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Organic Personal Care Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global organic personal care products market was valued at USD 23.9 billion in 2022 and is projected to expand at a CAGR of 8.7% from 2023 to 2030. The growing demand for natural and organic products in the personal care industry has been majorly driven by increasing consumer awareness and demand for eco-friendly products. Furthermore, the rise in the trend of premiumization in the personal care sector has led to the introduction of luxury organic personal care products in the market.
The growing demand for natural and organic ingredients in personal care products is expected to drive the market over the forecast period. Furthermore, the increasing demand for naturally derived fragrances and colorants is also anticipated to bolster market growth. Companies are also introducing products with natural and organic ingredients such as cucumber, aloe vera, and lavender to meet the demand of consumers for natural products. For instance, in March 2022, L’Oréal launched its new skincare line, Naturals, which consists of natural and organic ingredients.
The increasing demand for vegan products is also driving the market growth. Companies are launching vegan products with natural and organic ingredients, as consumers are opting for vegan and cruelty-free products. For instance, in June 2021, Estée Lauder launched its new vegan skincare line, ‘Nature’s Star’, which is formulated with natural and organic ingredients. Furthermore, companies are introducing products with natural and organic ingredients, such as cucumber, aloe vera, and lavender, to meet the demand of consumers for natural products.
The increasing trend of online shopping is also propelling the market. The availability of various organic personal care products on the e-commerce platform and various offers are boosting online sales. Furthermore, increasing initiatives by various companies to promote the organic personal care products through vigorous marketing campaigns and increased social media presence are also expected to drive the market. For instance, in April 2021, The Body Shop launched its new product line, ‘The Love Nature’, which consists of 100% vegan skincare and haircare products, to promote the organic personal care industry.
Product Insights
The body care segment accounted for the highest market share of around 36.8% in 2020. Growing awareness among consumers about the health benefits associated with organic personal care products as well as increasing disposable income are some key factors driving the growth of the body care segment. Furthermore, expanding distribution channels, such as online stores, supermarkets, and drug stores, is further propelling the growth of the segment.
The skin care segment is projected to register the highest CAGR of 8.2% during the forecast period. Rising awareness among consumers regarding the health benefits associated with organic personal care products is driving the growth of the skin care segment. In addition, the increasing number of organic skincare products and expanding distribution channels, such as online stores, supermarkets, and drug stores, are also fuelling the demand for organic skin care products. Moreover, the increasing popularity of natural skin care products and the rising number of product launches are further augmenting the growth of the segment.
Distribution Channel Insights
In 2022, the supermarkets and hypermarkets segment accounted for the largest market share of over 37.2%. This is due to the increasing availability of organic personal care products in supermarkets and hypermarkets. Most of the leading brands have their own distribution channels, and the presence of their products in supermarkets and hypermarkets has been a major factor in driving the segment’s growth. Moreover, supermarkets and hypermarkets provide customers with a wide range of organic personal care products, allowing them to select from different brands and products.
The online segment is anticipated to expand at the highest CAGR of 12.3% over the forecast period. This is due to the increasing number of online platforms offering organic personal care products. These platforms offer a wide range of products at discounted prices and provide convenience to customers. In addition, various online platforms provide detailed information about the products, which helps customers in making informed decisions. Furthermore, the shift of consumers towards online shopping owing to the COVID-19 pandemic is driving the online segment’s growth.
Type Insights
The natural segment is expected to account for the largest revenue share in 2022. Increasing consumer health awareness, growing demand for natural products, and the presence of a large number of natural personal care product manufacturers are some of the factors driving the growth of this segment. Additionally, the increasing trend of natural and organic personal care products has led to the penetration of these products in the market. For instance, in January 2021, Oriflame India, a Swedish cosmetics company, launched their natural and organic skincare and makeup range, which is made with natural ingredients such as chamomile, juniper oil, and aloe vera.
The organic segment is anticipated to expand at the highest CAGR of 12.1% over the forecast period. Increasing awareness about organic personal care products and their benefits, such as being safer, more natural, and sustainable, is driving the demand for these products. Furthermore, the increasing number of product launches and campaigns by organic product manufacturers is further driving the growth of the market. For instance, in December 2020, Natura & Co, a Brazilian cosmetics company, launched its organic skincare line called Natura Ekos, which is made with Amazonian ingredients.
Regional Insights
Europe is expected to dominate the market and account for the largest revenue share over the forecast period. The region is witnessing a shift toward natural and organic skin care products among consumers. The increasing demand for organic and natural personal care products is expected to drive the regional market. For instance, in January 2021, the European Union (EU) launched the new Organic Production Regulation, which promotes the production of organic products and their traceability.
North America is expected to witness the second-fastest growth in the coming years. The growing awareness regarding the health benefits of organic ingredients and the rising demand for natural and organic products are expected to drive the regional market. For instance, in June 2021, The Estée Lauder Companies Inc. launched the Origins Natural Origin Range, a range of natural and organic personal care products.
Financial Projections
In this part of the organic personal 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 organic personal care products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for an organic personal care products business comes from the sale of products, services, and subscription plans. Here you will find a list with a description of each of them and other possible sources of profit such as e-commerce, wholesale, and retail sales.
Projecting Expenses
In this section, all the regular expenses related to keeping the organic personal care products business running will be described. The list of operating expenses includes wages, marketing, advertising, research and development, packaging and labeling, inventory, shipping, and others.
Key companies & market share insights
Some of the key companies operating in the organic personal 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 September 2022, The Body Shop launched the new range of skin care products, which are made with 100% naturally derived ingredients.
– In October 2022, L’Oréal launched its new organic shampoo and conditioner range, which is free from any artificial fragrances and chemicals.
– In August 2022, Burt’s Bees launched its new range of organic lip balms, which are formulated with natural ingredients such as beeswax and vitamin E.
Some of the prominent players in the organic personal care products market include:
– The Body Shop
– L’Oréal SA
– Burt’s Bees
– Aveda Corporation
– Weleda AG
– Dr. Hauschka Skin Care
– Aubrey Organics, Inc.
– Ecco Bella Botanicals
– Natura & Co.
– Nature’s Gate
Global Organic Personal 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 organic personal care products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Skin Care
– Hair Care
– Oral Care
– Fragrance
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Specialty 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 are the Key Drivers for the Global Organic Personal Care Products Market?
[A]: The global organic personal care products market is driven by factors such as increasing health consciousness among consumers, rising disposable incomes, and growing demand for safe and natural products. Additionally, the growing awareness of the harmful effects of synthetic chemicals and the availability of a wide variety of organic personal care products are further boosting the growth of the market.
[Q]: What are the Key Opportunities for the Global Organic Personal Care Products Market?
[A]: The global organic personal care products market is expected to witness significant growth in the upcoming years due to the increasing demand for eco-friendly and natural products. Moreover, the growing concerns regarding the use of chemical-based products and the increasing availability of organic personal care products are also expected to create significant opportunities for the market.
[Q]: Who are the Major Players in the Global Organic Personal Care Products Market?
[A]: The global organic personal care products market is highly competitive and fragmented in nature. Some of the leading players operating in the market are The Hain Celestial Group, Kao Corporation, Unilever, L’Oreal, The Clorox Company, and Shiseido Company.
[Q]: What is the Potential of Product Innovation?
[A]: Product innovation is expected to be the key factor driving the growth of the global organic personal care products market. Organic personal care products manufacturers are focusing on introducing innovative products such as organic soaps, organic lotions, and organic shampoos that are free from synthetic chemicals and are formulated using natural ingredients.
[Q]: What is the Potential for Expansion in Emerging Countries?
[A]: Emerging countries such as India and China are expected to witness significant growth in the global organic personal care products market due to the increasing demand for organic products and the growing awareness of the harmful effects of synthetic chemicals. Additionally, the rising disposable incomes in these countries are also expected to create significant opportunities for the market.
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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