There has never been a better time to start your own organic beauty business. We’ve been saying this for a while now, but analysts keep telling us that we’re right.
Last year, Grand View Research announced that the global organic beauty market was likely to reach $15.98bn by 2020, as demand for organic skincare, haircare and colour cosmetics drives consumers to look for natural and organic labels.
Now new market analysis released by Persistence Market Research has shown that with the year-on-year growth in organic beauty, the global market should be worth just under $22bn by 2024. Those figures suggest approximate growth of 8-10% per year. The current natural and organic beauty market is estimated to reach the value of US$ 11,057.1 Mn in 2016, which means that analysts expects the market’s value to double in the next 8 years.
The growth of the global natural and organic personal care product market is driven by factors such as the expansion of distribution channels, increasing online customer reach, and modern retailers’ shift towards offering premium personal care products on shelves. Also, new product development, advertisements, and increasing spending capacity of consumers on premium products are primary factors driving overall growth of the global natural and organic personal care products market.
Global Organic Beauty Market: Main Sectors
Skincare maintains the top billing in the global organic beauty market, and is expected to emerge the most attractive segment with 30.9% share by 2024, followed by haircare. This means that natural and organic skincare will form close to one-third of the total global organic beauty market.
The growth of the skincare products segment in the global natural and organic skin care products market is driven primarily by increasing demand for clean label products, coupled with increasing number of health conscious consumers globally.
Owing to increasing popularity and consumer preference towards online retail channel for purchasing cosmetics and hair care products, the global market is expected to witness significant growth over the forecast period.
Global Organic Beauty Market: Distribution Channels
The global natural and organic beauty market is further segmented on the basis of distribution channel as hypermarkets/supermarkets, specialty retailers, drug stores, online retail and direct sales. The hypermarkets/supermarkets segment is a major channel for sales of natural and organic personal care products and is expected to account for 28.4% share of the global market in 2016.
Online retailers offer another popular sales channel, with this segment estimated to be valued at US$ 1,979.3 Mn by 2016 end. Online retail is one of the most significant distribution channels used by various companies. Online retailers enable companies to enhance product penetration, improve consumer reach, and expand consumer base.
As per regional segmentation analysis, North America is the major market and is expected to account for 33.5% share in the global market by 2016 end. Europe and Asia Pacific (APAC) are another major markets for natural and organic personal care products, with Japan, China, and India being other major markets.
Analysts maintain a positive long-term outlook on the global natural and organic personal care products market, anticipating global revenue to exceed US$ 21,776.9 Mn by 2024, at an annual growth of 8.8% during this period.
Want to start your own organic skincare business? Enrol for a Formula Botanica course today.
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Lorraine Dallmeier is a Biologist, Environmental Scientist and the Director of Formula Botanica, the award-winning online organic cosmetic science school. Read more about Lorraine and the Formula Botanica Team.