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Organic Skin Care Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global organic skin care products market was valued at USD 21.6 billion in 2022 and is projected to expand at a CAGR of 12.4% from 2023 to 2030. The rising demand for natural and organic skin care products is driving the growth of the market. Increasing awareness regarding the ill effects of synthetic cosmetics has led to the adoption of organic skin care products among consumers. Furthermore, growing concerns regarding the environment and animal welfare have encouraged manufacturers to develop organic products.
The growing awareness of the benefits of organic skin care products is driving the market growth. Organic skin care products are free of harmful chemicals, such as parabens, phthalates, and sulfates, and are known to have a high content of natural ingredients. Furthermore, organic skin care products are biodegradable and have a lower environmental impact than their synthetic counterparts. As a result, they are becoming increasingly popular among consumers.
In addition, the rise in demand for organic skin care products is attributed to the growing trend of natural and ethically sourced products. Consumers are increasingly becoming aware of the importance of using natural ingredients in skin care products. For instance, in March 2021, the US-based brand, Origins, announced the launch of its new range of clean, vegan, and cruelty-free skincare products. The brand introduced its plant-based line-up featuring natural ingredients, such as ginger, fruit, and tea extracts.
Furthermore, the rising demand for anti-aging and anti-wrinkle skin care products is providing an impetus to the market growth. According to a survey conducted by the American Academy of Dermatology, the percentage of people aged between 35 and 54 years who use anti-aging products is higher than those who use other skin care products. Consumers are increasingly opting for natural skin care products to reduce wrinkles, age spots, and other signs of aging.
Moreover, the increasing popularity of online stores, such as Amazon, is driving the growth of the organic skin care products market. The convenience and availability of products on these platforms are among the key factors driving the demand for organic products. Furthermore, the presence of various brands on these platforms is increasing the competition and leading to the development of innovative organic skin care products.
Product Insights
The facial care products segment led the market and accounted for a share of around 32.3% in 2022. Growing awareness of the importance of organic and natural products is driving the demand for organic facial care products. According to an article published by The New York Times, in April 2019, organic facial care market is witnessing a rising demand by millennials. Furthermore, macro-level factors such as rising disposable income among consumers and mushrooming growth of distribution channels are bolstering the demand for organic facial care products worldwide.
The body care products segment is anticipated to expand at the fastest CAGR of 9.2% over the forecast period. Growing adoption of organic body care products, rising trends for organic products, and the emergence of new organic skin care brands are some of the key factors driving the body care products market growth revenue. According to an article published by The National Center for Biotechnology Information, in May 2018, organic body care products are becoming increasingly popular due to their health benefits. In addition, increasing fashion trends and beauty awareness among individuals is another factor driving the growth of the market.
Distribution Channel Insights
The supermarkets & hypermarkets segment held the largest market share of over 39.3% in 2022. The growth of the segment is mainly attributed to the growing inclination of consumers towards supermarkets & hypermarkets to purchase beauty and personal care products. According to a study by the Organic Trade Association in 2020, organic skin care is one of the fastest-growing segments in the organic beauty industry. In addition, supermarkets and hypermarkets provide a wide range of organic products, which increases their preference among consumers.
The online segment is expected to expand at the highest CAGR of 14.7% over the forecast period. The increasing availability of organic skin care products on various e-commerce websites and mobile applications is one of the major factors driving the growth of the segment. In addition, companies are also launching their own websites and shopping apps to increase their visibility among consumers. For instance, in December 2022, The Body Shop launched a mobile application to provide a seamless shopping experience to its customers. The application enables customers to search and purchase products, review products, and track their orders.
Type Insights
The natural segment accounted for the largest revenue share of 80.0% in the year 2022. The surge in demand for natural and organic skin care products is driven by the growing awareness among consumers regarding the safety of chemicals used in synthetic skin care products. The increasing use of natural ingredients such as argan oil, shea butter, and coconut oil to manufacture skin care products is driving the growth of the segment. Furthermore, the growing number of companies that are producing natural-based products is also propelling the organic skin care products market.
The organic segment is anticipated to expand at the highest CAGR of 11.4% over the forecast period. The growing awareness among consumers regarding the environmental benefits associated with organic skin care products has increased the demand for such products. The growing trend of organic farming and the availability of organic skin care products at reasonable prices are some of the factors driving the growth of the segment. Furthermore, the increasing demand for natural and organic skin care products has led to the entry of many new players in the market.
Regional Insights
The global organic skin care products market is expected to be dominated by Asia Pacific during the forecast period. Factors such as increased consumer awareness about the benefits of organic skin care products, and the presence of a large number of organic skin care product manufacturers in the region are driving the growth of the market in the region. Additionally, the rising demand for natural and organic skin care products is also driving the growth of the organic skin care products market in the region.
North America is expected to witness the second-fastest growth in the coming years. Increasing demand for natural and organic products, rising consumer awareness about the importance of organic skin care products, and the presence of prominent players, such as Unilever, The Estée Lauder Companies Inc., and L’Oréal, in the region are driving the growth of the market. For instance, in April 2020, L’Oréal launched Cicaplast Baume B5, a face and body balm, in the U.S. to meet the growing demand for natural and organic skin care products.
Financial Projections
In this part of the organic 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 organic skin care products. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for an organic skin care products business comes from direct sales of skincare products, subscriptions, and wholesale partnerships. Here you will find a list with a description of each of them and other possible sources of profit such as affiliates and selling advertising space on your website.
Projecting Expenses
In this section, all the regular expenses related to keeping the organic skin care products business running will be described. The list of operating expenses includes marketing, research & development, payroll, advertising, packaging, and shipping. Additionally, you should include costs associated with maintaining your website and e-commerce platform.
Key companies & market share insights
Some of the major companies operating in the 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, Burt’s Bees launched a collection of organic skin care products for sensitive skin. The collection included a cleanser, a moisturizer, and a hydrating serum.
– In August 2022, The Body Shop launched the Vitamin C Glow Boosting Moisturiser, a lightweight moisturiser formulated with natural ingredients for an energised and glowing complexion.
– In October 2022, Kiehl’s launched the Ultra Facial Cream Intense Hydration, a lightweight cream formulated with squalane and Antarcticine to help reduce dryness.
Some of the prominent players in the organic skin care products market include:
– Burt’s Bees
– The Body Shop
– Kiehl’s
– L’Oréal
– Estée Lauder
– Clarins
– Aveda
– Lush
– Biotique
– Aklief
Global Organic 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 organic skin care products market based on product type, distribution channel, end-user, and region:
1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)
– Cleansers
– Moisturizers
– Toners
– Serums
– Masks
– 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 is the Potential for Organic Skin Care Products?
[A]: Organic skin care products are gaining traction among consumers due to their natural and organic ingredients. Consumers are increasingly becoming aware of the potential health hazards of chemical-based products, and this has driven them to switch to more natural alternatives. In addition, the increasing demand for organic and natural skin care products, due to their higher efficacy, is expected to fuel the growth of the organic skin care products market.
[Q]: Who are the Key Players in the Organic Skin Care Products Market?
[A]: The major players in the global organic skin care products market are Beiersdorf, Estée Lauder Companies Inc., L’ Oréal, The Clorox Company, Unilever, and Shiseido Company, Limited.
[Q]: Which Region Offers the Largest Opportunity for Sales of Organic Skin Care Products?
[A]: Asia Pacific is expected to be the largest regional market for organic skin care products. The region’s high population, increasing disposable incomes, and growing awareness of organic skin care products is driving the market in this region.
[Q]: What are the factors driving the organic skin care products market?
[A]: Factors such as the increasing demand for natural and organic skin care products, the growing awareness about the harmful effects of chemical-based products, and the rising disposable incomes of consumers are driving the organic skin care products 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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