Global Natural Cosmetics Market Outlook, 2028

Natural cosmetic products are beauty and personal care products that are made primarily from natural ingredients derived from plants, minerals, and other naturally occurring sources. These products aim to minimize or eliminate the use of synthetic chemicals, artificial fragrances, and harsh additives commonly found in conventional cosmetics. Natural ingredients are generally considered gentle and compatible with various skin types. They often provide nourishing and moisturizing benefits, promoting healthier-looking skin. Natural cosmetics are often seen as part of a holistic approach to wellness and self-care. The culture encourages individuals to prioritize their well-being by using products that are gentle, nourishing, and aligned with their values. Natural cosmetic enthusiasts often emphasize the importance of self-care rituals, mindfulness, and embracing natural beauty. Natural cosmetic products have gained mainstream acceptance and popularity. The one which was considered a niche market has now expanded into the mainstream beauty industry. Natural cosmetic brands and products are more widely available in retail stores, online platforms, and beauty specialty shops, catering to a broader consumer base. With the growing demand for natural cosmetic products, the range and variety of available products have expanded. Initially, natural cosmetics were limited to basic skincare and hair care products, but now the market offers a wide array of makeup, body care, fragrance, and even natural alternatives for specialized treatments like acne or anti-aging. Major brands are increasingly focused on sourcing ingredients sustainably and ethically. They are obtaining certifications from reputable organizations to provide transparency and assurance to consumers. These certifications, such as COSMOS, USDA Organic, or Ecocert, validate the natural and organic claims of the products, ensuring compliance with specific standards. According to the research report, "Global Natural Cosmetic Market Outlook, 2028," published by Bonafide Research, the market is anticipated to cross USD 61 Billion, increasing from USD 43.50 Billion in 2022. The market is expected to grow at a CAGR of 6.15% by 2023–2028. The growth of natural cosmetics can be attributed to several factors, including the increasing awareness among consumers about the benefits, the rise in demand for organic and plant-based products, and the increasing availability of natural cosmetics in mainstream retail channels. The market for natural cosmetics is also being driven by the growing trend of clean beauty, which emphasizes the use of products that are free from harmful chemicals and are environmentally sustainable. Consumers are increasingly looking for products that are not only good for their skin but are also good for the planet. The increasing awareness regarding the use of synthetic cosmetic chemicals in beauty and personal care products and its effects on skin or hair due to the use of substandard grade, quality, harmful compositions that can result in allergies, discoloration, texture alteration or permanent damage has in turn boosted the demand for natural and chemical-free cosmetic products. Owing to the fast-pacing trend of ‘clean beauty’ and ‘green beauty’ the manufacturers are switching to local, traditional, and natural ingredients such as floral extract, aloe Vera gel, and natural antioxidants that are appealing to the customers. Plant-based ingredients include botanical extracts, essential oils, and plant-derived oils and butters. Some common plant-based ingredients used in natural cosmetics include aloe Vera, coconut oil, jojoba oil, chamomile, lavender, and rosehip oil, among many others, which is driving the demand for natural cosmetics in the market. Plant-based ingredients are valued for their perceived health benefits and effectiveness in treating various skin and hair concerns. For instance, aloe Vera is known for its soothing and moisturizing properties, while chamomile is used for its anti-inflammatory and calming effects.

The global market is segmented into five major regions including North America, Europe, Asia-Pacific, South America and Middle East & Africa. Among them, Europe region is dominating the market in 2022 with more than 35% share. Europe has been at the forefront of the cruelty-free movement. In 2013, the EU banned the sale of cosmetics tested on animals. This has led to a rise in cruelty-free and vegan natural cosmetic brands in the region, catering to the growing demand for ethical and animal-friendly products. Europe hosts various green beauty events and trade shows that showcase natural and organic cosmetics. Events like Vivaness, Biofach, and Natural & Organic Products Europe bring together industry professionals, brands, and consumers to promote natural and sustainable beauty products, facilitate networking, and share industry insights. Europe has some of the strictest regulations for cosmetics in the world. The European Union (EU) has implemented the Cosmetics Regulation (EC) No 1223/2009, which sets stringent standards for product safety, labelling, and ingredients. Natural cosmetics in Europe must comply with these regulations to ensure consumer safety and transparency. The COSMOS (COSMetic Organic Standard) is a European standard for organic and natural cosmetics. It was developed by several leading European certification bodies to harmonize and define organic and natural cosmetic standards. Products certified under the COSMOS standard adhere to strict criteria regarding ingredient sourcing, manufacturing processes, and environmental sustainability. Organic certification is highly valued in the European natural cosmetics industry. Certification bodies such as Ecocert, Soil Association, and BDIH provide organic certifications to ensure that products meet specific organic farming and ingredient standards. Organic certification assures consumers that the products they purchase are produced using organic and environmentally friendly practices. Based on the product type, the global market is categorized into skin care, hair care, color cosmetics and others. Among them, the skin care products market registered exponential market growth in 2022 followed by hair care. With the increased spending by individuals on cosmetic products, the demand for natural cosmetics is expected to increase significantly in the next few years. Rapid urbanization coupled with increasing per capita disposable income supports the growth of the market wherein; consumers are willing to pay higher prices for natural cosmetics due to their safety and benefits. Moreover, owing to this trend observed in the consumers, the key manufacturers are making continuous developments in the growth of the natural and organic market. In September 2017, Iredale Mineral Cosmetics, Ltd. (IMC) announced a retail partnership with luxury department store Neiman Marcus in which the Jane Iredale brand is made available on NeimanMarcus.com and inside the retailer’s Boston, Charlotte, NC, and Plano, TX locations. This partnership assisted IMC in expanding its distribution reach, whereas Neiman Marcus could increase their consumer base owing to customers’ interest in clean and natural beauty products. In the same line, the growing application of natural actives that support skin care in mainstream cosmetic products offers abundant proof that the global natural and organic cosmetic industry can rely heavily on these natural ingredients. On the other hand, color cosmetics products are growing at a prominent CAGR of 6.65% by 2023-28.

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Manmayi Raval

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Innovation in the natural cosmetics market can take much form, from new ingredient formulations to new product formats and packaging. Some natural cosmetics brands are using biodegradable or compostable packaging materials, while others are developing waterless formulations that reduce the use of water in their products. Also, brands specializing in natural skincare are developing natural makeup products to appeal to customers looking for natural alternatives in the beauty category. Consumer preferences are shifting towards sophisticated formats i.e. smaller packs at affordable prices. Further, manufacturers are also offering products in smaller and more convenient packaging such as sachets in order to channelize their products from niche distribution to mass distribution networks and such strategies have effectively increased the sales of cosmetics such as natural cosmetics. Competitive Landscape Companies operating in the natural cosmetics market are aiming at unique and focused differentiating strategies to expand their business landscape and to address the demand of an expanding pool of consumers. In 2021, Global Bioenergies announced the introduction of a new cosmetic ingredient that is naturally sourced isododecane, which can now be used in the large products of skincare and haircare. According to the report, the market is segmented into three major end users including women, men and children. Among them, the women segment dominated the market in 2022 and is expected to continue this dominance by the end of the forecast period. Continued growth in organized retail sectors and increasing working women population both in developed and developing economies are expected to increase the sales of natural cosmetics. Moreover, key natural cosmetics manufacturers emphasize the new product development, which accelerates the sales of natural cosmetics. On the other hand, parents are increasingly conscious of the ingredients used in products applied to their children's delicate skin. Natural cosmetic products offer a perceived safer alternative, as they are often free from harsh chemicals, artificial fragrances, and synthetic additives that can potentially cause skin irritations or allergies. As eco-consciousness grows, parents are seeking products that align with their environmental values. Natural cosmetic products for kids often emphasize sustainable sourcing, organic ingredients, and eco-friendly packaging, resonating with environmentally aware parents. Natural parenting movements, focusing on holistic and mindful approaches to child-rearing, have influenced the demand for natural cosmetic products for kids. Parents embracing these philosophies often seek natural alternatives in various aspects of their children's lives, including skincare and personal care. The segment is expected to grow with more than 6.5% CAGR by 2023-28. Based on the distribution channel, specialty store segment led with a market value of USD 15 Billion in 2022 followed by convenience stores. This segment has been gaining traction owing to benefits of these outlets, such as the ability to scan the products before purchasing coupled with help from store associated to pick the most suitable product is anticipated to work in favour of this mode of purchase. Instant purchase as opposed to waiting for the delivery of the product in case of online purchasing also serves as a driving factor for the segment. Online is an emerging mode of distribution and is anticipated to expand at a CAGR of 6.5% during the forecast period. Easy access of a variety of products from different brands works as a driver for this segment. It also helps the companies to provide products at a low investment with chances of revenue generation. Various prominent players are setting up websites and are tying up with online portals, such as Nykaa, Amazon, Jabong, Credo Beauty, and others. LOréal SA focuses on offering new products to attract new consumers and strengthen its current consumer base. Acquisitions are also part of the company’s strategies to expand in different regions of the world and increase its product portfolio by bagging major brands. For instance, the company has launched its new premium hair care brand “Botanicals Fresh Care.” The product contains 95% naturally derived ingredients. The formula's pomegranate extract is sourced from Tunisia and Malta. Further, L'Occitane International SA offers a wide range of products as it invests heavily in product launches, focusing on natural and organic cosmetics. Moreover, the company participates in various events to build strong relationships with its channel partners. The company also aims to expand its presence in the international market focusing on emerging economies.

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The premium price range segment comprises high-end natural cosmetic products that are positioned as luxury or prestige items. These products are associated with premium ingredients, sophisticated formulations, and upscale packaging. They are typically available in high-end department stores, specialty boutiques, and luxury beauty retailers. Consumers are becoming more conscious of the potential health and environmental impacts of synthetic chemicals in cosmetic products. There is a growing preference for natural ingredients and sustainable production methods. Premium natural cosmetic brands cater to this demand by offering high-quality products with carefully sourced natural ingredients, appealing to consumers who prioritize purity, efficacy, and sustainability. Premium natural cosmetic brands often offer personalized and customized options, tailoring products to individual needs. This level of customization enhances the consumer experience and creates a sense of exclusivity. Consumers are willing to invest in premium products that meet their specific preferences and requirements. Covid-19 Impacts: The pandemic caused disruptions in global supply chains, including the sourcing and transportation of raw materials used in natural cosmetics. Restrictions on international trade, temporary closures of manufacturing facilities, and transportation challenges resulted in delays in production and distribution for some brands. The pandemic has resulted in economic uncertainties, job losses, and financial constraints for many consumers. As a result, some consumers have become more price-sensitive and focused on essential purchases, which could impact the sales of higher-priced natural cosmetic products. Non-essential retail stores, including beauty and cosmetic shops, experienced temporary closures during lockdowns. This impacted the sales of natural cosmetics, as consumers had limited access to physical stores. However, as restrictions eased, retail stores gradually reopened, allowing brands to regain some sales momentum. With lockdowns and social distancing measures in place, consumers turned to online shopping for their beauty and personal care needs. This shift accelerated the growth of e-commerce for natural cosmetic brands, prompting many to invest in online platforms, improve their digital presence, and enhance the overall online shopping experience. Natural cosmetic brands have capitalized on this trend by offering products that emphasize cleanliness, gentle formulations, and natural ingredients. Recent Developments: • March 2022 L’OCCITANE Group acquired Grown Alchemist, an Australian cosmeceutical, clean skincare brand. The brand has developed globally, focusing on anti-aging technology and unique botanical skincare formulas for optimal skin health. • December 2021 L'Oréal signed an agreement with Youth to the People, a California-based skincare company. Youth to the People develops and produces high-performance skincare products inspired by superfood extracts. • November 2021 L’OCCITANE Group acquired a Brazilian-based cosmetic company, Sol de Janeiro, an innovative leader in the global prestige body care market. With this acquisition, the company strategizes to expand premium beauty brands. • June 2020 L'Oréal acquired Thayers Natural Remedies, a US-based natural skincare brand from Henry Thayer Company. The brand will be integrated into L’Oréal’s Consumer Products Division. Companies Mentioned in the report: Natura & Co, Shiseido Company Limited, The Estee Lauder Companies, True botanicals, Tata harper skincare, Weleda AG, Chanel Ltd, Beiersdorf AG, L'Occitane Groupe S.A., Ursa Major Skincare, Credo Beauty, Herbivore Botanicals Inc., Oriflame Holding AG, Rosen Skincare Inc, Juice Beauty, Inc., W3ll People LLC,, Chando Himalaya, Liha Beauty Limited., Hindash Cosmetics , L'Oréal S.A Considered in this report • Geography: Global • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • Global Natural Cosmetic market with its value and forecast along with its segments • Region & Country-wise Natural cosmetic market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Regions covered in the report: • North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Spain, Italy, Russia) • Asia-Pacific (China, Japan, India, Australia, South Korea) • South America (Brazil, Argentina, Colombia) • Middle-East & Africa (UAE, Saudi Arabia, South Africa) By Product Type • Skin Care • Hair Care • Color Cosmetic • Other (Fragrances) By Pricing Range • Mass • Premium By End User • Men • Women • Children By Distribution channel • Specialist Stores • Supermarkets/Hypermarkets • Convenience Stores • Online • Other Distribution Channel The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Skincare industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.