According to a new report from market research firm Grand View Research, the global organic personal care market size is expected to reach USD 25.1 billion by 2025. That's an impressive 9.5 percent compound annual growth rate (CAGR) during the forecast period. The growing demand for organic and natural haircare, skincare, and cosmetic products is expected to increase market growth over the projected period.
Two key factors play into the expected growth: approval from human health and safety regulatory bodies such as the U.S. Department of Agriculture (USDA) and FDA for the use of organic products in various personal care products and technological innovations geared to development of cost-effective product lines by companies such as The Body Shop, Aveda Corporation, Amway, and Estee Lauder.
Of course, consumer demand for both organic products and environmentally sustainable products has fueled the growth of organically derived products. An additional benefit, manufacturing of these products helps reduce pollution by consuming natural resources and reducing reliance on petroleum-based resources.
Consumers want chemical-free, personal-care products, and their increasing disposable income has also played a key role in market growth over the last few years.
Additional key findings in the report include the following:
- Skin care products are expected to witness significant gain over the forecast period and the segment is anticipated to expand at a CAGR of over 10.0 percent from 2016 to 2025. Natural, antioxidant-rich ingredients improve skin immunity; as a result, their demand is likely to be greater.
- The cosmetics segment generated revenue exceeding $2 billion in 2015 on account of its increasing use among consumers in India, China, and Brazil. Rising awareness regarding harmful effects associated with chemical substances is likely to fuel demand for these products in Germany, France, and U.K.
- North America dominated the global industry and was valued at over $3.5 billion in 2015. Adoption of Montreal Protocol and Kyoto Protocol in U.S. and Canada for restricting greenhouse gas emissions has forced personal care manufacturers to utilize natural ingredients in their products.
- Numerous companies are undertaking different strategic initiatives to increase their global presence in this industry. L'Oréal acquisition of The Body Shop in October 2013 increaesd its share in this market segment. Also, in March 2017, Amway launched a new brand, G&H, a bath and body brand with three product collections, namely, Protect, Refresh, and Nourish. The products are "naturally inspired", taking inspiration from the company's organic farms.
Grand View Research has segmented the global organic personal care market on the basis of product and region:
Organic Personal Care Product Outlook (Revenue, USD Million, 2014 - 2025)
Organic Personal Care Regional Outlook (Revenue, USD Million, 2014 - 2025)
North America: U.S.
Europe: Germany, France
Asia Pacific: China, Japan
Latin America: Brazil
For the full report, visit grandviewresearch.com