Organic Soap Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Organic Soap Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The global organic soap market is projected to register a CAGR of 7.2% over the forecast period (2022-2027).

The COVID-19 crisis significantly affected the market. There was a change in consumers' buying behavior. Consumers prefer organic products over chemically consumed products as consumption of organic soaps has increased because of the growing concerns regarding the impact of synthetic ingredients such as parabens and sulfates in synthetic soaps, which can lead to severe skin reactions and damage the skin as well. For instance, Unilever, one of the biggest players in this segment, has estimated an acceleration in sales of organic soap by 2.5% during the third quarter of fiscal 2021.

The awareness of achieving a sustainable environment by reducing the impact of chemicals and government initiatives to support organic products are also fuelling the market growth.

Consumers' rising concerns about the health issues caused by using chemically composed skincare products are one of the major reasons driving the market.

There is an increasing demand for natural and organic products due to the rise in consumer awareness about the harmful effects of certain compounds such as parabens and aluminum compounds present in normal soap. For example, consumers are purchasing organic soaps because these products contain natural ingredients that can promote skin health. Also, these organic soaps are inherent as cleansers and can help to aid skin conditions like eczema, acne, and even sunburn. Consumers' preferences are based on these organic products' efficacy, longer-lasting protection, and clinical properties. Due to the medicinal qualities of natural ingredients, the demand for natural ingredients is rising among consumers. Thereby, many consumers prefer organic products daily, which results in the elevation of the organic soap market.

The European region is the largest market for the organic soap segment. The key driver in the market is the desire for a presentable personal image among European consumers, which has also led to their awareness of personal hygiene habits. Consumers' growing concern about their health and hygiene has enhanced the region's natural or organic soap demand. Such factors have compelled the demand for innovation in natural and organic products to match the dynamically changing consumer requirements. The demand for natural ingredients has been quite evident in the market, leading to most companies launching products with nature-inspired ingredients. Furthermore, the increasing trend of organic concept stores for organic cosmetic products among consumers is also anticipated to enhance the growth of natural and organic beauty and personal care products in the region. Thus, the demand for organic products is rising in the region, which also promotes the growth of the organic soap market.

The market studied is highly competitive. This is due to domestic and international players in this sector. The major players in the industry are Unilevel PLC, Neal's Yard (Natural Remedies) Limited., The Procter & Gamble Company, Truly's Natural Product, and Johnson & Johnson Pharmaceutical industry company. Key players are focusing on product development and innovation to meet the consumer's needs by offering a variety in taste and product quality to maintain premiumization. Some of the major players use mergers and acquisitions as their key strategy. The strategy to follow mergers and acquisitions by these top players is to sustain and secure a leading position in the industry. This will enable the companies to maintain dominance over other players, and the companies can remain a strong competition for other players in the market.

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