Natural and Organic Personal Care Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2031 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)
The global natural and organic personal care market has displayed impressive growth, amassing a substantial revenue of US$ 21,587.1 million in 2022, according to a recent study conducted by Fairfield Market Research. With a projected CAGR of 9.7%, this market is poised to reach an impressive valuation of US$ 66,141.2 million by the year 2033.
It is essential to differentiate between ""natural"" and ""organic"" when considering personal care products. While often used interchangeably, these terms carry distinct meanings. ""Natural"" generally implies that the ingredients originate from nature, but it does not guarantee organic status. Organic products, on the other hand, are grown without pesticides, chemicals, or artificial fertilizers and are non-GMO. The personal care industry is witnessing a shift towards organic, natural, and clean label ingredients, reflecting consumers' increasing demand for product transparency.
Sustainability as a Key Market Driver
The quest for sustainability is a driving force in the natural and organic personal care market. Brands are introducing water-free or water-conscious products, solid cosmetics, and zero-waste concepts to meet consumer preferences for eco-friendly options. Sustainability was a central theme at events such as Vivaness 2022, with a focus on plastic-free and zero-waste solutions, sustainable oral care, and local sourcing.
Innovative Packaging Enhancing Sales
Consumer obsession with achieving flawless appearances has made skincare and grooming products a significant market segment. In this competitive landscape, innovative packaging has become a key differentiator among brands. Packaging not only affects aesthetics but also plays a pivotal role in attracting consumers. As natural and organic skincare products gain popularity, innovative packaging is instrumental in setting brands apart.
Evolving Packaging Meets Changing Consumer Needs
Consumer habits are evolving, leading to changes in packaging to provide effective and convenient experiences. The demand for convenient and solution-oriented products in the skincare category has driven the adoption of airless packaging and specialized product packaging to accommodate new ingredients.
Market Consolidation due to New Players
The organic personal care products market is experiencing significant growth, with the entry of major multinational companies making these products more accessible to consumers. This entry has resulted in market consolidation, with the top nine companies holding a substantial share of the global market. Notable players in this market include Bare Escentuals, Aveda, Origins (Estee Lauder), Burt’s Bees (The Clorox Company), The Body Shop International Plc, and Kiehl’s (L'Oreal).
Expanding Sales through E-Commerce
The increasing purchase of organic and natural products via e-commerce channels is a growing trend. Manufacturers are capitalizing on the potential of e-commerce to make these products readily available. This trend is expected to continue, fueled by the rising adoption of smartphones and supporting apps worldwide.
Distribution expansion is another critical factor in market growth, with natural and organic personal care products becoming more widely available in department stores, beauty salons, pharmacies, and drugstores. The online retailing and digital marketing landscape has gained prominence since the pandemic, further boosting market growth.
Country-wise Insights
In the United States, consumers are gravitating towards organic personal care products, particularly skincare items. The rising demand for organic ingredients and increased awareness of the harmful effects of chemicals and synthetic products are driving this trend. Sensitive skin individuals, in particular, are seeking organic alternatives to avoid skin irritation and dryness.
In China, millennials are fueling the market, displaying a penchant for products with desirable ingredients rather than brand loyalty. The green movement is spreading, leading to increased investments in green technologies and plant-based products. The evolving preferences of first-tier Chinese city residents are changing the way they shop, with a shift towards plant-based products.
Competitive Landscape Analysis
Key Companies Profiled
• Loreal SA
• Amway Corporation
• Beiersdorf
• Benefit Cosmetics LLC
• Chanel S.A.
• Clarins Group
• Coty Inc.
• Estee Lauder Companies Inc.
• Johnson & Johnson
• Kao Corporation
• Laverana GmbH & Co. KG
• LVMH (Moët Hennessy -Louis Vuitton)
• MAC cosmetics
• Mary Kay Cosmetics
• Procter & Gamble Co.
• Revlon Inc.
• Shiseido Co., Ltd.
• Other
Segmentation of Natural and Organic Products Market
Product Type:
• Skin Care
• Body Care
• Hair Care
• Oral Care
• Cosmetics
• Fragrances & Deodorants
End User:
• Commercial
• Residential
Price Range:
• Premium
• Mass
Packaging:
• Pumps & Dispensers
• Compact Cases
• Jars
• Pencils and Sticks
• Tubes
• Sachets
• Others
Consumer Orientation:
• Men
• Women
• Kids
Sales Channel:
• Hypermarkets
• Specialty Stores
• Drug Stores
• Online Retailers
• Departmental Stores
• Convenience Stores
Region:
• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• Middle East & Africa (MEA)
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