The global organic baby shampoo market size was valued at USD 489.3 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 6.8% from 2020 to 2027. The market growth is attributed to the rising women workforce across the globe. According to the Bureau of Labor Statistics report, more than 46.2% of the workforce in the U.S. comprised women in 2018. In addition, close to 61.9% of all mothers with children under the age of three were involved in the labor force. Increased involvement of women in the workforce is making them more self-sustainable and financially strong, leading to the adoption of quality healthcare products for their babies, which, in turn, is fueling the market growth.
Organic baby hair care products have been gaining significant traction among consumers in order to protect fragile baby skin. Parents are moving towards organic baby products because of plant-based ingredients, such as aloe, calendula, and chamomile, which are free from any type of suspected skin irritants. Children’s skin is more sensitive compared to adults and requires safe products containing the highest quality organic ingredients.
With millennial parents getting more educated about the organic baby products and related benefits, many manufacturers have been venturing into the cater baby care segment as an opportunity to gain maximum market share and consumer base by introducing baby care product lines or by innovating their existing product line. For instance, in 2018, Azarfan, an organic personal care brand for the first time launched a new product line extension called Azarfan organics baby, which was created with certified organic ingredients and included products, such as baby organic shampoo, hair wash, and hair lotion.
The trend in baby personal skincare is slowly shifting towards premium-priced organic personal care products. For example, in 2016, the Indian startup MamaEarth brand launched an exclusive baby care product line, which claims to provide organic, natural, and toxin-free international standard products. The organic product range included baby shampoo, lotion, and hair gel, which are clinically tested to be hypoallergenic and carry no artificial fragrances.
Manufacturers promoting organic brands and their products suitable for baby’s skin will certainly widen the market, hence many brands are opting for eco certifications, such as COSMOS organic, to gain a competitive advantage over other brands. This certification mandates a product to contain more than 95% of its ingredients to come from organic and plant-derived sources to be labeled as organic. These developments are gaining momentum in the market as consumers have become more conscious regarding the labeling of the products as many manufacturers with 40-50% plant-based components claim to be completely organic.
For example, Bamford is one of the key players in organic products and offers a wide range of baby body care and skincare products, including organic baby hair and body wash and baby hair serum and lotion, which are COSMOS organic certified products, to increase sales and promote the labeled product range to the target audience.
The market is expected to witness slow growth over the COVID-19 crisis as demand for these products has decreased due to global social restrictions across the globe. The offline distribution channel including hypermarkets, pharmacies, departmental stores, and specialty stores, which contribute majorly to the revenue generation of organic baby shampoo, are closed worldwide.
Brands are trying to engage the major chunk of consumers online through organizing quizzes and share a moment contests to increase online traffic on their websites. However, the sales of organic baby shampoo are expected to decline as the market is in the burgeoning stage and it is expected that consumers will prefer buying basic shampoo for their babies rather than premium-priced organic shampoo for a while. However, the market does not have any direct impact due to COVID-19, therefore the demand is expected to gain pace as the effect of the disease subsides with time.
Organic products require a standard temperature at which they are maintained and unique packaging specifications also form a mandate. If these products are not manufactured under the recommended condition, it can result in harmful effects. In addition, these products come with comparatively lower self-life as they are made from plant extract with very less additives and are premium priced. These factors can hinder the market growth of organic baby shampoo.
Hypermarkets accounted for the largest revenue share of 39.7% in 2019. The hypermarket stores dedicate whole areas to the advertising of a baby care center. According to the TABS analytics baby product report, it is estimated that parents of young children represent 42% of the buyers, but account for 80% of the sales volume, and this product buying is majorly done from hypermarkets, drug stores, pharmacies, and specialist health and beauty shops, where they are notified and assured of buying a suitable product. In-store promotions such as product displays and sample giveaways are done by brands to convert potential customers.
The e-commerce distribution channel is projected to register the fastest CAGR at 8.0% over the forecast period. The growth of the online distribution channel globally is expected to change market dynamics in the coming years. Top consumer brands in the market are opting for out of box social media strategies to gain the attention of millennial parents. For example, Firstcry baby and mom care brand organized several promotional campaigns, such as the #ItsAMomsWorld hashtag contest. Their signature hashtag revolves around mothers dressing up, posing with ‘cool props’, and taking a picture with a ‘Super Mom’ at any one of their stores. They further upload this picture on Facebook along with the hashtags #ItsAMomsWorld and #Mompreneur. This social media campaign involves posting inspiring stories of women entrepreneurs who are also mothers. Since the audience on Facebook consists of 54% of women, this could be an effective medium to cater to the audience on new product launches. In addition, online channels offer benefits such as free home delivery, after-sale services, and an easy return policy, which have been enhancing the consumers’ overall shopping experience.
North America held the largest share of 32.7% in 2019 owing to the increasing focus of parents on child nurturing and high spending on personal care products. Asia Pacific is expected to emerge as the fastest-growing regional market with a CAGR of 7.1% in 2019. Developing countries in the Asia Pacific are promising markets for organic baby shampoo. The emergence of most populated countries, such as China, Japan, and India, and growth in the middle-class population are among the two key factors fueling the market growth. In India, consumer acceptance of organic skincare goods is rising, which has encouraged top brands to launch their products in the baby care segment. For instance, in 2017, Himalaya herbal group launched the Himalaya herbal gentle baby shampoo, which excels in nourishing the scalp without making it much dry and flaky and protects the infant’s scalp with organic ingredients, such as aloe vera and tea tree formula.
Europe is expected to expand at a CAGR of 6.8% from 2020 to 2027. Baby care products are now taking a proactive approach to alleviating modern parents’ health concerns. This has compelled a large number of manufacturers pertaining to this segment to formulate products with an emphasis on organic and natural ingredients as well as shifting direction when it comes to marketing efforts. According to Soil Association, an organization dealing with the certification of organic food and on issues, including opposition to intensive farming, says that European customers are now more likely to opt for products with highlighted organic ingredients than those with highlighted 'free-from' ingredients. For instance, VIVAIODAYS, a European baby care brand, offers a product range and variations in organic baby care shampoo on which brand mentions COSMOS ORGANIC certified and of the highest quality, cruelty-free, and vegan, which, in turn, propels the millennial parents to consider buying products.
The market has been characterized by high competition and top consumer goods companies have recognized the robust potential of the market and are seen entering the market. They have been continuously modifying products and their proposition. For instance, Babo botanicals is a baby care organic brand, which initially offered skin and hair care products dermatologist-tested and made without synthetic fragrances, sulfates, dairy, soy or parabens, and now added products in the baby shampoo category for sensitive skin and solutions for issues ranging from lice prevention to eczema. Some of the prominent players in the organic baby shampoo market include:
Johnson & Johnson
The Clorox Company
The Himalaya Drug Company
The Moms co.
Earth Mama Angel Baby
Laboratoires Expanscience S.A.
Market size value in 2020
USD 518.2 million
Revenue forecast in 2027
USD 829.3 million
CAGR of 6.8% from 2020 to 2027
Base year for estimation
2016 - 2018
2020 - 2027
Revenue in USD million and CAGR from 2020 to 2027
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Distribution channel, region
North America; Europe; Asia Pacific; Central & South America; MEA
U.S.; U.K.; Germany; France; China; India; Brazil
Key companies profiled
Johnson & Johnson; The Clorox Company; The Himalaya Drug Company; The Moms co.; Unilever; Galderma laboratories; Earth Mama Angel Baby; Mothercare; Laboratoires Expanscience S.A; Beiersdorf Inc.
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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 organic baby shampoo market report based on distribution channel and region:
Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)
Pharmacy & Drug Store
Regional Outlook (Revenue, USD Million, 2016 - 2027)
Central & South America
Middle East & Africa (MEA)
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