The global natural skin care products market size was valued at USD 11.95 billion in 2020 and is expected to reach USD 16.9 billion grow at a compound annual growth rate (CAGR) of 5.1% from 2020 to 2027. Growing concerns regarding the side effects of chemicals on the skin, causing skin irritation, allergies, and skin dullness, have been one of the key factors fueling the market growth.
Dissemination of knowledge related to the benefits of natural skincare has led consumers seeking eco-friendly, sustainable, natural skincare products that come with greater product ingredient transparency. According to the Asia Cosmetics report, in 2017, globally 40% of the change in the buying decision of the consumers has inflected because of natural ingredient listing on the packaging. Natural skincare and cosmetic products that are free from chemicals and transparent about the content have been preferred by consumers, which is likely to drive the demand for natural skincare products. The mass segment led the market and accounted for 60.5% share of the global revenue in 2019. The high concentration of manufacturers offering natural skincare products, which can be used on a regular basis while keeping the product affordability in mind, is a primary reason boosting the growth of this segment. For instance, Himalaya- natural personal care brand offers a wide variety of products ranges from skincare, body care, sanitization, and hair care products at moderated pricing. Such manufacturers and brands continue to boost demand for this segment.
The facial care segment led the market and accounted for 63.9% share of the global revenue in 2019. Growing preference for complicated facial care routines among women as well as men in the recent past has been a prominent reason for the segment growth. Natural skincare products such as cleansers face masks and packs, scrubs, and moisturizers have witnessed high acceptability among consumers who prefer them to hydrate skin for better glow and health. The high popularity of facial products has enthused established manufacturers to expand their product offerings by acquiring promising companies pertaining to natural skincare.
The women segment led the market and accounted for 60.0% share of the global revenue in 2019. Growing preference for natural skincare products to avoid breakouts and skin irritation caused by chemical skincare products is among the key factors fueling the segment growth. Women are more concerned about the appearance than men, and thus pay more attention to their skin and the quality of products they use for it. This has led manufacturers in the natural skincare industry to venture into relatively novel categories, such as facial masks, face wash, lotions, and serums. Rapid urbanization, along with a gradual increase in the number of working-class women, has augmented the demand for natural skin care products, thereby driving the consumption of chemical-free beauty products across the globe.
Hypermarkets and retail chain distribution channels dominated the market and accounted for 41.7% share of the global revenue in 2019. These stores have been focusing on offering natural and chemical-free categories set up to pique customer interest and offer them a facility to choose from numerous brands before making a purchase. Moreover, many retailers are focusing on revamping the product portfolio in the stores owing to the popularity of natural products. For instance, in April 2017, CVS Health, a retail chain, announced the removal of approximately 600 beauty and personal care brands offering parabens, phthalates, and the most prevalent formaldehyde. Moreover, in August 2017, Walmart, another retail chain, launched a natural beauty line called Found, which includes 133 natural skincare and beauty products and would be available in offline stores.
The natural skin care products market is segmented on the basis of product, type, end-use, distribution channel and region. On the basis of product Facial care, Body care. On the basis of type Mass, Premium. On the basis of end-use Men, Women, Children. On the basis of distribution channel Direct Selling, Hypermarkets & Retail Chain, E-commerce, Specialty Stores, Others.
Europe dominated the market for natural skin care products and accounted for 33.2% share of the global revenue in 2019. Consumers in countries such as the U.K., France, Italy, and Germany are more conscious about the products they apply on their skin, and thus prefer natural, herbal, and organic care for skincare routines. According to the Global Web Index report 2019, close to 43% of consumers in the U.K. accepted that they would pay a premium price for sustainable, natural, and eco-friendly products, which contain no chemicals.
Key players are: Procter & Gamble; Estee Lauder; Mama Earth; Unilever; Clorox Co.; Honest Co.; The Body Shop; Loreal; FOM London Skincare; Bloomtown.
Report : Natural Skin Care Products Market - By Type (Mass, Premium) By Product (Facial care, Body care) By End-use (Men, Women, Children) By Distribution Channel (Direct Selling, HyperMarkets & Retail Chain, E-commerce, Specialty Stores, Others) By Region (North America, Europe, Asia Pacific, Latin America and Middle East & Africa) - Industry Analysis, opportunity and Forecast 2020 To 2027