Organic Personal Care Products Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The global organic personal care products market is growing at a CAGR of 7.61% during the forecast period (2021-2026).

The recent Covid-19 outbreak has impacted the growth of the market for organic personal care products. An increase in the number of cases worldwide has led to a global lockdown and restricted supply chains. Consumer’s discretionary spending has reduced, and companies have been witnessing a behavioral shift towards safe and reliable products.

The coronavirus pandemic has significantly affected the organic personal care products market globally. Apart from affecting sales of finished products, it has disrupted the flow of raw materials. Lockdowns in various parts of the world have disrupted supply chains of natural ingredients and increased freight costs because of flight cancellations. Some natural personal care companies have stated COVID-19 has mainly affected their business through delays in the delivery of raw materials.

Some personal care companies that source directly from growers have been less affected. A German natural cosmetics company stated that they had not suffered raw material shortages because they work directly with small farmers and producers that have not been as affected as larger exporters. Organic personal care companies that use locally sourced ingredients have also not been affected by raw material shortages.

The current situation has also resulted a generation of opportunities for many private players to emerge in the markets, to cater the inflated demand. Furthermore, COVID-19 has led to a major consumer shift, as customers are no more brand loyal in developing countries and are trying new brands in the low-stock environment.

The market studied has witnessed a significant growth due to growing awareness of organic ingredients and increasing concerns about the environment thus, resulting in consumer inclination toward organic personal care products during the study period.

Personal care products increasingly use natural and organic ingredients. Consumer concerns about synthetic chemicals in personal care products, which is helping support this demand. Also, consumers are avoiding chemicals, such as parabens, phthalates and sodium lauryl sulphate, as they are concerned about associated health risks. As consumers view organic and natural ingredients as safer for human health and the environment. Thus, growing number of personal care product companies are therefore replacing synthetic chemicals with natural and organic ingredients. This trend is driving the demand for natural and organic personal care products in the market.

Consumers have been a pre-requisite in the demand for natural and organic products, while the preference for these products has gone beyond environmental concerns, moving towards health and prevention. This change is partly due to an increase in people suffering from allergies and eczema, which has raised awareness about the possible health consequences of the ingredients contained in personal care products. Consumers have a mindset that can be reflected in quality over quantity, with a preference for products with few but effective natural ingredients.

The recent trends in the organic personal care market can be dissected by analyzing the types of cosmetic users and their subsequent behaviors. By product type, the skincare products segment dominates the global personal care products market.

Scope of the Report

Personal care products are the consumer products used in personal grooming, personal hygiene or for beautification purpose. The global organic personal care products market broadly covers the products associated with hair care, skincare, lip care, deodorant and antiperspirant, bath and shower, oral care, and men's grooming. The distribution channels such as hypermarket/supermarkets, specialist retail stores, online retail stores, and other channels are supporting the sales of the market. Based on geography, the report provides a detailed analysis of the Organic personal care products market in various economies, including, North America, Europe, Asia-Pacific, South America, and Middle-East, and Africa.

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Key Market Trends

Organic Skin Care Holds a Major Share in the Market

The market for organic skincare witnessed a significant demand due to the increasing interest in natural formulations in facial skincare regimes. Moreover, increased concerns regarding skin problems, like skin blackening and burn, are also driving the market growth during the study period. Furthermore, skin sensitivity and awareness about the harmful effects of chemicals and synthetic products are few factors augmenting the growth of this market.

Companies are focusing on developing products that are specifically designed to cater to various consumer needs, such as dry, sensitive, acne-prone, aging, oily, or normal skin. For instance, Acure offers Organic facial cleansing cream, which is made of organic Moroccan argan oil, acai berries, mint, and calendula, designed for normal/dry skin types during the dry season and cold winter months, as it helps to replenish the lost moisture. Consumer demand for healthy and natural products has increased since the COVID-19 outbreak which is expected to drive the market growth during the study period.

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