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Natural Skin Care Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global natural skin care products market was valued at USD 11.3 billion in 2022 and is projected to expand at a CAGR of 5.2% from 2023 to 2030. Natural skin care products are gaining traction among consumers for their benefits such as being free of harmful chemicals, providing better skin nourishment, and being environment-friendly. The increasing awareness among consumers about the side-effects of synthetic chemicals present in skin care products has led to a shift in the preference towards natural skin care products.
Furthermore, the rising demand for natural skin care products from the millennial population, especially in the U.S. and Europe, is also driving the market growth. According to a report published by Statista in April 2021, more than half of the millennials in the U.S. prefer natural skin care products. In addition, the availability of natural skin care products in the form of beauty kits and subscription boxes is also expected to contribute to the growth of the market in the near future.
The increasing penetration of organic skin care products, such as face creams, moisturizers, and serums, is driving the demand for natural skin care products. Furthermore, the rising demand for organic skin care products among men is also aiding the market growth. Moreover, the growing trend towards the use of natural skin care products in spas and salons is also creating new opportunities in the market. For instance, in February 2021, Aveda launched a new range of natural skin care products, including a face tonic and a face serum, designed to hydrate and protect the skin.
The increasing number of product launches and the rising popularity of plant-based ingredients are also driving the market growth. For instance, in April 2021, Origins launched the Plantidote Mega-Mushroom line, a collection of skincare products infused with organic mushrooms, to help with skin issues such as irritation and redness. Moreover, the rising trend of conscious consumption among consumers has led to an increase in demand for eco-friendly packaging, which is further expected to propel the growth of the market.
Furthermore, the growing emphasis on personal care and the rising spending power of consumers, especially in developing countries, are projected to drive the market growth in the near future.
Product Insights
The natural skin care segment is expected to register the highest CAGR of 9.2% during the forecast period. Over the past few years, the consumers have become more aware of the natural and organic ingredients present in the products they use. This shift in consumer preference has pushed the demand for natural skin care products. Furthermore, the availability of natural skin care products through various distribution channels such as departmental stores, beauty stores, supermarkets, and online stores is further driving the growth of the market.
The natural moisturizers segment is anticipated to register the highest CAGR over the forecast period. Natural moisturizers are formulated from natural ingredients, such as fruits, herbs, and essential oils, without any harsh chemicals or synthetic fragrances. Natural moisturizers are mainly used for hydration and nourishment of the skin. Rapidly growing fashion and beauty awareness among individuals, especially in the youth population, is driving the demand for natural moisturizers. Furthermore, rising disposable income among consumers and the availability of organic and natural moisturizers are some of the other key factors contributing to the market growth.
Distribution Channel Insights
The supermarkets and hypermarkets segment captured the major share of over 41.3% in 2022. Natural skin care products have gained immense popularity among consumers due to their natural ingredients, which offer a range of benefits. Supermarkets and hypermarkets are the most preferred source for purchasing natural skin care products due to their wide availability and presence of multiple brands at one place. Additionally, these stores provide a better shopping experience to the customers as they get to interact and try out the products firsthand.
The online segment is anticipated to expand at the highest CAGR of 12.6% over the forecast period. Consumers’ inclination towards online shopping, growing internet penetration and easy availability of international brands on e-commerce platforms, are some of the factors driving the growth of the online segment. In addition, online stores are offering attractive discounts, hassle-free payment options, and home delivery of the product, which is attracting a large number of consumers towards online shopping.
Type Insights
The natural skin care product market is segmented into organic, natural, and conventional. The organic segment dominated the market with a share of 42.1% in the year 2022. The demand for organic skin care products is increasing due to the growing awareness among consumers about the benefits of organic products such as natural ingredients and eco-friendly packaging. Furthermore, the increasing use of organic ingredients in skin care products, such as herbs, oils, and essential oils, is boosting the market growth.
The natural segment is expected to grow at the highest CAGR of 9.3% during the forecast period. The increasing number of natural skin care products in the market is primarily driving the market growth. Companies are launching products with natural ingredients due to high consumer preference for natural skin care products. For instance, in January 2021, The Body Shop launched a range of face care products with natural ingredients, such as aloe vera, chamomile, and aloe vera, to meet the growing consumer demand for natural products.
Regional Insights
Europe dominated the market and accounted for the largest revenue share of over 35% in 2021. The region has witnessed a rapid rise in the use of natural and organic ingredients in personal care products in recent years. Factors such as growing consumer concern about the use of synthetic ingredients, rising demand for natural and organic products, and growing consumer awareness regarding health and wellness are some of the key factors driving the market in the region. For instance, the U.K. natural beauty market is estimated to reach USD 2.7 billion by 2024.
Asia Pacific is expected to be the second-fastest growing region in the coming years. The increasing awareness of natural and organic products among consumers, the rise in disposable income, and the increasing demand for organic beauty and personal care products are some of the factors driving the market in the region. Moreover, the emergence of new local players in the market is further contributing to the growth of the market. For instance, in 2021, Bengaluru-based natural beauty brand Vkare Biolabs launched its range of skincare products in India.
Financial Projections
In this part of the natural skin care 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 skin care product business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main sources of revenues for a natural skin care products business come from the sale of products, online sales, wholesale sales, and subscriptions. Here you will find a list with a description of each of them and other possible sources of profit such as fundraising, the sale of merchandise, and advertising.
Projecting Expenses
In this section, all the regular expenses related to keeping the natural skin care product business running will be described. The list of operating expenses includes product sourcing, packaging, shipping, wages, utilities, insurance policies, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the natural skin care 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 July 2022, The Ordinary launched a new line of natural skin care products called “The Natural Skincare Collection”.
– In August 2022, L’Occitane launched its new range of natural face masks.
– In October 2022, Burt’s Bees launched a new line of natural skin care products designed to reduce the signs of aging.
Some of the prominent players in the natural skin care products market include:
– L’Oréal SA
– Burt’s Bees
– Johnson & Johnson
– The Body Shop
– Avon Products, Inc.
– The Procter & Gamble Company
– Unilever
– Beiersdorf AG
– The Estee Lauder Companies Inc.
– The Clorox Company
Global Natural Skin Care 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 skin care products market based on product type, distribution channel, active ingredients, and region:
1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)
– Cleansers & Toners
– Moisturizers
– Suncare
– Scrubs & Exfoliators
– Facial Masks
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Specialty Stores
– Others
3. Active Ingredients Outlook (Revenue, USD Million, 2017 – 2030)
– Natural Oils & Butters
– Plant Extracts
– Minerals
– Others
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 Major Drivers of Natural Skin Care Products?
[A]: The major drivers of the natural skin care products market are growing consumer awareness regarding the benefits of natural and organic products, increasing demand for sustainable and eco-friendly products, and rising concerns about synthetic chemicals. Additionally, the increasing trend of veganism and growing number of health-conscious consumers are also contributing to the growth of the natural skin care products market.
[Q]: What are the Key Players in the Natural Skin Care Products Market?
[A]: The key players in the natural skin care products market include Unilever, L’Oréal SA, The Estée Lauder Companies Inc., Beiersdorf AG, The Clorox Company, Johnson & Johnson, Shiseido Company, Limited, Amway, Kao Corporation, and Procter & Gamble.
[Q]: What are the New Opportunities in the Natural Skin Care Products Market?
[A]: The natural skin care products market is expected to witness new opportunities from the launch of innovative products and the increasing demand for natural and organic cosmetics. Additionally, the rising trend of personalized products and technological advancements such as the development of natural and organic active ingredients are also expected to provide new opportunities for the market.
[Q]: What Regions Offer the Most Potential for Natural Skin Care Products?
[A]: Asia Pacific is projected to be the fastest-growing region in the natural skin care products market, owing to the increasing population and rising disposable incomes in the region. Additionally, the presence of a large number of local and international players, and increasing demand for organic and natural skin care products are also contributing to the growth of the market in this region. North America is also expected to witness significant growth, owing to the presence of a large number of prominent players and increasing consumer inclination towards natural and organic skin care 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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