The USD36 billion global natural cosmetics market is expected to be worth USD54 billion by 2027 with a CAGR of 5.2%.
That’s the prediction made in a new study from London-based analysts Future Market Insights (FMI).
FMI says that key factors fuelling demand for natural cosmetics include:
- Growing consumer concerns regarding the side effects of chemicals in cosmetics and toiletries
- Demand for natural ingredient percolating from food to non-food products including cosmetics & personal care
- Dissemination of knowledge regarding benefits of natural ingredients and increasing ethical consumerism
The study shows that household consumption of natural cosmetics remains higher as compared to their demand in commercial spaces of salons and spa. It also confirms that consumer preference for organic and natural products increasingly extends well beyond its traditional base in food and beverages.
Hair care now makes up a third of the natural cosmetics market
The study revealed that in addition to growing popularity of natural skin care products, consumer preference for natural hair care products is also growing. Plant-based hair care products are witnessing popularity among an increasingly growing consumer demographic looking for chemical-free products for daily use. These factors are also fuelling the natural skin care product category, which is set to grow at over 5% in 2019 over the previous year.
Unisex and male-focused products gain traction
The study finds that sales of unisex natural cosmetics have spearheaded the market for many years. In 2019, the trend is likely to continue and the sales of unisex natural cosmetics will hold over one-fourth of the global revenues. Consumers’ greater orientation towards unisex natural cosmetics can be attributed to their higher sales in the market.
The increasing interest of male grooming is a new trend in the industry which is expected to translate into higher sales in the ‘for men’ category in 2019. Natural cosmetics for females are also gaining popularity, as local manufacturers use their traditional herbal know-how in delivering broader and safer natural cosmetics portfolio.
Distributors took 2 in 10 Sales of natural cosmetics in 2018
FMI’s thorough study of the distribution network of the natural cosmetics market reveals that wholesalers or distributors remain the preferred choice for the purchase of natural cosmetics among consumers. Over 2 in 10 natural cosmetics products were sold through wholesaler or distributors in 2018.
Natural cosmetics sales in Europe continue to surge
FMI says Europe will be the largest consumer of natural cosmetics, aided by a sophisticated legislative framework for cosmetic market players to enter the EU market. Europe’s enthusiasm for natural plant-based ingredients combined with the region’s efforts to promote sustainability is also fuelling the demand for natural ingredients. In Europe, demand remains concentrated in EU5 countries which include Germany, France, Italy, Spain and the UK, where extensive established distribution network with multiple sales channels helps draw new more consumers the category.