Organic personal care market likely to post double-digit annual growth to 2020

By Simon Pitman contact

- Last updated on GMT

Related tags: Organic personal care, Personal care

Organic personal care market likely to post double-digit annual growth to 2020
Most global regions are expected to post near double-digit annual growth in organic personal care over the next six years, a new market research report suggests.

The report, authored by researchers at Grand View Research, suggests the global market for organic personal care products should grow from a figure of approximately $8.20bn in 2013 to be worth approximately $15.98 billion by 2020, reflecting annual growth rates of between 9% and 10% across Europe, North America and the Asia Pacific regions.

The market has grown rapidly from a small base in recent years, reflecting consumers’ growing awareness about product formulations and the way ingredients are sourced.

What’s driving the growth?

Grand View research suggests that this growth is being driven by increasing consumer awareness of the benefits of organic products, which will also be key to their future growth over the next six years.

Likewise, product innovation is feeding this growth, as a wider array of increasingly sophisticated and innovative products hit the market, particularly for products focused on exfoliation, antioxidant properties, and those featuring herbal extracts.

Likewise, a more favorable regulatory environment is also serving to drive the market, with a growing number of regulatory experts and certification providers offering services that make fulfilling regulations pertaining to organic personal care products easier.

Skin care leads the way

Globally skin care is leading the way in the organic market, accounting for 32% of global revenues in 2013, at an estimated $2.73bn, a figure that is projected to grow at a CAGR of 9.8% up to 2020.

As in the general market for organic personal care, this category is being boosted by awareness and innovation, but also by increasingly targeted product launches, together with an expanded retail distribution.

Hair care currently accounts for approximately 25% of the total market, and is expected to post global CAGR of 9.6% from 2014 to 20120.

Regional growth compares favorably

Across all three regions, revenue growth looks sharp and is comparable.

In the US the market is currently valued at $2.95 billion and is expected to growth at a CAGR of 9.8% between 2014 and 2020, mainly due to availability of products both from domestic and multinational players.

In Europe the market is dominated by Germany and France, which accounts for 30% of the total, and where CAGR is expected to rise at between 9.6% and 10%.

Finally, in Asia Pacific the market is valued at $2.01 billion and is expected to grow at a CAGR of 9.3% between 2014 and 2020, to reach $3.77 billion, mainly due to increasing demand in the huge Japan market.

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