Natural Cosmetics Market Analysis Report By Product, By Distribution Channel And Segment Forecasts From 2019 To 2025

Report ID: MN17619505  |  Published: April 2020  |  No of Pages: 110
Format: Electronic (PDF)  |  Industry: Consumer Goods

Industry Insights

The global natural cosmetics market was valued at USD 34.12 billion, in 2018, and it is expected to grow with a CAGR of 5.01% during the forecast period. Growing awareness about the use of natural products in cosmetics owing to the adverse effects associated with chemically made products is supplementing the market growth.

Natural cosmetics have a wide range of haircare, skincare, fragrances, color cosmetics, and other products. Technological advancements have played a key role in the manufacturing of innovative cosmetics products. Leading brands such as 100% Pure, Bare Escentuals Beauty Inc., Korres S.A, and Burt’s Bees are likely to be key driving factors for the market.

China Natural cosmetics market

Rising awareness about the benefits of natural products and their properties have positively affected the growth. Owing to the increasing popularity of natural products, companies are focusing on the introduction of innovative products. In December 2017, L'Oreal introduced Botanea, a plant-based hair dye product. The launch of these products opened up a new perspective in the cosmetic industry. Following this, several manufacturers have increased their expenditure on research and development intending to invent more products that are natural. Over the forecast duration, this trend is expected to continue.

Owing to the rising demand for natural grooming products, their availability has widened as well. These products are made available at supermarkets/hypermarkets, specialty stores, online channels, and convenience stores. Among different distribution channels, the sale of these products is popular through supermarkets/hypermarkets. However, online channels are presenting a tough competition owing to easy accessibility. Leading brands have their own online platforms. Various other players are also focusing on making their products available on multiple online platforms such as Amazon and Nykaa.

Product Insights

By-products type, skin care held the largest market share with revenue of over USD 10.31 billion in 2018. Increasing focus on reducing the effect of aging is propelling the growth of this segment. Natural alternatives have shown significant benefits compared to synthetic ones in skin care.

The fragrance section is projected to witness a CAGR of 5.03% during the forecast period. This segment is expected to be followed by color cosmetics. The increasing population of working women and their changing lifestyles have resulted in an increased focus on personal grooming. Emerging countries such as India, Indonesia, and China present lucrative opportunities owing to the influx of working women population in these regions.

Distribution Channel Insights

Among different distribution channels, supermarkets/hypermarkets accounted for the largest natural cosmetics market share with revenue of USD 13.67 billion in 2018. Conveniences store was the second largest distribution channel accounting for US 10.16 billion of revenue in 2018. Availability of a wide range of products and their easy accessibility are driving the sales of natural cosmetics products through these distribution channels. In addition, these sales outlets offer instant purchasing and instant return. They deploy well-trained store associates to help the consumers in picking up the most suitable products. All these factors collectively drive the sales through these bricks and mortals’ stores.

Global Natural cosmetics market

The online segment is expected to grow with a CAGR of 4.47% during the forecast period. Easy accessibility, price comparison, doorstep delivery, and discounts are proliferating the sales through this channel. Leading online platforms for cosmetic sales are Amazon, Credo, Nykaa, Beauty, and others. Online distribution channels help companies in maximizing their revenue by cutting the cost incurred in bricks-and-mortar shops.

Regional Insights

Europe accounted for the largest market in 2018 with a market share of 38.29%. The presence of a large number of key players and the increasing number of start-ups are attributed to the growth of the region. Leading companies that include Bioeffect, AVON Product Inc., and L’Oréal SA among others are expected to help Europe in continuing its dominance in the market over the forecast period.

On the other hand, Asia Pacific is expected to register a significant CAGR of 4.42% over the forecast period. Rising awareness about the effectiveness of naturally made cosmetics and the increasing working women population in the region is attributed to this growth. Increasing consciousness about appearance has resulted in a rise in spending by the consumer that in turn drives the growth of the market in this region.

COVID-19 Impact Insights

Personal care products including the organic cosmetics market have witnessed a significant decline in demand owing to the outbreak of COVID-19. Owing to the pandemic, which started in late 2019, cosmetic stores were forced to close following the strict imposition of lockdowns, which, in turn, significantly reduced the sales of natural cosmetic products. Although, online sales have witnessed significant growth during the pandemic. However, customers are more inclined towards purchasing these products from bricks-and-mortar shops. With the reopening of various economic activities, cosmetic stores have been reopened. However, there are witnessing considerably less customer turnout. Manufacturers can focus on strengthening their online distribution channels along with the introduction of cost-effective products to recover from the pandemic effect.

Natural cosmetics Market Share Insights

Increasing millennials population in emerging Asia Pacific’s and other regions are supplementing the demand for natural products. There is tough competition among leading players, and they are focusing on product differentiations, mergers & acquisitions, and geographical expansion to expand their market presence. Further, owing to rapidly rising online sales, key players are focusing on strengthening their online presence.

Leading players in the market include Korres S.A, L’Oréal SA, Weleda AG, Avon Product Inc., and Tata Harper among others. The market presents moderate to high barriers for new entrants. However, innovative products and strong distribution channels can significantly boost the chances of success for new players. 

Report Scope



The base year for estimation


Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Billion & CAGR from 2019 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Report coverage        

Revenue forecast, company share, competitive landscape, growth factors, and trends

Country Scope

U.S., Germany, U.K., India, China

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For this study, Million Insights has segmented the global natural cosmetics market report based on product, distribution channel, and region:

• Product Outlook (Revenue, USD Billion, 2015 - 2025)
    • Skin Care
    • Hair Care
    • Fragrance
    • Color Cosmetic

• Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)
    • Supermarket/Hypermarket
    • Specialty Store
    • Convenience Stores
    • Online

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • Germany
        • U.K
    • the Asia Pacific
        • China
        • India
    • Central & South America
    • Middle East & Africa

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