Global Natural Cosmetics Market Report and Forecast 2024-2032

Global Natural Cosmetics Market Size

The global natural cosmetics market reached USD 12.49 billion in 2023. The market is projected to grow at a CAGR of 6.40% between 2024 and 2032, reaching almost USD 21.83 billion by 2032.

Global Natural Cosmetics Market Outlook

• Minimalist makeup is one of the key trends propelling the market growth.

• Skincare is becoming an essential part of self-care, driving the global market expansion.

• The expansion of online distribution channels is also propelling the market growth.

Global Natural Cosmetics Market Growth

Environmental stressors like UV radiation, pollution, and weather extremities can impact the extracellular matrix of the skin and affect its inflammatory responses, thereby leading to the breakdown of the skin barrier and causing problems like drying skin and acne, or even hair damage. To restore the balance of microorganisms that ensure smooth skin, manufacturers are developing various natural beauty products that provide support to the skin microbiome. This is expected to increase the global natural cosmetics market value in the coming years.

Black seed oil is one of the major ingredients in hair care products due to the increasing number of problems related to hair thinning and hair fall faced by consumers worldwide. Instead of switching to oral medications, consumers are seeking natural alternatives for hair loss. By formulating hair care products that cater to specific problems, companies can relieve consumer’s problems significantly, and thereby contribute to the global market expansion.

The growing popularity of sea buckthorn extracts is aiding the growth of natural cosmetics market. Their vitamin and mineral-rich composition is expected to support the development of healthier cuticles and promote nail health. Furthermore, as consumers are focusing on maintaining a youthful appearance, they are looking for efficacious products which can increase the length of their manicures, make them glow, and repair their nails. This is expected to drive the market development in the forecast period.

Natural Cosmetics Market Trends

Increased sales over the past few years can be attributed to growing awareness of the advantages of natural cosmetics on consumer health and less environmental damage. Natural personal product usage has increased as a result of the growing trend of lowering the consumption of dangerous chemicals like phthalates, aluminum salts, and parabens, as well as the dedicated efforts of multinational corporations to employ sustainable products.

As per the natural cosmetics market dynamics and trends, the growing market for natural cosmetics has also been aided by customers' shifting perceptions of organic care and the growing need for chemical-free skin and personal care products. The expansion of this market in recent years has also been attributed to changes in lifestyle and rising disposable incomes. This trend is expected to continue over the forecast period.

Industry Outlook

The global market growth for natural cosmetics is driven by increasing consumer demand for eco-friendly and sustainable products, along with rising awareness about the benefits of natural ingredients for skin health. Additionally, stringent regulations against synthetic chemicals in cosmetics are pushing manufacturers to adopt natural formulations.

As per the natural cosmetics industry analysis, in 2023, the United States led the beauty and personal care market worldwide with a revenue of $97.81 billion. China followed with $67.18 billion, and Japan ranked third at $45.96 billion. India, Brazil, and Germany also showed significant market shares with $30.54 billion, $24.56 billion, and $20.29 billion, respectively. Other notable markets included France at $17.47 billion, the United Kingdom at $16.95 billion, and Russia at $16.11 billion. South Korea and Italy had revenues of $14.61 billion and $12.24 billion, respectively, while Bangladesh recorded $10.83 billion sales. These figures underscore the dominance of the United States and China in the global beauty and personal care market.

As reported by the Cosmetic Toiletry & Perfumery Association (CTPA), The European cosmetics market exhibited notable fluctuations in annual growth from 2020 to 2022. In 2020, the market experienced a contraction of 4.6%, a decline likely influenced by the COVID-19 pandemic, which disrupted production and consumer spending. Recovery began in 2021 with a growth of 2.9%, and by 2022, the market surged to a robust 7.8%, indicating a strong rebound and increased consumer confidence in the cosmetics sector and supporting the natural cosmetics industry revenue.

Recent Developments

Neo Naturals Consumer Products (Naturals) introduced its new line of beauty care products under the "Pearl" brand in September 2022. Under the new brand, the company has introduced eighteen new chemical-free, organic products made entirely of natural materials for skin and hair care. All of the Pearl brand's merchandise will be offered worldwide via retail centers, superstores, and popular e-commerce websites.

Natural Cosmetics Industry Segmentation

Global Natural Cosmetics Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Product Type

• Skin Care

• Hair Care

• Makeup

• Others

Market Breakup by Price Range

• Mass

• Premium

Market Breakup by Gender

• Men

• Women

• Unisex

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets

• Convenience Stores

• Pharmacy and Drug Stores

• Speciality Stores

• Online

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Major players are expanding their market presence by diversifying product distribution channels. This includes reaching consumers through social media platforms and popular e-commerce websites like Amazon, which is a key trend of natural cosmetics market.

Global Natural Cosmetics Market Share

Based on distribution channel, the online segment is witnessing significant growth. The rising domination of the e-commerce sector across industries is responsible for the higher segmental revenue. Furthermore, a lot of startup businesses choose to work with online selling partners initially because it enables them to break even on their initial investment.

Due to the advantages of these establishments—such as the ability to scan products before making a purchase and the assistance of the associated store in selecting the best product—supermarkets, hypermarkets, and convenience stores are predicted to experience significant growth. Another factor boosting the natural cosmetics demand is the instantaneous nature of purchases as opposed to online purchases, which require waiting for goods delivery.

Natural Cosmetics Market Regional Analysis

Europe held one of the largest market shares in the market. The majority of the major manufacturers and the growing number of startups producing natural cosmetics are based in Europe. Over the forecast period, companies including Bioeffect, AVON Product Inc., and L'Oréal SA are expected to contribute to Europe's continued dominance and increasing the natural cosmetics market revenue. German customers are looking for products that give value and have become more cost-conscious despite the country's relative stability during the recent economic downturn. In response to this increasing demand, producers have increased the quantity of multipurpose goods they offer, such as anti-wrinkle and SPF-protected moisturizers.

The British heritage brand Odylique, a pioneer in organic beauty, introduced two new foundations in November 2023 that are especially made for sensitive skin types. While the Natural Foundation has 66% active botanical skincare components, the Cream Foundation contains 80% of them.

Increasing Consumer Awareness and Sustainability and Ethical Production are Strengthening the Growth of the Global Market for Natural Cosmetics

• Shift to Plant-Based Ingredients: Increasing preference for cosmetics made from ingredients like aloe vera and green tea, seen as safer for the skin.

• Reduction of Chemical Exposure: Avoidance of harmful chemicals like parabens and sulfates drives demand for natural alternatives and propels the natural cosmetics demand growth.

• Support for Biodiverse Sourcing: Popularity of products using botanicals from biodiverse regions due to environmental and sustainable agriculture benefits.

• Personalized Natural Formulations: Growth in customized natural cosmetics tailored to individual skin types and concerns.

Limited Shelf Life and Consumer Skepticism May Challenge the Growth of the Market for Natural Cosmetics

• High Production Costs: Natural cosmetics often require more expensive raw materials and sustainable practices, leading to higher production costs compared to synthetic products.

• Limited Shelf Life: Natural ingredients tend to have shorter shelf lives and may require specialized storage conditions, complicating logistics and distribution, negatively impacting the natural cosmetics demand forecast.

• Regulatory Hurdles: Varying global regulations and certification standards can create challenges for manufacturers aiming to market their products internationally.

• Consumer Skepticism: Some consumers remain skeptical about the efficacy and safety of natural products, especially with the prevalence of greenwashing in the market.

Key Trends Shaping the Market Include the Use of Local Botanicals and Growing Popularity of Fermented Ingredients

• Adoption of Local Botanicals: Increased use of region-specific plants like moringa in Africa and seaweed in Japan, which are known for their unique skin benefits and sustainability creates several natural cosmetics market opportunities.

• Waterless Formulations: Growth in solid and concentrated formats, such as shampoo bars and powder cleansers, reducing water usage and increasing product longevity.

• Fermented Ingredients: Rising popularity of fermented plant extracts like kombucha and fermented rice water, which enhance ingredient potency and skin absorption.

• Blockchain for Transparency: Use of blockchain technology to provide traceability of ingredients, ensuring authenticity and ethical sourcing to build consumer trust.

Competitive Factors in the Global Natural Cosmetics Market

• The market for natural cosmetics is characterized by intense competition driven by several key factors. 

• Brand reputation and consumer trust play a crucial role, as customers prioritize products from well-established and transparent brands. 

• Innovation in product formulation, particularly the use of unique and potent natural ingredients, is essential for differentiation. Sustainable and eco-friendly practices, including ethical sourcing and green packaging, significantly influence consumer preferences and propels the growth of the natural cosmetics market. 

• Strategic marketing and effective distribution channels are vital for market penetration and expansion. Companies that successfully combine these factors are better positioned to capture and retain market share in the highly competitive natural cosmetics industry.

Competitive Landscape

The key market players are L'Oreal SA, Estee Lauder Companies Inc., Shiseido Company, Limited, Beiersdorf AG, True Botanicals, Inc., Mary Kay Inc., Weleda AG, Amway Corp., Purity Cosmetics (100% Pure), and The Honest Company, Inc., among others.

Strategic Initiatives of Key Players in the Market:

L'Oreal SA: Focuses on expanding its natural cosmetics portfolio through acquisitions and investments in innovative startups. L'Oreal has also committed to sustainability with its "L'Oreal for the Future" program, aiming for carbon neutrality and sustainable sourcing of ingredients which is increasing the demand of natural cosmetics market.

Estee Lauder Companies Inc: Invests heavily in research and development to create high-performance natural products. The company emphasizes clean beauty and transparency in ingredient sourcing, leveraging its prestige brands to promote natural and organic lines.

Shiseido Company, Limited: Leverages advanced Japanese technology to enhance the efficacy of natural ingredients. Shiseido prioritizes sustainable packaging and eco-friendly practices, incorporating traditional Japanese botanicals into its product formulations.

True Botanicals, Inc: Emphasizes science-backed natural products with a focus on non-toxic, high-performance skincare. True Botanicals is committed to transparency and sustainability, using organic and wild-harvested ingredients while supporting fair trade practices.

Amway Corp: Utilizes its extensive direct selling network to promote natural cosmetics. Amway invests in organic farming and sustainable ingredient sourcing, ensuring that its product lines meet high standards of purity and safety.

Purity Cosmetics (100% Pure): Specializes in creating natural and vegan cosmetics with a focus on fruit-pigmented formulations. The company is dedicated to environmental sustainability, using recycled packaging and supporting cruelty-free practices, thus aiding the natural cosmetics market growth.

Key Highlights of the Report

Natural Cosmetics Market Report Snapshots

Natural Cosmetics Market Size

Natural Cosmetics Market Growth

Natural Cosmetics Market Trends

Natural Cosmetics Market Share

Natural Cosmetics Companies

Natural Cosmetics Market Regional Analysis