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The natural cosmetics market is estimated to increase by USD 45.38 billion and grow at a CAGR of 28.29% between 2023 and 2028. The market's expansion hinges on various factors, notably the increasing consumer preference for chemical-free and eco-friendly natural cosmetics, alongside the surging demand for premium-grade natural beauty items. Additionally, the escalating sales via e-commerce platforms further drive market growth. However, the industry faces challenges, including the enforcement of stringent government regulations governing product composition, labeling, and packaging. Moreover, limited product awareness acts as a barrier, hindering widespread adoption among consumers. Additionally, complying with regulatory standards poses complexities for manufacturers, requiring meticulous attention to detail in formulation, labeling, and packaging processes. Despite these challenges, the market's trajectory remains positive, propelled by the growing consumer consciousness towards sustainable and natural beauty solutions.
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The market share growth by the offline segment will be significant during the forecast period. The products under this category include skin moisturizers, perfumes, lipsticks, fingernail paints or polishes, eye and facial make-up preparations, shampoos, and others.
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The offline segment was valued at USD 5.23 billion in 2018 and continued to grow until 2022. The preference for the offline distribution channel for the sale of natural cosmetics is high in 2023. This is due to factors such as the wide availability of products, test and trial options, checking of product packaging and labeling (for ingredients and halal certification specifically for halal cosmetics and personal care products), and product requirements for immediate purposes. These factors will drive the growth of the offline segment over the forecast period. However, factors such as shopping convenience, 24/7 accessibility, home delivery options, and easy return policies are highly effective for the online distribution channel, and these may lead to challenges for the offline distribution channel segment. Specialty stores, hypermarkets, supermarkets, warehouse clubs, convenience stores, department stores, salons and spas, drugstores, and medical institutes are the various formats of physical stores that fall under the offline distribution channel.
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APAC is estimated to contribute 61% 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.
APAC has emerged as a growing industry. This can be primarily attributed to the increasing awareness among consumers about the side effects of harmful substances used in cosmetics products, such as synthetic chemicals. Owing to this, consumers in regional countries like China especially those belonging to the millennial working population, prefer alternatives such as natural and organic cosmetics products. Additionally, consumers living in these countries have a high disposable income and are willing to spend money on good-quality natural and organic cosmetics products. Furthermore, as the market in APAC is very competitive in nature key companies in the market focus on innovation and launching new products to keep up with the latest beauty and skincare trends. Hence, all these factors will fuel the regional market growth during the forecast period.
The market is witnessing significant growth as consumers increasingly prioritize natural ingredients and organic and plant-based components in their beauty and personal care products. With concerns over synthetic chemicals and their potential side effects, there's a rising demand for chemical-free personal care products and natural formulations. These products offer various benefits, including durability and addressing environmental concerns, while minimizing issues like spoilage and microbial contamination. Moreover, their mass-market appeal is expanding, catering to a global audience through e-commerce platforms. Consumers appreciate the customization options available, aligning with their specific preferences and needs. As a result, the market continues to thrive, driven by a growing awareness of health, sustainability, and environmental responsibility. 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.
The consumer demand for chemical-free and environment-friendly products is notably driving market growth. The awareness among consumers of environmental issues has led to sub-zero waste as a prominent trend in the market. Leading brands in the global market are focused on shifting to a new paradigm to achieve zero-waste and sustainability, especially in the packaging of products. Consumers are demanding reusable, recyclable, and compact packaging for their personal care products to enhance sustainability.
Furthermore, the personal care industry is undergoing a transformation due to the changing consumer perception of various personal care products. Consumers are becoming more aware of the products that they use, their ingredients, their side effects, and their benefits. Consumers view natural ingredients as safer for human health and the environment. A growing number of cosmetics manufacturing companies are, therefore, replacing synthetic chemicals with natural ingredients. Therefore, factors like these will drive the global market during the forecast period.
The rise in demand for natural and organic beauty products is a major trend in the market. The demand for natural and organic beauty products is rising due to the increased health consciousness among customers worldwide. Issues such as skin irritations, skin allergies, hair loss, acne, dark marks, and other beauty-related problems have propelled the demand for natural and organic beauty products that are free of harmful synthetic ingredients.
Organic skincare products are made from plant extracts, natural oils, and other natural ingredients. Natural ingredients such as sunflower oil, jojoba oil, argan oil, Aloe Vera, turmeric, and olive oil are used in several beauty products. For instance, the rising skin problems globally prompt have increased concerns among customers. Therefore, customers are looking for effective and natural ways to heal such skin problems. Hence, the manufacturers emphasize more on offering organic and natural skincare products. Thus, such factors will influence the global market growth during the forecast period.
Low product awareness deterring widespread adoption is a major challenge impeding market growth. The low awareness about natural cosmetic products and their availability impacts the adoption of these products. The adoption is higher in developed countries compared with emerging countries.
Many consumers are still unaware of advanced natural products. This is a major challenge that needs to be addressed by the companies. Hence, several companies are investing heavily in marketing and advertising to increase awareness among consumers. Although certain sections of consumers are aware of the products, they show little interest owing to the presence of other alternative products. Furthermore, companies and developers are also unsure about the customer needs, and hence, the market lacks an appropriate definition. Therefore, such factors are likely to diminish the global market growth during the forecast period.
The report includes the market's adoption lifecycle, covering 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.
Market Customer Landscape
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.
Arbonne International LLC - The company focuses on personal care and wellness products. The key offerings of the company include natural cosmetics.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market continues to thrive, driven by a growing consumer preference for beauty and personal care products made from plants, minerals, and other naturally occurring substances. Consumers are increasingly concerned about the potential side effects and environmental concerns associated with conventional beauty products, leading to a rising demand for chemical-free personal care products. Manufacturers are focusing on formulating products with plant-based and naturally derived ingredients, including organic ingredients, to address these concerns while adhering to regulations set by organizations like the FDA. With a shift towards eco-friendly packaging such as biodegradable materials and recyclable containers, the market caters to environmentally conscious consumers, offering them customizable formulations and minimalist designs that align with their health-conscious lifestyles. Online shopping platforms facilitate access to these products, allowing consumers to enjoy the benefits of natural beauty from the comfort of their homes while contributing to reducing plastic waste and minimizing their environmental impact.
Moreover, the market offers an array of benefits, driven by a growing environmental awareness and a preference for healthier alternatives. Consumers are turning to products made from plant-based ingredients and organic components, seeking to avoid synthetic elements, preservatives, and additives commonly found in traditional cosmetics. With a focus on personalization and catering to unique skin types and tones, premium natural cosmetic products are gaining popularity among a global audience. Moreover, the rise of the e-commerce industry has made natural beauty products accessible to a wider consumer base, emphasizing zero-waste packaging to align with eco-conscious values. Regulatory bodies like the FDA ensure product safety, addressing concerns such as shelf life, spoilage, and microbial contamination, ultimately enhancing mass-market appeal for these durable, health and hygiene-focused offerings.
Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 28.29% |
Market growth 2024-2028 |
USD 45.38 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
21.65 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 61% |
Key countries |
Japan, China, South Korea, UK, and US |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arbonne International LLC, Beiersdorf AG, Bloomtown Ltd., Highlander Partners, Honasa Consumer Pvt. Ltd., Johnson and Johnson Services Inc., Kjaer Weis, Korres, Loccitane International SA, LOreal SA, Natura and Co Holding SA, Nutraceutical Corp., Nuxe, Pola Orbis Holdings Inc., Tata Natural Alchemy LLC, The Clorox Co., The Estee Lauder Companies Inc., The Honest Co. Inc., Unilever PLC, and Weleda Group |
Market dynamics |
Parent market analysis, Market forecasting, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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