Natural Cosmetics Market Business Development Strategy by Major Players in 2019 - 2025

May 27, 2019: The global natural cosmetics market size is expected to reach a value of USD 48.04 billion by 2025, at a CAGR of 5.01% from 2019 to 2025, according to a report published by Grand View Research, Inc. High demand for natural health and wellness products among millennials due to increasing awareness about the harmful impact of synthetic chemicals is driving the growth. In addition, increasing R&D expenditure is likely to propel the growth.

The supermarket and hypermarket segment was estimated to be valued at USD 13.67 billion, in 2018, followed by convenience stores; owing to rising demand for natural cosmetics. The online market is anticipated to expand at a CAGR of 4.47% during the forecast period. Consumer can access a wide range of natural cosmetics online, which is expected to remain the key driver for the segment. Opportunity to obtain the natural products online when it is not available at conventional stores is anticipated to contributing to the growth.

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Natural cosmetics for skin care was estimated to have the highest revenue share of USD 10.31 billion in 2018 followed by hair care. Growing awareness and popularity for natural cosmetics is the key factor driving the demand. Natural fragrance market is expected to register a CAGR of 5.03% over the forecast period. Demand for products free from harsh cleaners, petrochemicals, preservatives, and other chemicals, has been growing over the past few years. Major market players have been significantly investing more into R&D to boost the production to cater to the changing consumer preference.

Various market players are involved in manufacturing a variety of natural cosmetics such as body lotions, scrubs, masks and exfoliators, shampoos, perfumes, and lip care. Companies namely 100% pure, and Au Natural among others have launched products, such as lip glosses, concealers, and multi-use products made of natural contents i.e., mineral and natural pigments, botanical and plant derived ingredients.

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Europe was estimated to be the largest regional segment of natural cosmetics in 2018 with a market value of USD13.06 billion and is expected to continue growing over the forecast period. The growth is expected to be driven by rising demand for natural cosmetics. A few years back L'Oreal SA launched Botanea which is 100% plant based hair dye manufactured with the combination of three plants found in India. Key market players include as; Burt's Bees; 100% Pure; Korres S.A; Bare Escentuals Beauty Inc.; L'Oreal SA; AVEENO; Weleda AG; Arbonne International LLC; Avon Product Inc.; and Coty Inc.

Further key findings from the report suggest:
• In terms of revenue, fragrance product is expected to register a CAGR of 5.03% from 2019 to 2025

• Skin care held the leading market share of 30.22% in 2018 and is expected to register a steady growth over the forecast period

• Europe led the natural cosmetics market in 2018 and is projected to continue leading over the next few years. Growing fragrance segment on account of huge demand of natural products is expected to propel the growth

• Asia Pacific, due to increasing exposure and demand of natural beauty products, is expected to drive the demand over forecasted period

• The market is highly competitive in nature. The main players include Burt's Bees; 100% Pure; Korres S.A.; Bare Escentuals Beauty Inc.; L'Oreal SA; AVEENO; and others

• Various manufacturers are concentrating on new product launches and capacity expansion, to estimate existing and future demand patterns from upcoming product segments.

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