Organic Personal Care Product Market Forecasts to 2030 - Global Analysis By Type, Age Group, Distribution Channel and By Geography

According to Stratistics MRC, the Global Organic Personal Care Product Market is accounted for $20.97 billion in 2023 and is expected to reach $38.82 billion by 2030 growing at a CAGR of 9.2% during the forecast period. The organic personal care product market refers to the industry that produces and sells skincare, haircare, and hygiene products made from natural and organic ingredients. These products are free from synthetic chemicals, pesticides, and genetically modified organisms, aligning with the growing consumer preference for sustainable and environmentally friendly choices. These products offer a range of benefits, including reduced exposure to potentially harmful synthetic chemicals commonly found in conventional personal care items.

According to the National Bureau of Statistics of China, in 2021, the annual per capita disposable income of urban households in China amounted to approximately CNY 47,412, an increase from CNY 39,251 in 2018.

Market Dynamics:

Driver:

Increasing consumer awareness

As awareness expands regarding the potential health hazards associated with synthetic chemicals in traditional personal care items, consumers are actively seeking alternatives that prioritize natural and organic ingredients. Informed individuals are increasingly making conscious choices, opting for products free from harmful additives, parabens, and sulfates. The awareness extends to the understanding of the environmental impact of conventional beauty products, leading consumers to support brands committed to sustainability and eco-friendly practices.

Restraint:

High Cost

The use of premium, natural ingredients and sustainable production practices contributes to elevated manufacturing expenses, ultimately leading to higher retail prices for consumers. This pricing barrier can limit the widespread adoption of organic personal care items, as cost-conscious consumers may find them less accessible compared to conventional alternatives. However, the perception that organic products come with a premium price tag, particularly those with budget constraints, from fully embracing the organic personal care trend.

Opportunity:

Shift in consumer preferences

Modern consumers are increasingly prioritizing ethical and sustainable choices, extending this inclination to their personal care products. This shift is fueled by a desire for products that align with environmental consciousness, cruelty-free practices, and overall wellness. As individuals become more informed about the potential health risks associated with synthetic chemicals in traditional beauty and personal care items, there is a notable transition towards organic alternatives.

Threat:

Limited product innovation

While there is a growing demand for organic alternatives, the formulation constraints inherent in using natural and organic ingredients may hinder the pace of innovation in product development. Unlike synthetic counterparts that may offer a broader range of possibilities, the limitations of organic ingredients can constrain the creation of novel formulations and textures. This restriction may impact the market's ability to introduce cutting-edge products, limiting variety and potentially hindering its competitiveness against conventional personal care options.

Covid-19 Impact:

The pandemic has led to logistical issues, impacting the availability of raw materials and finished products. Economic uncertainties have influenced consumer spending patterns, with some opting for more affordable alternatives, potentially affecting the premium pricing of organic products. Lockdowns, restrictions, and global uncertainties led to disruptions in the sourcing of organic and natural ingredients, affecting the production process. Delays in transportation and logistics, coupled with increased safety measures, created bottlenecks in the distribution network, impacting the timely delivery of finished products.

The men's grooming segment is expected to be the largest during the forecast period

Men's Grooming segment is expected to be the largest during the forecast period as a growing number of men prioritize natural and organic products for their personal care routines. This shift is fueled by an increased awareness of the potential health and environmental risks associated with synthetic ingredients. Men are becoming more discerning consumers, seeking grooming products that not only enhance their appearance but also align with their values of sustainability and wellness. Furthermore, the demand for organic alternatives in shaving creams, facial cleansers, and hair care products has surged, reflecting a broader societal trend towards cleaner, eco-friendly choices.

The offline segment is expected to have the highest CAGR during the forecast period

Offline segment is expected to have the highest CAGR during the forecast period as consumers increasingly seek tangible, in-person experiences when purchasing such products. Despite the rise of e-commerce, the tactile nature of personal care items encourages customers to explore and test products physically. Brick-and-mortar stores provide an opportunity for consumers to engage with the textures, scents, and ingredients of organic personal care products, fostering a deeper connection and understanding.

Region with largest share:

Asia Pacific region dominated the largest share over the forecast period. The region's diverse and large population, spanning countries like China, India, and Japan, contributes significantly to the market's growth. Increasing disposable incomes and a growing middle class are fostering a preference for premium and eco-friendly personal care items. Furthermore, a cultural inclination towards holistic wellness and traditional beauty practices aligns well with the ethos of organic products.

Region with highest CAGR:

Increasing consumers' preference for products that are scientifically certified as organic and made of natural ingredients, Asia Pacific region is witnessing profitable growth over the forecast period. Global certifying organizations such as "Nature" and "Cosmos" state that India is becoming one of the major Asian markets for organic personal care products. Additionally, the organic hair oil sector is expanding throughout the region, particularly in China, Japan, and India, because of growing concerns regarding hair care and claims to address scalp issues and prevent dandruff.

Key players in the market

Some of the key players in Organic Personal Care Product market include Vaadi Herbals Pvt. Ltd., The Himalayan Organics India, The Good Glamm Group, Syscom Organic World Private Limited, Oriflame Holding AG, Lotus Herbal Pvt. Ltd., Kama Ayurveda Pvt. Ltd., Juicy Chemistry Private Limited, Idam Natural Wellness Pvt. Ltd, L'Oreal SA and Arbonne International LLC.

Key Developments:

In January 2023, The Estee Lauder Companies (ELC) UK & Ireland introduced its Voice-Enabled Makeup Assistant (VMA) app, the first of its kind driven by artificial intelligence and designed to make applying makeup easier confidently for visually impaired users. The creation of VMA is part of ELC's mission to aid the visually impaired community by facilitating greater avenues for self-expression and empowerment via the makeup.

In January 2022, Good Glamm Group, a South Asian content-to-commerce conglomerate, acquired the majority stake in Organic Harvest, an Ecocert-certified beauty and personal care company in India. A further investment of about USD 10 million is expected to be made by Good Glamm to expand the brand. With this acquisition, Good Glamm Group officially entered the market for organic cosmetics and personal care products.

Types Covered:

• Men's Grooming
• Oral Care
• Lip Care
• Deodrant and Antiperspirant
• Skin Care
• Hair Care
• Other Types

Age Groups Covered:

• 40 Years - 60 Years
• 20 Years - 40 Years
• Below 20 Years
• More than 60 Years

Distribution Channels Covered:

• Offline
• Online
• Other Distribution Channels

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
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• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances