The global organic personal care market is expected to reach USD 15.98 billion by 2020, according to a new report by Grand View Research, Inc. Growing demand for organic and natural hair care, skin care and cosmetic products is expected to augment organic personal care market over the projected period.
Approval from human health & safety regulatory bodies such as the U.S. Department of Agriculture (USDA) and FDA for the use of organic products in various personal care products is expected to fuel market growth. Technological innovations aimed at the development of cost-effective product lines by companies such as The Body Shop, Aveda Corporation, Amway and Estee Lauder are expected to remain critical success factors for industry growth over the forecast period.
For More Details:
Changing consumer perception towards organic products coupled with growing utilization of environmentally sustainable products has fueled growth of naturally derived products. In addition, manufacturing of organic or naturally derived products aids in reducing pollution by consuming natural resources and reducing reliance on petroleum based products.
Rising demand for chemical-free skin and hair care products coupled with changing lifestyle of consumers regarding organic care has also contributed to the growth of organic care and skincare products growth. Increasing consumer disposable income coupled has also contributed to the growth of this industry in the last few years.
Organic skin care products are expected to witness significant gain over the forecast period and the segment is expected to grow at a CAGR of 9.8% from 2014 to 2020. Ability of natural ingredients to provide anti-oxidation properties and improve skin immunity is expected to be an advantageous factor for the market growth. However, high manufacturing cost is expected to be a concerning factor for organic skin care companies in the near future.
Organic cosmetics generated revenues exceeding USD 1.80 billion in 2013. Increasing use of cosmetic products among consumers in India, China and Brazil along with rising awareness towards harmful effects associated with chemical substances is likely to fuel demand for organic personal care products over the forecast period. Robust cosmetic manufacturing base in Germany, France and UK is expected to have a positive impact on organic cosmetics industry over the forecast period.
North America dominated the global market and is expected to grow at a CAGR of 9.8% from 2014 to 2020. Adoption of Montreal Protocol and Kyoto Protocol in the U.S. and Canada for restricting greenhouse gas emissions has forced personal care manufacturers to utilize natural ingredients in their product. Aforementioned factors for promoting use of natural ingredients in personal care products are expected to favor industry growth over the forecast period.
Global organic personal care sector is fragmented in nature owing to the presence of numerous companies. In addition, there are also regional, small scale producers present that have strong hold in their domestic market; many of which are present in Europe and North America.
Numerous companies are undertaking numerous strategic initiatives intend to increase their global presence in this industry. For instance, L’Oreal acquired Kiehl’s in 2000 and The Body Shop in October 2013 in order to increase its share in this sector. Furthermore, Clorox acquired Burt’s Bees in October 2007, to further expand its organic product portfolio.