Natural and Organic Personal Care Product Market Analysis North America,Europe,APAC,South America,Middle East and Africa - US,Japan,China,Germany,France - Size and Forecast 2023-2027

Natural And Organic Personal Care Product Market Size 2023-2027

The natural and organic personal care product market size is estimated to increase by USD 10.55 billion and grow at a CAGR of 9.24% between 2022 and 2027. Market expansion relies on several factors, including the growing preference among female consumers for organic personal care items, heightened demand for products featuring naturally sourced ingredients, and increased research and development efforts by conglomerates. Challenges include the elevated cost associated with natural and organic personal care items, a rising inclination toward do-it-yourself (DIY) natural care solutions at home, and stringent regulatory standards. Overcoming these obstacles necessitates strategic approaches, such as exploring cost-effective production methods, enhancing consumer education on the benefits of professionally formulated products, and navigating regulatory compliance efficiently. By addressing these challenges, businesses can capitalize on the burgeoning opportunities presented by the shifting consumer preferences toward organic and naturally derived personal care products, driving growth and innovation in the market.

What will be the Size of the Natural And Organic Personal Care Product Market During the Forecast Period?

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Market Segmentation

By Product

The market share growth by the skincare segment will be significant during the forecast period. The market for with clean label ingredients, such as organic beauty offerings, is experiencing significant growth worldwide. Consumers are increasingly seeking natural alternatives to traditional cosmetics, favoring organic beauty products free of harsh chemicals like parabens, phthalates, coal tar, and BHA (butylated hydroxyanisole). In response, companies are turning to natural oils, such as pomegranate, camellia, jojoba, argan, and grape seed, for their skin benefits. Airless packaging, e-commerce, and online retailing have facilitated the accessibility of these natural skincare and oral care products. Millennials, in particular, are driving the trend towards organic skincare, with skincare and beauty products being the most popular categories. Social media and digital marketing play a crucial role in reaching this demographic. 

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The skincare segment was valued at USD 5.18 billion in 2017 and continued to grow until 2021. Vendors in the market offer skin care that are specifically targeted at skin concerns. However, synthetic chemicals, such as propylene glycol, petrolatum, and sulfates, found in synthetic cosmetics, can cause skin irritation, dryness, and dullness. Herbal ingredients and plant extracts are becoming increasingly popular alternatives. Companies like Refresh Botanical are leading the charge in this sector, offering a wide range of organic personal care products. Despite the benefits, it's important to note that even organic products can cause allergies, so proper patch testing is recommended. Hypermarkets and other retail outlets continue to stock synthetic cosmetics, but the shift towards such products is undeniable. Therefore, the growing preference of people to use these to maintain skin health and prevent harmful side effects caused by the use of toxic ingredients will boost the growth of the skin care segment.

Key Regions

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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

North America made the largest contribution to the market, along with the major countries, the United States and Canada, in 2022. In the dynamic market of North America, advertisers and marketing practitioners leverage the digital domain to reach consumers. Product reviews, recommendations, and user comments on various platforms shape purchasing decisions. Expert bloggers and celebrity endorsements further influence consumer preferences. However, transparency regarding ingredients is crucial. While Burt Bees, a US-based subsidiary of The Clorox Co., offers natural solutions like Milk and Honey Body Lotion and Aloe and Buttermilk Body Lotion, it's essential to avoid harmful additives like Propylene glycol and Formaldehyde in haircare products. Consumers prioritize natural alternatives for haircare concerns, including anti-dandruff prevention and solution for scalp problems. Therefore, a strong presence of cosmetic skin care product manufacturers offering a variety of creams and serums while ensuring broad product availability is expected to drive growth in the market during the forecast period.

Market Dynamics and Customer Landscape

In the current market landscape, the demand is on the rise. Consumers are increasingly seeking out products with clean label ingredients and free from synthetic chemicals. This trend is particularly prominent in the organic beauty sector, which includes consumer products such as skin care, hair care, and makeup. Airless packaging is a popular choice for these products due to its ability to preserve the natural integrity of plant extracts like pomegranate, camellia, Jojoba, argan, grape seed, and others. These natural oils are rich in antioxidants and nutrients, making them effective in addressing skin irritation, dryness, and dullness. The e-commerce sector has played a significant role in the growth of the natural and organic personal care market. Online purchasing platforms have made it easier for consumers to access a wide range of organic skincare products, often with the added convenience of digital marketing and social media promotions. Despite the benefits, it's essential to be aware of potential allergens and ensure that they are free from synthetic cosmetics. By choosing organic products, consumers can enjoy the peace of mind that comes with knowing they're using natural ingredients on their skin.

Key Market Driver

The increasing number of female customers opting for organic personal care products is notably driving the market growth. The market for clean label ingredients, such as organic beauty offerings, has experienced significant growth. Consumers, particularly women aged 25 and above, are increasingly drawn to these due to their natural benefits and the desire to avoid synthetic chemicals like BHA, parabens, phthalates, coal tar, and allergens found in conventional consumer products. Airless packaging, e-commerce, and online retailing have facilitated the accessibility of organic beauty items. Millennials and middle-aged women (35-50) are major purchasers of premium natural skincare products, including anti-aging creams and lotions made with natural oils such as pomegranate, camellia, jojoba, argan, and grape seed.

Herbal ingredients, like those found in Refresh Botanical's offerings, are popular for addressing skin issues like irritation, dryness, and dullness. Organic skincare and oral care are increasingly available on online purchasing platforms, with digital marketing and social media playing a significant role in their promotion. Plant extracts and natural ingredients are replacing synthetic chemicals in personal care products, as consumers seek healthier alternatives for their skincare and oral care routines. Therefore, the availability of such products from multiple suppliers such as Gabriel Cosmetics Inc., Beiersdorf AG, Korres, Groupe Clarins, LOccitane Groupe SA around the world will drive the growth of the market during the forecast period. 

Significant Market Trends

The rise of sustainable packaging is a key trend influencing the market growth. The market is witnessing a significant shift towards sustainable packaging solutions. Brands like Juicy Chemistry, Mamaearth, WOW Skin Science, and Forest Essentials are adopting eco-friendly practices, such as refillable containers and packaging made from recycled materials. Consumers are increasingly seeking personal care products with clean label ingredients and organic beauty options.

Airless packaging, a popular trend in the industry, helps preserve natural oils, such as pomegranate, camellia, jojoba, argan, and grape seed while reducing the need for synthetic chemicals like BHA, parabens, phthalates, coal tar, and allergens. Online retailing and e-commerce platforms, digital marketing, and social media are driving sales in this sector. Millennials, who prioritize skincare and oral care, are key consumers of these products. Herbal ingredient brands, like Refresh Botanical, offer organic skincare products made from plant extracts, catering to the growing demand for natural ingredients and away from synthetic cosmetics. All these factors will drive the market growth during the forecast period. 

Major Market Challenge

The high cost is challenging the market growth. The global market for organic personal care products, characterized by clean label ingredients and the "organic beauty" trend, experiences growth but remains expensive due to factors such as short shelf life, high cost of sourcing natural ingredients, and packaging and advertising expenses. Rare and costly ingredients, like caviar extract and rose essential oil, increase production costs. Consumers increasingly turn to e-Commerce and online retailing for purchasing these products, with digital marketing and social media playing significant roles.

Natural oils, such as pomegranate, camellia, Jojoba, argan, and grape seed, are popular for addressing skin irritation, dryness, and dullness. Millennials and skincare enthusiasts seek out organic skincare and oral care products while avoiding synthetic chemicals and allergens commonly found in synthetic cosmetics. Airless packaging and herbal ingredient brands, like Refresh Botanical, cater to this demand. However, the high cost may hinder market growth, as consumers compare prices on online purchasing platforms against traditional retailers like hypermarkets. Therefore, the high cost of organic skin care products, which is not affordable for many, is expected to hinder the growth of the market during the forecast period.  

Key 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Natural and Organic Personal Care Product Market Players?

Vendors 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.

Colgate Palmolive Co: Under its subsidiary FLORENCE, the company offers natural and organic personal care products.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Emami Ltd.
• Gabriel Cosmetics Inc.
• Groupe Clarins
• Herbivore Botanicals
• Honasa Consumer Pvt. Ltd.
• LOccitane Groupe SA
• Miranda Kerr Pty Ltd.
• Organic Harvest
• OSEA International LLC
• Patanjali Ayurved Ltd.
• Purity Cosmetics
• The Clorox Co.
• The Procter and Gamble Co.
• True Botanicals Inc.
• Weleda Group

Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors 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. 

• Product Outlook 
  • Skincare
  • Haircare
  • Cosmetics
  • Others

• Distribution Channel Outlook 
  • Offline stores
  • Online stores

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • 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

In the current market, there is a significant trend towards Natural and Organic Personal Care Products. These products, which include items like shampoos, lotions, and cosmetics, are produced using natural ingredients and are free from harmful chemicals. The Consumer Market for these products is growing steadily, with a rising number of people becoming aware of the benefits of using natural and organic personal care items. Companies like COMMERCE, Inc. and ORGANIC Beauty House are leading the charge in this market. They offer a range of products, such as Herbal Hydrosols, Essential Oils, and Natural Extracts, which are produced using sustainable methods.

Moreover, the market for these products is driven by factors such as increasing health consciousness, growing awareness about the harmful effects of synthetic chemicals, and a desire for eco-friendly and ethical consumer goods. The Skincare and Makeup segments are particularly popular in this market, with consumers seeking out products that are free from harsh chemicals and are gentle on the skin. Overall, the market is a dynamic and growing sector, with a strong focus on innovation, sustainability, and consumer health.

Natural And Organic Personal Care Product Market Scope
Report Coverage	Details
Page number	165
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 9.24%
Market growth 2023-2027	USD 10.55 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	7.75
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 38%
Key countries	US, Japan, China, Germany, and France
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Colgate Palmolive Co., Emami Ltd., Gabriel Cosmetics Inc., Groupe Clarins, Herbivore Botanicals, Honasa Consumer Pvt. Ltd., LOccitane Groupe SA, Miranda Kerr Pty Ltd., Organic Harvest, OSEA International LLC, Patanjali Ayurved Ltd., Purity Cosmetics, The Clorox Co., The Procter and Gamble Co., True Botanicals Inc., Weleda Group, Yves Rocher Amerique du Nord Inc., Beiersdorf AG, e.l.f. Beauty Inc., and Korres
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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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 size 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 industry 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 vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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