The organic cosmetics market is expected to be valued at US$ 19.6 billion in 2022. From US$ 20.5 billion in 2023 to US$ 33.7 billion in 2033, the market is predicted to grow at a 5.1% CAGR. Natural claims have sparked the sustainability quotient in addition to being significant product purchase drivers when paired with product efficacy claims and brand identity.

In personal care sector the preferences of packing trends have also changed as it evolved to highly protect, and more natural formulas and practical packaging. Thanks to strong market reactions to natural solutions that are being used more and more in product packaging, innovative naturals are gradually becoming a new standard of the industry. Through the consumerist marketing approaches of commercial organisations natural solutions are suggested alongside attention to profitable container variants.

Now, being highly consumer-oriented consumers require cosmetics manufacturers to be transparent in all aspects such as sourcing practice, goods and ingredients they manufacture and the ones that their health is in question while it comes to its environment practise. As a part of the process where demonstrated social and environmental credentiality becomes increasingly mandatory, after an understanding that more cosmetics companies and manufacturers are looking for ways to define their own brands through sustainability-focused products, services, and even customer experiences.

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Key Takeaways from the Organic Cosmetics Market Study

  • FMI in its latest study has forecast the market to rise at a CAGR of 5.0% between 2021 and 2031
  • The U.S. will emerge as a key market, accounting for nearly 80% of organic cosmetics market in North America
  • Growth in the U.K. will remain moderate. FMI forecasts the market to record nearly 1.9% Y-o-Y growth in 2021
  • While Germany and France too will continue exhibiting demand for organic cosmetics, Italy is expected to emerge as a lucrative pocket in Europe
  • Japan, China, and South Korea will emerge as key markets for organic cosmetics in East Asia. Of these, Japan is likely to dominate

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Who is winning?

Estee Lauder, L’Oréal Group, WELEDA Inc., Groupe L’OCCITANE, and KORRES Group are a few notable companies in the organic cosmetics business. The Himalaya Drug Company, Babylist Inc., The Clorox Company, The Honest Company, Avalon Organics, and KORA Organics are a few examples.

To acquire a competitive advantage over other market participants, players are aggressively investing in order to encourage and support product development. The creation of an innovative product portfolio and portfolio expansion is the most popular strategy among the major businesses. Innovation is the instrument used to entice and persuade consumers to purchase a particular product category. By highlighting a product’s USP, which typically varies from one brand to another, it aids in separating one product from another.

Organic Cosmetics Market by Category

Product Type

  • Skin Care
    • Creams & Lotions
    • Serums
    • Face Packs/ Masks
    • Cleanser
    • Others
  • Hair Care
    • Shampoo
    • Conditioner
    • Hair Oil
    • Hair Dye
    • Others
  • Makeup
    • Facial Products
    • Eye Products
    • Lip Products
    • Nail Products
  • Body Care
    • Soaps
    • Shower Gels
    • Cream
    • Oils
  • Fragrance

End User

  • Men
  • Women
  • Unisex
  • Baby

Sales Channel

  • Hypermarkets/Supermarkets
  • Convenience Stores
  • Specialty Stores
  • Direct Selling
  • Departmental Stores
  • Online Retailing
  • Other Sales Channel

Price Range

  • Economy
  • Mid-range
  • Premium

Region

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East and Africa (MEA)