Natural Organic Personal Care Product Market - Advanced technologies & growth opportunities in global Industry

Natural and organic products are produced without addition of any synthetic material or chemicals. Increased health awareness amongst the global population has become a primary factor driving demand for natural as well as organic products in the personal care products market. Rising demand for chemical-free personal care products, along with increasing disposable income, and improving standards of living in developed and developing economies is fueling demand for natural and organic personal care products. Also, consumer demand is rapidly shifting towards natural and organic products due to stringent government regulations and policies against the use of chemicals and growing environmental safety concerns globally.

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Personal care industry is trend-driven and is constantly changing according to the latest fashions. Primary factors driving demand for natural and organic products include increasing number of health conscious consumers, growing awareness regarding the benefits of natural and organic-based personal care products, increasing spending capacity, and higher product visibility online as well as on the shelf etc. These factors are prompting entry of new players into the market through acquisitions by existing players in the market. The personal care industry is broadly segmented on the basis of product type as skin care, hair care, cosmetics, oral care, and others, with the skin care product segment accounting for largest share in terms of both value and volume.

Natural and organic personal care product market is further segmented on the basis of distribution channels as hypermarkets/supermarkets, specialty retailers, drug stores, online retail, and direct sales. Hypermarkets/supermarkets is the dominant segment, followed by the online retail segment, with market share expected to be 20.3% by 2024.

North America is a major regional market, expected to account for 33.5% share of the global market by 2016 end, and expected to expand at a CAGR of 9.7% over the forecast period. North America natural and organic personal care products market is expected to witness robust growth owing to high consumer awareness regarding the benefits of natural and organic personal care products in comparison to conventional products in the region. Moreover, launch of new products is further stimulating market growth. Also, in order to meet varying consumer demand, department stores and specialty personal care products stores are offering premium grade organic and natural personal care brands.

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The European region is one of the dominant markets for natural and organic personal care products. The region has been witnessing increasing demand for superior quality and high-end perfumes. The European region has also witnessed increasing shift towards “waterless” personal care products, due to environmental concerns and water safety issues, resulting in further innovation and production of dry shampoos and beauty bars by manufacturers.

Asia Pacific is the fastest growing market for natural and organic personal care industry, and the market in this region is expected to register a CAGR of 9.1% in terms of revenue over the forecast period. Among countries in APAC, the market in Japan is expected to witness highest uptake of natural and organic personal care products, followed by China over the forecast period. Multiple distribution channels, increasing product innovation, and changing consumer preferences towards natural and organic products are some of the major factors contributing towards growth of the global market.

Key global players in organic and natural personal care market include Estee Lauder Companies Inc., L’Oréal SA, Weleda AG, Burt’s Bees, Arbonne International, LLC, KORRES S.A., Avon Products, Inc., Bare Escentuals Beauty, Inc., Coty Inc., and Aveeno (J&J).

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