The global organic personal care market size is expected to reach USD 25.1 billion by 2025, according to a new report by Grand View Research, Inc., exhibiting a 9.5% CAGR during the forecast period. Growing demand for organic and natural hair care, skin care, and cosmetic products is expected to augment market growth over the projected period.
Approval from human health and safety regulatory bodies such as the U.S. Department of Agriculture (USDA) and FDA for the use of organic products in various personal care products is expected to fuel industry growth. Technological innovations aimed at development of cost-effective product lines by companies such as The Body Shop, Aveda Corporation, Amway, and Estee Lauder are expected to remain critical success factors for industry growth over the forecast period.
Changing consumer perception toward organic products, coupled with rising utilization of environmentally sustainable products, has fueled the growth of organically-derived products. Also, manufacturing of these products aids in reducing pollution by consuming natural resources and reducing reliance on petroleum-based resources.
Rising demand for chemical-free skin and hair care products, coupled with changing attitudes of consumers regarding organic personal care, has also contributed to the growth of the industry. Increasing consumer disposable incomes has also played a key role in market growth over the last few years.
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Further key findings from the report suggest
Skin care products are expected to witness significant gain over the forecast period and the segment is anticipated to expand at a CAGR of over 10.0% from 2016 to 2025. Natural ingredients provide anti-oxidation properties and improve skin immunity; as a result, their demand is likely to be greater
The cosmetics segment generated revenue exceeding USD 2 billion in 2015 on account of its increasing use among consumers in India, China, and Brazil. Rising awareness regarding harmful effects associated with chemical substances is likely to fuel demand for these products in Germany, France, and U.K.
North America dominated the global industry and was valued at over USD 3.5 billion in 2015. Adoption of Montreal Protocol and Kyoto Protocol in U.S. and Canada for restricting greenhouse gas emissions has forced personal care manufacturers to utilize natural ingredients in their products
Numerous companies are undertaking different strategic initiatives to increase their global presence in this industry. For instance, L’Oréal acquired The Body Shop in October 2013 to increase its share in this sector
In March 2017, Amway launched a new brand, G&H, a bath and body brand with three product collections, namely, Protect, Refresh, and Nourish. The products are “naturally inspired”, taking inspiration from the company’s organic farms.
Grand View Research has segmented the global organic personal care market on the basis of product and region:
Organic Personal Care Product Outlook (Revenue, USD Million, 2014 - 2025)
Organic Personal Care Regional Outlook (Revenue, USD Million, 2014 - 2025)
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