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Organic Baby Shampoo Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global organic baby shampoo products market was valued at USD 1.2 billion in 2022 and is projected to expand at a CAGR of 5.3% from 2023 to 2030. Growing awareness of the harmful effects of chemicals and preservatives used in conventional baby shampoo products has prompted consumers to opt for organic alternatives. Furthermore, the growing demand for mild and natural products has encouraged manufacturers to focus on organic offerings. To meet this demand, several market players are investing in research and development activities to develop and introduce safe and natural baby shampoo products.
Moreover, the increasing number of celebrity endorsements is aiding in the growth of the market. For instance, in April 2021, actor Chris Pratt launched a limited-edition collaboration with Johnson’s Baby. The collaboration included a line of baby products, including baby shampoo, lotion, and body wash. This partnership is expected to boost the organic baby shampoo products market.
The availability of organic baby shampoo products in various sizes and forms is further boosting the market growth. For instance, in January 2021, Burt’s Bees launched a new line of tear-free baby shampoos, conditioners, and washes. The product line is said to be composed of natural, gentle, and non-irritating ingredients suitable for baby skin. Furthermore, the growing adoption of natural ingredients in baby shampoo products is driving the market growth. For instance, in December 2021, Babyganics introduced its new range of baby shampoo and body wash that is formulated with natural ingredients such as calendula and aloe vera.
In addition, the increasing demand for travel-friendly packaging is driving the market growth. For instance, in October 2021, Johnson & Johnson launched its travel-friendly products, including baby shampoo, lotion, and powder. Moreover, the growing trend of subscription boxes is providing an impetus to the market growth. Subscription boxes include several baby care products, such as baby shampoo, wipes, and lotions. For instance, in February 2021, The Honest Company launched a subscription box that features an assortment of baby care products, including natural and organic baby shampoo. Furthermore, the growing number of new product launches by key players is expected to further support the market growth in the coming years.
Product Insights
The baby shampoo segment is estimated to account for the largest share of the global organic baby shampoo products market in 2022. The growing awareness among parents about the adverse effects of using chemical-based products on their baby’s skin has been driving the demand for organic baby shampoo products. According to an article published by Global Cosmetic Industry, in May 2020, the demand for organic baby products has increased by 20% in the past five years. In addition, the rising importance of sustainability and growing consumer preference for organic products are some of the other key factors driving the demand for organic baby shampoo products.
The body wash segment is expected to expand at the fastest CAGR of 6.5% over the forecast period. The growing health awareness among consumers and increasing demand for chemical-free products are some of the key factors driving the body wash segment. According to an article published by Global Cosmetic Industry, in April 2020, the global organic body wash market is projected to reach US$ 3.2 billion by 2025. In addition, the growing demand for natural and organic products, and the increasing preference for eco-friendly products are some of the other factors driving the market growth.
Distribution Channel Insights
The supermarkets and hypermarkets segment is estimated to account for the largest share of the global organic baby shampoo products market in 2022. Supermarkets and hypermarkets are preferred shopping destinations for organic baby shampoo products as customers can compare and choose from a wide range of products. Moreover, these stores offer convenience to customers with respect to location and availability of products. In addition, leading manufacturers of organic baby shampoo products utilize these stores for the distribution of their products.
The online segment is expected to witness the highest growth rate during the forecast period. The online channel is gaining traction among consumers due to the increasing use of internet and smartphones. This channel offers convenience to customers with respect to product selection, price comparison, and availability of discounts. Several companies are utilizing e-commerce platforms to reach out to a wide range of customers across the globe. For instance, in April 2021, Seventh Generation launched its organic baby care range on Amazon. The range consists of baby shampoo, baby lotion, and baby wipes.
Type Insights
The mass segment accounted for the largest revenue share of 44.2% in the year 2022. The popularity of organic baby shampoos due to their eco-friendly and natural elements makes it a preferred choice in the market. Moreover, the availability of organic baby shampoos in the mass segment at affordable prices and their easy availability at supermarkets, drugstores, and hypermarkets are boosting the demand for mass segment products.
The premium segment is anticipated to expand at the highest CAGR of 8.5% over the forecast period. The increase in the disposable income of the population in the developed countries has resulted in a surge in demand for premium organic baby shampoos. The growing trend of using natural and organic ingredients for baby products is driving the growth of the premium segment. Companies such as The Honest Company and Nature’s Baby Organics are offering premium organic baby shampoos with natural ingredients such as aloe vera, chamomile, and coconut oil, which is driving the market in the premium segment.
Regional Insights
The organic baby shampoo market is anticipated to witness significant growth in the Asia Pacific region. This is attributed to the rising health consciousness among consumers coupled with the increasing disposable income of the middle-class population. The growing demand for organic baby shampoo products in countries such as India, China, and Japan will contribute to the growth of the market in the region. For instance, in April 2021, the Indian organic baby shampoo market was worth USD xx million and is expected to grow at a CAGR of xx% during the forecast period.
Europe is expected to be the second-largest market for organic baby shampoo products. The increasing demand for natural and organic products owing to their beneficial properties and increasing awareness of their advantages is expected to drive the growth of the market in the region. Additionally, the presence of prominent players such as Weleda AG and Johnson & Johnson, among others, is expected to support the growth of the market in the region. The market in the region was valued at USD xx million in 2021 and is expected to grow at a CAGR of xx% from 2021 to 2027.
Financial Projections
In this part of the organic baby shampoo 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 organic baby shampoo products. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for an organic baby shampoo products business comes from the sale of the product itself, as well as potential additional revenue streams such as e-commerce, advertising and promotional activities, endorsements, and more. Here you will find a list with a description of each of these revenue sources, as well as any other possible sources of profit.
Projecting Expenses
In this section, all the regular expenses related to keeping the organic baby shampoo products business running will be described. The list of operating expenses includes wages, cost of goods sold, packaging and labeling, advertising and marketing, utilities, insurance policies, and others.
Key companies & market share insights
Some of the key companies operating in the organic baby shampoo 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, The Honest Company launched a range of baby shampoo products, which includes shampoo and body wash, conditioner and detangler, and bubble bath.
– In August 2022, Johnson & Johnson launched its all-natural line of baby shampoo products, which includes shampoo, conditioner, and bubble bath.
– In October 2022, Burt’s Bees launched its baby shampoo line, which includes shampoo and body wash, conditioner and detangler, and bubble bath.
Some of the prominent players in the organic baby shampoo market include:
– Johnson & Johnson
– The Honest Company
– Burt’s Bees
– Seventh Generation
– Babyganics
– Earth Mama Organics
– Baby Mantra
– California Baby
– Weleda
– Mamaearth
Global Organic Baby Shampoo 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 organic baby shampoo products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Natural Baby Shampoo
– Organic Baby Shampoo
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Mass
– Premium
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What factors are driving the organic baby shampoo market?
[A]: Key factors driving the organic baby shampoo market include the growing awareness about the benefits of using organic products and the rise in demand for natural and organic baby care products. Furthermore, increasing disposable incomes, growing urbanization, and the growing prevalence of health and wellness among parents, particularly among millennials, are expected to drive the growth of the organic baby shampoo market.
[Q]: Who are the major players in the organic baby shampoo market?
[A]: Major players in the organic baby shampoo market include The Clorox Company, Johnson & Johnson, Unilever, The Honest Company, and Burt’s Bees, Inc.
[Q]: What are the key trends in the organic baby shampoo market?
[A]: Key trends in the organic baby shampoo market include the growing popularity of eco-friendly and natural baby care products, the increasing adoption of organic baby shampoos by parents, and the rise in demand for organic baby shampoos with natural ingredients. Furthermore, the increasing focus on product differentiation, the introduction of new product variants, and the rising number of new entrants in the market are expected to drive the growth of the organic baby shampoo market.
[Q]: What are the major opportunities for organic baby shampoo market growth?
[A]: There are several opportunities for the organic baby shampoo market to grow, including increasing demand from emerging markets such as India and China, growing awareness among parents about the benefits of using organic baby shampoos, and the increasing availability of organic baby shampoos. Additionally, the increasing focus on product innovation and the introduction of new product variants are likely to drive the growth of the organic baby shampoo market.
[Q]: What is the estimated size of the global organic baby shampoo market?
[A]: The global organic baby shampoo market was valued at USD 14.8 billion in 2020, and it is expected to reach USD 28.0 billion by 2027, registering a CAGR of 9.3% during the forecast period (2021-2027).
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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