Global organic personal care market size was estimated at USD 8.43 billion in 2013. Rising consumer awareness regarding personal health safety is expected to support the market growth over the forecast period. Decreasing use of harmful chemicals including phthalates, aluminum salts and parabens coupled with committed efforts from numerous multinational corporations of shifting towards sustainable products has contributed to increasing consumption of organic personal products. However, fluctuation in raw material supply is expected to pose a threat over the forecast period.
Improved standard of living coupled with rising disposable income of the working middle class population in emerging economies of Asia Pacific such as India, China and Malaysia is expected to propel growth. Continuous on-going R&D coupled with technological breakthroughs in the area of processing and cost-effective production were key factors responsible for augmenting industry growth over the past few years and trend will continue over the next five years.
Approval from human health & safety regulatory bodies such as the U.S. Department of Agriculture (USDA) and FDA for the use of organic products is expected to fuel market growth. Rising R&D for introduction of advanced and customized products is expected to open novel avenues over the next five years.
North America organic personal care market revenue, by product, 2012-2020 (USD Million)
Organic skin care products dominated the global demand and the segment generated revenue exceeding USD 2.5 billion in 2013. Rising importance of natural ingredients such as herbs, vegetables and fruits in skin care products with anti-ageing properties is expected to fuel demand.
Organic hair care products are expected to grow at a CAGR of 9.6% from 2014 to 2020. Increasing importance of natural ingredients for providing dandruff protection, hair fall control and shining effect is expected to have a favorable impact on market. In addition, these products do not contain chemical substances such as ammonia, sulfur and paraben, promoting its importance over synthetically-derived counterparts over the forecast period.
Organic oral care accounted for 13% of the global revenue in 2013. Use of natural ingredients in formulation of oral care products help protect against gum disease, periodontal disease and bleeding gums. In line with the same, companies such as Colgate Palmolive and Hindustan Unilever have incorporated herbal substances such as neem and clove in their product offerings.
North America organic personal care market accounted for over 35% of the revenue share in 2013. Lucrative opportunities in Mexico in light of increasing consumption of cosmetic products amid new product launches by FMCG manufacturers is expected to have a positive impact over the next six years.
Europe organic personal care market size exceeded USD 2,400 million in 2013 Increasing preference towards naturally derived personal care products over synthetic counterparts in Europe is expected to have a favorable impact on industry over the forecast period. Furthermore, supporting regulatory framework for use of naturally-derived products is expected to propel growth in the region over the forecast period.
Asia Pacific market is expected to witness significant gain over the forecast period. Increasing consumption of cosmetic products in emerging economies such as China and India in light of new product launches along with rising concerns towards ageing, UV effects and hair fall will fuel growth.
Bare Escentuals occupied significant organic personal care market share in 2013. Other key participants include The Body Shop, Burt’s Bee, Estee Lauder, The Hain Celestial Group, Yves Rocher, Amway, Aveda Corp., Arbonne International, Kiehl’s, Natura Cosméticos S.A., and L'Occitane en Provence.
The Body Shop and L’Oreal are integrated across the entire value chain value chain. These companies process the raw materials after which they utilize them for the production of a variety of organic shampoos, conditioners, creams and lotions.
The industry is also characterized by innovative product launches. In May 2014, Arbonne International, Inc. added two new hair products to its existing Pure Vibrance hair care line, namely ColorLast Hair Spray and ColorLast Hair Serum. Demand is expected to rise with numerous new entrants and established players developing and introducing new products with unique characteristics and properties.