Organic Personal Care Ingredients Market Size, Share & Trends Report

Organic Personal Care Ingredients Market Size, Share & Trends Analysis Report By Type, By Product (Natural Surfactants, Emollients, Active Ingredients, Sugar Polymers), By Application, And Segment Forecasts, 2019 - 2025

  • Published Date: Jun, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-2-68038-496-03
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 187

Industry Insights

The global organic personal care ingredients market size was estimated at USD 7.7 billion in 2018, exhibiting a CAGR of 5.4% over the forecast period. These products are manufactured from plant extracts under eco-friendly conditions. The applications of organic personal care ingredients include skincare, oral care, haircare, and cosmetics.

Surging popularity of using chemical-free grooming solutions is contributing to the sale of botanical beauty products. Growing R&D investments, along with the advent of technological innovations in the area of cost-effective ingredient processing, is expected to be key factors contributing to industry growth.

U.S. organic personal care ingredients Market

North America, in terms of revenue, emerged as the largest regional market and was valued at USD 2.7 billion in 2018. Emergence of organic living principles in personal care sector, altering lifestyle, and rising disposable income are driving industry expansion. Furthermore, U.S. is involved in substantial import and export trading volumes across the international market.

Aveda Corporation; Amway Corporation; and The Estée Lauder Companies Inc. have enough capital to invest in R&D activities, thus, empowering their merchandise quality improvement strategies, specifically for luxury products. The Body Shop, Natura Cosméticos, and Bare Essentials, S.A. have integrated across multiple value chain stages for engaging themselves in the production of a variety of organic creams, lotions, shampoos, and conditioners.

Type Insights

Over the past few years, the accessibility level of organic personal care products has increased manifold, owing to growing number of manufacturers and suppliers. Increase in availability of botanical ingredients in drugstores, supermarkets, and malls is fueling accessibility.

A lot of natural ingredient-based products do not contain any potential preservatives, which adversely affects its shelf-life. Therefore, synthetic and less-harmful preservatives in the form of suitable additives have become essential to improve its sustainability. Therefore, some of the key players are accepting orders with calculated delivery days to eliminate the need for extensive preservation.

The widespread availability of pseudo or faux organic products in the market space has been identified as a major threat. In order to address the prevailing ingredient and formulation issues, manufacturers are keen on launching products with high-quality natural extracts and certified ingredients.

Product Insights

Sugar polymer was the largest product segment in the global organic personal care ingredients market, accounting for 41.9% share of the total revenue in 2018. Increasing consumer inclination toward naturally derived skincare products over synthetic counterparts is expected to have a favorable impact on the market over the forecast period.

Monosaccharides, polyols, and glycogen are sugar polymers used in the production of organic products. These polymers serve as raw materials in toothpaste, creams, mouthwashes, lotions, cosmetics, and perfumes or deodorants. With companies continuously expanding their product portfolios, demand for organic personal care ingredients is projected to increase during the forecast period.

Emollients formed the fastest growing segment by volume and are anticipated to register a CAGR of 5.o% over the forthcoming years. These constitute a mixture of chemical agents and herbs that are formulated to make the skin soft and more pliable by increasing the skin’s moisture content. BASF SELubrizol Corporation; Stepan Company; Ashland, Inc.; Lonza Group Ltd.; AAK AB; and Croda International plc are some of the prominent manufacturers of emollients.

Growing awareness about grooming and personal care is projected to spur demand for emollients. Furthermore, rising disposable income across developing economies such as India, Mexico, and Brazil have led to an increase in demand for organic cosmetics and other personal care products. This trend is also estimated to drive emollient sales in the coming years.

Application Insights

Based on application, the market has been segmented into skincare, oral care, haircare, cosmetics, and others. Skincare accounted for the largest revenue share in 2018 attributed to growing awareness among buyers regarding the adverse effect of chemicals and the ability of organic ingredients to render antioxidation properties and enhance skin health.

The role of natural ingredients in providing UV protection has been regarded as a key factor that will fuel organic skincare products over the forecast period. Skin concerns and demand for antiaging products among customers is expected to bolster organic ingredients production. Eminence and L’Oréal have launched an array of naturally derived skincare products to support user safety standards.

Global organic personal care ingredients Market

High manufacturing cost is expected to be a concern for market participants in the near future. However, technological innovations by companies such as Aveda Corporation, Amway, The Body Shop, and Estée Lauder, aimed at development of affordable merchandise lines, are expected to remain a critical success factor during the forecast period.

Regulatory bodies such as the USDA and EU Organic Program have devised regulatory norms related to users over the years promoting the use of organic substances in skincare formulations. In order to meet the regulatory policies, players have introduced upgraded technologies like oligopeptides to cater to evolving consumer skincare needs.

In response to recent developments in the field, manufacturers are striving to bring in new and attractive organic ingredient applications like flosses and mouthwashes, haircare, and cosmetics. Owing to growing percentage of millennial population facing hair-related problems, demand for organic haircare products is expected to grow significantly over the forecast years, registering a CAGR of 5.7%.

Regional Insights

North America held the largest revenue share, accounting for 34.8% of the global revenue in 2018. Increasing preference for botanically derived personal care items over synthetic counterparts is driving demand. Lucrative growth opportunities in Mexico, coupled with new product launches by FMCG manufacturers, is projected to have a positive impact in the near future.

Increasing purchasing power of the growing middle-class population in Asia Pacific, rapidly evolving sales and distribution channels, and emergence of various new Korean make-up and skincare brands is further expected to drive demand for these ingredients over the forecast period.

Europe was the second-largest market, holding a 29.3% market share in 2018. Favorable regulations in this region regarding the use of organic products is expected to boost market growth over the upcoming years. High concentration of major players like Huntsman Corporation, Stepan Company, and The Dow Chemical Company, along with various other medium and small-scale companies, is fueling regional growth.

Prevalence of stringent regulations formulated by various agencies such as the United States Environmental Protection Agency (EPA) and Food and Drug Administration (FDA) to increase the shelf life of organic skincare products is expected to have a positive impact on the growth of the market.

Ascending demand for surfactants in skincare and haircare applications is anticipated to positively impact the industry during the forecast period. Swelling focus on aesthetics, appearance, and beauty, partly owing to increasing influence of social media, is predicted to be a major driving factor for market expansion.

Organic Personal Care Ingredients Market Share Insights

The market is characterized by the existence of significant suppliers, distributors, manufacturers, and application segments. Competition in this industry has intensified over several years due to growing number of small and medium regional and international players attempting to dominate domestic and global industry spaces.

The market has a presence of various well-established player such as Cargill Incorporated; Croda International Plc; The Lubrizol Corporation; BASF SE; and Huntsman International LLC. Various medium and small regional players, such as Jarrow Formulas, Inc.; SG Ceresco Inc.; Grain Millers, Inc.; AEP Colloids; PRIDE SEEDS; and Stepan Company, are also present in the market.

Runway beauty trends have radically influenced product type that consumers prefer. End users have traded in their traditional desire for heavy and dramatic makeup for more natural and casual products. Demand for masks, BB & CC creams, and other similar cosmetics have grown among consumers. On-the-go beauty products such as multi-functional balms are speedily outpacing their single-feature product counterparts.

A strong focus on safety and quality supports the growth of natural ingredients in countries such as South Korea. Through research and scientific improvements in the country, 69% of facial skincare product launches in 2016 in South Korea featured herbal ingredients.

Market competition is primarily driven by the application scope and use of raw materials in the production of organic personal care products and new product developments, along with mergers and acquisition activities by manufacturers. For instance, in February 2018, Groupe Rocher acquired Arbonne International LLC. The acquisition successfully strengthened Groupe Rocher’s position in the direct selling market.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2025

Market representation

Volume in Kilo Tons, Revenue in USD Million and CAGR from 2019 to 2025

Regional scope

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

Country scope

U.S., Canada, Germany, U.K., France, Italy, China, India, Japan, Brazil

Report coverage

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

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis on latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global organic personal care ingredients market report based on type, product, application, and region:

  • Type Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Organic

    • Natural

  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Natural surfactants

    • Emollients

    • Active ingredients

    • Sugar polymers

    • Natural preservatives

    • Others

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Skincare

    • Haircare

    • Oral care

    • Cosmetics

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

      • Italy

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

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