Industry Outlook

Natural & Organic Personal Care market is expected to reach US$ 29,741.5 Mn by 2026 with 11.1% CAGR during the forecast period from 2018 to 2026, owing to high demand from the consumer for green and natural products. Negative perception of consumers about synthetic ingredients present in personal care products coupled with increasing health awareness across the globe igniting a paradigm shift from synthetic to organic personal care products. The wide array of synthetic and potentially harmful ingredients such as harmful phthalates, parabens, petroleum-based chemicals, etc. used in skincare and cosmetic products and their associated side effects are creating immense opportunity for naturally produced personal care products offering anti-aging, skin lightening, and super moisturizing benefits. Natural personal care products have plant-based ingredients such as colors, essential oils, biodynamic ingredients, etc. These natural ingredients will drive new product innovations leveraging oils and fruit oils and essences, with multifunctional benefits. Natural & Organic Personal Care are available in different product type that includes skin care, hair care, oral care, cosmetics, and others (toiletries, deodorants, feminine hygiene products, etc.). Natural & Organic Personal Care market is highly competitive due to the presence of large number of listed conglomerate. Few major players operating in the market are Procter & Gamble, Estee Lauder, L’Oreal SA, Avon Products Inc., and Johnson & Johnson among others. Majority of prominent players of natural and organic personal care are headquartered in North America and Europe. Many international manufacturers are also shifting towards natural products due to dynamic consumer requirements. For instance, Procter and Gamble (P&G) has stopped using total 140 fragrances that are linked to detrimental effects such as endocrine disruption, reproductive toxicity and cancer. Natural and organic beauty boom is, therefore, a part of the significant shift in consumer awareness about health and beauty. As the number of beauty blogs and social media accounts is increasing, the users and consumers are observed to be more inclining towards opting chemical-free products. Furthermore, there is growing evidence that some ingredients in skincare products are associated with a range of health concerns such as fertility issues, allergies, rapid aging, cancer and so on, which are being well addressed by natural and organic skin care products.

"Skin Care Segment represented the Largest Share by Natural & Organic Personal Care Product Type"

Skin Care is the dominant product type by value, and expected to retain its prominence with significant CAGR throughout the forecast period, as skin comprises the largest part of human body façade and act as a physical barrier to withstand pressure, recognize sensations, protects the body from the external environment, and helps to regulate the body temperature. Natural skin care products helps in improving texture, skin tone, and appearance of the skin owing to their essential properties such as pigmentation inhibition, antioxidant capacity, and antimicrobial activity necessary for healthy skin. Skin care products are gaining popularity owing to rising consumer awareness regarding the side-effects of chemicals and synthetic ingredients that causes undesirable side effects, especially people with sensitive skin and potential allergic reactions.

Hair care segment is projected to be the fastest product type market for natural & organic personal care with CAGR of 11.6% throughout the forecast period. Hair care products segment includes shampoo, conditioner, hair coloring products, hair styling products, etc. Factors such as rising aging population, concern over hair fall, dandruff, and hair loss, celebrity endorsement, and increasing popularity of professional hair care products will surge the demand for this segment during the forecast period.

"Distribution Channels for Natural and Organic Personal Care Products are Changing Rapidly Owing to Evolving Consumer Perception"

Natural & Organic Personal Care market is segmented into hypermarket/supermarket, specialist retailers, drug stores, online retailing, and direct selling. Supermarket/hypermarket held 28.0% value share in 2017. Growing awareness about the attractive offers coupled with high accessibility to wide assortment of authentic cosmetic and skin care products is expected to boost the demand for supermarket during the forecast period. Supermarket/Hypermarket are stores consisting of multiple variety of products under a single roof to allow customers to accomplish their shopping needs in a go. With the innovative and interesting placement of products, shop designs and merchandise, and dedicated racks by product type enhances shopping experience and facilitates purchasing, consequently attract large amount of foot falls leading to higher revenue. Efficient advertising, point of sale displays and store announcements motivates the customers to view the product, generating impulse buying. Trends show that with the rising number of supermarkets in developing countries, cosmetic skincare manufacturers as part of their business strategy are focusing on selling cosmetic skincare products through supermarkets to contact the masses that in turn expected to propel the growth of this segment during the forecast period. Evolving customer preferences towards online shopping also giving high growth momentum to online retailing segment exhibiting the CAGR of 12.1%. Availability of premium organic beauty products for people spread across the globe, upcoming marketing strategies followed by online sellers such as subscription models and promotional and seasonal sale events on online platform are expected to boost the demand for online retail segment during the forecast period.

"Strong Growth in Distribution Channels and the Number of New Product Launches Triggering the Market Growth"

North America was identified as the leading region in Natural and Organic Personal Care market by value with the share of 31.4% in 2017. North American prefer non-toxic and environment friendly personal care products over synthetic products, therefore U.S. based manufacturers are undertaking strategic initiatives to increase their presence and percentage of the natural and organic personal care products in the global market.

Asia-Pacific is projected to witness the fastest growth rate of 12.6% by value between 2018 and 2026, tailing North America. This growth can be attributed to rising health awareness, growing disposable income, and increasing number of health scares cases from adulterated and counterfeit products. In addition, high awareness related with beauty products in young population, rising geriatric population, and economic growth are few other factors driving the Asia-Pacific Natural & Organic Personal Care market. Asia-Pacific market growth is also driven by young and aspirational population investing in grooming, styling, and health products. Moreover, there is noticeable increase in demand for natural & organic personal care products from economies such as China, India, Indonesia, South Korea, etc.

"New Product Development and Acquisition are Preferred Strategies Adopted by the Key Players"

Leading personal care giants are adopting new product launch and acquisition strategies to venture into Natural & Organic Personal Care market. For instance, in March 2018, Avon Products Inc. launched AVON True NutraEffects Skincare, an addition to their natural skin care product portfolio. Also, in February, 2018, P&G acquired its New Zealand based competitor Snowberry, specializing in natural ingredients. This move helped P&G to add natural ingredient based skincare products in their portfolio and provided them an edge over other competitors offering chemical based cosmetics. Major players competing in natural & organic personal care market are Procter & Gamble, Johnson & Johnson, L’Oreal SA, Estee Lauder, Avon Products Inc., The Hain Celestial Group, Natura Cosméticos S.A., KAO Corporation, etc.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Natural & Organic Personal Care market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Natural & Organic Personal Care market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Natural & Organic Personal Care market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Natural & Organic Personal Care market?
• Which is the largest regional market for Natural & Organic Personal Care market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Natural & Organic Personal Care market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Natural & Organic Personal Care market worldwide?