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Organic Soaps Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global organic soaps products market was valued at USD 5.4 billion in 2022 and is expected to expand at a CAGR of 5.6% from 2023 to 2030. The increasing consumer preference for organic products due to their natural, organic, and chemical-free nature is driving the demand for organic soaps products. Furthermore, the rising consumer consciousness regarding personal hygiene and the health benefits of organic soaps products are propelling the growth of the market.
Moreover, the rising inclination toward organic products among millennials and Generation Z, who are increasingly becoming health- and environment-conscious, is further driving the demand for organic soaps products. Additionally, the growing demand for organic soaps products in the hospitality industry, such as hotels and restaurants, is expected to create lucrative opportunities for the market. Furthermore, key players are introducing new organic soaps products such as body wash, hand wash, liquid soaps, and facial wash, to meet the trend of premiumization and to target a larger consumer base.
The rising trend of natural and organic personal care products is also a factor driving the growth of the organic soaps products market. Furthermore, the increasing demand for organic soaps products from emerging countries, such as India and China, is boosting the growth of the market. The increasing number of initiatives by the government of various countries to promote the use of organic soaps products is further propelling the growth of the market. For instance, in April 2021, the Ministry of Environment, Forest and Climate Change, Government of India, launched a mission to promote organic farming and the use of organic products.
Furthermore, the increasing demand for herbal, natural, and organic soaps products from consumers is driving the growth of the organic soaps products market. Key players are launching new organic soap products to tap into the growing demand for organic products. For instance, in March 2021, The Body Shop launched a new range of organic soaps products, which are made from natural and organic ingredients. The range includes liquid soaps, shower gels, body washes, and facial cleansers.
Moreover, the rising demand for organic soaps products from the healthcare sector, such as hospitals and clinics, is expected to further drive the growth of the organic soaps products market. Furthermore, the growing demand for organic soaps products in the fragrance industry is creating lucrative opportunities for the market. Key players are introducing new organic soaps products with unique fragrances to target a larger consumer base.
Product Insights
The bar soaps segment accounted for the largest share in the organic soaps products market in 2019. Increasing awareness about the benefits of using organic soaps among consumers coupled with the rising demand for organic ingredients in personal care products are some of the key factors driving the growth of the segment. Furthermore, the increasing availability of organic soaps in various stores and supermarkets is also boosting the demand for these products.
The liquid soaps segment is anticipated to expand at the highest CAGR of 6.8% over the forecast period. Rising trend of using liquid soaps due to its easy use, convenience, and hygiene are some of the key factors driving the growth of this segment. Additionally, growing demand for liquid soaps due to its natural ingredients and availability of various fragrances and colors is also boosting the growth of this segment. According to an article published by the New York Times, in August 2020, liquid soaps are becoming more popular among millennials due to their convenience and the fact that they are more environmentally friendly than bar soaps.
Distribution Channel Insights
The supermarkets and hypermarkets segment dominated the global organic soaps market with a share of over 41.4% in 2022. The growth of the segment is mainly driven by the rising consumer inclination towards supermarkets & hypermarkets as a primary source to purchase organic soaps. According to a study by Organic Trade Association in 2020, most of the consumers prefer supermarkets and hypermarkets to purchase organic products due to convenience, proximity and availability of multiple options. These establishments also provide a reasonable selection of products and assist customers in making rapid purchasing decisions for the required organic soaps.
The online segment is anticipated to expand at the highest CAGR of 11.6% over the forecast period. E-commerce development in the organic soaps industry has been rapid, with companies launching online websites and shopping apps to increase their brand visibility among consumers. For instance, in December 2022, Amazon launched an online store dedicated to organic soaps. The online store will offer a wide range of organic soaps from leading brands across categories like hand and body washes, facial cleansers, exfoliators, and lip balms. In addition, it will also offer the best organic soaps and products for men and women along with expert advice and opinions on choosing the best regime.
Type Insights
The organic segment accounted for the largest revenue share of 67.4% in the year 2022. The growing awareness of the harmful effects of synthetic chemicals used in personal care products has increased the demand for organic soaps in the market. As a result, the organic segment is expected to witness significant growth in the forecast period. Furthermore, the increasing demand for natural ingredients in the production of soaps is also expected to drive the growth of the organic segment. For instance, in June 2022, Dove, a brand of Unilever, launched its range of organic soaps.
The natural segment is anticipated to expand at the highest CAGR of 10.1% during the forecast period. The growing demand for natural ingredients in the production of soaps is expected to drive the growth of this segment. Furthermore, the increasing demand for natural and plant-based soaps is also expected to fuel the growth of the segment. For instance, in April 2022, Nubian Heritage, a brand of Sundial Brands, launched its range of natural and plant-based soaps.
Regional Insights
Europe is anticipated to dominate the market and accounted for the largest revenue share of over 42.3% in 2022. This growth can be attributed to the increasing demand for organic soaps, driven by rising consumer awareness regarding the advantages of using organic soaps. Furthermore, the presence of key players in the region is expected to further drive the market growth. For instance, in October 2021, PURELY launched its new organic soap range in the UK.
The Asia Pacific is expected to witness the second-fastest growth in the coming years. The rise in disposable income in countries, such as India and China, along with the increasing awareness regarding the benefits of organic soaps, is driving the growth of the organic soap market in this region. Furthermore, the growing focus of companies on launching organic soap products is expected to create lucrative opportunities for the market. For instance, in April 2022, Biotique launched its new range of organic soaps in India.
Financial Projections
In this part of the organic soaps 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 soaps products. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for an organic soaps products business comes from the sale of soaps, shampoos, and other related products. Here you will find a list with a description of each of them and other possible sources of profit such as private labels, online sales, and wholesale sales.
Projecting Expenses
In this section, all the regular expenses related to keeping the organic soaps products business running will be described. The list of operating expenses includes ingredients, packaging, marketing, wages, shipping, utilities, insurance policies, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the organic soaps 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, Dr. Bronner’s launched a line of organic soaps that are free of synthetic preservatives and fragrances.
– In August 2022, Deep Nature launched a line of organic soaps made with natural oils and raw materials.
– In October 2022, Kiss My Face launched a new line of organic soaps with natural exfoliants.
Some of the prominent players in the organic soaps market include:
– Dr. Bronner’s
– Deep Nature
– Kiss My Face
– Alaffia
– O Naturals
– Pacha Soap Co.
– Dr. Woods
– Alba Botanica
– Tom’s of Maine
– Nubian Heritage
Global Organic Soaps 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 soaps products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Bar Soaps
– Liquid Soaps
– Shampoos
– Shower Gels
– 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 are the Market Drivers for Organic Soaps?
[A]: The major drivers for the organic soaps market include the increasing focus on natural products, rising environmental awareness, and the increasing demand for organic and natural products. The growing demand for organic soaps is also driven by the rising consumer awareness about the toxic and harmful effects of the chemicals used in many of the synthetic soaps.
[Q]: What are the Potential Markets for Organic Soaps?
[A]: The potential markets for organic soaps include the personal care and beauty industry, the hospitality industry, and the healthcare industry. The increasing demand for natural and organic products in these industries is expected to drive the growth of the organic soaps market.
[Q]: What are the Major Challenges Faced in the Organic Soaps Market?
[A]: The major challenges faced by the organic soaps market are the high cost of production, the lack of awareness about the benefits of organic soaps, and the availability of synthetic alternatives.
[Q]: What is the Market Outlook for Organic Soaps?
[A]: The organic soaps market is expected to register a CAGR of 5.4% during the forecast period of 2021-2026. This growth is attributed to the increasing demand for organic and natural products and the rising awareness about the benefits of organic soaps.
[Q]: Who are the Key Players in the Organic Soaps Market?
[A]: Some of the key players in the organic soaps market include Unilever plc, The Procter & Gamble Company, L’Oréal S.A., Burt’s Bees, Inc., The Clorox Company, Colgate-Palmolive Company, Estee Lauder Companies, Inc., and Seventh Generation, Inc.
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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