Natural Cosmetics Market: Growth 1.0 Led by Green Beauty Trend
Following the ban of hundreds of potentially harmful chemical ingredients in a span of cosmetics by the FDA and in the European Union (EU), the cosmetic ingredients space has been undergoing a paradigm shift. Cosmetic ODM, contract manufacturers, and beauty product manufacturers are increasingly moving away from various cosmetic chemicals to natural ingredients including natural antioxidants, aloe vera gel, and floral extract.
In recent years, demand for natural cosmetics is gaining a boost from consumers’ inclination towards chemical-free makeup and natural solutions. Additionally, the trend of ‘green beauty’ and ‘clean beauty’ are compelling cosmetic scientists to return to traditional and local ingredients to create new formulations. Analyzing historical figures and current trends, Future Market Insights, in its new offering, revealed that global sales of natural cosmetics reached US$ 36 Bn in 2019.
Natural Cosmetics for Skin Care and Hair Care Capture ½ of Total Sales
An exponential rise in demand for natural cosmetics has been parallel to greater consumer awareness of the use of toxic chemicals in conventional cosmetics and subsequent exploration of products which are deemed to be ‘safer’. Natural cosmetics for hair care and skin care continue to influence growth strategies, while manufacturers are targeted towards capitalizing on color cosmetics and fragrances. Growing popularity of natural cosmetic colors made using pigments found in fruits and vegetables is also working to advantage of the market players.
Furthermore, strong focus on innovation and creativity are forging the way fragrance products smell with exclusive natural ingredients that eventually shapes the future of the natural cosmetics market.
Europe Mainstays for Natural Cosmetics, Asia Pacific Closes in
Europe continues to offer greater opportunities for natural cosmetics market players, attributing to the EU’s ban on 1300 chemicals in cosmetics alone. Enforcement of strict laws that require manufacturers to prove product safety has resulted in increased production of natural cosmetics within the region. In addition, significant growth of beauty industry in developing countries of Asia Pacific in line with increasing momentum of organic cosmetics in ASEAN is expected to open a wide window of opportunities for key players in the natural cosmetics market.
Manufacturers to Prioritize Male Grooming Space and Online Stores
As the competition intensifies in cosmetics and personal care industry, a strong product portfolio no longer suffice for maintaining a distinct brand persona. While unisex natural cosmetics continue to contribute major share of manufacturers’ bottom lines, greater emphasis had been put on natural cosmetics for male consumers amid growing demand for men’s grooming products. Considering robust growth of the men’s skincare products market and the trend of moving away from ‘for him’ marketing to ‘ingredient-first’ approach, demand for natural cosmetics for men is expected to remain strong going forward.
In addition to attracting attention from different categories of consumers, rapid penetration of online stores are leading to realignment of manufacturers’ strategies. Moreover, a spike in demand for greener and organic cosmetic products are prompting key players in natural cosmetics market to shift from niche distribution channels to mainstream mass retailers. In 2019, a relatively large volume of natural cosmetics were sold through hypermarkets and supermarkets.
Market Segmentation
FMI’s market research report has been segmented into product, application, end-use, sales distribution, and region. It includes segment-wise analysis and offers all-inclusive insights on how wide-ranging dynamics and trends associated with individual segment will impact the natural cosmetics market growth.
By Region
- North America
- U.S.
- Canada
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Europe
- EU5
- Nordic
- BENELUX
- Russia
- Poland
- Rest of Europe
- APEJ
- China
- India
- ASEAN
- Australia & New Zealand
- Rest of APEJ
- Japan
- MEA
- GCC
- South Africa
- North Africa
- Rest of AMEA
By Product Type
- Skin Care
- Hair care
- Color Cosmetics
- Fragrance
- Oral Care
- Toiletries
By Application
- Male
- Female
- Unisex
- Baby
By End-use
- Personal Care (Household)
- Salon & Spa
By Sales Channel
- Hypermarket/Supermarket
- Online Stores
- Convenience Stores
- Speciality Stores
- Wholesale/Distributors
- Club Stores
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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