Global Organic Personal Care Ingredients Market Report and Forecast 2024-2032

Global Organic Personal Care Ingredients Market Size

The global organic personal care ingredients market value reached USD 10.45 billion in 2023 and is expected to grow in the forecast period of 2024-2032 at a CAGR of 4.8% to reach USD 15.98 billion by 2032 owing to rising awareness about health.

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Global Organic Personal Care Ingredients Market Growth

Organic personal care ingredients are extracted from the plants under eco-friendly conditions. They provide antioxidation properties, nourishment to the skin, and UV protection. Their application sectors include skin care, oral care, hair care, and cosmetics, among others.

The organic personal care ingredients industry growth is being driven by the increasing popularity of chemical-free products. The increasing use of antioxidant personal care products from herbal extracts is boosting the demand for organic personal care ingredients.

Global Organic Personal Care Ingredients Market Analysis

Organic ingredients, derived from natural sources, reduce exposure to synthetic chemicals, enhancing consumer safety. They are produced with sustainable practices that minimise environmental impact and promote biodiversity. Organic products are often gentler on sensitive skin and less likely to cause irritation or allergic reactions. They typically have a reduced carbon footprint and are abundant in beneficial nutrients such as vitamins and antioxidants, which enhance skin health and appearance, thereby further increasing the organic personal care ingredients market demand.

Organic personal care ingredients market trends and dynamics are being strengthened as numerous organic brands adhere to ethical practices, including cruelty-free testing and fair trade, which promotes a more responsible market. The efficacy of organic ingredients can be higher due to their natural potency. Growing consumer awareness and preference for organic products contribute to increased brand trust and loyalty. Additionally, the organic market drives innovation, leading to higher-quality products. Finally, organic personal care items typically adhere to stringent regulatory standards, ensuring greater safety and quality compared to conventional alternatives.

Global Organic Personal Care Ingredients Industry Outlook

According to the World Bank, the global population grew to 8.02 billion in 2023, up from 7.95 billion in 2022. The male population increased from 4 billion in 2022 to 4.03 billion in 2023, while the female population rose from 3.95 billion in 2022 to 3.99 billion in 2023. This growth highlights a steady increase in both male and female populations throughout the year, enhancing the organic personal care ingredients industry revenue. A larger and more diverse population fosters opportunities for developing new product formulations suited to different skin types, preferences, and regional demands, fuelling innovation and market expansion.

According to the Ministry of Statistics & Programme Implementation, the per capita income, also known as Per Capita Net National Income at current prices in India, was estimated at USD 2,037.23 for 2021-22 and rose to USD 21,52.60 for 2022-23. Similarly, the per capita private final consumption expenditure (PFCE) at current prices increased from USD 1,418.74 in 2021-22 to USD 1,508.19 in 2022-23.

In April 2024, the value for personal consumption expenditures (PCE) is estimated at USD 39.1 billion, reflecting a 0.2% increase from the preceding month, it rose significantly to USD 83.7 billion in May 2024, a 0.4% increase from the previous month as per the U.S. Bureau of Economic Analysis.

The Australian Bureau of Statistics reports that e-commerce in Australia’s retail sector represented 7.3% of the total digital activity value added during the 2020-21 fiscal year, an increase from 5.5% in 2019-2020. This growth further boosts the organic personal care ingredients market revenue, as e-commerce platforms enable organic personal care brands to access a global audience, thereby extending their reach beyond local or regional boundaries.

As per the Government of Japan, in Q1 2024, the household final consumption expenditure was USD 2.08 trillion, reflecting an increase compared to Q1 2023, when it was approximately USD 2.07 trillion.

The Census Bureau of the Department of Commerce announced that U.S. retail e-commerce sales for the first quarter of 2024 have been estimated at USD 289.2 billion. This represents a 2.1 per cent (±0.7%) increase from the fourth quarter of 2023. Compared to the first quarter of 2023, the first quarter of 2024 e-commerce estimate rose by 8.5 per cent (±1.1%), while total retail sales increased by 2.8 per cent (±0.5%) during the same period.

Increasing awareness of health and environmental issues drives demand for organic personal care ingredients market.

• Adherence to cruelty-free and fair-trade standards enhances brand reputation and consumer trust.

• Organic ingredients offer higher levels of beneficial nutrients, which can improve skin health and effectiveness.

Organic ingredients and production methods can be more expensive, leading to higher retail prices.

• The availability of high-quality organic ingredients can be inconsistent, affecting product range and consistency.

• Stricter regulations and certification requirements can complicate market entry and increase operational costs.

Growing interest in wellness and sustainability opens new market segments and regions.

• Advances in organic formulations and technologies can lead to new and improved products.

• Rising consumer awareness about the benefits of organic products can drive further growth of the organic personal care ingredients industry.

The market is becoming increasingly crowded, making it challenging for new entrants to differentiate themselves.

• Economic downturns can reduce consumer spending on premium organic products.

• The rise of counterfeit or misleadingly labelled products can undermine consumer trust in the market.

Key Players in the Global Organic Personal Care Ingredients Market and Their Key Initiatives

BASF SE

• Launched new natural and biodegradable ingredients to meet the growing demand of the organic personal care ingredients market. 

• Introduced the Emulgade® Sucro Plus, a sugar-based emulsifier. 

Clariant International Ltd.

• Clariant and Polygal AG have partnered to produce natural and readily biodegradable solutions. 

• Extend natural rheology modifier options to Personal Care formulators.

Evonik Industries AG

• Launched RHEANCE® One for gentle cleansing solutions to capture the organic personal care ingredients market opportunities. 

• Acquired Botanica to enhance portfolio with natural plant extracts. 

Cargill, Incorporated

• Launched new organic and eco-friendly personal care ingredients. 

• Formed partnerships with global brands to promote organic ingredients.

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Global Organic Personal Care Ingredients Industry Segmentation

“Global Organic Personal Care Ingredients Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Organic Ingredients

• Natural Ingredients

Market Breakup by Product

• Natural Surfactants

• Emollients

• Active Ingredients

• Sugar Polymers

• Natural Preservatives

• Others

Market Breakup by Application

• Skincare

• Oral care

• Hair care

• Cosmetics

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

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Organic Personal Care Ingredients Market Share

Organic and natural ingredients provide notable advantages in the personal care market. Organic ingredients are milder on the skin, reducing the risk of irritation and allergies, and they support environmental sustainability by avoiding synthetic pesticides and fostering biodiversity. They are nutrient-rich and produced through ethical practices, which helps minimise chemical exposure and fuels the growth of the organic personal care ingredients industry.

Similarly, natural ingredients are gentle and safe for the skin, environmentally friendly, and often more readily absorbed, boosting their effectiveness. They include bioactive compounds that deliver targeted skin benefits and attract consumers interested in natural products, further driving market expansion, and creating brand opportunities.

Leading Companies in the Organic Personal Care Ingredients Market

The companies specialise in chemicals, delivering innovative solutions to a range of industries such as personal care, healthcare, and agriculture.

• BASF SE 

• Clariant International Ltd. 

• Evonik Industries AG 

• Cargill, Incorporated 

• Croda International Plc 

• Ashland Global Holdings Inc. 

• Lucas Meyer Cosmetics 

• Galaxy Surfactants Ltd. 

• Vivimed Labs Ltd.

Key Highlights of the Report

Organic Personal Care Ingredients Market Report Snapshots

Organic Personal Care Ingredients Market Size

Organic Personal Care Ingredients Market Growth

Organic Personal Care Ingredients Market Analysis

Organic Personal Care Ingredients Market Share

Organic Personal Care Ingredients Companies