Global Organic Personal Care market will reach USD 25.11 billion by 2025

The global organic personal care market was valued at USD 14.64 billion in the year 2019 and is estimated to reach USD 16.02 billion by the year 2020.

It is expected to grow at the CAGR of 9.4% within the time horizon of 2020-2025. Its market value will reach USD 25.11 billion by the end of the year 2025.

Definition / Scope
Market Overview
Market Risks
Top Market Opportunities
Market Trends
Industry Challenges
Technology Trends
Pricing Trends
Regulatory Trends
Market Size and Forecast
Market Outlook
Technology Roadmap
Distribution Chain Analysis
Competitive Factors
Key Market Players
Strategic Conclusion
References
Appendix

Definition / Scope

Organic personal care is a personal care product that contains the organically grown ingredients and is free from chemical pesticides. This type of product consists of plant ingredients and don’t contain harmful chemicals such as parabens, aluminum salts, petrochemicals, etc.

They are used to maintain and enhance personal hygiene and overall appearance. The organic personal care products comprise of skincare, haircare, oral care, cosmetics, and others.

The global organic personal care market is concerned with the manufacture, distribution, and sale of the organic production care products such as sunscreens, makeup removers, exfoliators, body spray, perfumes, oral care, skincare, cosmetics, masks, face oils, and others.

Market Overview

The total market size of the global organic personal market is valued at USD 14.64 billion in the year 2019 and is expected to reach USD 16.02 billion in the year 2020. Its market value is expected to grow at a CAGR of 9.4% within the forecasted time horizon of 2020-2025.

Its market value is expected to reach USD 25.11 billion by the end of the year 2025. Based on geography, the North American region is leading the global market with a market share of almost 32.77% of the total global organic personal care market. The market size of this region is valued at USD 4.8 billion in the year 2019.

Based on the product type, the skincare segment is leading the market with a market share of almost 33.7% of the total global organic personal care market. The market size of this segment is valued at USD 4.93 billion in the year 2019.

The growing global skincare products market, raising consumer awareness about the harmful effects of chemical products, supportive government regulation for organic materials, and consumer preferences towards natural and organic products are the factors responsible for the growth and development of the global organic personal care market.

However, the short shelf life of organic personal care products and the high cost of organic products might restrain the growth and development of this market. The key market players engaged in the operation of its market are Aveda Corporation, Burt’s Bees, the Estee Lauder Companies, Loreal SA, Beiersdorf AG, Korres SA, Arbonne International, etc.

Market Risks

Short shelf life of organic personal care and cosmetics

The shelf life of organic personal care products is quite low as it doesn’t contain any forms of preservatives and other chemicals. The life span of the personal care products depends upon the type of ingredients, its quantity, packing, and shortage of the products.

For instance, the shelf life of the lip and eye care products is about three months while the shelf life of the face products (cleansers, toners, sunscreen, etc) is about 1 year. The shelf life of these products decreases with an increase in the number of ingredients. The short shelf life of organic personal care products might restrain the growth and development of the global organic personal care market.

Top Market Opportunities

Growing global skin care products market

Globally, the market for skincare products is in increasing trend. The global skincare products market is expected to grow at a CAGR of 4.4% within the forecasted time horizon of 2020-2025. The market size of the global skincare products market is expected to reach USD 179.51 billion by the end of the year 2027, increased from USD 123.81 billion in the year 2018.

The skincare segment accounts for the largest market share of global organic personal care products. This segment accounts for a market share of almost 33.7% of the total global organic personal care market. The growing global skincare products market will create a significant opportunity for the growth and development of the global organic personal care market.

Raising consumer awareness about the harmful effects of chemicals products

Globally, the level of awareness of the consumer regarding the harmful effects of the chemical substances in health and the environment is raising. For instance, a survey conducted by Luca FA and colleagues in East-Central Europe has found that almost 35% of the study participants were worried about the impact of the chemicals used in everyday products on health.

Along with this, another online survey conducted by Sabrina Hartmann and Ursula Klaschka among the 1030 consumers that showed that almost 90% of the study participants know that the products contain chemicals, which are harmful to health.

The rising level of consumer awareness about the harmful effects of the chemical products will create a significant opportunity for the growth and development of the global organic personal care market.

Market Trends

The factors driving the growth and development of the global organic personal care are the increase in accessibility due to the online market, growing popularity of natural products, growth product distribution channels in urban areas, growing consumer awareness about product safety, consumer willingness to buy organic products, decreasing use of the potentially harmful chemicals (parabens, phthalates, aluminum salts), increasing number of working women, and increasing beauty concerns regarding intense climatic conditions.

The major driving factors of the global organic personal care market are discussed as follows:

Supportive government regulation for organic materials

The governmental authorities are developing the regulations and grant programs for the promotion of the production of organic and natural products. For example, the Food and Drug Administration has developed the Safe Cosmetics and Personal Care Products Act in favor of the use of the products free from the chemical substances.

Along with this, some of the chemicals are banned by these authorities. For instance, the Food and Drug Administration has banned or limited almost 11 chemicals in the context of the United States and almost 1,100 chemicals in Europe.

Governmental and non-governmental organization are increasing their spending on the research and development activities for organic products. For instance, the National Institute for Food and Agriculture has initiated the Agricultural Research and Extension Initiative, and almost USD 17.6 million funds are allocated for the research, education, and extension projects.

The supportive governmental regulations for the promotion of the organic materials is driving the growth and development of the global organic personal care market.

Consumer preferences towards natural and organic products

Globally, the preferences of consumers regarding personal care products are shifting from synthetic products to organic and natural products. For instance, an online survey conducted by the Nora Amberg and Csaba Fogarassy in 2018 in Hungary that concluded almost 70% of the study participants prefer to buy natural products.

Along with this, 70% of them are willing to pay extra money for the natural cosmetic products produced from natural raw materials. Similarly, 68% of them prefer to buy bio-foodstuffs. Another study conducted by Rajeev A. and Atanu Adhikari in India in 2015 has also concluded that the consumer is willing to pay a premium amount for the green products.

The preferences of consumers towards the use of natural products and the willingness to pay more amount for natural products will drive the demand for organic personal care products too, which will create a significant opportunity for the growth and development of the global organic personal care market.

High cost of organic personal care products

The cost of organic personal products is quite high in comparison to the cost of chemical-based personal care products. It might be due to the short shelf life, use of the organic ingredients, and their formulations.

For instance, the price of the facial cleanser with organic and natural ingredients of Christina Moss naturals for 118 ml is about USD 22.99 per unit while the price of the clean & clear foaming facewash for 150 ml is about USD 1.87 per unit.

The high cost of organic personal care products might restrain the growth and development of global organic personal care products.

Industry Challenges

Misleading organic claims about personal care products

Some of the companies are selling the personal care products with the use of organic in their brand name, however they contain hidden or risk ingredients. According to the EWG’s Skin Deep Database, more than 5,000 products use organic in their brand name but they contain the risky hidden ingredients. Some of them have been fined for the false labeling of organic products.

For instance, GAIA Skin Naturals (adult and baby skincare company) has paid almost USD 37,800 in penalties for labeling products containing synthetic chemical preservatives as organic. So, it is quite challenging for the genuine market players to build up the trust about their organic personal care products among the consumers.

Technology Trends

The adoption of new and advanced technologies is assisting and enhancing the process of the manufacture of organic personal care products. Some of the key technologies used in this market are discussed as follows:

Emulsion-suspension technology: This technology is used for the mixture of two components either in solid or liquid form.
Dispersion rheology technology: This rheology technology is used to predict the stability of the dispersions without diluting or disturbing the structure.
Microencapsulation technology: It is used for the coating of the active substances either in solid, liquid, or gaseous materials by the extremely small capsules.
Crystallization technology: It is used to organize the atoms and molecules in a structured crystal form.

Pricing Trends

The price of organic personal care products depends upon the type of products, raw materials, applications, quantity, and brand name. For instance, the price of the bio-organic oil for youthful skin of 100ml is about USD 5.44 per unit while the price of the organic skin lightening scrub is about 13.5 per unit.

The price of the organic unrefined shea butter of Oslove organics is about 42.47 per unit while the price of the organic chocolate bliss beeswax lip balm by Jarosa is about USD 81.77 per four-pack. The organic doctor snail gel is about USD 68.99 per unit.

Regulatory Trends

The regulating authorities of the global organic personal care market differ following the country.

For instance, in the context of the United States, organic cosmetics are regulated by the Food and Drug Administration under the Federal Food, Drug, and Cosmetic Act while the main regulatory body of cosmetics in China is the National Medical Products Administration.

The regulations related to certification of the countries such as the US, China are similar i.e. cosmetics with more than 95% of raw materials are certified as organic products.

The regulations related to the global organic personal care market are supporting the growth and development of the market. For instance, Safe Cosmetics and Personal Care Products Act was developed by the FDA in the year 2013 to ensure that personal care products are free from harmful ingredients and these ingredients must be fully disclosed.

Market Size and Forecast

The total market size of the global organic personal market is valued at USD 14.64 billion in the year 2019 and is expected to reach USD 16.02 billion in the year 2020.

Its market value is expected to grow at a CAGR of 9.4% within the forecasted time horizon of 2020-2025. Its market value is expected to reach USD 25.11 billion by the end of the year 2025.

Based on geography

The North American region is leading the global market with a market share of almost 32.77% of the total global organic personal care market. The market size of this region is valued at USD 4.8 billion in the year 2019.
The European region accounts for a market share of almost 25% of the total global organic personal care market. The market size of this region is valued at USD 3.66 billion in the year 2019.
The Asian Pacific region accounts for a market share of almost 30.55% of the total global organic personal care market. The market size of this segment is valued at USD 4.47 billion in the year 2019.
ROW stands for the rest of the world, which consists of the Middle East Africa, and South America. This segment accounts for a market share of almost 11.66% of the total global organic personal care market. The market size of this segment is valued at USD 1.70 billion in the year 2019.

Based on the product type

The skin care segment is leading the market with a market share of almost 33.7% of the total global organic personal care market. The market size of this segment is valued at USD 4.93 billion in the year 2019.
The haircare segment accounts for a market share of almost 25.83% of the total global organic personal care market. The market size of this segment is valued at USD 3.78 billion in the year 2019.
The oral care segment accounts for a market share of almost 14.44% of the total global organic personal care market. The market size of this segment is valued at USD 2.11 billion in the year 2019.
The cosmetics segment accounts for a market share of almost 21.38% of the total global organic personal care market. The market size of this segment is valued at USD 3.13 billion in the year 2019.

Market Outlook

The global organic personal care market is expected to grow at the CAGR of 9.4% within the forecasted period of 2020-2025 because of the growing global skin care products market, raising consumer awareness about the harmful effects of chemicals products, supportive government regulation for organic materials, and consumer preferences towards natural and organic products.

Its market value will reach USD 25.11 billion by the year 2025.

Technology Roadmap

The technologies used for the manufacture of the organic personal care products are aerosol technology, crystallization technology, emulsion-suspension technology, granulation technology, dispersion rheology technology, industrial drying technology, microencapsulation technology, nanotechnology, and powder mixing technology.

These technologies are favoring and enhancing the ease of the manufacture of effective organic personal care products. These technologies are driving the growth and development of the global organic personal care market.

Distribution Chain Analysis

The key stakeholders involved in the operation of this global organic personal care market are organic raw materials suppliers, personal care products manufacturers, distributors, retail & online sales, and end-users. At first, the organic raw materials are supplied to the product manufacturers.

The manufactured readymade personal care products are available at multiple distributions for the consumers. The major distribution channels are supermarkets, specialist retail stores, online retail stores, and other channels.

Competitive Factors

The key market players engaged in this market are competing for the product portfolio expansion, high investment in research and development activities, mergers & acquisitions, geographical expansion, and collaborations.

For instance, Estee Lauder has owned the companies such as BECCA Cosmetics, Too faced, for their product portfolio expansion.

Key Market Players

The key market players engaged in the operation of its market are Aveda Corporation, Burt’s Bees, the Estee Lauder Companies, Loreal SA, Beiersdorf AG, Korres SA, Arbonne International, etc. Short profile of the key market players engaged in the global organic personal care market are discussed as follows:

Aveda Corporation: it is the US-based company engaged in the manufacture of skin care, body care, hair care, makeup, and fragrances products.

Burt’s Bees: It is the US-based company engaged in the manufacture of natural products for personal care, health, beauty, and personal hygiene.

Estee Lauder Companies: It is the US-based multinational company engaged in the manufacture and marketing of prestige skincare, makeup, fragrance, and haircare products.

Loreal SA: It is one of the world’s largest French company engaged in the manufacture of hair color, skincare, sun protection, make-up, and hair care products.

Beiersdorf AG: It is the German-based multinational company engaged in the manufacture of personal care products and pressure-sensitive adhesives.

Arbonne International: It is the US-based company engaged in the manufacture of vegan skincare, cosmetics, and nutrition.

Strategic Conclusion

The global organic personal care market is growing at a rate of 9.4% within the forecasted period of 2020-2025 because of the growing global skincare products market, raising consumer awareness about the harmful effects of chemicals products, supportive government regulation for organic materials, and consumer preferences towards natural and organic products.

However, the short shelf life of organic personal care products and the high cost of organic products might restrain the growth and development of this market.

References

Appendix

FDA= Food and Drug Administration+
USD= United States Dollar
CAGR= Compound Annual Growth Rate