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Herbal Beauty Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global herbal beauty products market was valued at USD 65.5 billion in 2022 and is projected to expand at a CAGR of 9.2% from 2023 to 2030. Increasing demand for natural and organic beauty products is driving the growth of the herbal beauty products market. Herbal beauty products are gaining popularity globally due to their ability to provide a natural solution to beauty problems. This is expected to fuel the demand for herbal beauty products in the forecast period.
In addition, the increasing popularity of ayurvedic and other traditional healing practices is influencing the demand for herbal beauty products. Moreover, increasing awareness about the harmful effects of chemical-based beauty products is expected to drive the growth of the market. Furthermore, technological advancements and the increasing popularity of herbal beauty products in the luxury sector are expected to contribute to the growth of the market.
Furthermore, the rising demand for natural and organic beauty products is driving the growth of the market. Consumers are increasingly looking for products that are free from synthetic ingredients, parabens, and other chemicals. In order to meet the demand, key players are launching herbal beauty products with natural and organic ingredients. For instance, in May 2021, Forest Essentials launched an online platform for its ‘Herbal Beauty’ range, which includes a wide range of herbal beauty products.
Moreover, the increasing number of private labels of herbal beauty products is also driving the growth of the market. Private labels are offering herbal beauty products at a lower price as compared to the branded products, which is further expected to drive the growth of the market. Furthermore, the increasing popularity of herbal beauty products in luxury and high-end salons and spas is propelling the growth of the market.
The increasing demand for herbal beauty products in the emerging economies is expected to drive the growth of the market. Furthermore, the availability of herbal beauty products online is expected to contribute to the market growth. The rise in the number of e-commerce platforms is expected to boost the online sales of herbal beauty products. For instance, in May 2021, Forest Essentials launched an online platform for its ‘Herbal Beauty’ range. Furthermore, increasing focus on product innovation is expected to drive the growth of the market. Key players are focusing on launching new products with natural and organic ingredients to expand their product portfolio and gain a competitive edge. For instance, in April 2021, L’Occitane launched a new herbal beauty product line called ‘Aloha’.
Product Insights
The facial care segment led the market and accounted for a share of around 33.3% in 2022. Growing demand for herbal beauty products has been fueling the growth of the facial care segment. According to an article published by the Global Organic Personal Care Market, in January 2020, the herbal beauty products market is driven by rising consumer demand for organic and natural products and increasing awareness regarding health benefits of herbal products. Furthermore, macro-level factors such as increasing disposable income among consumers and mushrooming growth of distribution channels are bolstering the demand for herbal beauty products worldwide.
The hair care segment is anticipated to expand at the fastest CAGR of 8.8% over the forecast period. Growing adoption of herbal hair care products, rising trends for natural and herbal ingredients, and the emergence of various hair care brands are some of the key factors driving the hair care market growth revenue. According to an article published by Statista, in December 2019, 38% of consumers said they would purchase herbal beauty products if they were more affordable. In addition, increasing fashion trends and beauty awareness among individuals is another factor driving the growth of the market.
Distribution Channel Insights
The supermarkets & hypermarkets segment accounted for a major share of the global herbal beauty products market in 2022. This segment is expected to grow at a significant rate over the forecast period, mainly due to the convenience and availability of herbal beauty products in supermarkets & hypermarkets. According to a survey by Mintel in 2020, nearly one-third of the consumers prefer to buy beauty products from supermarkets & hypermarkets because of the wide range of products available. Moreover, supermarkets & hypermarkets also offer discounts and promotions to attract customers.
The online segment is anticipated to witness significant growth during the forecast period. The rise in the availability of internet and the increasing penetration of smartphones has enabled the growth of the online segment. According to a survey by Statista in 2021, nearly 70% of the global population had access to the internet in 2020. Furthermore, the increasing popularity of beauty and personal care products has led to an increase in the number of online stores and platforms offering herbal beauty products. For instance, in July 2022, The Body Shop launched a new e-commerce platform, Thebodyshop.com, to offer herbal beauty products online in the U.S. and Canada. The website provides a wide range of natural and cruelty-free products, including body butters, scrubs, face masks, and lip balms.
Type Insights
The herbal beauty products market is segmented into natural and organic. The natural segment held a major share of the market in 2020 due to the increasing awareness and use of natural products. Natural products are derived from natural sources such as plants, fruits, and herbs. These products are free of artificial chemicals, fragrances, and preservatives. Consumers prefer natural products due to their low side effects and long-term benefits. For instance, in December 2020, The Body Shop International PLC, a retail company, launched a natural skincare line called “Nature Inspired Skincare” to offer consumers natural and sustainable skincare products.
The organic segment is anticipated to grow at the highest CAGR of 10.3% over the forecast period. Organic products are derived from naturally grown plants and are free from artificial chemicals, fragrances, and preservatives. These products are certified by various organic certifying bodies such as USDA (United States Department of Agriculture) and ECOCERT (European Certification Organization). Increasing demand for organic products due to their natural and environment-friendly nature is driving the growth of this segment. For instance, in October 2020, Natura &Co, a cosmetic company, launched a vegan and organic hair care line called “Beleza Natural”. The product line aims to offer consumers natural and sustainable hair care products.
Regional Insights
Asia Pacific is expected to dominate the market and account for the largest revenue share of over 40% in 2022. This is owing to the increasing awareness about herbal ingredients among the population in the region. Consumers are more inclined to use herbal products due to their natural ingredients, which are free from any chemicals or synthetic substances. For instance, in October 2021, Forest Essential launched its new range of herbal skincare and beauty products in India.
Europe is expected to witness the second-fastest growth in the coming years. This is due to the increasing demand for herbal beauty products from the region’s affluent population, who have a preference for natural and organic ingredients. For instance, in April 2022, L’Occitane launched its new range of herbal beauty products in the UK. The products are made using natural ingredients derived from a variety of plants, such as lavender, rosemary, and chamomile.
Financial Projections
In this part of the Herbal Beauty Products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your Herbal Beauty Products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for an Herbal Beauty Products business comes from the sale of products and services. Here you will find a list with a description of each of them and other possible sources of profit such as marketing and advertising, affiliate programs, and digital sales.
Projecting Expenses
In this section, all the regular expenses related to keeping the Herbal Beauty Products business running will be described. The list of operating expenses includes salaries, cost of raw materials, manufacturing costs, marketing and advertising expenses, storage and shipping costs, insurance policies, and others.
Key companies & market share insights
Some of the major companies operating in the herbal beauty products market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In August 2022, The Body Shop launched a new range of herbal beauty products including body scrubs, facial cleansers, face creams, and balms derived from natural ingredients.
– In June 2022, L’Oréal launched the Botanicals Fresh Care range of herbal beauty products, containing natural ingredients such as lemon, ginger, and rosemary.
– In October 2022, Patanjali Ayurveda launched a range of herbal beauty products including face masks, creams, moisturizers, and soaps.
Some of the prominent players in the herbal beauty products market include:
– L’Oréal SA
– The Body Shop International Ltd.
– Procter & Gamble Co.
– Estee Lauder Companies, Inc.
– Unilever PLC
– Shiseido Co., Ltd.
– Avon Products, Inc.
– Kao Corporation
– Himalaya Global Holdings Ltd
– Patanjali Ayurveda Limited
Global Herbal Beauty Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global herbal beauty products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Skin Care
– Hair Care
– Makeup
– Bath & Shower
– Fragrances
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Pharmacies & Drug Stores
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Natural
– Organic
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What is Driving the Growth of the Herbal Beauty Products Market?
[A]: Increasing consumer awareness of the benefits of natural and organic ingredients in beauty products, along with the increasing demand for eco-friendly and natural products, is driving the growth of the herbal beauty products market. Additionally, the growing trend of using organic and natural ingredients in beauty products is also fostering market growth.
[Q]: Who are the Key Players in the Herbal Beauty Products Market?
[A]: Major players operating in the herbal beauty products market include L’Oréal S.A., Avon Products, Inc., The Estée Lauder Companies Inc., Shiseido Co. Ltd., Unilever, AmorePacific Corporation, Johnson & Johnson Services, Inc., Procter & Gamble Co., and Kao Corporation.
[Q]: What are the Key Trends in the Herbal Beauty Products Market?
[A]: The herbal beauty products market is witnessing trends such as the increasing use of natural and organic ingredients, the growing popularity of herbal products, and the increasing focus on product innovation.
[Q]: What is the Potential of Product Innovation?
[A]: Product innovation has been a major focus of the herbal beauty products market. Companies are introducing new products with advanced features such as natural and organic ingredients, eco-friendly packaging, and multi-functionality in order to attract more customers. Additionally, with the introduction of personalized products, the market is expected to grow further.
[Q]: Which Region Offers the Largest Opportunity for Sales of Herbal Beauty Products?
[A]: North America is expected to be the largest market for herbal beauty products, with an absolute dollar opportunity of $29 B (USD). This can be attributed to the increasing demand for natural and organic products and the growing awareness among consumers about the benefits of herbal beauty products.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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