Industry: Consumer Goods
Published Date: January-2023
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 300
Report ID: PMRREP31346
According to a new study by Persistence Market Research, the global market for natural and organic personal care is generated a revenue of US$ 21,587.1 million in 2022. Worldwide demand for market is set to accelerate at 9.7% CAGR and top a market valuation of US$ 66,141.2 million by 2033.
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Market Size (2022A) |
US$ 21,587.1 million |
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Estimated Market Size (2023E) |
US$ 23,616.2 million |
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Projected Market Value (2033F) |
US$ 66,141.2 million |
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Value CAGR (2023–2033) |
9.7% |
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Collective Value Share: Top 3 Countries (2022) |
~30% |
Natural and organic are two distinct concepts. Despite the fact that these terms are frequently used interchangeably, there are important distinctions between natural and organic products. When you read the word "natural" on a label, it generally signifies that the ingredients were created by nature, but it does not imply that they are "organic." Chemicals can be found in natural products, but not in organic ones. Ingredients that are grown without the use of pesticides, chemicals, or artificial fertilizers are categorically referred to as "organic" and are non-GMO.
Manufacturers of personal care products are focusing on introducing organic, natural, and clean label ingredients to cater to consumers who demand for transparency in their products. Additionally, companies are focusing on collaborations with various institutes and colleges for research and developments.
Consumer inclination to buy clean label personal care products is shifting significantly due to increasing awareness regarding the benefits of natural and organic ingredients. Consumers are increasingly opting for greener products owing to presence of toxic ingredients in synthetic personal care products and worldwide demand for natural and organic personal care market increased at a consistent CAGR of 9.3% from 2018 to 2022.
Moreover, consumers are currently more informed regarding the benefits of using natural ingredients through various social media platforms. Application of natural skin care products improves skin texture, tone, and appearance owing to presence of nutrients required to enrich skin health.
Organic and natural personal care products are premium priced and are comparatively costlier than synthetic personal care products. This major factor is acting as a restraint to the growth of global organic personal care market. Key factors affecting the prices of organic personal care products include cost-intensive product certification process, high and volatile prices of key raw materials, and labor-intensive production processes.
Over the forecast period 2023–2033, the natural and organic personal care market is anticipated to expand at a CAGR of 9.7% in terms of value.
Numerous new and independent manufacturers introduced goods that were water-free or water-conscious and solid cosmetics and zero waste concepts remained popular. Lamazuna, a pioneer in the field of solid beauty in France, debuted new solid scents, and French company Balade en Provence unveiled a solid eye cream based on borage oil.
Similar to this, the recently established vegan brand Every day for Future from Italy displayed four twist-up face and eye serums. At Vivaness 2022, the desire for sustainability was the main market driver, which is not surprising for an event celebrating organic beauty. Consumers in Europe are more concerned about sustainability because of the summer's record-breaking heat and droughts. Within this broad context, the primary themes that emerged from the show floor were plastic-free and zero waste, the increase of natural & sustainable oral care, and local sourcing.
Obsession with achieving flawless and attractive look have become the most important factors for mass population to gain popularity. Thus, they are keen to use skincare grooming products that not only brighten their skin complexion but also give smoothness to their skin. The purchase of such skincare products depends upon their beneficiary properties and attractive packaging.
With the rise of natural and organic skincare cosmetics, skincare became an integral concern of consumers. Innovative packaging is a key differentiator among brands as most of brands offer similar kind of skincare products or have similar product properties.
Packaging is a key concern for companies operating in the consumer products category. Evolving consumer habits have led to changes in packaging of consumer products to ensure delivery of an effective and convenient experience to end users. Inclination towards medicated products has led to increasing demand for specialized products, and companies are innovating in terms of improving packaging to enhance overall aesthetics and product appearances.
In the skin care category, the demand for convenient and solution-oriented products has increased considerably. High demand for airless packaging is due to increasing research and development to include new ingredients in different products.
High demand is expected to increase the share of organic personal care products in the overall personal care industry. Launch of new products is also stimulating market growth. Moreover, the entry of major multinational companies is making natural and organic products more accessible to consumers, which results in consolidation of the market.
The market for organic personal care products is highly fragmented as the top nine companies account for maximum share in the global market. Various small and private players dominate the rest of the market. Some major players in the market include Bare Escentuals, Aveda, Origins (Estee Lauder), Burt’s Bee (The Clorox Company), The Body Shop International Plc, and Kiehl’s (L'Oreal).
With increasing purchases of organic and natural products via the Internet, manufacturers are realizing the potential of e-Commerce and increasing the availability of products through this channel. This trend is expected to further increase during the forecast period, in both developed and developing countries.
The demand for organic and natural personal care products is witnessing significant growth in developed as well as developing countries, especially via the Internet, which is further supported by increasing adoption of smartphones and supporting apps across the globe.
Distribution expansion is yet another important factor in market expansion. The traditional sales channels are natural and organic food stores, which continue to account for the majority of sales in North America and Europe. Natural and organic personal care products are becoming more widely available in department stores, beauty salons, pharmacies, and drugstores.
Since the epidemic, online retailing and digital marketing have grown in importance. High competition among e-Commerce retailers is expected to boost market growth in the next five to six years.
Why is the US Population Inclined towards Organic Products?
Consumers all around the country are gravitating toward organic personal care goods, especially skincare products, due to the rising demand for organic components and the growing knowledge of the negative impacts of chemicals and synthetic products. Some people have extremely sensitive skin, and they cannot endure using synthetic skin care products continuously every day.
The expansion of the organic skin care industry in the US has been primarily driven by rising worries about the harmful effects of chemicals on the skin, such as skin irritation, dryness, and dullness. The market for Natural and organic personal care market in the US is predicted to expand at a CAGR of 8.5% through 2033.
How Millennials in China are fueling the Market?
The Chinese consumers are more concerned about the effects and ingredients rather than the brand when purchasing a product, while being more aware of and knowledgeable about their real purchase. The millennial generation in China switch beauty brands with ease in accordance with their needs. The recent growth of natural cosmetics sales serves as a barometer for the performance of natural and organic personal care.
On the back of the green movement spread across a growing market, more and more businesses will heavily invest in green technologies for improved safety and efficacy. First-tier Chinese cities' residents who purchase beauty products are more aware of and eager to adopt global trends, which has changed how they shop. Many of them are moving toward a more plant-based products.
Which Product Type Commands a Larger Share in the Market?
One of the upcoming trends in the skincare segment is the application of natural oils, especially for skincare products such as face and body. Various natural oils such as pomegranate, camellia, Jojoba, argan, pomegranate, camellia, and grape seed offer skin benefits. Skincare share the major share in product type segment of natural and organic products market.
In the global market this category is expected to expand at a CAGR of 9.2% during the forecast period.
Which Type of End Use Contributes Significantly towards Market Growth?
Residential use contributes significantly in the natural and organic products market. Irrespective of any challenges in the natural and organic skincare distribution channel, e-Commerce sales channel is witnessing a significant growth due to its increasing adoption by the residential segment. South Asia and East Asia are expected to be the fastest growing regions pertaining to the e-Commerce penetration.
Despite the market for natural and organic personal care products shifting, the sector's major companies have maintained their dominance due to their knowledge of a wide range of products. The main components to improve the product offerings and client base will be the strategic alliances and mergers and acquisitions.
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Details |
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Forecast Period |
2023–2033 |
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Historical Data Available for |
2018–2022 |
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Market Analysis |
US$ million for Value |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon Request |
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The global natural and organic products market was valued at US$ 21,587.1 million as of 2022.
Demand for natural and organic personal care products is projected to increase at 9.7% CAGR and be valued at US$ 66,141.2 million by 2033 end.
Loreal SA, Amway Corporation, Beiersdorf, Benefit Cosmetics LLC, Chanel S.A., Clarins Group, Coty Inc., Estee Lauder Companies Inc., Johnson & Johnson, Kao Corporation, Laverana GmbH & Co. KG, LVMH (Moët Hennessy -Louis Vuitton), MAC cosmetics, Mary Kay Cosmetics, Procter & Gamble Co., Revlon Inc., and Shiseido Co., Ltd. are key market players.
