As the demand for organic cosmetics rises, even the most well-known businesses are being forced to broaden their product offerings. According to a new analysis by Future Market Insights, the demand for clean label certifications, such as non-GMO, vegan, cruelty-free, and others, within the cosmetics industry will propel the market for organic cosmetics (FMI). According to FMI, it will total US$ 187.4 Mn by 2021.
When combined with statements about the efficacy of the product and brand identity, natural claims have significantly increased the sustainability quotient in addition to being important product purchase motivations. Customers now demand total transparency from cosmetics producers regarding their sourcing practices, goods, ingredients, and environmental practices. The demand for cosmetics companies and manufacturers to show their commitment to social and environmental responsibility is growing.
The packaging trends in the personal care sector have evolved to incorporate more secure, natural formulas, and practical packaging. Natural solutions are being employed more and more in product packaging as a result of the excellent response they are receiving from the product industry. The businesses’ marketing techniques call attention to profitable containers along with offering natural remedies.
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 the 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
Market Analysis of COVID-19 and 2020’s Effect
The current pandemic outbreak has created a variety of challenges for both the supply side and the demand side. The temporary regulation that regional governments adopted to limit mobility has seriously harmed supply chains. Additionally, the general shift in consumer spending from discretionary to essential goods has hurt market growth. The way that firms operate globally is changing as a result of e-commerce. In actuality, e-commerce has become more prevalent throughout all industries as a result of the Covid-19 outbreak and lockdown. The population segment that is not accustomed to online buying has also accepted it because it is the only option. There are many chances for companies and online services to work together to boost customer engagement.
Who is winning?
Several well-known businesses in the organic cosmetics industry include Estee Lauder, L’Oréal Group, WELEDA Inc., Groupe L’OCCITANE, and KORRES Group. A few examples include The Himalaya Drug Company, Babylist Inc., The Honest Company, The Clorox Company, Avalon Organics, and KORA Organics.
Players are aggressively investing to promote and support product development to get a competitive advantage over other market competitors. The most common technique employed by major corporations is the development of an innovative product portfolio and portfolio expansion. Innovation is the tool used to lure and convince customers to buy a specific product category. It helps distinguish one product from another by showcasing a product’s USP, which often varies from one brand to another.
Organic Cosmetics Market by Category
- Skin Care
- Creams & Lotions
- Face Packs/ Masks
- Hair Care
- Hair Oil
- Hair Dye
- Facial Products
- Eye Products
- Lip Products
- Nail Products
- Body Care
- Shower Gels
- Convenience Stores
- Specialty Stores
- Direct Selling
- Departmental Stores
- Online Retailing
- Other Sales Channel
- North America
- Latin America
- East Asia
- South Asia
- the Middle East and Africa (MEA)
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