Industry: Consumer Goods
Published Date: November-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 169
Report ID: PMRREP34942
The global herbal beauty products market is projected to witness a CAGR of 6.7% during the forecast period from 2024 to 2031. It is anticipated to increase from US$ 77.5 Bn recorded in 2024 to a staggering US$ 122.1 Bn by 2031.
Increasing consumer awareness of the harmful effects of synthetic chemicals has led to a shift toward natural and organic alternatives. The influence of social media and wellness trends also plays a significant role, encouraging consumers to seek holistic beauty solutions that prioritize health and sustainability.
Rising demand for green-label products reflects a growing preference for eco-friendly options. For example, in November 2024, India-based natural beauty brand Fenufit launched Fenugreek Capsules, extending its hair and skincare portfolio. The new addition to Fenufit's product line harnesses the potent benefits of fenugreek in a natural hair oil. It provides consumers with a convenient way to incorporate this traditional ingredient into their daily hair care routine.
Key Highlights of the Market
|
Market Attributes |
Key Insights |
|
Herbal Beauty Products Market Size (2024E) |
US$ 18.8 Bn |
|
Projected Market Value (2031F) |
US$ 30.8 Bn |
|
Global Market Growth Rate (CAGR 2024 to 2031) |
7.3% |
|
Historical Market Growth Rate (CAGR 2019 to 2023) |
5.6% |
North America is projected to dominate the herbal beauty products industry with a revenue share of 35.7% in 2024. This growth is primarily fueled by rising demand for green-label products as consumers increasingly prioritize natural ingredients in their beauty routines.
Several modern consumers are willing to pay a premium price for these high-quality, eco-friendly options. Brands are taking advantage of this trend and extending their business in North America. For example,
Similar launches reflect a broader trend toward health-conscious and sustainable living in North America.
sia Pacific is set to be the fastest-growing region for herbal beauty products, with a projected CAGR of 6.6% from 2024 to 2031. This growth is likely to be driven by surging demand for clean-label skincare items among health-conscious consumers.
As more people lean toward herbal and natural options, key players have an ideal opportunity to introduce innovative products that cater to these preferences. In Japan, for example, several companies are responding to this growing demand by launching a variety of herbal cosmetics, further fueling market expansion. For example,
|
Category |
Market Share in 2024 |
|
Product Type- Skin Care |
37.2% |
Based on product type, the skin care segment has been leading the herbal beauty products market and is set to capture a share of 37.2% in 2024. This growth is mainly driven by increasing awareness of the various benefits that herbal products offer, such as improved skin texture, reduced acne, and diminished fine lines. All of these help to slow down the aging process. As more consumers seek effective organic herbal skincare products, demand in this segment is projected to rise. For instance,
Such products showcase the industry’s commitment to using nature’s goodness for beauty needs.
|
Category |
Market Share in 2024 |
|
Sales Channel- Hypermarkets/Supermarkets |
41.1% |
Based on sales channel, hypermarkets/supermarkets have taken the lead in the herbal beauty products industry. It is set to account for 41.1% of share in 2024. The segment is driven by the presence of well-trained staff and a high level of service across hypermarkets and supermarkets. This personalization enhances one’s shopping experience and positively boosts product sales.
Key players like Walmart, Aldi, Target, and SPAR are capitalizing on this trend by extending their store locations in key countries such as Germany, the U.K., China, India, and the U.S. This strategic move aims to maximize customer reach and solidify their presence in a competitive landscape.
The herbal cosmetics market has seen good growth in the past few years and is set to continue to flourish through 2031. This growth is driven by increasing consumer awareness regarding the harmful effects of synthetic chemicals on cosmetics. As consumers shift toward natural and organic alternatives, herbal beauty products made with plant-based ingredients have gained immense popularity.
Key trends in the market include rising demand for cruelty-free and sustainably sourced products, as well as the incorporation of traditional herbal ingredients into modern formulations. The influence of social media and wellness programs has grabbed interest in holistic beauty regimens. This trend promotes products that enhance not only skin health but one’s well-being.
Brands are hence experimenting with unique formulations and eco-friendly packaging to cater to the evolving preferences of conscious consumers. These factors and efforts together solidify the market's growth toward sustainable change.
The herbal beauty products market showed steady growth with a CAGR of 5.3% from 2019 to 2023. This growth was attributed to a shift in consumer preferences toward natural and organic ingredients. This was driven by increased awareness of the adverse effects of chemical-based products. As consumers increasingly prioritized sustainability and ethical sourcing, brands have responded by extending their herbal offerings, further boosting market growth.
The market is poised for continuous growth, with an anticipated CAGR of 6.7% from 2024 to 2031. This expansion is set to be fueled by trends such as the rise of clean beauty, integration of traditional herbal knowledge into product development, and growing influence of social media in shaping consumer choices.
Innovations in formulation and packaging, along with increased accessibility through e-commerce platforms, are likely to drive market expansion. As consumers continue to look out for products that align with their values of health and sustainability, the market is anticipated to flourish through 2031.
Increasing Consumer Awareness of Health and Wellness to Propel Sales
Growing awareness of the potentially harmful effects of synthetic chemicals in personal care products is a key driver for the herbal beauty creams industry. Consumers are becoming more educated about the ingredients used in their beauty products. This leads to a rising preference for natural and organic alternatives.
The rapid shift is fueled by the trend toward health and wellness, where individuals use products that promote beauty and well-being. Various companies are coming forward to blend health and beauty together. For example,
Due to the clean beauty trend, several brands are focusing on transparency regarding their ingredient sourcing and formulation processes. This surging awareness pushes consumers to opt for herbal beauty products. This factor is projected to push market growth as consumers seek safer, eco-friendly options.
Consumers Seek Ethically Sourced Products to Maintain Sustainability
Sustainability has emerged as a key factor influencing consumer purchasing decisions in the beauty sector. The herbal beauty products market is benefitting from the increasing demand for environmentally friendly and ethically sourced products.
Consumers are increasingly concerned about the ecological impact of their purchases, prompting brands to adopt sustainable practices throughout their supply chains. This includes using renewable resources, biodegradable packaging, and cruelty-free testing methods. As brands align their offerings with these values, they attract a growing segment of environmentally conscious consumers. For example,
Similar innovative offerings are projected to augment companies to prioritize sustainability and health.
Limited Awareness of the Benefits of Organic Cosmetics to Hamper Demand
Despite the growing popularity of organic beauty products, a significant barrier remains in limited consumer awareness and education about the benefits and effectiveness of these products. A few consumers are still unfamiliar with herbal ingredients and their potential advantages over synthetic alternatives.
The lack of knowledge can lead to suspicion about the effectiveness of herbal formulations, hindering market growth. Brands must invest in educational marketing campaigns to inform consumers about the benefits of herbal beauty products. This will likely help build trust and encourage adoption among a broader audience.
Regulatory Challenges and Quality Control Norms to Decline Demand
The herbal beauty products market faces regulatory challenges that can impede growth. Varying regulations across different regions for the classification and safety of herbal ingredients can create barriers for manufacturers.
Ensuring consistent quality and efficacy of herbal products is important, as variations in sourcing and processing can affect product performance. Without strict quality control measures, consumer trust may be lost, leading to hesitance in purchasing. These regulatory and quality concerns are important for brands to establish credibility and ensure the long-term success of herbal beauty products in the market.
Brands Focus on Launching Multifunctional Solutions to Gain Profit
Innovations in product development offer a promising opportunity for the herbal beauty products market. As consumers look for multifunctional solutions, brands can explore innovative formulations that combine traditional herbal ingredients with modern scientific advancements. This is set to involve the development of products that can enhance beauty and address specific skin concerns, such as anti-aging, hydration, or sensitivity.
The incorporation of unique technologies, such as biotechnology or sustainable extraction methods, is likely to enhance the efficacy and sustainability of herbal products. For example,
The launch of similar other products is projected to help address various skin issues and push consumers to purchase them, driving market growth.
Influence of Social Media and Digital Marketing to Create Novel Prospects
The rise of social media and digital marketing has greatly shaped the beauty landscape. It has become a powerful source for the herbal beauty products market growth.
Platforms like Instagram and TikTok have enabled brands to reach a wide audience and engage consumers through visually appealing content, tutorials, and influencer partnerships. This exposure has fostered a community of beauty enthusiasts who actively share their experiences with herbal products, amplifying brand visibility and credibility. A key example,
The example shows that companies are set to utilize celebrity and influencer marketing tactics to encourage customers to purchase, drive sales, and extend their market share.
The competitive landscape of the herbal cosmetic products industry is characterized by intense rivalry among established brands and emerging players, all striving to innovate and diversify their product offerings. Companies like Himalaya Herbals have made important strides by launching new product lines that cater to evolving consumer preferences since 2022.
Himalaya has introduced a turmeric range that includes a face wash, face pack, face scrub, face serum, face cream, and sheet mask. It shows the brand's commitment to harnessing the benefits of traditional herbal ingredients. This focus on innovation enhances the firm’s product portfolio and supports its position in the ever-evolving market for natural beauty solutions.
Recent Industry Developments
|
Attributes |
Details |
|
Forecast Period |
2024 to 2031 |
|
Historical Data Available for |
2019 to 2023 |
|
Market Analysis |
US$ Billion for Value |
|
Key Regions Covered |
|
|
Key Market Segments Covered |
|
|
Key Companies Profiled in the Report |
|
|
Report Coverage |
|
|
Customization and Pricing |
Available upon request |
By Product Type
By Consumer Orientation
By Sales Channel
By Region
To know more about delivery timeline for this report Contact Sales
The market is predicted to attain a value of US$ 122.1 Bn by 2031.
Limited consumer awareness and regulatory challenges are obstacles to herbal beauty product sales.
Rising demand for environmentally friendly and sustainable products is set to influence herbal cosmetics.
Pfizer Inc., ADM, and Lonza Group are few of the best herbal product companies.
The market for herbal cosmetics is set to rise at a CAGR of 6.7% through 2031.
