Rising Air Pollution Drives Demand from Organic Personal Care Market

The global organic personal care market is likely to experience steady growth in the coming years due to the growing popularity of organic products in the FMCG sector. The organic personal care sector has thus grown rapidly in the last few years and is likely to exhibit a steady growth rate in the coming years. The organic personal care market is also set to benefit from other driving factors such as the rising popularity of modern sales channels and the growing disposable income of urban consumers.

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According to Transparency Market Research, the global organic personal care market is set to exhibit a strong 11.3% CAGR between 2017 and 2022. The market’s valuation is expected to rise from US$10.9 bn to US$18.7 bn over the forecast period.

Here are the key insights into the global organic personal care market:

The growing popularity of organic products is the prime driver for the global organic personal care market. While the cosmetics sector has grown at a rapid pace in recent years, consumers are becoming increasingly wary of the high content of potentially harmful chemicals in popular cosmetic formulations. This has led to a growing demand for organic alternatives. Driven by the steady growth of the organic food industry, the demand for organic products has grown by leaps and bounds over the last few years and is likely to dominate the growth trajectory of several FMCG markets in the coming years. The rising regulatory support to organic products is thus likely to remain a key driver for the global organic personal care market in the coming years.

The rising availability of modern sales channels such as hypermarkets has helped the global organic personal care market. Modern shopping avenues are particularly prevalent in urban areas, where the demand for organic products is also high. The rising disposable income of consumers in urban areas is also likely to remain a key driver for the global organic personal care market in the coming years, organic personal care products tend to be more expensive than conventional products, since the latter enjoy an economy of scale that the organic personal care industry has yet to achieve.

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Rising air pollution levels in urban areas across the world are also likely to contribute significantly to the growth of the global organic personal care market. Air pollution affects the skin and hair most prominently, leading to growing demand for hair care and skin care products in the FMCG industry. The advantages provided by organic products over conventional formulations in terms of protecting hair and skin health in the face of rising pollution is likely to enable smooth growth of the organic personal care industry, as organic formulations can often be gentler on the skin than conventional chemical-based products.

Hair care products are likely to remain the dominant product segment in the global organic personal care market in the coming years. Hair care products were valued at US$3.3 bn in 2017 and are likely to rise to a valuation of US$5.7 bn by 2022 at an 11.3% CAGR therein. The segment accounted for more than 30% of the global organic personal care market in 2017 and is likely to remain similarly dominant in the coming years.

Geographically, North America is likely to remain the dominant contributor to the global organic personal care market, with the regional market set to rise from US$3.4 bn to US$5.8 bn over the 2017-2022 forecast period. Japan is also likely to play a key role in the growth of the global organic personal care market in the coming years, with the Japan organic personal care market likely to exhibit a robust 11.7% CAGR over the 2017-2022 forecast period.

Competitive Dynamics

The global organic personal care market is likely to remain intensely competitive over the coming years due to the rapid growth of the FMCG sector and increasing scope for local players, who can produce products better suited to regional preferences. Leading players in the global organic personal care market include Johnson and Johnson Consumer Inc., The Body Shop, Amway, Estee Lauder, Kao Corporation, L’Occitane en Provence, Natura Cosmeticos SA, The Hain Celestial Group, Kiehl’s, and Loreal SA.

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