Projected to grow at a CAGR of around 9%, organic personal care market is to witness a significant growth over the forecast period owing to growing awareness by consumers to use environmentally friendly products that do not contain parabens, petrochemicals, phthalates and aluminum salts. With formulators and retailers looking for new ways to create demand and increasing brands coming up with organic products is to drive the industry growth over next eight years.
These products are made from essential oils, plant roots, flowers and herbs coupled with naturally occurring carrier agents such as emulsifiers, preservatives, humectants and surfactants. Globally, the organic personal care market has come up from the niche industry to something big. The retail training in educating customer about quality personal care products is to drive the market over next few years. Today, not only organic product retailers are implementing safety policies but also large corporation such as CVS and Target are also making significant changes to their policies. Also CPG’s are investing in organic products. These trends are to have a positive impact on the industry.
Independent manufacturers and organic product retailers are transforming the organic products industry from avoidance to inspiration and innovation. They are focusing on the product performance and improving the definition of ‘clean-beauty’. The rejection of parabens by consumers was the time when companies started positioning their products as ‘free from parabens’ which became a significant driver behind marketing of organic products. Many campaigns for safe cosmetics are being held which is to drive the market over next few years.
Many large companies such as Johnson & Johnson and Proctor & Gamble reformulated its products which contained preservatives and parabens. Also, retailers such as Whole Food Markets and Natural Grocers by Vitamin Cottage have come up with stringent cosmetic policies that examine every ingredient and look beyond claims. These aforementioned points are to have a significant impact on the industry. The companies with organic products now need to meet USDA Organic or NSF/ANSI 305 standards before coming in market which provides opportunities in this field. Also, the technological advancement and research in green chemistry for developing organic ingredients, increasing its shelf life and making emulsifiers, surfactants out of organic feedstock also offer opportunities in this industry. However, fluctuation in raw material supply poses a challenge to this industry.
The personal care market can be segmented on the basis of product. It consists of hair care, skin care, oral care and cosmetics. Organic skin care product dominated the market in the recent past owing to increasing popularity of daily care, toning and lip care with anti- ageing properties organic moisturizers. This demand was followed by organic hair care products on account of growing importance of natural ingredients for dandruff-control, smooth texture, strong and shiny hair. As these products do not contain parabens, sodium lauryl sulphate and polyethylene glycol, they are preferred over synthetically derived counterparts and will fuel the industry over the years.
The organic oral care market is also to witness a significant growth over the forecast period owing to increasing gum diseases. Companies such as Hindustan-Lever and Colgate have come up with herbal substances such as lemon, tulsi, neem and clove in their products.
North America dominated the market in the near past. There are opportunities in Mexico on account of increasing cosmetic products consumption and FMCG manufactures launching new products is to have a positive impact on the industry in next eight years. This trend is followed by Europe and Asia-Pacific. In Europe, consumers are switching to organic products rather than synthetic ones which are to drive the market over next few years. In Asia-Pacific region especially in China and India, the demand for organic products is increasing owing to new product launches by companies which is to boost the market in the near future.
Key players in the market are Aveda Corp., The Body Shop, The Hain Celestial Group, Burt’s Bee, Yves Rocher, Estee Lauder, Amway, Arbonne International, L'Occitane en Provence, Natura Cosméticos S.A., and Kiehl’s. These brands are launching their advanced innovative products as their strategic initiatives.
In Feb 2016, The Body Shop had announced its new British Rose Collection to celebrate its 40th Anniversary. This collection uses organic roses grown in Herefordshire, England. Also in May, 2016, the company had launched its Vitamin E skin care range.
In June 2016, Amway's parent company, Alticor Inc., had agreed to sell New York-based Gurwitch Products LLC, the holding company for Laura Mercier and ReVive, to the 140-year-old Japan-based cosmetics maker to build upon their impressive growth and successes while introducing their products and techniques to more customers around the world
