Organic Skin Care Products Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The organic skin care products market is projected to register a CAGR of 8.5% during the forecast period, 2021 - 2026.
The outbreak of COVID-19 has resulted in disruptions in the supply chain, owing to the forced shutdown of brick-and-mortar stores, eventually having a negative impact on beauty and personal care products, including organic skin care products.
However, the outbreak of COVID-19 has resulted in changing consumer preferences who are proactively seeking clean-labeled and functional skin care products, which in turn, is expected to accelerate the growth of the market studied during the forecast period at a faster pace. Key players may back the online channels/door delivery options to boost sales of their organic beauty and personal care products at least during the near future or until the pandemic ends. However, increased online sales are not offsetting the decline in in-store sales. Pre-COVID-19 trends will likely accelerate, with direct-to-consumer e-commerce, such as brands’ websites, shoppable social-media platforms, and marketplaces becoming more important. Across the globe, consumers indicate that they are likely to increase their online engagement and spending. The beauty industry players will need to prioritize digital channels to capture and convert the attention of existing and new customers.
Skin care is an essential part of personal care. It includes everything, from correction to prevention, in the process of makeup. Great skin will never go out of style, and the innovations and developments in the beauty industry promise to deliver improved products with a health-friendly touch. Makeup with skin care benefits has been prevalent in the market for quite a while now.
However, it was not as effective as it is right now. Skin sensitivity is another factor driving the growth of the organic and natural skin care products market. Awareness about the harmful effects of chemicals and synthetic products is another factor augmenting the growth of this market. A majority of the consumer base tends to buy products with the terms natural or organic associated with them. They generally do not focus on the ingredients used in the manufacturing of the product.
Key Market TrendsParaben-free Products are Increasingly Being LaunchedConsumers are becoming more concerned about avoiding parabens as an ingredient from their skin care products. With the growth of organic products, synthetic compounds like propylparaben and butylparaben are not considered safe for use. Just 35% of beauty products contain parabens, down by nearly seven points over the previous few years. For the beauty industry, there are many categories that still derive a significant share of sales from products with parabens and likely many other undesirable ingredients, but those categories still heavily focused on parabens are some of the fastest shifting ones to paraben-free skin care products.
Asia-Pacific Registers the Highest Growth RateAsia-Pacific is one of the largest markets for cosmetic products, and hence, remains a potential market for organic skin care products in the world. The Asia-Pacific region is expected to see the fastest growth during the forecast period. An aging population and an increasing number of millennials, with more number of working women, are the driving factors for organic skin care in this region. Also, with the increasing investment in branding and advertisement of organic skin care products in the region, this market is expected to flourish during the forecast period. Moreover, in Asia-Pacific, China has dominated the market studied, followed by Japan, South Korea, and others.
Competitive LandscapeThe organic skin care products market is a highly competitive market and comprises regional and international competitors such as The Hain Celestial Group (Avalon Natural Products Inc.), L'Oréal SA, Johnson & Johnson, and others. The major strategies adopted by the companies in the market are new product launches, agreements/partnerships, expansions, mergers, and acquisitions. The strategy of merger and acquisition of companies is increasingly being undertaken to utilize the respective key strengths, such as intense R&D activities, distribution network, the development of new products, to enhance the portfolio, and capture the untapped markets to drive the organic skin care products market further.
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