Organic personal care market is expected to witness notable proceeds between the period 2021 and 2027 owing to the surge in number of distribution channels, like e-commerce in urban areas, and the higher health-conscious levels among consumers. The increasing concerns over petrochemical-based ingredients in cosmetics and toiletries have made way for environment-friendly products. The rise in the instances of regulatory approvals as well as organic and natural certification for cosmetics, such as COSMOS is a prominent contributor to the overall industry expansion.
The increase in R&D expenses towards innovations through the enhanced plant and animal extracts will positively add to the regional growth size.
Based on products, the organic skincare market will gain substantial traction through 2027 with the rising prevalence of skin blackening, skin sensitivity and burns. The increasing need for enhanced skin immunity and anti-oxidation has resulted in the growing preference for natural ingredients like fruits and herbs. The growing concerns over the use of chemicals and synthetic products is another ideal factor driving the market expansion.
Demand for organic hair care is anticipated to see growth at a notable speed in organic personal care market on account of the increasing penetration of natural ingredients that offer ammonia & sulfur-free benefits. The higher need for shining effects, hair fall control, and dandruff protection will influence industry growth.
Regionally, Mexico is set to emerge as a profitable avenue for the organic personal care market. This is mainly ascribing to the growing purchasing capacities and the increasing demand for natural and organic ingredients, such as turmeric in the region. The mount in number of investments and regulatory support will put impetus to the regional market penetration.
While the U.S. will observe steady gains with the higher popularity of bio-based products in the country. For instance, the U.S. BioPreferred scheme, which lists around 227 biobased cosmetic ingredients has been mandated for certified biobased products for use in the public sector.
The organic personal care market size in APAC is likely to grow at an exponential rate with the expanding population, rising trend of ethical consumerism, and higher number of working women in the region.
The organic personal care industry is highly competitive and comprises major participants, such as Natura Cosméticos S.A., L'Occitane en Provence (L'Occitane Groupe S.A.), Bare Escentuals (Shiseido), Arbonne International (Yves Rocher sa), The Body Shop (L'Oréal, Natura & Co.), The Hain Celestial Group, Aveda Corp. (The Estée Lauder Companies), Amway (Alticor), Burt’s Bee (The Clorox Company), L’Oréal and Estee Lauder.
These major players are putting targeted efforts on inorganic growth and strategic measures, such as novel product launches, acquisitions, partnerships, investments, and capacity expansions to sustain the escalating competition and for increased presence in the global markets.
For instance, in March 2021, Croda, a leading specialty chemicals provider, acquired France-based Alban Muller International to expand its natural, active, and cosmetic ingredients portfolio. The company had also bought Iberchem to reinforce its position in the natural cosmetic and personal care product market.
In another instance, Beiersdorf, in February 2021, launched O.W.N, its new brand, which is specially formulated for individualized skin care needs by incorporating naturally derived ingredients.
The global economic turbulence crafted by the COVID-19 outbreak made way for numerous roadblocks and placed tremendous adverse shifts on several businesses across the world. It also flattened the sales for organic personal care products owing to the disrupted supply chains and the dearth of materials. However, the increasing use of retail purchasing platforms by home-bound consumers is likely to upscale the demand for naturally derived cosmetics. This factor has also paved the path for multiple growth opportunities for numerous industry participants.