GVR Report cover Natural Cosmetics Market Size, Share, Trends Report

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

  • Report ID: GVR-2-68038-857-2
  • Number of Pages: 110
  • Format: Electronic (PDF)

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.

Natural Cosmetics Market Trends

Natural personal care products, such as body care, facial care, body lotions, and sun care, are manufactured from natural plant ingredients extracted in eco-friendly conditions. These products do not contain synthetic chemicals, such as parabens, phthalates, petrochemicals, and aluminum salts.

Europe, Asia Pacific, North America, and other regions have set some standards, such as Ecocert, Soil Association, Cosmebio, ICEA, BDIH, OASIS, NPA, and NSF. In addition, international and regional organizations, such as Cosmos and NaTrue, are also regulating the natural cosmetics market.

Rising awareness about the benefits of natural cosmetic products on consumer health, as well as reduced harm to the environment, can be attributed to augmented sales over the past few years. The growing trend of reducing the consumption of harmful chemicals, such as phthalates, aluminum salts, and parabens, coupled with committed efforts by multinational corporations to use sustainable products has contributed toward and increased consumption of natural personal products.

The natural personal care and skin care products markets have grown tremendously over the recent past, which can be attributed to the increase in awareness about various health benefits of these products over their synthetic counterparts. This is expected to have a positive impact on the overall natural cosmetic industry over the forecast period.

The rising demand for chemical-free skin and personal care products, coupled with changing perception of consumers regarding organic care, has also contributed to the growth of the natural cosmetics industry. An increase in disposable incomes, coupled with changing lifestyles, has also contributed to the growth of this market over the past few years. This trend is expected to continue over the forecast period.

Preservatives are necessary for cosmetic products formulated with bioactive ingredients. Numerous natural cosmetic products do not contain any preservatives and are manufactured on order. Thus, these products do not need extensive preservation.

However, synthetic preservatives have become necessary in commercial cosmetic products, as water-based products with all-natural preservatives have a very short shelf life. Manufacturers who employ natural preservatives can extend the shelf life of a product by relatively short periods such as six months. However, exposure to water and air can make natural preservatives ineffectual due to oxidation and other forms of degeneration.

The FDA regulates acceptable levels of preservatives that can be employed in various natural cosmetic products. However, numerous manufacturers committed to using natural products find it difficult to identify natural ingredients that can function on the commercial scale as an alternative to synthetic preservatives.

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% of the global revenues in the year, 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.

Despite its relative stability in the recent economic crisis, German consumers have become more price-conscious and are seeking products, which offer value. Manufacturers have responded to this growing demand by introducing a larger number of multifunctional products such as moisturizers with added SPF protection and anti-wrinkle agents. Promoting the value associated with ‘2 in 1’ offerings is expected to encourage consumers to spend more for the added convenience of having a product, which meets more than one of their needs.

The market demand for natural personal care products is being driven by the increasing population in the country. Population in the UK is aging, with people under the age of 16 declining while those over the age of 65 increasing. A large market exists in the country for products focused on aging consumers. The aging population has a desire for products that can fulfill their skincare needs and has the necessary levels of disposable income to purchase these usually expensive products.

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.

Women in China, like their Asian counterparts, use multiple skincare treatments daily, averaging three products. Furthermore, as is the case in Asian countries, there is an emphasis on products that whiten or even out the skin tone. This consumer preference suggests a potential for growing sales of sunscreen products, as well as the inclusion of sunscreens in other products in the future. Cosmeceuticals, products which combine cosmetic and pharmaceutical features such as acne treatment or anti-aging, are also increasingly popular in the country.

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

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization


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

      • The U.S.

    • Europe

      • Germany

      • The U.K.

    • Asia Pacific

      • India

      • China

    • Central & South America

    • Middle East & Africa

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