Natural Skin Care Products Market Size, Share & Trends Report

Natural Skin Care Products Market Size, Share & Trends Analysis Report By Type (Mass, Premium), By Product (Facial Care, Body Care), By End-use, By Distribution Channel, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Sep, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68039-018-0
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 80

Report Overview

The global natural skin care products market size was valued at USD 10.84 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.0% from 2020 to 2027. Growing concerns regarding the side effects of chemicals on the skin, causing skin irritation, allergies, and skin dullness, have been one of the key factors fueling the market growth. Dissemination of knowledge related to the benefits of natural skincare has led consumers seeking eco-friendly, sustainable, natural skincare products that come with greater product ingredient transparency. According to the Asia Cosmetics report, in 2017, globally 40% of the change in the buying decision of the consumers has inflected because of natural ingredient listing on the packaging. Natural skincare and cosmetic products that are free from chemicals and transparent about the content have been preferred by consumers, which is likely to drive the demand for natural skincare products.

The U.S. natural skin care products market size

Growing celebrity involvement in the promotion of natural beauty products is expected to resonate well with young consumers. Millennials who spend a lot of time on the internet have a high inclination towards trending online articles, product launches, and celebrity endorsements. Influential personalities such as actress Jessica Alba and Miranda Kerr founded natural beauty brands that offer ethical skincare products and have been attracting investment from consumer-focused private equity firms as a natural product, which is expected to have a promising future demand. For instance, in 2018, Honest Co. received funding of USD 200 million from L Catterton, a global private equity firm. In this regard, the company expanded its product offering in countries, such as Australia, Germany, and France, to cater to other markets. These brand innovations and launches are likely to contribute to the growth of the market.

Rapid growth in the number of new companies and startups pertaining to natural skincare has led to the availability of affordable products and innovative product lines in the market. Major consumer brands are considering launching natural daily use of skin care products and seeking consumer’s acquisition in the long run. For instance, in October 2017, Clorox co.’s natural and eco-friendly personal care brand, Burt Bees launched Burt Bees Beauty, a line of natural cosmetics including face wash, cleansers, body lotions, body scrubs, shower gel, and body oils made with natural ingredients.

The recent Covid-19 outbreak has severely impacted the growth of the beauty and personal care industry. The pandemic disrupted production as well as sales of beauty and skincare products through both online and offline channels due to social distancing and stay home policies. Demand for new orders from retailers has come to a standstill as the major markets are under lockdown, which has drastically altered the supply chain in the market globally. Moreover, the pandemic situation has goaded people to spend more cautiously on basic amenities and needs and refrain from buying natural beauty products, which usually have premium pricing.

Type Insights

The mass segment led the market and accounted for 60.5% share of the global revenue in 2019. The high concentration of manufacturers offering natural skincare products, which can be used on a regular basis while keeping the product affordability in mind, is a primary reason boosting the growth of this segment. For instance, Himalaya- natural personal care brand offers a wide variety of products ranges from skincare, body care, sanitization, and hair care products at moderated pricing. Such manufacturers and brands continue to boost demand for this segment.

The premium segment is anticipated to expand at the fastest CAGR of 5.1% from 2020 to 2027. Premium product line offerings are the same as mass products, however, these products come with tangible and intangible attributes, such as botanical blends, which makes consumers pay more for them. Quality and extra value-added offerings are the key factors driving the market. Brands such as True Botanicals, Amala, Dr. Alkaitis, Alitura Naturals, and Vered Organic Botanicals are some of the premium brands that offer natural products.

Product Insights

The facial care segment led the market and accounted for 63.9% share of the global revenue in 2019. Growing preference for complicated facial care routines among women as well as men in the recent past has been a prominent reason for the segment growth. Natural skincare products such as cleansers, face masks and packs, scrubs, and moisturizers have witnessed high acceptability among consumers who prefer them to hydrate skin for better glow and health. The high popularity of facial products has enthused established manufacturers to expand their product offerings by acquiring promising companies pertaining to natural skincare.

For instance, in February 2018, Procter & Gamble Co. announced the acquisition of a New Zealand-based Skincare Company, called Snowberry. The later specializes in offering natural ingredients including skincare products, such as cleansers, toners, brighteners, exfoliators, and moisturizers, which focus on anti-aging and help in exfoliating skin.

The body care segment is anticipated to expand at the fastest CAGR of 5.2% from 2020 to 2027. Shifting consumer consciousness related to the overall healthy skin, high brand promotions through online channels, and regular product launches have helped the segment to become in the mainstream lately. Product launches in this segment are likely to augment the product demand. For instance, in December 2019, allure brand, launched the Nature in a Jar collection, which includes two body care products, such as body lotion- Cream-to-Water Body Lotion with Cactus Fruit Extract and shower oil- The Nourishing In-Shower Oil, which is vegan and gluten-free.

End-use Insights

The women segment led the market and accounted for 60.0% share of the global revenue in 2019. Growing preference for natural skincare products to avoid breakouts and skin irritation caused by chemical skincare products is among the key factors fueling the segment growth. Women are more concerned about the appearance than men, and thus pay more attention to their skin and the quality of products they use for it. This has led manufacturers in the natural skincare industry to venture into relatively novel categories, such as facial masks, face wash, lotions, and serums. Rapid urbanization, along with a gradual increase in the number of working-class women, has augmented the demand for natural skin care products, thereby driving the consumption of chemical-free beauty products across the globe.

The men segment is anticipated to expand at the fastest CAGR of 5.2% from 2020 to 2027. Growing awareness among males related to grooming and skin nourishment globally has been driving the demand for men’s natural skincare products over the years. This has encouraged manufacturers to focus on the male skincare product line. For instance, in June 2019, Armani Beauty announced the launch of a new line of environmentally responsible men's grooming products, including face wash, toner, and moisturizer, featuring natural and biodegradable formulations, which ensures that up to 99% of ingredients are derived from nature.

Distribution Channel Insights

Hypermarkets and retail chain distribution channels dominated the market and accounted for 41.7% share of the global revenue in 2019. These stores have been focusing on offering natural and chemical-free categories set up to pique customer interest and offer them a facility to choose from numerous brands before making a purchase. Moreover, many retailers are focusing on revamping the product portfolio in the stores owing to the popularity of natural products. For instance, in April 2017, CVS Health, a retail chain, announced the removal of approximately 600 beauty and personal care brands offering parabens, phthalates, and the most prevalent formaldehyde. Moreover, in August 2017, Walmart, another retail chain, launched a natural beauty line called Found, which includes 133 natural skincare and beauty products and would be available in offline stores.

Global natural skin care products market share

The e-commerce distribution channel is expected to witness the fastest growth over the forecast period. Rising internet penetration amongst consumers and target marketing done by companies to reach all customer touchpoints are likely to fuel the growth of this segment. For instance, in May 2020, Mamaearth, a baby care brand, which offers natural skincare, haircare, and baby care products, launched Mother’s Day campaign. In this campaign, mothers had to post a TikTok video on #MamaearthMummySong and tag the brand to win prizes for the most liked video on the internet. These strategies by brands tend to gain more consumer engagement and trust.

Regional Insights

Europe dominated the market for natural skin care products and accounted for 33.2% share of the global revenue in 2019. Consumers in countries such as the U.K., France, Italy, and Germany are more conscious about the products they apply on their skin, and thus prefer natural, herbal, and organic care for skincare routines. According to the Global Web Index report 2019, close to 43% of consumers in the U.K. accepted that they would pay a premium price for sustainable, natural, and eco-friendly products, which contain no chemicals.

Asia Pacific is expected to be the fastest-growing regional market for natural skin care products over the forecast period. The inclination of consumers towards natural products is expected to shoot up demand for such products, especially in developing countries, such as India and China. Many startups have been tapping into the natural skincare and body care products in the market in the region. For instance, in 2017, Upma Kapoor started Teal & Terra, a natural and organic beauty brand, which offers natural skincare and personal care products, such as skincare, masks, and hair care free from chemicals, and is available on platforms, such as Amazon and Flipkart.

Key Companies & Market Share Insights

The natural skincare product market houses both international and domestic participants. Key market player’s focus on strategies, such as innovation and new product launches in retails pertaining to natural products to enhance their portfolio offering in the market. For instance, in July 2020, Sukin an Australian natural care brand announced the launch of its product in the Sprouts Farmers Markets, one of the fastest-growing offline and online retailers in the country. The company offers a wide range of high-quality vegan, natural, and carbon-neutral skincare products and expects to increase product penetration through this deal. Some of the prominent players in the natural skin care products market include:

  • Procter & Gamble

  • Estee Lauder

  • Mama Earth

  • Unilever

  • Clorox Co.

  • Honest Co.

  • The Body Shop

  • Loreal

  • FOM London Skincare

  • Bloomtown

Natural Skin Care Products Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 10.53 billion

Revenue forecast in 2027

USD 16.06 billion

Growth Rate

CAGR of 5.0% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD billion and CAGR from 2020 to 2027

Report coverage

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

Segments covered

Type, product, end-use, distribution channel, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; MEA

Country scope

The U.S.; Germany; The U.K.; France; China; India; Brazil

Key companies profiled

Procter & Gamble; Estee Lauder; Mama Earth; Unilever; Clorox Co.; Honest Co.; The Body Shop; Loreal; FOM London Skincare; Bloomtown

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global natural skin care product market report on the basis of type, product, end-use, distribution channel, and region:

  • Type Outlook (Revenue, USD Billion, 2016 - 2027)

    • Mass

    • Premium

  • Product Outlook (Revenue, USD Billion, 2016 - 2027)

    • Facial care

    • Body care

  • End-use Outlook (Revenue, USD Billion, 2016 - 2027)

    • Men

    • Women

    • Children

  • Distribution Channel Outlook (Revenue, USD Billion, 2016 - 2027)

    • Direct Selling

    • Hypermarkets & Retail Chain

    • E-commerce

    • Specialty Stores

    • Others

  • Regional Outlook (Revenue, USD Billion, 2016 - 2027)

    • North America

      • The U.S.

    • Europe

      • Germany

      • The U.K.

      • France

    • Asia Pacific

      • China

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa (MEA)

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