Organic Personal Care Ingredients Market Size, Market Research and Industry Forecast Report, 2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Organic Personal Care Ingredients Market


The organic personal care ingredients market size was estimated at USD 8.08 billion in 2019 and is projected to register a CAGR of 5.4% over the forecast period. Rising demand for personal care, coupled with growing awareness regarding personal health and safety, is expected to drive the product demand.
Rising usage of the products for manufacturing organic and natural personal care products is anticipated to further fuel the demand. Increasing R&D investments, technological innovations in ingredient processing, and cost-effective manufacturing technologies, are other factors expected to further drive the growth of the market.

Organically cultivated products, such as aloe vera, soybean, fish oil, palm kernel oil, and jojoba oil are some of the key raw ingredients used for manufacturing organic and natural personal care goods. They are mainly used for producing cosmetics and hair, skin, and oral care products. Rising consumer awareness regarding the harmful effects of conventional, synthetic chemical laden products is anticipated to create growth opportunities for the market.

Shelf life is considered as the most crucial element of organic personal care since it plays a key role in overall effectiveness of the final product. Commodities labeled organic have to be consumed within six months to two years from the date of manufacturing, depending upon the product. For instance, organic shampoos and conditioners can be used for approximately two years, while moisturizers expire in six months. Since these goods do not contain chemical preservatives, such as phenoxyethanol, to help increase their shelf life, they are more susceptible to harmful bacterial growth if not handled properly. This is expected to pose a challenge for the market growth over the forecast period.

Increasing R&D expenditure for introducing improved plant extracts into various personal care is expected to promote demand over the forecast period. Furthermore, various regulations encouraging the use of these products is likely to boost the growth. In addition, innovations involving oligopeptides, used for increasing efficiency and shelf life of goods, are also expected to have a positive impact on the product demand over the forecast period.
Rising awareness about various benefits of organic over synthetic ingredients has led to an increase in demand over the past few years. These products are derived from natural resources and are free from harmful chemicals. Growing awareness regarding the ill effects of synthetic products on the skin, has led to increasing demand for natural alternatives. This has prompted manufacturers to introduce new products and increased focus on R&D. As a result, the use of these ingredients has become a major driving factor for the overall cosmetics and wellness industries.
In the current market scenario, the strategies of merger and acquisition and development of customer-specific products is expected to work well for the ingredient and product manufacturers. In addition, the strategy of developing country-specific products is expected to work well for the ingredient and organic product manufacturers, as consumers can find products that suit their skin tone, skin type, and environmental conditions.

Type Insights of Organic Personal Care Ingredients Market

Growing consumer awareness about the harmful effects of synthetic chemicals used in personal care products and toiletries is expected to propel the demand for organic ingredients. Changing consumer perception toward artificially manufactured chemicals will strengthen the market in near future. However, animal-derived ingredients have witnessed a downward trend owing to changing consumer attitude towards the production process of these ingredients as well as concerns related with spreading of diseases.

Natural products include those manufactured using ingredients sourced from nature and free from synthetic chemicals, such as parabens, sodium lauryl and laureth sulfates, phthalates, synthetic dyes and synthetic colors. In addition, these ingredients can be any mineral, animal, or plant derivatives that results directly from agricultural production, harvest, farming, and mining. Natural products do not cause irritation, are environment-friendly, and have no side effects. These advantages are expected to help propel the demand for natural ingredients over the forecast period.

Product Insights of Organic Personal Care Ingredients Market

On the basis of product, the organic personal care ingredients market is segmented into natural surfactants, emollients, active ingredients, sugar polymers, natural preservatives and others. With companies expanding their product portfolios and introducing new products, the demand for organic products is expected to witness growth over the forecast period.

Sugar polymers gained significant market share in 2019 and is expected to continue this trend over the forecast period. Polyols, monosaccharides, and glycogen are some of the sugar polymers used for producing organic products. These polymers are used for manufacturing toothpaste, mouthwash, creams, lotions, make-up, and perfumes or deodorants. In addition, honey, which contains a mixture of oligo and monosaccharides, is used in a number of products, such as face packs, moisturizers, and shampoos.

Active ingredients is expected to experience rapid growth over the forecast period. In skin care products, they are responsible for absorption and acne reduction. Active ingredients are used in all types of skin care, including natural formulations. Strengths of the product used vary depending on the type, such as over-the-counter or prescription-based products. Players are focusing on innovation in case of active ingredients and developing technologies associated with formulation, extraction, and preservation to differentiate themselves and stay ahead of the competition.

Application Insights of Organic Personal Care Ingredients Market

Skin, hair, and oral care, and cosmetics are the key application segments. Evolving hair styling trends in the fashion industry and the growing percentage of population concerned about grey hair and hair fall are the major driving forces for the hair application segment. In addition, high prevalence of hair damage and hair fall problems due to increasing pollution and stress is expected to further boost the demand from the organic hair application segment.
Rising importance of use of natural ingredients such as fruits, vegetables, and herbs that have anti-aging properties in skin care is expected to boost the segment growth. Regulatory bodies such as the European Union (EU) Organic Program and the United States Department of Agriculture (USDA) have laid down various regulations over the years, encouraging the use of organic substances in product formulations.

However, high manufacturing cost is expected to be a concern for the market participants. Regulatory support for the use of natural ingredients in product formulations in U.S., coupled with the increasing consumption of organic personal care products in countries such as Mexico, India, and China, owing to the increasing disposable incomes and consumer willingness to spend on appearance-enhancing products, is anticipated to drive product demand over the forecast period.

Regional Insights of Organic Personal Care Ingredients Market

Adoption of the Montreal and Kyoto Protocols by Canada and U.S., for limiting Greenhouse Gas (GHG) emissions has encouraged product manufacturers to deploy organic and natural ingredients in their product offerings, since synthetic ingredient emissions are harmful for the environment.

In addition, the increasing consumption of skin care, hair care, and cosmetics in China and India, aided by new product launches as well as rising awareness regarding aging, effects of UV radiation, and hair fall, is likely to have a positive impact the regional growth. There has been a significant rise in the middle class population in countries, such as Indonesia, Vietnam, and Malaysia, among others. Currently, these countries import the most basic personal care products, such as shampoos, soaps, and other grooming products. These trends are expected to positively impact the Asia Pacific market.

Market Share Insights of Organic Personal Care Ingredients Market

The market is characterized by the presence of ingredient suppliers, manufacturers, distributors, and application segments. The increasing number of small and medium regional players attempting to dominate the domestic spaces is anticipated to intensity the market competition in near future.

The presence of various major players has also intensified the competition since these companies have larger consumer bases and wider geographic reach. The ingredients manufactured and supplied by these companies are used to produce various skin care, hair care, oral care, cosmetics, and a few other products.

Cargill, Incorporated; BASF SE; The Lubrizol Corporation; Croda International Plc; and Huntsman International LLC.; are some of the key market players along with various small and medium companies, such as Jarrow Formulas, Inc.; AEP Colloids; Grain Millers, Inc.; PRIDE SEEDS; and SG Ceresco Inc.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Organic Personal Care Ingredients Market Research Report

This report forecasts revenue growth at a global, regional, and country level and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, this market research report has segmented the global organic personal care ingredients market report on the basis of type, product, application, and region:

Type Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
Organic
  
Natural

Product Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
Natural Surfactants
  
Emollients
  
Active Ingredients
  
Sugar Polymers
  
Natural Preservatives
  
Others

Application Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
Skin Care
  
Hair Care
  
Oral Care
  
Cosmetics
  
Others