do not include chemicals, those using them are less likely to have skin irritation or allergic reactions.

An organic product is one that is derived from natural sources, is made by living creatures, and has not been subjected to chemical treatment, pesticides, or fertilizers. Skincare products with organic ingredients typically include essential oil, organic vegetable oil, fatty acids, and vitamins. These items are safe for the surrounding ecosystem. Organic skin care products are gentle yet effective in hydrating, nourishing, and caring for the skin.

Market Dynamics

Global Organic Skin Care Market Drivers

• The increasing use of e-commerce platforms is driving growth in the market

There has been a paradigm shift in consumer understanding of health and wellness as a direct result of the proliferation of beauty blogs and social media accounts dedicated to the advantages of switching to organic products. It is a significant factor that is propelling the organic skincare business forward. The online marketplace is one of the most critical resources customers utilize in their hunt for the ideal products, some of which may not be stocked in traditional retail locations like shopping malls and stores. Consequently, one of the most important reasons driving expansion in the worldwide skin care industry is the rise of e-commerce. It is anticipated that several technological developments employed to prolong the shelf life of skin care products would have a favourable impact on the industry as a whole.

• Increasing purchasing power, awareness about paraben-free products etc., are driving the market growth

Organic skincare is in high demand, and consumers want products devoid of parabens, preservatives, and other dangerous ingredients. These are some of the primary causes driving the industry. Another major factor is increased demand for skincare free from parabens, preservatives, and other harmful additives. As a result of globalization, there has been an increase in people's knowledge regarding natural and organic skin care products. Organic skin care products have been produced for a considerable time in nations such as Japan and South Korea. On the other hand, there has recently been a rise in people's awareness worldwide about these products.

Consumers now demand clean skincare products since they are aware of the adverse effects of parabens and other potentially hazardous ingredients that are added to skincare products. Organic skin care products are also significantly more efficient. These products, in general, come with a higher price tag than more conventional options currently on the market. It is projected that the rise in individuals' disposable income would act as yet another development engine. These variables would be projected to function as the primary drivers and increase the market.

Global Organic Skin Care Market Restraints

• Adverse effects of long-term usage of skin care products and products made only for a specific skin type

Cosmetic products used over an extended period can injure the skin, resulting in rashes, swelling, burning sensations, discolouration, and early ageing of skin cells. Some skin-nourishing creams, such as those for dry or oily skin, are solely meant for those skin types. Customers frequently disregard other product characteristics in favour of the brand name, which is bad for their skin. In addition, some products may employ inappropriate substances for the user, leading to allergic responses and the appearance of pimples. The elements mentioned above are impeding market expansion.

Global Organic Skin Care Market Opportunities

• The growing demand for organic skin care in Asia is creating growth opportunities

The manufacturers that operate in the organic skincare market are placing a strong emphasis on broadening their customer base by capitalizing on the potential offered by the rising markets of the Asia-Pacific region. New companies are entering the market to enhance the market's sustainability and raise consumers' awareness of natural alternatives to synthetic skin care products. This trend has pushed many businesses to offer a broad portfolio of organic products, particularly for men, such as face washes, serums, and facial washing. These products are all-natural and include no artificial ingredients.

Regional Analysis

According to the region, the global organic skin care market is broken down into North America, Asia-Pacific, Europe, Central & South America, and the Middle East & Africa.

In the global cosmetics industry, Asia-Pacific is one of the most diverse and dynamic markets in many popular categories such as skin care, sun care, hair care, colour cosmetics, deodorants, and fragrances, which are the most commonly used in this region. These categories include skincare, sun care, colour cosmetics, and fragrances. As a result, this area continues to hold promise as a market for organic skin care products sold worldwide. During the time covered by the projection, it is anticipated that the Asia-Pacific area will experience the highest rate of growth. The demand for organic skincare in this region is being driven by several factors, including an ageing population, a growing awareness of organic products, an increase in the number of millennials, and an increase in the number of working women. It is expected that the market for organic skincare products will grow during the forecast period because of the increasing regional investments in the branding and advertising of these goods. In addition, research shows that China holds the most market share in the Asia-Pacific region, followed by Japan, South Korea, and other countries.

Segmental Analysis

The global organic skin care market is divided into three parts based on product, distribution channel and region. Further, based on product, the market is divided into Face Cleanser, Face Serum, Face Cream & Moisturizers, Body Wash, Body Cream & Moisturizers and Others. In 2021, the face creams and moisturizers category accounted for about half of the market, and this dominance is expected to continue throughout the forecast period; by forming a barrier that prevents oil from evaporating and potentially dangerous substances from irritating or drying out the skin, moisturizers' moisturizing characteristics aid skin protection. Numerous organic moisturizers are available for skin types, including dry, oily, and textured skin. For instance, the beauty care company ROSEN sells tropical moisturizer, a light moisturizer with moisturizing properties made with active ingredients like pineapple enzymes to reduce excessive oil production and improve skin texture.

The face serum segment is anticipated to increase fastest during the forecast period. Customers are experiencing skin-related issues like dullness and hyperpigmentation due to increased pollution.

The market is divided into Online, Supermarket/Hypermarket, Pharmacy & Drugstore and Others based on the distribution channel. In 2021, the hypermarket/supermarket distribution channel had a higher revenue share of roughly 43.9%. A Retail Sector report from August 2021 claims that 68 per cent of British consumers claim to purchase personal care items offline because they prefer the in-person purchasing experience. Most brands launch their products through grocery chains like Walmart and Target to reach the most significant number of consumers.

It is anticipated that the internet channel will see a rapid CAGR during the forecast period. E-commerce supports local and regional businesses by extending their access to more consumers. For instance, popular organic skincare companies in India like iHerb only distribute their products online.

According to the region, the market is broken down into North America, Asia-Pacific, Europe, Central & South America, and the Middle East & Africa. During the predicted period, Asia-Pacific is expected to grow the fastest.

Recent Developments

• In February 2022, the microbiome-friendly skincare company Haeckels received a modest investment from The Estée Lauder Companies. It will enable Haeckels to broaden the scope of its recently released skincare line, boost manufacturing to meet demand, and enter new foreign markets.
• In January 2022, e.l.f. Cosmetics announced its commitment to 100% clean beauty, which means that all of the brand's products—cosmetics and skin care—will meet the highest clean standards by adhering to the European Union Cosmetics Regulation (EUCR) and FDA criteria.
• In May 2022, Weleda will grow its activities in the UK with a new, bigger warehouse.