U.S. Natural Personal Care Market Size Worth $3.17 Billion By 2025

The U.S. natural personal care market size is anticipated to reach USD 3.17 billion by 2025, according to a new report by Grand View Research, Inc., progressing at a CAGR of 9.6% during the forecast period. Growing awareness regarding various advantages of natural products over its synthetic counterparts is translating into the greater demand for natural personal care products in the country.

The market includes a variety of products such as hair care, oral care, and skin care. Burgeoning popularity of natural personal care products is the key factor driving the market. Widening product distribution channels in urban areas are rendering availability and accessibility of these products easy for customers.

As these products reflect growing aspirations for better hygiene, health, and beauty in modern times, their adoption has exhibited significant growth. Oral care and other niche products such as hygiene products are projected to gradually grow in prominence owing to research & development efforts.

The demand for products that do not contain petrochemicals, preservatives, parabens, synthetic fragrances, and harsh cleaners such as sodium lauryl sulfate (SLES) is increasing. There are several major players in the market that are involved in manufacturing of a variety of personal care products such as shampoos, lip care products, sunscreens, eye care products, body lotions, scrubs, makeup removers, anti-aging creams, masks & exfoliators, face oils, BB creams, and cleansers/toners.

Many international retailers prefer to sell their products via online retailing. A supplier importing commercial quantities of international products requires registration with relevant authorities and needs to comply with import and safety guidelines. Therefore, international brands often prefer to enter the market via e-commerce channel, which has augmented the popularity of e-commerce websites in recent years.

Ease of ordering products through e-commerce websites has led manufacturers to sell their products online. However, the threat of counterfeit products is poised to restrain customers from regularly purchasing products online, which is likely to hamper the growth of the market.

Major producers of natural personal care products such as Estée Lauder, L’Oréal, Procter & Gamble, The Colgate-Palmolive Company, and Amway Corporation have a strong web presence. Strategically designed websites of companies have encouraged visitors to purchase their products directly from company websites.

Most of these companies promote their products on social media platforms. Advertisements displayed on these platforms contain offers and discounts that help in luring more customers to make product purchases, which is expected to work in favor of the market.

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Further key findings from the report suggest:

• The U.S. revenue for natural hair care products is estimated to reach USD 599.6 million by 2025, rising at a CAGR of 10.9% during the forecast period

• Skin care products dominated the market in terms of revenue, with a market share of over 45.0% in 2017, owing to natural ingredients being safe on the skin

• The young adult demographic segment led the market in terms of revenue, with a market share of just over 44.0% in 2017. Rising exposure of skin to harmful sun rays and other air pollutants is creating dire need for skin care products that can help prevent early aging and ensure younger-looking skin

• Some of the key companies present in the market are Aveda Corporation; Burt’s Bees; The Estée Lauder Companies Inc.; The Hain Celestial Group; Amway Corporation; The Procter & Gamble Company; and The Colgate-Palmolive Company

• These companies are investing in research & development activities to expand their product portfolios as well as production capacities, thereby sustaining their market positions. For instance, Amway Corporation, in 2016, announced its plans to invest USD 60 million in India over the next few years to expand its product portfolio and grow its business by opening express stores all over the country.

Grand View Research has segmented the U.S. natural personal care market on the basis of demography and region:

U.S. Natural Personal Care Demography Outlook (Revenue, USD Million, 2014 - 2025)

• Baby

• Kids

• Young Adults

• Middle Age Adults

• Older Adults

U.S. Natural Personal Care Product Outlook (Revenue, USD Million, 2014 - 2025)

• Skin care

• Hair care

• Oral care

• Others