Enhanced Consumer Awareness Will Propel Natural & Organic Personal Care Market Globally
Global Natural & Organic Personal Care Market is expected to witness significant growth over the next seven years. Natural and organic products are derived from the ingredients made in nature. Majority of these products are composed of the plant-derived ingredients such as roots, essential oils, herbs and flowers. Few of them are also composed of the animal-derived ingredients such as minerals and beeswax. After the extraction, they are combined with several naturally occurring carrier agents, preservatives, humectants, emulsifiers and surfactants. These natural and organic products specifically do not use synthetic chemicals for manufacturing so as to preserve the natural content of the products.
Most widely, these ingredients are used in the manufacturing of the personal care products which are believed to enhance one’s beauty and skin texture. The other form of personal care products are the synthetically manufactured ones. Nearly 70% of the personal care products are naturally or organically made.
Personal care products include hair care, cosmetics, skin care and oral care. The industry is being dominated by the skin care products over the past seven years. It is followed by hair care and oral care. There are numerous benefits of using these naturally made products. They work efficiently with the body’s system, repairs, rejuvenates and enhances it. These products are also eco-friendly and promotes a healthier planet.
Natural and organic personal care products are projected to see a rapid growth over the forecast period. Consumers across the globe have become increasingly aware about the harmful effects of the synthetic products. Hence, a considerable shift in consumer preference has been observed from synthetic to organic personal care products. There has been a growing concern for healthy living and a greener environment. Thus, the growing demand for natural and organic personal care products has fueled its growth in the market.
Growing consumption of the environmentally sustainable products and changing customer insight towards the naturally made products has considerably contributed to the growth of the industry. Adding to it, the manufacturer of these products has been a major contributor in reducing the environmental pollution and the dependence on petroleum based products.
Human health & safety regulatory bodies, for instance, the U.S. Department of Agriculture (USDA) and FDA’s approval for using naturally derived products has been projected to augment the demand for these products. Consumer’s rising disposable income has also been a major factor in increasing the industry growth across various emerging nations. Technological advancements like improvement of the product lines by firms such as Estee Lauder, Aveda Corporation, The Body Shop and Amway are anticipated to augment the growth over the forecast period. Chemical-free hair and skin care products is expected to witness significant growth over the next seven years.
North America ruled the global market and is estimated to follow the same trend over the forecast period. In the domestic market, various small-scale regional producers possess a strong hold. Over 35% of the global revenue generated in 2014 was accounted by the North America personal care market. Canada and the U.S. adopted Kyoto protocol and Montreal protocol which restricted the greenhouse gas emissions. This enforced the personal care manufacturers to utilize natural ingredients in their products. The increased cosmetic consumption and new product launches by the FMCG manufacturers in Mexico provided lucrative prospects for the growth of the industry.
On account of the rise in disposable income and improved living standards, there has been an increase in the use of cosmetic products in the emerging regions of Asia Pacific such as China, South East Asian countries and India. Europe has a robust cosmetic manufacturing base in UK, France and Germany.
However, there has been several hindrances in the progress of the overall natural and organic personal care market. Some of them include restricted raw material supply, limited life of the natural ingredients and stringent regulatory guidelines against animal based raw materials usage.
Various companies strived to gain the market share in the industry. Some of them include The Body Shop, L’Occitaneen Provence, Kiehl’s, Aveda Corp., The Hain Celestial Group, Burt’s Bee, Amway, Arbonne International, Yves Rocher, Natura Cosmeticos S.A. and Estee Lauder. L’Oreal and The Body Shop shows complete integration across the value chain. These companies process the raw materials and then use them for producing several varieties of lotions, shampoos, conditioners and creams.
Several strategic initiatives have been undertaken by several companies to increase their market share in the industry. For example, L’Oreal acquired The Body Shop in 2013 and Kiehl’s in 2000 so as to expand its market share. Clorox acquired Burt’s Bees in 2007 to increase its natural and organic products portfolio.
Innovative product launches also characterized the industry. In May 2014, two new hair care products, namely ColorLast Hair Serum and ColorLast Hair Spray were launched by Arbonne International, Inc. to its already existing Pure Vibrance hair care line.