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The natural cosmetics market size is forecast to increase by USD 45.38 billion at a CAGR of 28.29% between 2023 and 2028. The market is experiencing significant growth due to several key trends and factors. One of the primary drivers is the increasing consumer demand for chemical-free and environment-friendly products. This preference for natural cosmetics is fueled by growing awareness of health and wellness, as well as concerns over the potential harmful effects of synthetic ingredients. Another trend is the rising demand for organic plant-based cosmetics, as consumers seek out products that are free from synthetic additives and derived from renewable resources. Additionally, stringent government regulations are pushing companies to adopt more sustainable and ethical manufacturing practices, further boosting the market's growth. Overall, the market is poised for continued expansion as consumers increasingly prioritize natural, organic, and eco-friendly options.
The market is experiencing significant growth due to increasing consumer awareness and preference for products made from natural ingredients. These natural formulations typically include plants, minerals, and naturally occurring substances. However, potential side effects and environmental concerns associated with synthetic chemicals, preservatives, and additives have led consumers to seek out more natural alternatives. The durability and mass-market appeal of natural cosmetics are essential considerations for manufacturers. While plant-based and natural formulations offer numerous benefits, they can be more susceptible to spoilage and microbial contamination. To address these challenges, advancements in preservation methods and e-commerce platforms have expanded the global reach of natural cosmetics, allowing consumers to customize their purchases from a diverse range of offerings.
Further, the market continues to evolve, driven by consumer demand for products that align with their values and prioritize health and environmental sustainability. As the e-commerce industry grows, natural cosmetics are poised to capture a larger share of the market, offering consumers a convenient and accessible way to make informed choices about the products they use.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The offline segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth due to the increasing preference for products made from natural ingredients, such as plants, minerals, and naturally occurring substances. Consumers, particularly those adhering to health-conscious lifestyles and seeking solutions for skin problems, are increasingly turning to natural alternatives as opposed to conventional beauty products laden with synthetic elements and potentially risky synthetic preservatives, additives, and other chemicals. Environmental concerns have also played a role in the market's expansion, as consumers become more aware of the potential side effects of synthetic ingredients on both their health and the environment. The demand for plant-based, organic, and naturally derived ingredients in natural cosmetics products is on the rise. Despite the mass-market appeal of natural cosmetics, regulations governing their production and distribution continue to evolve.
Furthermore, ensuring the durability and shelf life of natural formulations while maintaining microbial contamination and spoilage standards presents challenges for manufacturers. Offline distribution channels, such as retail stores, continue to dominate the market due to factors like wide availability, test and trial options, and product requirements for immediate use. However, the convenience, accessibility, and ease of return policies offered by the e-commerce industry may pose challenges to the offline segment's growth. Consumers' disposable income plays a significant role in the market's expenditure, with the potential to influence purchasing decisions. As the market continues to evolve, it is essential to a balance between the benefits of natural ingredients and the practical considerations of product durability, shelf life, and consumer convenience.
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The offline segment was valued at USD 5.23 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 61% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Online shopping has revolutionized the way consumers purchase natural beauty and personal care products, with e-commerce platforms reaching a global audience. This trend is particularly significant in the market, where customization and personalization are key. Unique skin types, tones, and concerns call for customizable formulations, making online retailers an ideal solution. Skincare and makeup products infused with environmental awareness are increasingly popular. Eco-friendly packaging, such as zero-waste and biodegradable materials, and recyclable containers, resonate with environmentally conscious consumers. Minimalist designs and reducing plastic waste further enhance the appeal. These factors collectively contribute to the growing demand for natural beauty products in the digital marketplace.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing consumer demand for chemical-free and environment-friendly natural cosmetics products is the key driver of the market. The market is witnessing significant growth due to the increasing preference for products made from natural ingredients, such as plants, minerals, and naturally occurring substances. Consumers are increasingly health-conscious and are seeking natural alternatives to conventional beauty products, which often contain synthetic elements and potential side effects. Environmental concerns have also come to the forefront, with many consumers expressing apprehensions about the use of synthetic preservatives, additives, and other synthetic chemicals in cosmetics. Leading brands in the market are responding to these concerns by shifting towards formulations that are plant-based, organic, and made from naturally derived ingredients. However, the use of natural ingredients presents challenges in terms of durability and shelf life, as natural formulations are more susceptible to spoilage and microbial contamination.
The e-commerce industry has also played a crucial role in the growth of the market, providing consumers with easy access to a wide range of natural cosmetics products from various brands. However, the use of synthetic preservatives and additives in some natural cosmetics products remains a potential risk, and consumers are advised to exercise caution and read labels carefully before making a purchase. Regulations governing the use of natural and organic ingredients in cosmetics are also evolving, adding another layer of complexity to the market landscape.
Growing demand for organic plant-based cosmetics products is the upcoming trend in the market. The market is witnessing a significant wave due to the increasing preference for wellness and health-conscious lifestyles among consumers. Natural cosmetics, made from natural ingredients such as plants, minerals, and naturally occurring substances, are gaining popularity over conventional beauty products due to their potential benefits and minimal potential side effects. However, the use of synthetic preservatives, additives, and synthetic chemicals in cosmetics can raise environmental concerns. Plant-based and organic formulations are the new norm in the natural cosmetics industry, with an emphasis on using naturally derived ingredients. These products are free from synthetic elements and provide a higher level of safety and efficacy.
Manufacturers are addressing these challenges by using natural preservatives and improving the durability of natural formulations. The e-commerce industry has played a crucial role in the mass-market appeal of natural cosmetics, enabling easy access to consumers with disposable income. However, regulations regarding the use of synthetic preservatives and labeling requirements for natural cosmetics vary across regions, posing potential risks for manufacturers and consumers alike. Overall, the market is expected to continue its growth trajectory, driven by the increasing demand for natural and organic products and the rising awareness of the potential risks associated with synthetic ingredients.
Stringent government regulations is a key challenge affecting the market growth. The market is witnessing significant growth due to the increasing preference for natural ingredients, such as plants, minerals, and naturally occurring substances, in cosmetics. Consumers are increasingly adopting health-conscious lifestyles and seeking natural alternatives to synthetic elements found in conventional beauty products. The potential risks associated with synthetic preservatives, additives, and other synthetic ingredients in cosmetics have raised concerns about their impact on health and the environment. Moreover, the potential side effects and environmental concerns have led to a shift towards natural formulations, which are plant-based, organic, or naturally derived. Regulations governing the use of synthetic preservatives and additives in cosmetics are becoming stricter, with authorities such as Health Canada regularly updating the Cosmetics Ingredient Hotlist to prohibit hazardous chemicals.
The e-commerce industry has played a crucial role in the growth of the market, providing consumers with easy access to a wide range of natural cosmetics products. The increasing disposable income of consumers and their willingness to spend on wellness and health-related products have further fueled the growth of the market. Overall, the market is expected to continue its growth trajectory, driven by consumer demand for natural and organic cosmetics and regulatory support for their use.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Arbonne International LLC - The company focuses on personal care and wellness products. The key offerings of the company include natural cosmetics.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth due to the increasing popularity of natural ingredients derived from plants, minerals, and naturally occurring substances. Consumers are increasingly seeking out natural alternatives to conventional cosmetics, driven by wellness and health-conscious lifestyles, as well as concerns over potential side effects and environmental concerns associated with synthetic chemicals, preservatives, and additives. Natural cosmetics formulations often contain plant-based ingredients, which are organic or naturally derived and are free from synthetic elements. However, the use of natural ingredients does not guarantee a longer shelf life or protection against microbial contamination and spoilage. Synthetic preservatives may still be necessary to ensure the durability and mass-market appeal of natural cosmetics products.
Despite the potential risks associated with synthetic ingredients, consumers are willing to spend more on natural cosmetics due to their perceived health benefits. The e-commerce industry has played a significant role in the growth of the market, making it easier for consumers to access these products from the comfort of their own homes. Regulations regarding the use of natural and organic ingredients in cosmetics continue to evolve, ensuring that consumers can trust the authenticity and safety of the products they purchase.
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Market Scope |
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Report Coverage |
Details |
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Page number |
170 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 28.29% |
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Market Growth 2024-2028 |
USD 45.38 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
21.65 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 61% |
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Key countries |
Japan, China, South Korea, UK, and US |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Arbonne International LLC, Beiersdorf AG, Bloomtown Ltd., Highlander Partners, Honasa Consumer Pvt. Ltd., Johnson and Johnson Services Inc., Kjaer Weis, Korres, Loccitane International SA, LOreal SA, Natura and Co Holding SA, Nutraceutical Corp., Nuxe, Pola Orbis Holdings Inc., Tata Natural Alchemy LLC, The Clorox Co., The Estee Lauder Companies Inc., The Honest Co. Inc., Unilever PLC, and Weleda Group |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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