The term organic, in general refers to a product derived from living organisms and untouched by any chemical compounds, fertilizers, or pesticides. In the cosmetic industry, the term organic means a brand or an ingredient that has been certified by one of the numerous certifying institutions that operate worldwide like the United States Department of Agriculture (USDA). It also bears a logo of the certifying institution which means that the said ingredients have been grown and processed under a strict code of cleanliness with no chemical compounds and no genetically modified organisms.
There is as such no specific definition pertaining to the term organic. Organic skin care products tend to offer the added benefits of decreased risk of skin irritation and allergies since they do not contain chemicals. Organic skincare products contain organic vegetable oils, organic essential oil, essential fatty acids, and vitamins. Organic skincare products are environment friendly. Organic cosmetics are produced after choosing the best ingredients derived from plants along with some other naturally occurring ingredients. Organic skincare products nourish, moisturize, and take care of the skin gently.
Organic skincare products come with different labels. The label “100% Organic” signifies that the product contains only organically produced ingredients and is permitted to display the seal. The label “Organic” means the product contains at least 95% organically produced ingredients and is permitted to display the seal. The label “Made with Organic Ingredients” means that the product contains at least 70% organic ingredients but is not permitted to display the seal. Demand for organic products in the skin care space is seeing rapid growth.
There is a paradigm shift in consumer awareness about health and wellness owning to the growing number of beauty blogs and social media accounts dedicated to the benefits of going organic. This is a major driver for the organic skin care industry. The online platform is one of the key sources used by consumers to search for the best suitable products which may not be available in malls and retail stores. Hence, e-commerce is one of the prominent factors propelling growth in the global skin care market. Various technological innovations which are used to increase the shelf life of skin care products are expected to have a positive impact on the sector.
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The skin care market is driven by factors such as new product development, increased spending capacity of consumers on premium products, expansion of distribution channels, and increasing online reach. However, the high cost of organic skincare products may become a hindrance to the growth of the market. Nevertheless, the organic skincare market growth is expected to show an upward trend.
The organic skin care market has been segmented on the basis of type, gender, point of sale, and geography. Based on type, the organic skincare market is classified into facial care, hair care, make-up, and body care. Based on gender, the market is categorized into male and female. On the basis of point of sale, the organic skin care market is segmented into exclusive retail stores, online channels, supermarkets/hypermarkets, beauty parlors & salons, and multi branded retail outlets. Based on geography, the organic skin care market has been divided into North America, Asia Pacific, Europe, Middle East & Africa, and South America.
Some of the major players in the organic skin care market include Procter and Gamble, L’Oreal, Avon Products Inc., The Estee Lauder Companies Inc., Jergens, Johnson & Johnson, Kao Corporation, Private Label, and The Body Shop International PLC.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers’ or customers’ journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
