Herbal Cosmetics Market Analysis APAC,Europe,North America,South America,Middle East and Africa - US,China,South Korea,Germany,France - Size and Forecast 2023-2027

Herbal Cosmetics Market Forecast 2023-2027

The herbal cosmetics market size is forecast to increase by USD 34.64 billion, at a CAGR of 6.83% between 2022 and 2027. Market expansion hinges on various factors, notably heightened consumer awareness regarding the adverse impacts of synthetic chemicals, the proliferation of organized retail outlets, and the pervasive influence wielded by social media platforms and blogging platforms. As consumers become increasingly conscious of the potential health and environmental risks associated with synthetic chemicals, there is a growing preference for natural and organic products. The expansion of organized retailing facilitates easier access to these products, amplifying consumer reach and market penetration. Furthermore, the pervasive influence of social media and blogging platforms enables rapid dissemination of information, recommendations, and reviews, shaping consumer perceptions and purchasing decisions. As these factors synergize, they contribute to the overall growth and development of the market, fostering a favorable environment for the adoption and proliferation of natural and organic products.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

The market for smart TV sticks is witnessing robust growth driven by the increasing demand for compact devices that offer seamless access to entertainment content. With the proliferation of smart TVs and the rise of online streaming channels, consumers are opting for cost-effective solutions to enhance their viewing experiences. These sticks provide users with multiple apps and easy content consumption patterns through standard television sets, catering to diverse consumer preferences. Moreover, the convenience of voice control adds another layer of functionality. Leading brands in the industry are leveraging enhanced viewing experiences and the integration of online information to stay competitive in this dynamic market landscape.

This market report extensively covers market segmentation by distribution channel (offline and online), product (skincare, hair care, and body care), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

By Distribution Channel

The market share growth by the offline segment will be significant during the forecast period. Some of the offline channels of the herbal cosmetics market are specialty stores, supermarkets/hypermarkets, department stores, drugstores/pharmacies, health and wellness stores, salons and spas, and many more. All these channels play a key role in the growth of the market.

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The offline segment was valued at USD 50.66 billion in 2017. Offline distribution channels provide consumers with easy access to a wide range of products, which is responsible for the growth of this segment and ultimately driving the growth of the market during the forecast period. 

By Region

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APAC is estimated to contribute 33% to the growth of the market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in the APAC region is a rapidly growing industry driven by increasing consumer demand for natural and organic beauty products. The market includes products such as skin care, hair care, and makeup that are made from plant-based ingredients without synthetic chemicals. Factors contributing to this growth are the growing awareness of the harmful effects of synthetic chemicals, the trend toward natural and sustainable products, and the increasing purchasing power of consumers in emerging countries such as India, China, and Indonesia.

Market Dynamics and Customer Landscape

In the realm of beauty and skincare, there's been a notable surge in demand for herbal beauty products and herbal formulations. Consumers are increasingly drawn to the benefits of herbal compounds in addressing various concerns such as acne and hair issues, while also combating the effects of UV rays and pollution. With the rise of beauty blogs, beauty companies, influencers, and celebrities advocating for natural and herbal products alternatives, the ecommerce industry has seen a significant uptick in the availability of organic products infused with ingredients like lavender and chamomile flowers rooted in Ayurveda. These products are often marketed through online platforms and retail channels, catering to those seeking non toxic skincare and skin tone solutions and embracing animal cruelty, cruelty-free practices. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The expansion of organized retailing is notably driving the market growth. Providers continually focus on strengthening their distribution networks in the organized retail sector to increase sales volume and turnover. Organized retail distribution channels such as hypermarkets, supermarkets, and specialty stores are considered to be some of the most effective distribution channels. This is because these channels allow consumers to actually touch and feel the product before purchasing it. Additionally, various organized retail distribution channels, including specialty stores, offer personal care products, including herbal cosmetics. Well-known suppliers offer a wide range of products through their specialty stores. Comanies rely on such retailers to plan marketing, advertising, and promotional budgets to increase product and brand awareness.

Additionally, the number of retail outlets is increasing globally, further increasing the reach and awareness of luxury personal care products during the forecast period. Walmart, Target, and Tesco Plc (Tesco) are some of the major retailers with separate personal care segments in their stores. Furthermore, in developing countries such as India and China, the beauty and cosmetics industry is growing through offline channels. An increase in the number of luxury brand stores, shopping malls, and supermarkets will facilitate offline sales of herbal cosmetics in these economies. Several personal care and cosmetic brands are allowing customers to test cosmetics for free in shopping centers to influence consumer purchasing decisions. These factors are therefore estimated to drive the growth of the market during the forecast period.  

Significant Market Trends

The rise in the adoption of home salon services is a key trend influencing market growth. Personalized home salon services have become an emerging trend in various countries in APAC and beyond. Additionally, the past decade has witnessed a significant increase in the number of application-based makeup service providers offering at-home makeup services worldwide. The mobile application allows consumers to access makeup services and meet makeup artists in person at their preferred address. There are several at-home makeup service providers on the market. Such packages offered by at-home makeup service providers lead to mass consumption of herbal cosmetics such as herbal body lotion, hair care, and face cream. 

For example, US-based GLAMSQUAD Inc. (GLAMSQUAD) provides clients with hair, makeup, and special event services. They also offer makeup classes and service packages such as summer packages, hair makeup packages, and nail packages. Housejoy and GLAMSQUAD have mobile and desktop applications that allow customers to book home care services. These services are in high demand due to their low service fees. Therefore, such personalized home makeup and salon services are expected to drive the growth of the market during the forecast period. 

Major Market Challenge

The high cost of herbal cosmetic products is challenging market growth. Herbal cosmetics are made from plant extracts, essential oils, and other naturally derived ingredients without artificial ingredients or chemicals. However, these products are often marketed as luxury or luxury goods that are out of reach for many lower and middle-class people due to their high prices. The cost of producing herbal cosmetics is relatively higher than other alternatives due to the high raw material and labor costs involved in producing these products. Manufacturers must use high-quality raw materials to create these products as the government imposes strict regulations on the manufacture of herbal cosmetics. The law prohibits the sale of cosmetics containing ingredients that are harmful to human health and requires disclosure of all ingredients to Health Canada, the Canadian government's department responsible for national health policy. 

Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Market Players?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Alna Vedic: The company manufactures different types of herbal skin care products, capsules, and single herbs and tablets.

The report also includes detailed analyses of the competitive landscape of the market and information about 16 market companies, including:

• APCOS NATURALS PVT. Ltd.
• Ayur Herbals
• Group Fourteen holdings Pty Ltd.
• HCP Wellness
• Herbline
• Himalaya Global Holdings Ltd.
• Jovees Herbal Care India Ltd.
• Khadi Natural
• LOreal SA
• Lotus Herbals Pvt. Ltd.
• MyChelle Dermaceuticals LLC
• Patanjali Ayurved Ltd.
• The Hain Celestial Group Inc.
• The Procter and Gamble Co.
• Vaadi Herbals Pvt. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Distribution Channel Outlook
  • Offline
  • Online

• Product Outlook
  • Skin care
  • Hair care
  • Body care

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview:

The market is thriving as consumers seek natural and herbal alternatives for skincare, emphasizing non-toxic skincare solutions and cruelty-free products. Extensive research and development efforts focus on harnessing the healing and nourishing properties of natural ingredients to ensure product quality and efficacy. Amid concerns about environmental degradation and climate change, there's a shift towards sustainability, prompting skincare brands to adopt sustainability initiatives in production, packaging, and exports. This market caters to various skincare needs, offering a wide range of products such as moisturizers, cleansers, serums, face masks, and body scrubs, tailored to address aging concerns and health and wellness trends. With an emphasis on holistic wellness and cultural heritage, herbal cosmetics appeal to a multicultural population seeking luxury and sophistication in organic skincare solutions rooted in traditional remedies like Ayurvedic products.

Further, the market is witnessing a surge in demand for non toxic skincare solutions that are cruelty-free and do not harm animals. With an emphasis on compliance with standardized regulations and rigorous quality control measures, consumers are seeking products with longer shelf life and made from quality ingredients sourced from local suppliers to support sustainability and reduce production costs. Amid geopolitical instability, the market caters to adults looking for tailored skincare solutions and skincare routines that prioritize simplicity and skincare health. Products often incorporate botanical heritage like green tea, appealing to the middle class seeking herbal alternatives over chemical-based alternatives for natural, quality skincare.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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