NEW YORK, Aug. 6, 2024 /PRNewswire/ --The global natural cosmetics market size is estimated to grow by USD 45.37 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 28.29% during the forecast period. Growing consumer demand for chemical-free and environment-friendly natural cosmetics products is driving market growth, with a trend towards growing demand for organic plant-based cosmetics products. However, stringent government regulations poses a challenge. Key market players include Arbonne International LLC, Beiersdorf AG, Bloomtown Ltd., Highlander Partners, Honasa Consumer Pvt. Ltd., Johnson and Johnson Services Inc., Kjaer Weis, Korres, Loccitane International SA, LOreal SA, Natura and Co Holding SA, Nutraceutical Corp., Nuxe, Pola Orbis Holdings Inc., Tata Natural Alchemy LLC, The Clorox Co., The Estee Lauder Companies Inc., The Honest Co. Inc., Unilever PLC, and Weleda Group.

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Market Driver

The natural cosmetics market is witnessing a significant trend towards plant-based and vegan cosmetics. These products, which include personal care, skincare, and hair items, utilize organic plant extracts as key ingredients. These extracts are sourced from plants that have not been exposed to chemical pesticides, herbicides, or fertilizers. Brands manufacturing these items provide clear labeling to indicate a high percentage of organic farming-derived ingredients. Traditional cosmetics, such as lipsticks and soaps, may contain animal content. However, plant-based cosmetics brands use alternative, cruelty-free ingredients like plant oils, waxes, and by-products. Some companies even use plant-based packaging. Collaborations between market leaders are increasing to develop organic and plant-based cosmetics, fueling market growth during the forecast period. 

The Natural Cosmetics market is booming with trends like personalization, catering to unique skin types, tones, and concerns. Brands offer customizable formulations for skincare and makeup, appealing to environmentally conscious consumers. Eco-friendly packaging, using biodegradable materials and minimalist designs, is a priority. Zero-waste packaging and recyclable containers reduce environmental impact. Consumers prefer natural ingredients from plants, minerals, and naturally occurring substances. However, potential side effects and environmental concerns related to synthetic chemicals, preservatives, and additives are driving expenditure towards natural alternatives. Wellness and health-conscious lifestyles fuel the demand for natural cosmetics, addressing various skin problems without synthetic elements. 

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Market Challenges

• The natural cosmetics market is subject to rigorous regulatory frameworks that prioritize consumer health and safety. In Canada, the Cosmetics Ingredient Hotlist bans the use of chemicals such as formaldehyde, triclosan, selenium, nitrosamines, and 121,4-dioxane. Manufacturers must disclose all cosmetics ingredients to Health Canada and comply with regulations prohibiting hazardous ingredients. In Europe, the Cosmetics Regulation (EC 1223/2009) requires Product Information Files, including Cosmetics Product Safety Reports, and pre-market safety assessments. The EU Cosmetics Directive (76/768/EEC) mandates registration of natural cosmetics products, government authorization for nanomaterials, and prohibits animal testing. European importers of over one ton of natural ingredients must register them with REACH. These regulations ensure product safety and act as entry barriers, posing challenges for potential and existing market players in the global natural cosmetics market.
• The Natural Cosmetics Market is experiencing significant growth due to the increasing demand for products made with natural ingredients, such as plants and minerals. However, creating natural cosmetics comes with challenges. Potential side effects and environmental concerns are key considerations. Synthetic chemicals, preservatives, and additives are often used in conventional beauty products, but they can pose risks. Consumers, especially those with skin problems, are increasingly health-conscious and seeking natural alternatives. However, the expenditure on natural formulations can be higher due to the sourcing and production costs of naturally occurring substances. Regulations for natural cosmetics are evolving, and ensuring the durability and shelf life of natural products can be challenging due to spoilage and microbial contamination. The mass-market appeal of natural cosmetics is growing, with e-commerce platforms providing a global audience and opportunities for customization. The Natural Cosmetics Market is expected to continue expanding, as consumers prioritize wellness and seek out plant-based, organic, and naturally derived ingredients.

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Segment Overview 

This natural cosmetics market report extensively covers market segmentation by

1. Distribution Channel
   • 1.1 Offline
   • 1.2 Online
2. Type 
   • 2.1 Personal care
   • 2.2 Skin care
   • 2.3 Others
3. Geography 
   • 3.1 APAC
   • 3.2 Europe
   • 3.3 North America
   • 3.4 Middle East and Africa
   • 3.5 South America

1.1 Offline- In 2023, the offline distribution channel remains a preferred choice for selling natural cosmetics due to several factors. Wide product availability, test and trial options, and product verification for ingredients and halal certification are significant advantages of offline retailers. Specialty stores, hypermarkets, supermarkets, warehouse clubs, convenience stores, department stores, salons and spas, drugstores, and medical institutes are popular offline retail formats. Halal cosmetics and personal care product manufacturers partner with these retailers to distribute their brands. The specialty stores segment generated the highest revenue in the global natural cosmetics market through offline distribution channels in 2023. This growth is driven by the popularity of beauty and personal care products. Manufacturers leverage these retailers to plan marketing, advertising, and promotional activities, increasing product and brand visibility among customers. Despite the convenience of online shopping, offline channels' advantages will continue to drive sales and contribute to the growth of the global natural cosmetics market through the offline segment during the forecast period.

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The global cosmetic oil market is experiencing robust growth, driven by increasing consumer demand for natural and organic beauty solutions. Concurrently, the natural skin care products market is also thriving. Both markets are fueled by a rising preference for sustainable, eco-friendly ingredients and growing awareness of the benefits of natural skincare.

Research Analysis

The Natural Cosmetics Market is experiencing significant growth due to increasing consumer awareness and preference for products made from natural ingredients. These products, which include those made from plants, minerals, and naturally occurring substances, offer several benefits over their synthetic counterparts. However, potential side effects and environmental concerns are key considerations for consumers. Synthetic chemicals, preservatives, and additives are often used in cosmetics to ensure durability and prevent spoilage, but they can have negative impacts on health and the environment. The market for natural cosmetics is expanding beyond niche markets and gaining mass-market appeal, driven in part by the e-commerce industry and e-commerce platforms that reach a global audience. Consumers are seeking customized natural formulations, and companies are responding with innovative plant-based solutions. However, challenges remain, including the need for effective preservation methods and addressing microbial contamination to ensure product safety and shelf life. Despite these challenges, the Natural Cosmetics Market continues to grow as consumers prioritize health, sustainability, and ethical production in their beauty choices.

Market Research Overview

The Natural Cosmetics Market is experiencing significant growth as consumers shift towards health-conscious lifestyles and wellness. Natural cosmetics are made from natural ingredients, including plants, minerals, and naturally occurring substances, which offer potential benefits without the potential side effects associated with synthetic chemicals, preservatives, and additives. However, natural formulations can have challenges such as spoilage and microbial contamination, requiring careful consideration of shelf life and durability. Environmental concerns are also driving the demand for natural cosmetics. Many consumers prefer plant-based and organic ingredients, which are free from synthetic elements found in conventional beauty products. Customization and personalization are key trends, with unique skin types, tones, and concerns leading to demand for customizable formulations. The e-commerce industry and online shopping have expanded the global reach of natural cosmetics, making them accessible to a mass-market audience. E-commerce platforms offer opportunities for customization, personalization, and eco-friendly packaging, including biodegradable materials, minimalist designs, and zero-waste packaging. Consumers are increasingly environmentally aware and conscious, seeking to reduce their impact on the planet by choosing natural cosmetics with minimal synthetic ingredients and sustainable packaging.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Distribution Channel
• • Offline
  • Online
• Type
• • Personal Care
  • Skin Care
  • Others
• Geography
• • APAC
  • Europe
  • North America
  • Middle East And Africa
  • South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

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With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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