Organic Personal Care Market To Reach $44.77 Billion By 2030

The global organic personal care market size was estimated at USD 21.82 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 9.4% from 2023 to 2030. Increasing concerns regarding the adverse effects of chemicals on the skin such as skin irritation, dryness, and dullness, have been the key factors fueling the market growth. The rising awareness regarding the benefits of organic products has encouraged consumers to seek eco-friendly, sustainable, skincare products that come with greater product ingredient transparency. The outbreak of COVID-19 has drastically impacted the usage of chemical-free personal care products due to rising health, wellness, and sustainability-related concern among consumers.

The increasing use of online purchasing platforms by home-bound consumers is likely to upscale the demand for these beauty products. This factor has also paved the path for multiple growth opportunities for numerous industry participants. With more consumers focusing on their appearance, adopting healthier lifestyles, and overall well-being, personal care products are expected to become an integral part of their lives. Parameters such as chemical-free ingredients and green credentials are now a priority for many beauty product users. According to a survey published in July 2021 by Prodge-marketing Company, more than 34% of consumers in the U.S. preferred buying organic beauty products over synthetic products.

Millennials globally have reshaped the personal care industry and have been increasingly focusing on attributes such as “healthy”, “clean”, “organic”, and “natural”. Many skincare and haircare brands/ companies are responding by incorporating stricter environmental standards, greater transparency, and more natural and organic products across their spectrum of brands. Rising awareness regarding the harmful effects of ingredients such as BHA (butylated hydroxyanisole), parabens, phthalates, and coal tar globally is supplementing the market growth.

Moreover, increasing investments in the research & development of products, coupled with the rising trend of herbal ingredient-based products, have encouraged manufacturers to launch new products. For instance, in April 2021, Refresh Botanical expanded its market reach to India by launching its product line formulated for sensitive, aging, and acne-prone skin types. The product line would include facial cleansers, toners, moisturizers, eye and face makeup remover, intensive serum, night restore complex, and premium eye serum. These products would further be available for purchase at brick-and-mortar operations, retail shopping malls in major cities across India, and e-commerce platforms such as Amazon; Flipkart; Nykaa; and Smytten.

Detailed Segmentation:

Product Insights

The skin care segment held the largest market share of 50.2% in 2022 and is expected to maintain dominance during the forecast period. The rising skin concerns, such as dry and aging skin, are driving product demand. 

Distribution channel Insights

Hypermarket/supermarkets was the largest distribution channel segment with a revenue share of more than 43.5% in 2022. With an increased inclination of consumers toward the organic beauty products regime, many brands are expanding their offerings to hypermarkets/supermarkets. 

Regional Insights

Europe made the second-largest contribution to the global market with an approximate revenue share of around 25% in 2022. With the growing demand for organic ingredients, consumers are inclined toward organic beauty products, which is expected to drive market growth during the forecast period. 

Key Companies & Market Share Insights

The market is still developing with more scope for growth in the near future. New entrants and established players are launching innovative products to suffice the increasing demand for sustainable skin care products across the globe. For instance:

• In June 2021, SO’BiO étic, a beauty brand in France, launched its chemical-free beauty product line in the U.S. The new product range includes a hydrating day cream, organic brightening moisturizing cream, tone correcting serum, and organic cleansing foam.
• In April 2021, Lacaille Beauty launched its website and natural organic hair care product collection. The product range includes a deep conditioner, fortifying leave-in conditioner, hair repair, vitamin boost hair primer, and anti-frizz and shine curl-forming custard cream made using natural organic ingredients, such as avocado and honey with coconut and organic essential oils.

Key Organic Personal Care Companies:

Some prominent players in the global organic personal care market include:

• Aveda Corporation
• Burt’s Bees
• The Estée Lauder Companies Inc.
• The Hain Celestial Group
• Amway Corporation
• Bare Escentuals Beauty, Inc.
• Arbonne International LLC
• Neutrogena Corporation
• The Body Shop International PLC
• Yves Rocher SA

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