About the Report
The beauty industry’s shift to “natural” and “organic” ingredients has been picking up pace. This has been enabling growth in the organic cosmetics market. While the demand for “green” products is higher among younger generation, Future Market Insights (FMI) observes that the megatrend is only getting started. In the coming years the beauty industry will witness an increasing number of brands, established and new entrants alike, racing for organic certifications. Soaring environmental issues and higher focus on sustainability will continue helping the market gain traction.
ESOMAR-certified consulting and market research firm Future Market Insights (FMI) offers detail insights about key drivers and factors driving the demand for organic cosmetics. The study tracks down global sales of organic cosmetics in 20+ high growth markets, along with the COVID-19 analysis on the industry in general.
What is the Future Outlook for Organic Cosmetics Market in Comparison to Historic Pattern of Growth?
The organic cosmetics market is quite dynamic in nature and has been expanding at a fast pace. Market players are consistently exploring ways to deliver innovation with new functionalities and features. Increasing consumer awareness about the benefits of organic consumer products and support from strong local companies are key factors fuelling the demand for organic or green cosmetics globally.
Manufacturing of green ingredient products is relatively eco-friendly compared to that of conventional products. Moreover, organic consumer products also have lesser side effects. As a result, these factors are fuelling the demand for organic products.
Skincare a tricky business; aside from the challenges of treating specific skin types (combination, oily, sensitive, normal), other factors such as hormones, diet, smoking, stress, and anxiety are also at play and have a massive impact on the health and appearance of skin. The usage of wrong products can trigger allergic reactions. As a result, there has been an increase in focus on organic skincare products that aim to help tackle some of the challenges specific to various skin types.
Besides this, growing environmental concerns is encouraging the adoption of veganism. This guarantees sustainability for the market over the forecast period. FMI projects the global organic cosmetics market to grow at CAGR of 5.0% throughout the forecast period 2021-2031.
How is Demand for Sustainable Products Affecting Organic Cosmetics Sales?
The demand for natural ingredients used in cosmetics and toiletries is growing, a trend expected to continue into the future. The organic beauty boom is part of the larger and recent shift in consumer awareness regarding health, wellness and the environment. Aligned with the trend, companies are replacing synthetic chemicals with natural ingredients, partly because of consumer demand and partly because of a move towards sustainable raw materials.
There is a rising demand for chemical-free products driven by rising awareness of their harmful effects. Customers increasingly want value-for-money products and key parameters they are looking for include natural ingredients and beneficial properties. Apart from rising disposable income, as more and more chemical-based products make their space into the shelves, there have been rising cases of allergies. People with sensitive skin type often refrain from the use of such products, thus increasing the demand for organic beauty.
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What is the Commercial Potential of Premium Skincare within the Organic Cosmetics market?
Pemium skincare has been seeing an upward trajectory in the past few years. Luxury beauty brands have are investing in clean beauty product lines to gain traction from millennial. Prominent beauty brands such as Aurelia Probiotic Skincare (Little Aurelia) and Chantecaille (Bebe) have entered the space with luxury versions of shampoos, body washes, body and face creams; aligning with the ‘clean’ and ‘organic’ trends via the use of natural, organic and non-toxic ingredients.
Clean skincare is most importantly gaining dominance because it implies to mitigate allergic reactions or major skin irritations, and to maintain good health overall. Since kid’s skin is extremely delicate and sensitive, it is imperative to opt for natural solutions; therefore, a rise in baby organic cosmetics sector.
How Significant is the Opportunity in the US Market?
As per the FMI analysis, North America is one of the leading regions within the global market space and is anticipated to continue throughout the course or duration of forecast period. Within North America, organic cosmetics are highly sought-after in the U.S. The rising focus on sustainability and increasing demand for organic color cosmetics have both played a significant role in facilitating growth in the country. Consumers across the U.S. are willing to pay more for premium products, thus creating opportunities for the organic cosmetics products sales.
Millennials are leading this trend toward healthy and clean products, driven both by the sheer number of consumers in this age group and their buying behavior. In the United States, millennials became the largest demographic group in 2015, overtaking the baby boomer generation, which had been the largest for roughly 60 years. For millennials, discovering new products and building authentic relationships with these brands is essential and prefer products that reflect their aspirations for a healthy lifestyle and their ethical and environmental standards.
Will Specialized Products Augment the Demand for Organic Cosmetics in the U.K.?
Increasing availability of specialized products in the market, especially skin care products such as sunscreens, concealers, and anti-ageing creams is contributing towards sales among consumers in the U.K. Targeted beauty has garnered a lot of attention among the consumers, especially the young population. The European cosmetics market presents good opportunities for exporters of natural ingredients from developing countries. Demand for natural ingredients from the European cosmetics sector is increasing. Personalization is one prime pillar supporting the escalation of demand for organic cosmetics.
Is Packaging Trend Driving the German Organic Cosmetics Market?
Convenience packaging is driving the German organic cosmetics market. Packaging is a key concern for companies operating in the consumer products category, as consumers are increasingly inclined towards small and convenient packaged products. For instance, in the skin care segment, demand for convenient and result-oriented products has increased considerably. Product innovations such as oils and serums with dropper bottles have generated huge sales in this segment.
India’s Organic Cosmetics Demand likely to Experience a Higher Growth
The present era is also parallel known as the era of a digital consumer. Consumers are more aware and better connected than they ever were before, which propelling the e-commerce channel. As per a report by India Cellular & Electronics Association (ICEA), India’s total smartphone user base has increased to 500 million in 2019. Digitalization and social media have been influencing consumer behaviour in India and are inflicting a positive demand within the organic cosmetics market. Celebrity influence and social media motivation has improved brand presence in the country, paving way for start-ups to invest and exploit the potential to the maximum caliber. An improved supply chain, logistics, and marketing strategy is the key for higher demand within the market.
Will China Imbibe Organic Cosmetics?
Organic cosmetics including organic and green skincare is gaining traction in Chinese. Skincare and beauty is a blooming business in China. In order to reach Chinese consumers and gather a competitive edge in such a competitive and vast market, the brands are seeking to natural remedies, by incorporating ingredients that resonate with Chinese customers. For instance, looking to fuse luxury skincare with traditional Chinese medicine, the luxury giant LVMH launched Cha Ling launched in 2016.
Which Product Category is projected to Exhibit High Growth?
Organic skin care has rapidly gained traction among millennial. Sustainable, organic, vegan, and natural skin care is gaining traction among consumers around the world. Nowadays, the demand for organic products is coming from all demographics. Product innovations within the organic cosmetics market have been hovering around the skin care segment. Skepticism regarding chemicals and additives used in popular skin care products is increasing, pushing consumers towards organic skin care brands.
What’s the Market Share of Makeup?
Makeup is fast becoming a mandate regular routine among the women across the globe. New, innovative brands are introducing various cosmetics and makeup products that are labeled as organic. Leading players are managing organic labeling and certification to cater to the needs of ingredient-conscious consumers. Companies are shifting towards organic ingredients, as well as packaging, so as to market the products as completely organic.
According to the analysis of FMI, the organic makeup category is expected to reach an approximate 27.6% market share by 2031.
How is the Male Category faring in the Market?
Male cosmetics market, though in its infancy, has witnessed a number of big beauty and fashion brands, such as Tom Ford & Chanel add a number of makeup products to their men’s ranges over the past few years. The product offerings being concealers, foundations and brow pencils sitting alongside beard oils, facial washes and moisturizers.
Social media has put a spotlight on male beauty. Though the bold and expressive looks as on magazine covers and elsewhere aren’t mainstream, both big and small beauty brands are aiming to create a wider appeal of male cosmetics for everyday use. The breaking of stereotype and normalizing of makeup for boys shows potential to drive the kids personal care market over time.
Which Price Range is highly Sought-after?
Consumers on an average will show higher inclination towards mid-range products. FMI has forecast this category to remain dominant through the forecast period. Besides accounting for leading share, it will also exhibit growth at a higher pace. The mid-range segment is forecast to account for nearly 36% of the global market in terms of price range in 2021.
How is Online Retailing Benefitting the Market?
No sooner did the COVID-19 pandemic hit, a majority of the store retailers shifted to internet retailing. The trend of Omni-channel retailing had begun even before the COVID-19 pandemic became known to the world, however, the lockdown period was a nail in the coffin. A more important fact is that a considerable section of new e-Commerce users intend to continue with online retailing. Primarily, stores that develop effective Omni-channel capabilities so as to maintain position among the physical grocers and also in a digital sphere are driving the market’s momentum.
Key players are adopting various strategies to survive in the highly competitive environment. With an aim to create brand name and survive in the competitive environment, these companies are focusing on innovations to be ahead of consumer wants and needs.
Vendors are introducing unique packaging shapes and materials to help create a recognizable brand identity. The act is an attempt in appealing to consumers’ multiple senses through distinctive shape, texture and visual packaging elements.
Manufacturers are aligning the launch of products with other relatable social media activities to gather an audience. Following the first commercial for the live action adaptation of Beauty and the Beast during the Golden Globes, Morgan Taylor Lacquer announced the launch of a line of nail polishes inspired by the upcoming movie.
Companies are actively engaging in strategic collaborations and partnerships in order to gain competitive advantage. Besides this, the focus on product launches continues to stay high.
For instance, Garnier launched a new organic line in 2019 to boost sales. It unveiled a new skin care range to better address changing preference of consumers.
Some of the leading companies operating in the market are:
- Estee Lauder
- L’Oréal Group
- WELEDA Inc.
- Groupe L’ OCCITANE
- KORRES Group
- The Clorox Company
- The Honest company
- Himalaya Drug Company
- Babylist Inc.
- Avalon Orgaics
- KORA Organics
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.
Scope of the Report
Historical Data Available for
USD Million for value and ‘000 Tonnes for Volume
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia, Oceania Middle East & Africa
Key Countries Covered
Key Segments Covered
Product Type, Sales Channel, Price Range, and Region
Key Companies Profiled
Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives
Customization & Pricing
Key Questions Answered in the Report
Which is the most lucrative market for organic cosmetics?
Europe currently leads the global market for organic cosmetics. The increasing demand for sustainable and natural products has played a significant role in facilitating regional growth. Within Europe, Germany has emerged as one of the key markets for organic cosmetics.
Which is the top-selling organic cosmetics category?
As per the analysis, skin care is the top selling category and is anticipated to witness an impressive growth over the forecast period. High purchase frequency and an increased inclination towards clean label products among consumers have been facilitating sales of organic skin care.
Which is more preferred sales channel for organic cosmetics?
Sales through specialty stores and hypermarkets/ supermarkets still account for a notable share in the organic cosmetics market. The penetration of specialty stores is high in the developing regions like Asia-Pacific and Middle East and Africa. Online sales are further expected to register high CAGR during the forecast period.
Which are some of the leading companies offering organic cosmetics?
Some of the leading companies offering Organic cosmetics include Estee Lauder, L’Oréal Group, WELEDA Inc., Groupe L’ OCCITANE, KORRES Group, The Clorox Company, The Honest company, Himalaya Drug Company, Babylist Inc., Avalon Orgaics, KORA Organics.
Which is a prominent factor driving sales of organic cosmetics?
Growing personal disposable income on one hand and stepping up innovation on the other side on the part of suppliers is playing a significant role in accelerating growth. Moreover, the younger generation is inclined towards adoption of sustainable practices, offering a growth platform to the global market.
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Is this research conducted by Future Market Insights?
Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst
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Organic Cosmetics Market by Category
- Skin Care
- Creams & Lotions
- Face Packs/ Masks
- Hair Care
- Hair Oil
- Hair Dye
- Facial Products
- Eye Products
- Lip Products
- Nail Products
- Body Care
- Shower Gels
- Convenience Stores
- Specialty Stores
- Direct Selling
- Departmental Stores
- Online Retailing
- Other Sales Channel
- North America
- Latin America
- East Asia
- South Asia
- Middle East and Africa (MEA)