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Organic Shampoo Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global organic shampoo products market was valued at USD 2.6 billion in 2021 and is expected to expand at a CAGR of 7.5% from 2022 to 2030. Growing awareness among customers regarding the use of organic and natural products is driving the market growth. With increasing environmental concerns, customers are opting for organic products that are free from chemicals and are safe to use, contributing to the market growth.
Furthermore, several players in the market are launching new products to meet the changing consumer demand, which is expected to further drive the market growth. For instance, in January 2021, Procter & Gamble launched a new shampoo product made with organic botanicals, sulfate-free cleansing, and plant-based conditioners. The product is said to be free of silicones, dyes, and parabens and is designed to cleanse and nourish hair.
The increasing demand for organic shampoo products from the professional beauty industry is driving the market growth. Hair salons are using organic products to provide services to customers, due to their natural ingredients and the ability to be used on all hair types. Moreover, the growth of the salon industry is expected to further drive the market growth. According to the Professional Beauty Association (PBA), the U.S. salon industry generated an estimated USD 4.6 billion in 2019.
The increasing demand for organic and natural products among customers is also driving the market growth. Adverse effects of chemical-based products on the hair and scalp are encouraging customers to opt for organic products with natural ingredients. Furthermore, the increasing disposable income of customers is allowing them to spend more on organic products, which is propelling the market growth. Customers are increasingly looking for natural, safe, and eco-friendly products, which is expected to further drive the market growth.
The increasing number of new product launches is also driving the market growth. Companies are launching new products with advanced formulations and natural ingredients to meet the changing customer demand. For instance, in December 2021, L’Oréal launched its new Botanicals Fresh Care range of organic shampoo products, which are formulated with natural ingredients and are free from silicones and sulfates. The introduction of new products is expected to further drive the market growth in the coming years.
Product Insights
The organic shampoo segment dominated the market and accounted for a share of around 40.1% in 2022. The organic shampoo segment is growing due to rising demand for organic and natural products, as they are free from any kinds of chemicals which can cause skin allergies. Furthermore, increasing awareness about the benefits of organic shampoo such as providing essential vitamins and minerals, moisturizing, and giving a natural shine to the hair is boosting the segment growth. According to an article published by Stylecaster, in June 2019, organic shampoos are great for all hair types, including color treated and curly hair.
The body wash segment is anticipated to expand at the fastest CAGR of 6.8% over the forecast period. Growing awareness about the benefits of using body wash rather than using soap is driving the segment growth. Additionally, the rising trend for body care products, increasing demand for organic body wash, and the emergence of various body wash brands are further contributing to the segment growth. According to an article published by the Global Newswire, in February 2020, body wash sales are expected to increase at a CAGR of 6.2% between 2020 and 2027.
Distribution Channel Insights
The supermarkets and hypermarkets segment captured the major share of over 40.6% in 2022. Consumers are increasingly shifting towards large retail stores for purchasing organic shampoo products owing to the availability of a wide range of products and services and a convenient shopping experience. Supermarkets & hypermarkets also offer convenience in terms of product selection and payment options, which contribute to the segment’s growth.
The online segment is anticipated to expand at the highest CAGR of 13.2% over the forecast period. With the growing penetration of the internet, consumers are increasingly shifting towards online stores for buying organic shampoos. The availability of a wide range of organic shampoo products on various e-commerce websites, such as Amazon and Flipkart, is a major factor driving the growth of the segment. In addition, discounts and promotional offers provided by the online stores are further driving the growth of the segment.
Type Insights
The organic segment accounted for the largest revenue share of 49.1% in the year 2022. The increasing demand for organic products due to their natural ingredients and the growing awareness of their benefits are driving the segment growth. The rising demand for organic shampoos among consumers is expected to boost the segment growth. Furthermore, the increasing adoption of organic products by young adults and millennials is driving the growth of the segment.
The natural segment is anticipated to expand at the highest CAGR of 8.3% over the forecast period. The growing popularity of natural shampoos among consumers is a major factor driving the growth of the segment. The increasing awareness about the benefits of natural shampoos such as the ability to add volume, protect from UV damage, and fight dandruff are driving the growth of the segment. Furthermore, the increasing availability of natural shampoos in the market is also contributing to the growth of the segment.
Regional Insights
Asia Pacific is expected to dominate the market and account for the largest revenue share of over 42.2% in 2022. Growing consumer awareness regarding the benefits of organic products is driving the demand for organic shampoos in the region. Additionally, the presence of a large number of local manufacturers in the region is further propelling the market growth. For instance, in March 2021, Natura & Co., the largest natural cosmetics company in the world, launched its ‘Souvie’ organic haircare line in Japan.
North America is expected to hold the second-largest revenue share in the coming years. Increasing consumer demand for organic shampoos is driving the growth of the market in the region. Furthermore, rising awareness among consumers regarding the harmful effects of chemicals on the scalp is further driving the demand for organic shampoos. For instance, in October 2021, the U.S.-based personal care company, WOW Skin Science, launched its new organic shampoo range.
Financial Projections
In this part of the organic shampoo 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. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for an organic shampoo products business comes from the sale of the shampoos and other related products. Other possible sources of profit include wholesale sales, private label sales, and sales of other organic products.
Projecting Expenses
In this section, all the regular expenses related to keeping the organic shampoo products business running will be described. The list of operating expenses includes costs associated with ingredients, packaging, shipping and handling, marketing, advertising, personnel costs, insurance policies, and other overhead expenses.
Key companies & market share insights
Some of the key companies operating in the organic 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, L’Oréal launched its new range of natural and organic shampoo products, including the Botanicals Fresh Care range.
– In August 2022, Procter & Gamble launched its new range of natural and organic shampoo products, including the Head & Shoulders Supreme range.
– In October 2022, Unilever launched its new range of natural and organic shampoo products, including the Love Beauty & Planet range.
Some of the prominent players in the organic shampoo market include:
– L’Oréal SA
– Procter & Gamble Co.
– Unilever
– Burt’s Bees, Inc.
– The Body Shop International PLC
– Jason Natural Products
– Avalon Organics
– Johnson & Johnson
– Church & Dwight Co., Inc.
– Tom’s of Maine
Global Organic 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 shampoo products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Natural Shampoos
– Herbal Shampoos
– 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 is the Potential of Organic Shampoo Products?
[A]: Organic shampoo products have been gaining popularity due to their natural ingredients and lack of synthetic chemicals. In addition, the increasing awareness about the harmful effects of chemical-based shampoo products on the environment is driving the organic shampoo market. Furthermore, organic shampoo products help in protecting hair from damage, nourishing scalp, reducing breakage, and eliminating frizz. Consumers are also attracted by the natural fragrances and colors of organic shampoo products.
[Q]: Who are the Key Players in the Organic Shampoo Products Market?
[A]: Major key players in the organic shampoo products market are L’Oréal S.A., Unilever, The Estée Lauder Companies Inc., Johnson & Johnson Consumer Inc., Amway Corporation, and Henkel AG & Co. KGaA.
[Q]: Which Region Offers the Largest Opportunity for Sales of Organic Shampoo Products?
[A]: Asia Pacific is the largest regional market for organic shampoo products, and is expected to continue to dominate in the coming years. The region has witnessed a steady increase in the number of organic and natural cosmetics and personal care products due to the rising awareness of organic and natural products.
[Q]: What are the factors driving the organic shampoo products market?
[A]: Key factors that are driving the organic shampoo products market include increasing awareness about the adverse effects of synthetic chemicals on the environment and the growing demand for organic and natural personal care products. In addition, increasing demand for natural and organic ingredients in hair care products, along with the growing popularity of organic salons, is further propelling 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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