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Natural Cosmetics Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global natural cosmetics products market was valued at USD 21.3 billion in 2022 and is projected to expand at a CAGR of 8.5% from 2023 to 2030. The increasing awareness regarding the ill effects of chemical-based cosmetics and skincare products is driving the demand for natural cosmetics products. The rising popularity of natural cosmetics products among consumers due to their safety and efficacy is propelling the market growth. Furthermore, the increasing demand for these products from the millennial population is further propelling the market growth.
The rising popularity of natural ingredients, such as plant-based oils and extracts, among consumers is driving the demand for the market. Furthermore, key players are introducing new products to cater to the increasing demand for natural cosmetics and skincare products. For instance, in August 2021, L’Oréal introduced a new natural skin care product line, called ‘Botanicals Fresh Care’, with 100% natural origin active ingredients and 98% natural origin ingredients. The range includes a shampoo, conditioner, hair mask, and hair oil.
The growing trend of premiumization among the population is propelling the demand for natural cosmetics products. Consumers are increasingly opting for natural products that are free from harsh chemicals and provide better results. In addition, the rising trend of clean beauty and the increasing awareness about the ill effects of chemical-based products is driving the demand for natural cosmetics products. Furthermore, the increasing demand for organic and natural products, coupled with the rising number of product launches, is further driving the market growth.
Moreover, the rising popularity of the subscription box concept is further propelling the market growth. Subscription boxes are gaining traction among consumers due to the convenience they offer. These boxes contain different cosmetic and skincare products that are tailored to the individual’s needs. For instance, in January 2021, LoveLula launched a monthly subscription box tailored to the customer’s skin type and preferences. The box contains five natural and organic skincare products.
Furthermore, the increasing number of promotions and advertisements of natural cosmetics products is driving the market. Key players are engaging in promotional activities, such as discounts, sales, and free samples, to increase their market share. For instance, in April 2021, The Body Shop launched a new campaign to promote its natural and organic products. The campaign is an attempt to increase consumer awareness and engagement with the brand. Additionally, key players are launching new products to cater to the increasing demand from customers. For instance, in August 2021, Green People launched its new organic skincare range that is suitable for all skin types. The range includes cleansers, toners, moisturizers, primers, and masks.
Product Insights
The organic skincare products segment led the market and accounted for a share of around 38.9% in 2022. Increasing awareness among consumers regarding the harmful effects of synthetic ingredients in cosmetics coupled with stringent regulations against animal testing is driving the demand for natural cosmetics worldwide. According to an article published by Labmate Online, in January 2020, 80% of consumers agreed that animal testing should be banned for cosmetics. Furthermore, macro-level factors such as the growing trend for clean beauty, rising demand for natural and organic cosmetics, and increasing consumer spending power are bolstering the market growth.
The organic hair care products segment is anticipated to expand at the fastest CAGR of 8.5% over the forecast period. Growing consumer preference for ethical and cruelty-free products, rising awareness regarding the harmful effects of synthetic chemicals, and the emergence of various natural and organic hair care brands are some of the key factors driving the market growth revenue. According to an article published by Beauty Packaging, in November 2019, around 80% of consumers agreed that natural and organic hair care products are important for their overall health and wellbeing. In addition, increasing fashion trends and beauty awareness among individuals is another factor driving the growth of the market.
Distribution Channel Insights
The supermarkets and hypermarkets segment captured the major share of over 34.7% in 2022. Supermarkets & hypermarkets are the primary source for consumers to purchase natural cosmetics products. Consumers are likely to purchase these products from super/hypermarkets as they provide a wide range of natural and organic cosmetics products. Also, customers have the option to compare the products and their prices before making the purchase.
The online segment is anticipated to expand at the highest CAGR of 13.5% over the forecast period. An increasing number of companies are focusing on expanding their presence in the digital space to capture the international market and reach out to a global audience. For instance, in January 2021, The Ordinary launched its website in the U.S., offering its products through its website and Amazon. In addition, the availability of discounts and offers on online platforms are also expected to drive the online segment during the forecast period.
Type Insights
The natural segment accounted for the largest revenue share of 38.2% in the year 2022. The growing preference of consumers for natural ingredients is driving the demand for natural cosmetics products. The increasing awareness about the harmful effects of synthetic chemicals has made consumers opt for products with natural ingredients. For instance, in April 2021, The Body Shop, a company based in U.K., launched an online campaign to educate consumers about the harmful effects of synthetic chemicals used in personal care products. In addition, increasing demand from consumers for natural and organic products is likely to contribute to the growth of the natural cosmetics segment.
The organic segment is anticipated to expand at the highest CAGR of 9.8% over the forecast period. The increasing demand for organic products is driven by the growing awareness among consumers about the benefits of organic products. Moreover, the increasing demand for organic and natural cosmetics products from millennials and Gen Z consumers is likely to propel the market growth. Furthermore, the increasing demand for eco-friendly products with natural ingredients is expected to further boost the growth of the organic segment.
Regional Insights
Europe is projected to lead the global market, owing to the presence of a large number of natural cosmetics companies, growing awareness about the benefits of natural cosmetics products, and the presence of a large consumer base. Additionally, the increasing preference for natural and organic cosmetics among the consumers, along with the presence of well-established distribution networks, is expected to drive the growth of the market in Europe.
Asia Pacific is projected to witness the fastest growth over the forecast period. The growth in the region is attributed to the increasing demand for organic and natural cosmetics products, particularly in countries like China, Japan, and India. The booming e-commerce industry and rising disposable income in the region are also expected to fuel the growth of the natural cosmetics products market. For instance, in June 2021, Australian skincare brand Aēsop opened its first store in Shanghai, China.
Financial Projections
In this part of the natural cosmetics 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 natural cosmetics products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a natural cosmetics products business comes from product sales, wholesale/retail partnerships, and digital channels. Here you will find a list with a description of each of them and other possible sources of profit such as fundraising and the sale of merchandise.
Projecting Expenses
In this section, all the regular expenses related to keeping the natural cosmetics products business running will be described. The list of operating expenses includes product development costs, wages, utilities, shipping and handling costs, insurance policies, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the natural cosmetics 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 June 2022, L’Oreal launched the Botanicals Fresh Care range of natural hair care products.
– In August 2022, Estee Lauder launched the Pure Color Love range of natural lipsticks.
– In October 2022, Shiseido launched the Natural Foundation range of natural foundation products.
Some of the prominent players in the natural cosmetics market include:
– L’Oréal SA
– Estee Lauder Companies, Inc.
– Shiseido Co., Ltd.
– Avon Products, Inc.
– The Procter & Gamble Company
– Revlon, Inc.
– Unilever
– The Hain Celestial Group
– NATURE REPUBLIC
– The Body Shop International PLC
Global Natural Cosmetics 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 natural cosmetics products market based on product type, distribution channel, end user, and region:
1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)
– Haircare
– Skincare
– Makeup
– Fragrance
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Specialty Stores
– Others
3. End-User Outlook (Revenue, USD Million, 2017 – 2030)
– Men
– Women
– Unisex
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Factors Driving the Natural Cosmetics Products Market?
[A]: The increasing demand for natural and organic cosmetics products is driven by the rise in awareness among consumers regarding the benefits of these products, the increasing trend of veganism and vegetarianism, and the growing preference for natural ingredients in the cosmetics industry. Additionally, the increasing demand for eco-friendly products, the growing inclination of consumers towards natural ingredients, and the increasing awareness about the harms associated with synthetic ingredients are expected to drive the natural cosmetics products market.
[Q]: Who are the Key Players in the Natural Cosmetics Products Market?
[A]: Key players in the natural cosmetics products market include L’Oréal S.A., Estée Lauder Companies Inc., Unilever PLC, Beiersdorf AG, LVMH Group, Shiseido Company Ltd., Kao Corp., The Clorox Company, Johnson & Johnson Services, Inc., and The Procter & Gamble Company.
[Q]: What are the Innovations and Product Developments in the Natural Cosmetics Products Market?
[A]: Companies are focusing on product development and innovation to gain a competitive advantage. Companies are launching products with natural ingredients, such as essential oils, to attract consumers. For instance, The Estée Lauder Companies Inc. introduced the Advanced Night Repair Synchronized Recovery Complex II with natural ingredients such as lavender and green tea.
[Q]: What are the Potential Opportunities for Growth in the Natural Cosmetics Products Market?
[A]: The increasing demand for organic and natural cosmetic products in the Asia-Pacific region is expected to drive the natural cosmetics products market. Additionally, the growing demand for natural and organic products in the Middle East and Africa is expected to offer potential growth opportunities for the natural cosmetics products market.
[Q]: What is the Future Outlook for the Natural Cosmetics Products Market?
[A]: The natural cosmetics products market is expected to grow at a CAGR of 6.5% during the forecast period of 2021 to 2028. The growing demand for natural and organic cosmetics products and the increasing trend of veganism and vegetarianism are expected to drive the market growth. Additionally, the increasing awareness of the benefits of natural cosmetics products is expected to further drive the market growth.
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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