The company said there is evidence that market growth is recovering following the slowdown caused by the economic challenges caused by the coronavirus pandemic and subsequent geopolitical conflicts.
Amarjit Sahota, Founder of Ecovia Intelligence, said: Since 2003, Ecovia has continuously researched the global natural and organic personal care market by gathering data and information on key players, market trends, and products. I said that I have been doing so.
“Regarding this particular report, Sahota said it had conducted a “trade audit.” So we interviewed leading brands and distributors from Europe, North America and Asia. ”
Information on market growth rates, sales channels, and competitive trends was collected and analyzed. Additionally, we conducted secondary research, including information from websites, media, and trade publications.
The US and Europe lead, but Asia is the fastest growing market
According to the research report, by region, North America and Europe dominate this market, accounting for over 80% of the total sales.
The United States was the world’s leading market, with natural and organic products accounting for 4.7% of the country’s total cosmetics sales.
However, the Asian market is currently experiencing the fastest growth, driven by new product launches.
Ecovia Intelligence observed that new companies around the world are entering the market with novel products, and big brands are also adding natural and organic products to their existing product ranges.
Authentication is becoming even more important
Sahota said the global natural and organic cosmetics market has “changed a lot” over the past decade, growing from almost nothing in the 1990s to a $14 billion market by 2024.
One of these changes is the increasing prevalence and relevance of product certification. “We have seen the increasing importance of certification. Certified products now account for more than two-thirds of natural and organic cosmetics sales in Germany and France.” he stated.
There are currently more than 30 standards, and the study found that COSMOS and NATRUE are the “most important” and have “the highest adoption rates in Europe”.
Within Europe, France and Germany accounted for the largest share of certified products.
At a global level, certified products account for approximately 26% of total sales of natural and organic cosmetics.
Changes in product distribution
Increased distribution volume is also a major growth driver for this type of product.
According to Ecovia Intelligence, the primary outlets for these cosmetics are still natural and organic food retailers, but they are increasingly distributed in drugstores, pharmacies, department stores, beauty retailers and other retailers. .
The report also showed that some brands are focusing on non-retail stores such as hair and beauty salons.
Mr. Sahota emphasized the importance of these changes in distribution. “Initially, most of our sales came from ‘alternative outlets’ – health food stores and organic food retailers. But now distribution has expanded to traditional cosmetics stores as well,” he said.
“Online retail has also become important since the pandemic,” he added.
The competitive environment has changed dramatically
Sahota said the competitive environment has also changed beyond recognition. “Initially, small niche brands were supplying natural and organic cosmetics,” he says.
“Today, almost every multinational company has a stake in the natural and organic cosmetics market, including L’Oréal, Estée Lauder Companies, Unilever, P&G, Edgewell Personal Care, Amorepacific, Colgate-Palmolive, and many more. Masu.”
“Some companies have developed natural and organic lines within existing brands, while others have acquired natural/organic brands,” he said.
What’s next for natural and organic?
Ecovia Intelligence predicts that market growth will further increase in the coming years.
The company noted that growing consumer awareness of synthetic chemicals in cosmetics and toiletries is stimulating demand for natural and organic cosmetics.
“As consumers become more informed about the health risks associated with ingredients such as parabens and mineral oil, more and more people are choosing natural and organic products,” Sahota said.
