Organic Personal Care Ingredients Market Size, Share & Trends Report

Organic Personal Care Ingredients Market Size, Share & Trends Analysis Report By Type, By Product (Sugar Polymers, Emollients, Active Ingredients), By Application (Skin, Oral Care, Hair, Cosmetics), And Segment Forecasts, 2018 - 2025

  • Published Date: Jul, 2018
  • Base Year for Estimate: 2017
  • Report ID: GVR-2-68038-496-03
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 118

Industry Outlook

The global organic personal care ingredients market size was estimated at USD 7.25 billion in 2017. Surging demand for personal care products, coupled with rising awareness regarding personal health and safety, is one of the key trends escalating market growth.

Demand for organic personal care ingredients is primarily driven by growing popularity of organic products. Increasing R&D investments, coupled with associated technological innovations in the area of ingredient processing and cost-effective production of such products, are expected to be the key factors responsible for steering industry growth during the forecast years.

U.S. organic personal care ingredients market

A variety of ingredients are used in the manufacturing of organic and natural personal care products. Aloe vera, soybeans, fish oil, jojoba oil and palm kernel oil are some of key raw ingredients used in the manufacturing of organic products. These are further used in hair, skin, and oral care, and cosmetics.

Shelf life is considered to be the most crucial element of organic personal care products since it plays a key role in the overall functioning of these products. Generally, products labeled as organic have to be consumed within six months to two years from the date of manufacturing. For instance, organic shampoos and conditioners can be used for approximately two years, while moisturizers expire in six months. Since these products do not contain chemical preservatives, such as phenoxyethanol, to help increase their shelf life, they are more susceptible to harmful bacterial growth if not handled properly. This is projected to be a roadblock for the growth of the market over the forecast period.

Increasing R&D expenditure to introduce improved plant extracts into various personal care products is anticipated to drive the market over the forecast period. Furthermore, various regulations encouraging the use of organic products are likely to boost the growth of the market. In addition, innovations involving oligopeptides, which are used to increase the efficiency and shelf life of products, are poised to stir up the demand for organic personal care ingredients.

Rising awareness about various benefits of organic products over synthetic products is translating into an upswing in the demand for the ingredients. These products are derived from natural resources and are free from harmful chemicals. Soaring awareness regarding ill effects of synthetic products on the skin is creating staggering volume of demand for natural alternatives. This is prompting manufacturers to introduce new products and focus more on research and development. As a result, use of these ingredients in the cosmetics and wellness sector is becoming mainstream.

In current market scenario, strategies such as mergers and acquisitions and development of customer-specific products are estimated to work in favor of ingredient and product manufacturers. Additionally, increasing focus on developing products that cater to the requirements of the populace of a country is expected to provide a fillip to the market.

Type Insights

On the basis of type, the market is segmented into natural and organic. Growing consumer awareness about synthetic chemicals used in personal care products and toiletries is expected to propel the market for organic ingredients over the forecast years. Changing consumer perception toward artificially manufactured chemicals will support the growth of the market in the near future. However, animal-derived ingredients are witnessing a downward trend owing to changing consumer attitude towards production process of these ingredients as well as concerns related to spreading of diseases.

Natural products include those manufactured using ingredients sourced from nature and free from synthetic chemicals such as parabens, sodium lauryl and laureth sulfates, phthalates, synthetic dyes, and synthetic colors. In addition, these ingredients can be any mineral, animal, or plant derivatives that comes directly from agricultural production, harvest, farming, and mining. Natural products have various advantages such as avoid irritation, are environment-friendly, and have no side effects. These trends are expected to help propel the demand for natural ingredients over the forecast period.

Product Insights

On the basis of product, the market is segmented into natural surfactants, emollients, active ingredients, sugar polymers, natural preservatives, and others. With companies expanding their product portfolios and introducing new products, the demand for organic personal care ingredients is projected to increase over the forecast period.

Sugar polymers are anticipated to dominate the market throughout the forecast period. Sugar polymers represented a share of over 44.0% of the total revenue in North America in 2017. Polyols, monosaccharides, and glycogen are some of the sugar polymers used in the preparation of organic products. These polymers are used in the production of toothpaste, mouthwashes, creams, lotions, make-up, and perfumes or deodorants. Honey, which contains a mixture of oligo and monosaccharides, is used in a number of products such as face packs, moisturizers, and shampoos.

Active ingredients are likely to experience healthy growth over the forecast period.In skin care products, they are responsible for absorption and acne reduction. Active ingredients are used in all types of skin care products, including natural formulations. Strengths in a particular formulation vary depending on the type of products, such as over-the-counter or prescription-based. Players are focusing on innovation in case of active ingredients, and developing technologies associated with formulation, extraction, and preservation to differentiate themselves and stay ahead in the competition.

Application Insights

Skin, hair, and oral care, and cosmetics are the key applications of ingredients. As of 2017, the hair application segment represented the leading revenue share of 30.6% in the North America organic personal care ingredients market. Evolving hair styling trends in the fashion industry and growing percentage of population concerned about grey hair and hair fall are the primary growth stimulants of the market. In addition, rising prevalence of hair damage and hair fall problems due to increasing pollution and stress is poised to further contribute to the growth of the segment.

Burgeoning importance of use of natural ingredients, such as fruits, vegetables, and herbs, carrying antiaging properties in skin care products is estimated to support the growth of the organic skin care segment. Regulatory bodies such as the EU Organic Program and USDA have laid down various regulations over the years, encouraging the use of organic substances in product formulations.

However, high manufacturing cost is expected to be a concern for market participants over the forecast period. Regulatory support for the use of natural ingredients in product formulations in the U.S., coupled with increasing consumption of organic products in developing countries such as Mexico, India, and China, is also stoking the growth of the market. Rising disposable incomes and consumer willingness to spend on appearance-enhancing products is also playing a pivotal role in promoting the demand for organic personal care ingredients.

Regional Insights

North America was the leading revenue contributor in the global arena in 2017 and is projected to continue its dominance over the forecast period. Implementation of the Montreal and Kyoto Protocols by Canada and the U.S., for limiting greenhouse gas emissions, is forcing product manufacturers to incorporate organic and natural ingredients in their product offerings since synthetic ingredient emissions are harmful for the environment.

Global organic personal care ingredients market

Asia Pacific is anticipated to register the most promising growth during the same period. There has been a spike in the consumption of skin care, hair care, and cosmetic products in China and India over the past few years. This trend can be attributes to new product launches and rising concerns regarding aging, effects of UV radiation, and hair fall. There has been an expansion in the base of middle class population in countries such as Indonesia, Vietnam, and Malaysia. Currently, these countries import basic personal care products such as shampoos, soaps, and other grooming products. These trends are likely to bolster the growth of the market in Asia Pacific.

Organic Personal Care Ingredients Market Share Insights

The market is characterized by presence of ingredient suppliers, manufacturers, distributors, and application segments. Competition in the industry has intensified in recent years owing to increasing number of small and medium regional players attempting to dominate domestic industry spaces.

Some of the key ingredient producers present in the market are Cargill, Incorporated; BASF SE; The Lubrizol Corporation; Croda International Plc; and Huntsman International LLC.; along with various small and medium companies such as Jarrow Formulas, Inc.; AEP Colloids; Grain Millers, Inc.; PRIDE SEEDS; and SG Ceresco Inc.

Report Scope

Attribute

Details

Base year for estimation

2017

Actual estimates/Historical data

2014 - 2016

Forecast period

2018 - 2025

Market representation

Volume in kilotons, Revenue in USD Million & CAGR from 2018 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., Canada, U.K., Germany, China, India, Japan, Brazil

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, & country levels and provides an analysis of the 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 on the basis of 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)

    • Skin care

    • Hair care

    • Oral care

    • Cosmetics

    • Others

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

    • North America

      • U.S

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

Key questions answered by the report
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