Natural Cosmetics Market Size Report

Natural Cosmetics Market Size Analysis Report By Product (Skin Care, Hair Care, Fragrance, Color Cosmetics), By Distribution Channel (Supermarket/Hypermarket, Online), And Segment Forecasts, 2019 - 2025

  • Published Date: Apr, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-2-68038-857-2
  • Format: Electronic (PDF)
  • Historical Data: 2015 - 2017
  • Number of Pages: 110

Industry Insights 

The global natural cosmetics market size was estimated at USD 34.12 billion in 2018 and is projected to register a CAGR of 5.01% from 2019 to 2025. Increasing demand for beauty products coupled with the rising awareness about environment-friendly products is expected to drive the growth. Rising consumer awareness about the side effects of chemical content in cosmetics is driving the manufacturers to introduce natural products. Tata Harper, a prominent player in the market, started this company after getting to know about the harmful effects of synthetic chemicals, from close quarters.

Natural cosmetics include a large variety of skin care, hair care, color cosmetics, and fragrances consisting of shampoos, body lotions, creams, lipsticks, and essential oils among others. Technological innovation has shaped up the production of these natural cosmetics by some of the prominent players in the market such as Burt’s Bees; 100% Pure; Korres S.A.; and Bare Escentuals Beauty Inc. are expected to remain key drivers for market growth.

U.S. natural cosmetics market

Growing awareness about natural products and their features has resulted in an ascending trend in their demand. L'Oréal launched a plant-based hair dye named Botanea as a step taken into this new face of the cosmetic industry. This has driven the manufacturers to increase their R&D expenditure to manufacture more products made of natural contents. This trend is expected to continue over the forecast period.

Increasing demand has shown a rise in their availability across various distribution channels such as supermarkets/hypermarkets, convenience stores, specialty stores, and online channels. Online distribution channels being an emerging source, are going to give supermarkets/hypermarkets a fierce competition in the upcoming years due to its ease of access. Companies are making their products available through various online portals such as Nykaa and Amazon among others. They are designing their websites to make consumers aware of their entire product portfolio.

Product Insights

In 2018, skin care led the global natural cosmetics market with a revenue of USD 10.31 billion. Rising awareness among consumers regarding the effects of aging on their skin is anticipated to drive the demand for natural alternatives, which in turn is expected to contribute to the growth.

The fragrance segment is anticipated to expand at a CAGR of 5.03% followed by color cosmetics over the forecast period. Increasing awareness, working women population, and changing lifestyle, in countries like India and others, is expected to propel the growth. A shift in preference for natural cosmetics in major economies has created an opportunity in other regions.

Distribution Channel Insights

Supermarkets/hypermarkets led with a market value of USD 13.67 billion in 2018 followed by convenience stores, with revenue of USD 10.16 billion in 2018. This segment has been gaining traction owing to benefits of these outlets, such as the ability to scan the products before purchasing coupled with help from store associated to pick the most suitable product is anticipated to work in favor of this mode of purchase. Instant purchase as opposed to waiting for the delivery of the product in case of online purchasing also serves as a driving factor for the segment.

Global natural cosmetics market

Online is an emerging mode of distribution and is anticipated to expand at a CAGR of 4.47% during the forecast period. Easy access of a variety of products from different brands works as a driver for this segment. It also helps the companies to provide products at a low investment with chances of revenue generation. Various prominent players are setting up websites and are tying up with online portals, such as Nykaa, Amazon, Jabong, Credo Beauty, and others.

Regional Insights

In 2018, Europe held the largest market share of about 38.29% in 2018. Europe has most of the top players and an ever-increasing number of startups manufacturing natural cosmetics. Companies such as L’Oréal SA; AVON Product Inc.; and Bioeffect are anticipated to help Europe maintain the dominant position over the forecast period.

Due to an increase in awareness and population of working millennials, Asia Pacific has emerged as a growing industry for natural beauty products and is expected to register a CAGR of 4.42% during the forecast period. Consumers are willing to spend more money on natural products with rising disposable income and consciousness regarding appearance.

Natural Cosmetics Market Share Insights

Rising population of millennials in economies such as Asia Pacific and other regions is driving the demand globally. There is a major competition among prominent players to keep up with the latest beauty and skincare trends. Manufacturers are paying attention to R&D for integration of natural ingredients in cosmetics to drive more revenue. Companies are expanding their distribution channels in Asia Pacific, which is expected to drive the product demand.

Key market players are; Burt’s Bees; 100% Pure; Korres S.A.; Bare Escentuals Beauty Inc.; L’Oréal SA; AVEENO; Weleda AG; Arbonne International LLC; Avon Product Inc.; Coty Inc.; and Tata Harper.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

Country Scope

U.S., Germany, U.K., India, China

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global natural cosmetics market report on the basis of product, distribution channel, and region:

  • Product outlook (Revenue, USD Billion, 2015 - 2025)

    • Skin Care

    • Hair Care

    • Fragrance

    • Color Cosmetic

  • Distribution channel outlook (Revenue, USD Billion, 2015 - 2025)

    • Supermarkets/Hypermarkets

    • Specialty Stores

    • Convenience Stores

    • Online

  • Regional Outlook (Revenue, USD Billion, 2015 - 2025)

    • North America

      • U.S.

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • India

      • China

    • Central & South America

    • Middle East & Africa

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