Organic Personal Care Products Market Demand and Outlook 2025

North America dominated the organic personal care products market in 2016, with the U.S. being the major contributor. Various regulatory bodies such as United States Department of Agriculture (USDA) and Food and Drug Administration (FDA) are responsible for restricting the use of harmful chemicals in cosmetic products. For instance, bithionol is restricted in cosmetic products under the regulation, methylene chloride, vinyl chloride, halogenated salicylanilides are some of the chemicals, are prohibited in various cosmetic products by FDA. The use of bithionol in cosmetics is associated with the risk of photocontact sensitization and halogenated salicylanilides have potential to cause skin disorders. The rising awareness regarding the adverse effects of chemicals used in these products is expected to confer a boost to the organic personal care products market in the region.

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Asia Pacific is anticipated to witness the fastest growth in the organic personal care products market. The rising preference for organic products over chemical based products, substantial growth in the disposable income and the steadily growing personal care industry in the region, are some of the major drivers for market growth. According to the International Trade Administration (ITA), Japan stands as one of the largest market for personal care products in the world. In 2015, the cosmetic market in Japan was estimated at US$ 13,208 and in 2014, per person annual expenditure on personal care and cosmetics was US$ 174, according to ITA. Furthermore, owing to the increasing demand for organic products in the region, major players are launching organic grade of personal care products. For instance, Hindustan Unilever Ltd. had launched Indulekha Bringha Hairfall Shampoo, a shampoo with plant extracts, in 2017. Similarly, in the oral care segment, various herbal products such as Cibaca Vedshakti, Colgate Sensitive Clove, Colgate Active Salt Neem and Colgate Total Charcol Deep Clean are gaining traction in India and thereby supporting the growth of organic personal care products market.

Phytosterols are found in fatty tissues of plants and they are associated with various skin and hair care benefits. Phytosterols, provide protection to skin against premature aging and helps improving dry skin conditions by reducing transepidermal water loss (TEWL) in addition phytosterols are also used in hair thinning and hair loss treatments as it helps increasing the androgen level which is responsible for hereditary hair loss.  Owing to these benefits, phytosterols are gaining traction in cosmetic industry. For instance, soy phytosterols are extensively used as an active ingredient in creams and lipsticks. Increasing awareness regarding the benefits of these botanical ingredients in personal care products is propelling the market growth. Furthermore, growing disposable income, increasing personal care product spending, and rising consciousness regarding aging and personal appearance are some other factors contributing to growth of the personal care products market. Furthermore, governmental regulatory bodies such as Food and Drug Administration (FDA), is restricting the use of harmful chemicals in cosmetics under various regulations such as 21CFR700.15, 21CFR700.19 and 21CFR 700.11. The restricted use of chemicals in personal care products is supporting the use of organic ingredients in personal care products over synthetic chemicals, thereby aiding to market growth.

Among product type, skin care segment dominated the organic personal care market in 2016 and is anticipated to maintain its supremacy throughout the forecast period. This is majorly due to increasing demand for anti-aging skin care products worldwide. Furthermore, owing to the rising cases of premature grey hair and hair fall, the hair care segment is expected to record the fastest growth during the forecast period.

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Major players operating in the global organic personal care product market include Estee Lauder Inc., The Hain Celestial Group Inc., Yves Rocher S.A., Natura Brasil International B.V., Aveda Corporation, Bare Escentuals Inc., Amway Corporation, Burt’s Bees Inc., and Arbonne International LLC.

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