Global Industry Analysis on Natural and Organic Personal Care Product Market, 2014-2020

Products derived from natural ingredients are known as natural or organic products. Such Products contain natural ingredients such as herbs, plant roots, essential oils and flowers, combined with naturally occurring carrier agents, preservatives, surfactants, humectants and emulsifiers. Natural or organic products are formed without the use of synthetic chemicals, and manufactured in such a way so as to preserve the natural content of its ingredients. Major use of natural and organic ingredients comes under personal care industry. Almost 70% of personal care products use natural or organic ingredients for their production. Natural and organic personal care products are divided into four segments: skin care, hair care, oral care and cosmetics. Skin care product is the largest segment in the natural and organic personal care product market, followed by hair care and oral care.

North America is considered to be the largest market for natural and organic personal care product followed by Europe and Asia-Pacific. Asia-Pacific is expected to show double digit growth rate during the forecasted period owing to rising consumer disposable income, changing lifestyle and increasing awareness about the benefit of natural and organic products. Japan and China are expected to lead the growth in Asia-Pacific market for natural and organic personal care product.

Natural and organic personal care products market is expected to grow at rapid pace across the globe. Rising concerns for healthy living, increasing green consciousness and growing consumer’s awareness about the hazards of chemicals ingredients in their daily used product have fueled the demand for natural and organic ingredients in their personal care products. Natural and organic based personal care products are becoming popular in the Chinese market. According to Mintel's Global New Products database, Chinese female consumption of natural and organic skincare product increased from 52% in 2008 to 73% in 2011. However, limited self-life of natural ingredients, limited raw material supply and strict regulatory requirements are expected to hinder the growth of the overall natural and organic personal care products market.

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Increasing demand for natural and organic personal care products by the customers have influenced large multinationals to enter the market providing tremendous visibility and increasing accessibility in the market. Some of the major companies engaged in the manufacturing and supply of natural and organic personal care products are Bare Escentuals Beauty Inc., Aveda Corporation, Burt's Bees, Origins Natural Resources, Inc. and The Body Shop International plc.

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