The global market for organic personal care products demonstrates a highly fragmented landscape with a large pool of participants, holding very low market shares, finds a report by Transparency Market Research (TMR). As leading players, namely, Bare Escentuals, Estee Lauder, Burt's Bee, and The Hain Celestial Group, exhibit marginal difference in their individual shares, the competition between them is significantly high. In 2013, these four companies, together, accounted for a share of 28.5% in the overall market.
Private-label retailers have gained much success in the organic personal care products market. Premium brands are selecting high-end retail stores as their distribution partners while other manufacturers are opting for supermarkets, pharmacies, drugstores, and department stores. Going forward, large cosmetics organizations are likely to enter this market through acquisition strategy as well as the addition of organic product lines in the near future, notes the study.
As per the research report, the global market for organic personal care products will present an opportunity worth US$15.6 bn by 2020. It was valued at US$8.3 bn in 2013 and is estimated to rise at a CAGR of 9.30% during the period from 2014 to 2020. The demand for skin care products has been higher than other organic personal care products. Analysts at TMR expect the trend to remain the same throughout the forecast period.
Entry of New Multinationals to Boost North America Organic Personal Care Products Market
The report also provides an assessment of the worldwide organic personal care products market on the basis of its geographical reach. Asia Pacific, North America, Europe, and the Rest of the World have been identified as the prime geographical segments of this market in this study.
With a share of nearly 40%, North America emerged as the key contributor in this market in 2013. The entry of new multinationals, making organic products more viable for consumers, is likely to influence the demand for organic personal care products greatly in this region, retaining the lead of North America during the forecast period.
Asia Pacific is also expected to witness a strong upswing in the demand for organic personal care products in the near future, mainly due to the increased awareness regarding organic principles, states the research report.
Increasing Incidence of Skin Infections from Synthetic Products to Boost Demand for Organic Personal Care Products
“The increasing awareness pertaining to the adverse impact of chemicals used in cosmetics and personal care products is encouraging consumers to shift towards organic products,” says the author of this report. In the recent times, the incidence of allergies and skin infections caused by the usage synthetic products has experienced a considerable rise across the world.
As organic personal care products do not contain harmful chemicals, they have emerged as an efficient substitute for synthetic personal care products. As a result, the demand for organic personal care products has remarkably increased over the last few years. Analysts project this demand to remain rising throughout the forecast period.
Short Shelf-life and High Cost to Hinder Market’s Growth
Despite the advantages offered by organic personal care products, their relatively shorter shelf-life limits their utilization to a certain extent. The high cost associated with these products also adds to this scenario and is expected to hinder the market growth in the long run.
The study presented here is based on a report by Transparency Market Research (TMR) titled “Organic Personal Care Products Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 - 2020.”
The global organic personal care products market is segmented into:
- Skin Care
- Hair Care
- Oral care
- North America
- Asia Pacific
- South Korea
- Rest of the World
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