Consumers across the world have become aware of the harmful effects of synthetic ingredients used for the production of personal care products. Particularly, the millennial generation prefers sustainable brands that produce personal care products with organic and herbal ingredients.
The organic personal care products segment is considered as the fastest growth area in the sustainable personal care industry. Most organic care products are produced from plant-derived ingredients such as roots, herbs, flowers, and essential oils. Unlike synthetic care products, organic ones do not use chemicals during the manufacturing process to preserve their organic contents.
Moreover, the concept of veganism has gained immense popularity in recent years due to increasing concerns about environmental degradation and cruelty toward animals. This trend is not only incorporated in food products but also in cosmetics and apparel as well. This is because consumers are not only interested in a vegan diet, but also look for veganism in other areas of life. Vegan cosmetics have gained great attention in recent years with consumers around the globe choosing organic and vegan cosmetic products that are all-natural, eco-friendly and perceived to be safe, gentle, and healthy.
Trends Driving the Organic Personal Care & Vegan Cosmetic Markets
- There has been a considerable shift towards healthy living, while also maintaining a greener environment, which in turn, has resulted in a rapid rise in demand for organic personal care products in more than one way. Although organic products are expensive, rising disposable income and improved standards of living are boosting the demand for these products to a great extent.
- According to a report by Allied Market Research, the global sustainable personal care market size was valued at $50.8 billion in 2021 and is anticipated to reach $129.7 billion by 2031, growing at 5% CAGR. Currently, North America is holding the highest market share, owing to the huge demand for sustainable personal care products in the US and Canada. The Asia-Pacific region is estimated to witness the fastest growth rate, attributed to the expansion of personal care industries and the rapid development of health and wellness industries in emerging economies like China, India, and others.
- There has been a remarkable surge in the demand for vegan cosmetics due to the increase in the adoption of plant-based products among people in various countries. Besides, vegan cosmetics such as skin care, color cosmetics, hair care, and others are becoming an integral part of grooming among consumers, especially among Gen Z. Thus, an increase in the standard of living, a surge in disposable income, a rise in attention to attractiveness among women are further expected to drive the growth of the global vegan cosmetics market.
- As per an Allied Market Research report, the global vegan cosmetics market is expected to reach $28.5 billion by 2031, growing at a CAGR of 5.9% from 2022 to 2031. Companies are increasingly focusing on developing new vegan cosmetics products that further create remunerative opportunities for the growth of the market.
Covid Impact on Organic Personal Care and Vegan Cosmetic Markets
The outbreak of the COVID-19 pandemic led to a negative impact on the growth of the global sustainable personal care and vegan cosmetic markets.
- The implementation of the global lockdown forced all manufacturing hubs to shut down their operations partially or completely. Supply chain disruptions, unavailability of raw materials, travel restrictions, a slowdown in the global economy, and shortage of labor were some of the major challenges faced by manufacturers.
- Consumers’ skincare routine changed, owing to the growing fears and risks associated with the COVID-19 disease. Consumers focused on purchasing only household necessities during the pandemic crisis instead of cosmetics, which had a direct impact on the growth of the overall cosmetics sector. Nevertheless, the global sustainable personal care and vegan cosmetics markets recovered in the post-pandemic period.
Recent Market Developments
- Numerous market players are launching innovative vegan cosmetics products to cater to the rising demands and changing lifestyles of consumers. For instance, Lifestyle International, a leading fashion retail company in India, entered the beauty segment with the launch of its first-ever beauty brand,
- This launch comes amid the significant surge in the beauty segment over the last couple of years, and hence more and more brands are entering this booming space to diversify the choices that consumers get at their disposal. IKSU offers high-quality beauty products such as concealers, blushes, foundations, eyeliners and highlighters at affordable rates. All their products are completely vegan, cruelty-free, and free of parabens, sulfates and formaldehyde as well. Lifestyle aspires to be a one-stop shop for everything from apparel to footwear, accessories, and beauty products.
- Pilgrim, a D2C beauty and personal care brand in India, announced the launch of its new product range called ‘Secrets of Seville’. This innovative range comes with a key ingredient called ‘squalane’, which is supposedly capable of strengthening skin barriers and preventing transepidermal water loss in the skin. Another major ingredient included is Phyto-retinol, a plant-based alternative that provides the benefits of retinol without its irritation side effect. Coenzyme Q10 is another ingredient included in the range that significantly energizes the skin and is full of anti-oxidant properties.
- Key market players in the organic personal care market are investing in product R&D to stay competitive in the market. For instance, Refresh Botanical expanded its product range to India by offering a product line that is specifically developed for acne-prone, sensitive, and aged skin types. This collection includes facial cleansers, eye and face makeup remover, toners, moisturizers, intensive serum, premium eye serum, night cream, etc. Likewise, constant improvement of product lines by firms including the Body Shop, Amway, Aveda Corporation, and others are providing lucrative opportunities for growth in the global sustainable personal care market.
Thus, constant innovations in organic personal care products and vegan cosmetic products, an increase in the standard of living, rise in awareness regarding the benefits of organic and vegan cosmetics, and a surge in the demand for plant-based and chemical-free products are expected to create ample opportunities for the growth of the markets.