Natural and Organic Cosmetics Market Size, Share, Trends, Growth 2032

Natural and Organic Cosmetics Industry Prospective:

The global natural and organic cosmetics market size was worth around USD 21.48 billion in 2023 and is predicted to grow to around USD 37.44 billion by 2032 with a compound annual growth rate (CAGR) of roughly 7.19% between 2024 and 2032.

Request Free Sample

Natural and Organic Cosmetics Market: Overview

Natural and organic cosmetics are products belonging to the global personal care & cosmetics industry. Although the terms ‘natural’ and ‘organic’ are used as synonyms by a large number of consumers and brands, these characteristics define separate qualities of cosmetic products. Natural personal care and beauty enhancement items are products in which at least 95% of the ingredients are natural products. Only 5% of the remaining ingredients can be produced in the laboratory or synthetic form. On the other hand, organic products are commodities in which 95% of the natural ingredients are grown organically without the help of chemical fertilizers or pesticides.

In terms of labeling parameters, organic products follow strict rules however, the efficiency of both types of products is similar. The growing demand for organic and natural cosmetics can be associated with several factors but a rise in consumer awareness and responsible buying habits has been crucial in ensuring that the industry for natural cosmetics and organic counterparts remains strong. During the projection period, the global market is expected to register high returns on investment.

Key Insights:

• As per the analysis shared by our research analyst, the global natural and organic cosmetics market is estimated to grow annually at a CAGR of around 7.19% over the forecast period (2024-2032)
• In terms of revenue, the global natural and organic cosmetics market size was valued at around USD 21.48 billion in 2023 and is projected to reach USD 37.44 billion, by 2032.
• The natural and organic cosmetics market is projected to grow at a significant rate due to the changing consumer preferences
• Based on distribution channel segmentation, online was predicted to show maximum market share in the year 2023
• Based on product type segmentation, face makeup was the leading segment in 2023
• On the basis of region, Europe was the leading revenue generator in 2023

Natural and Organic Cosmetics Market: Growth Drivers

Changing consumer preferences may drive market demand

The global natural and organic cosmetics market is expected to grow owing to the changing consumer preference. Globally, there has been a sharp rise in the demand for organic or natural products across commodity types including cosmetic products. Products made without or limited chemical ingredients have shown multiple benefits. They do not lead to side effects such as irritation, swelling, or itching which chemical cosmetics products are prone to. Since organic cosmetics consist of ingredients free of chemicals, they are considered safer for human skin.

In addition to this, the growing number of organic and natural cosmetic sellers has been influential in ensuring that the products are aggressively advertised. The adoption of strategic marketing activities has played a crucial role in improving consumer awareness about the several benefits associated with natural or organic cosmetics. Furthermore, they are known to be more effective or at least provide the same results as chemical-based counterparts. However, the pricing of the former is relatively more reasonable since natural ingredients are used to produce organic cosmetics. This allows more buyers to incorporate natural and organic cosmetics into their daily routine.

Furthermore, the benefits of products offered extend to the environment as well. Natural and organic cosmetics are more environmentally friendly due to the lack of chemical pesticides. They do not leave an excessive footprint on water, soil, or the air. As consumers adopt responsible shopping habits, the demand for natural and organic cosmetics is expected to grow.

Growing demand for cruelty-free products may help trigger market demand

The non-organic or synthetic cosmetic industry heavily relies on animal testing before the product can be launched in the commercial market. Consumers are increasingly adopting products that are cruelty-free since their counterparts are known to cause severe forms of harm to animals leading to millions of animal deaths annually.

Official survey reports conclude that more than 70% of people are actively making changes in their buying habits by seeking cruelty-free products thus encouraging the global natural and organic cosmetics market.

Natural and Organic Cosmetics Market: Restraints

High competition from the conventional cosmetics industry to fragment market consumers

The global natural and organic cosmetics industry is projected to be restricted due to the high competition the industry faces from the already established and thriving conventional cosmetics sector selling synthetically produced items. The demand for organic products has grown steadily. However, the global cosmetic industry has been dominated by synthetic cosmetic manufacturers due to product performance and aggressive marketing.

Additionally, at present times, several new synthetic cosmetic operators are working toward providing inexpensive solutions that are less priced than organic products leading to excess market fragmentation.

Natural and Organic Cosmetics Market: Opportunities

Rising sales through e-commerce platforms will fuel market revenue during the projection period

The global natural and organic cosmetics market is expected to proliferate due to the growing dominance of the cosmetic industry and the e-commerce industry. Since 2020, the sales revenue of cosmetic companies through online sales platforms has increased at a sharp rate. The trend is fueled by the growing number of impulsive shoppers across the globe along with the ease of shopping that online platforms provide. They offer multiple discounts and other forms of monetary incentives.

Additionally, every e-commerce company spends higher amounts on customer service along with establishing a robust supply chain. There has been a rise in the number of e-commerce platforms specially designed for cosmetic products. To improve customer experience, companies selling products online also offer multiple tools such as shade matching and providing inputs to customers who are unable to decide. These inputs are provided with the aid of advanced technologies such as artificial intelligence and machine learning.

Increasing options in the commercial market to attract more buyers

The global industry for natural and organic cosmetics is currently filled by multiple companies. They are offering multiple products across segments thus catering to a diverse group of audience.

In October 2023, Organic Harvest, a certified seller of organic hair care and skin care products, announced the launch of a new range of organic cosmetic products thus expanding its product portfolio. The company is offering a range of lipsticks and facial creams along with eye makeup products.

Natural and Organic Cosmetics Market: Challenges

Concerns related to product labeling will challenge the market growth rate

The global natural and organic cosmetics market is expected to be challenged by the concerns related to accurate product labeling. The terms ‘organic’ and ‘natural’ refer to specific forms and proportions of ingredients used.

Customers may find it difficult to distinguish between the two variants unless they are completely aware of the individual definition. Alongside this, the excessive competition in the industry further hinders the market growth rate.

Natural and Organic Cosmetics Market: Segmentation

The global natural and organic cosmetics market is segmented based on distribution channel, product type, and region.

Based on distribution channel, the global market is divided into online and offline. In 2023, the highest growth was witnessed in the online segment. The increased segmental revenue is a result of the growing dominance of the e-commerce industry across sectors. Additionally, several emerging companies tend to first collaborate with online selling partners since it helps them break even costs in the early stages of the business. The offline segment is also crucial to comprehensive market growth since first-time cosmetic buyers first buy the products after physical inspection. In the fiscal year 2023, India’s leading beauty e-commerce company Nykaa made a revenue of INR 5100 crore.

Based on product type, the global market is divided into eye makeup, lip makeup, face makeup, and others. In 2023, the highest demand was registered in the face makeup segment. Products such as foundations, concealers, and blemish balm creams are leading the demand for natural and organic cosmetics. Since these products are applied directly to the face skin, consumers are more concerned about the final impact of the product. In 2024, as per projections, more than 110 million US women in the US are expected to buy concealers or foundation on a regular basis.

Natural and Organic Cosmetics Market: Report Scope

Natural and Organic Cosmetics Market: Regional Analysis

Europe to register the highest growth rate during the forecast period

The global natural and organic cosmetics market will be led by North America during the forecast period. The reason for the higher regional growth is the presence of an internationally acclaimed cosmetic industry that enjoys customer loyalty across the globe. Europe is home to some of the leading cosmetic houses including manufacturers of affordable solutions and luxury options. In addition to this, the region also enjoys a large domestic market of regular cosmetic product users. The growing rate of consumer awareness and increasing emphasis on sustainable solutions will help Europe continue its dominance in the coming years.

In November 2023, Odylique, a leading British beauty brand, announced the launch of two organic foundations targeting customers with sensitive skin. The products are called the Cream Foundation and Natural Foundation. The former has 66% active botanical skincare ingredients and the latter has 80% of the same ingredients. Asia-Pacific is a fast-growing nation. The growing popularity of Indian and South Korean natural or organic cosmetic products will help fuel the region's revenue.

Natural and Organic Cosmetics Market: Competitive Analysis

The global natural and organic cosmetics market is led by players like:

• Weleda
• The Body Shop (acquired by Natura & Co)
• Dr. Hauschka
• Trilogy Natural Products
• Burt's Bees (a subsidiary of The Clorox Company)
• Juice Beauty
• Acure Organics
• Aveda (owned by Estée Lauder)
• Andalou Naturals
• Organic Harvest
• Burts Bees
• Eminence Organic Skin Care
• Aubrey Organics
• Alaffia
• Nature's Gate.

The global natural and organic cosmetics market is segmented as follows:

By Distribution Channel

• Online
• Offline

By Product Type

• Eye Makeup
• Lip Makeup
• Face Makeup
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa