Organic Cosmetics Market Size is to Grow at CAGR of 5.1% in 2031 | Impact of COVID-19
Consumers now expect complete disclosure from cosmetics manufacturers about their sourcing procedures, products, ingredients, and environmental policies. More cosmetics manufacturers and companies are looking for ways to redefine their own brands through sustainability-focused goods, services, and customer experiences as the demand to demonstrate their social and environmental credentials grows.
Personal care packaging trends have evolved to include safer, all-natural ingredients and useful packaging. Because of the positive response they are getting from the product industry, natural solutions are being used more and more in product packaging. The companies' marketing strategies promote natural remedies while drawing attention to lucrative container designs.
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Key Takeaways from the Organic Cosmetics Market Study
FMI in its latest study has forecast the market to rise at a CAGR of 5.0% between 2021 and 2031
The U.S. will emerge as a key market, accounting for nearly 80% of organic cosmetics market in North America
Growth in the U.K. will remain moderate. FMI forecasts the market to record nearly 1.9% Y-o-Y growth in 2021
While Germany and France too will continue exhibiting demand for organic cosmetics, Italy is expected to emerge as a lucrative pocket in Europe
Japan, China, and South Korea will emerge as key markets for organic cosmetics in East Asia. Of these, Japan is likely to dominate
Impact of COVID-19 & 2020 Market Analysis
Both the supply side and the demand side are currently facing a number of difficulties as a result of the current pandemic outbreak. Supply chains have been severely harmed by the temporary regulation that regional governments adopted to restrict mobility.
The general shift in consumer spending from discretionary to essential goods has also had a detrimental effect on market expansion. Due to e-commerce, businesses are changing how they conduct business on a global scale. In reality, the Covid-19 epidemic and lockdown have caused e-involvement commerce to grow across all industries.
The population segment that is not accustomed to online buying has also accepted it because it is the only option. There are many chances for companies and online services to work together to boost customer engagement.
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Who is winning?
Estee Lauder, L'Oréal Group, WELEDA Inc., Groupe L'OCCITANE, and KORRES Group are a few notable companies in the organic cosmetics business. The Himalaya Drug Company, Babylist Inc., The Clorox Company, The Honest Company, Avalon Organics, and KORA Organics are a few examples.
To acquire a competitive advantage over other market participants, players are aggressively investing in order to encourage and support product development. The creation of an innovative product portfolio and portfolio expansion is the most popular strategy among the major businesses. Innovation is the instrument used to entice and persuade consumers to purchase a particular product category. By highlighting a product's USP, which typically varies from one brand to another, it aids in separating one product from another.
Organic Cosmetics Market by Category
Creams & Lotions
Face Packs/ Masks
Other Sales Channel
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