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.
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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