Organic sales on the up as is Asia’s purchasing power

By Andrew MCDOUGALL contact

- Last updated on GMT

Organic sales on the up as is Asia’s purchasing power

Related tags: Supply and demand, Cosmetics

The growing trend of organic cosmetics is being tipped to continue as consumer awareness increases, as does demand.

According to new data from Grand View Research, the global market for organic personal care is expected to reach $15.98 billion by 2020.

In Asia-Pacific the organic personal care market revenue was estimated at $2.01 billion in 2013, and is expected to reach $3.77 billion in 2020, with significant growth rate of CAGR 9.3% from 2014 to 2020.

The reason for this? The market researcher says it is due to increasing demand in Japan due to its cultural belief of using organic and natural products.

Favorable regulations pertaining to use of organic products and increasing purchasing power in Asia Pacific is also expected to serve as growth opportunity for this market to 2020.

Product innovation, especially in the field of herbal extracts, antioxidants and exfoliants is expected to provide consumers with an array of products to choose from.

Largest segment

It comes as no surprise that skin care was the largest product segment in terms of revenue in 2013, and accounted for over 32% of global revenue, estimated at $2.73 billion.

Increasing awareness among consumers regarding possible harmful effects of some synthetic products on the body coupled with high appearance consciousness has fueled the demand for organic skin care products.

In addition, frequent product launches and widening of distribution channels is further expected to raise the demand over the forecast period.

Geography

In terms of revenue, North America dominated the global market accounting for over 35% of total market revenue, valued at $2.95 billion in 2013; and is expected to witness swift growth at an estimated CAGR of 9.8% from 2014 to 2020 due to easy availability of products provided by various multinational and domestic companies.

In Europe, Germany and France accounted for over 30% of market demand in 2013 and are expected to witness rapid growth owing to increase in affluent population and awareness of benefits related to organic products.

Related topics: Market Trends

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