Demand for Natural Cosmetics Market is Gaining a Boost from Consumers’ Inclination Towards Chemical-Free Makeup – FMIBlog

The natural cosmetics market was valued over US$ 36 billion in 2019, witnessing a moderate CAGR during forecast period 2019 – 2027. A new study by FMI forecasts that natural cosmetics market will grow at 4.8% in 2019. Key factors fuelling demand for natural cosmetics include,

  • Growing consumer concerns regarding the side effects of chemicals in cosmetics & 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 finds that household consumption of natural cosmetics remains higher as compared to their demand in commercial spaces of salons & spa. Consumer preference for organic and natural products is no more limited to food & beverages landscape, with organic cosmetics sales surging in recent years. According to FMI, sales of natural cosmetics in the household segment is likely to account for over two-third of the global revenues in 2019.

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Hair Care Natural Cosmetics Accounted for Nearly One-Third Sales in 2018

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.

Skincare and hair care products are among the traditional products used for grooming and have witnessed significant evolution in formulations wherein plant-based and organic products are trending in the cosmetics & personal care industry. A combination of hair care and skin care products accounted for over half the natural cosmetics market revenues in 2018 and the status-quo will continue in the coming years,” says FMI.

Unisex Natural Cosmetics Top Selling, Male Products Gaining 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.

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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 Accounted for 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.

Apart from this conventional sales channel, consumers also prefer convenience stores to purchase natural cosmetics. While sales through convenience stores were comparable to that of wholesalers or distributors, hypermarket/supermarket and specialty stores also continue to register considerable unit sales of natural cosmetics. Consumers also chose online purchase option, however, limited options of premium products restrict the sales as consumers prefer cost-effective and reliable products.

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Natural Cosmetics Sales in Europe Continue to Surge

FMI opines that Europe will be the largest consumer of natural cosmetics and APEJ and North America are expected to follow suit. Europe has a sophisticated legislative framework for cosmetic market players to enter the EU market.

Further, Europe’s love for natural plant-based ingredients combined with the region’s efforts to promote sustainability is fueling the demand for natural ingredients. In Europe, demand remains concentrated in EU5 countries which include GermanyFranceItalySpain and the UK, wherein presence of an extensive distribution network with a number of sales channels, the natural cosmetics market is attracting new consumers.

Natural Cosmetics Market Segmentation

By Product Type

  • Skin Care
  • Hair care
  • Color Cosmetics
  • Fragrance
  • Oral Care
  • Toiletries

By Application

By End-use

  • Personal Care (Household)
  • Salon & Spa

By Sales Channel

  • Hypermarket/Supermarket
  • Online Stores
  • Convenience Stores
  • Speciality Stores
  • Wholesale/Distributors
  • Club Stores

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About Future Market Insights (FMI)
Future Market Insights (ESOMAR certified market research organization and a member of Greater New York Chamber of Commerce) provides in-depth insights into governing factors elevating the demand in the market. It discloses opportunities that will favor the market growth in various segments on the basis of Source, Application, Sales Channel and End Use over the next 10-years.

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