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Organic Soaps Market Growth & Analysis, 2025 | Industry Report

Organic Soaps Market Analysis Report By Product, By Distribution Channel, By Region, Competitive Landscape And Segment Forecasts From 2019 To 2025

Report ID: MN17620079  |  Published: September 2020  |  No of Pages: 80
Format: Electronic (PDF)  |  Industry: Personal Care Products  |  Publisher: Grand View Research

Industry Insights

The global organic soaps market size was worth USD 222.3 million in the year 2018. The increasing importance relating to hygiene and skincare, along with the consciousness against the harmful after-effects of synthetic and chemical elements in personal care items, like soaps, is anticipated to be the major indicator for the market. Additionally, the rising awareness for environmental protection and an alarming rate of water pollution due to harmful chemicals available in personal care products is expected to open new avenues for market growth over the projected period.

Customer apprehension towards the presence of synthetic chemicals in toiletries such as bathing and hand soaps has been at a peak over the years. Therefore, governments in many countries have banned these chemicals including aluminum salts, triclosan, parabens, phthalates, and triclocarbon that led to increase in the demand for natural, herbal and organic soaps.

U.S. organic soaps market

For example, the European Commission in April 2017, prohibited Decamethylcyclopentasiloxane (D5) and Octamethylcyclotetrasiloxane (D4) in concentrations exceeding 0.1% from all types of leave-on cosmetics, personal care products and professional care products like waxes, dry cleaning products, washing products and polishes. The EU also prohibitsdodecamethylcyclohexasiloxane (D6) exceeding concentrations over 0.1% from every washable cosmetic product such as soaps.

Consumer inclination towards organic elements in personal care products is backed by several initiatives of certification bodies like The International Natural and Organic Cosmetics Association (NATRUE). The corporation made it mandatory that a minimum of 95.0% physically processed wash-off products like shampoo and soaps should be organic.

Product Insights

The organic bar soaps held the largest share of over 70.0% in terms of revenue in 2018. Easy availability and affordable pricing in offline stores are anticipated to have a favorable impact on the growth of the segment in the upcoming years. Moreover, industry players have been spending heavily on innovative product launches with enticing packaging, attractive sizes and shapes and better label information to acquire customer attention.

The liquid segment is predicted to account for the highest growth with a CAGR of 8.4% from 2019 to 2025. Customers largely prefer liquid soaps over bar soaps owing to their higher hygiene. Consumers are well-informed regarding bathing products and availability of natural and organic personal care products.  Major industry participants like SUNDIAL BRANDS LLC; Lush Retail Ltd.; Brittanies Thyme, EO Products;Pangea Organics, Inc.; and Osmia Organics, LLC; are introducing innovative products to cope up with the rising demand. For example, Korkut Oil Soap Industries Inc., in April 2019, launched a liquid soap manufactured with unique elements like virgin olive oil and goat milk and was named ‘Olivos Goat Milk Liquid Soap’. The soap cleans dead skin and prevents early aging.

Distribution Channel Insights

The offline channel held the largest share in the organic soaps market with over 80.0%, based on revenue in 2018.Consumers prefer purchasing personal care products like organic soaps, from hypermarkets, retail outlets and supermarkets due to the benefit of physical verification provided by these channels. Additionally, the presence of a variety of brands and products under the same roof makes shopping convenient for buyers. The growth of middle-class groups in countries like Bangladesh, India, China, and Pakistan is predicted to influence supermarkets to develop new chains at a domestic level.

Global organic soaps market The online distribution channel is expected to grow at a CAGR of 8.5% over the forecast period. Companies are aiming at higher product visibility by collaborations with various online platforms, thus, rendering services even at remote locations. This channel further provides for a platform for new players to enter the market. 

Regional Insights

North America held the dominant position with a share of above 30.0% based on revenue in 2018. The rising penetration of U.S.-based companies like Osmia Organics, LLC;Brittanies Thyme; EO Products, and Pangea Organics, Inc. is anticipated to allow constant product supply to customers in the upcoming years. Industry participants are using strategies such as mergers & acquisitions, product launches, and widening the distribution chains to acquire a stronghold in the market. For example, Rocky Mountain Soap Company opened the new retail shops in Toronto in August 2018.

Europe is predicted to grow as the fastest emerging market, exhibiting a CAGR of 8.7% over the forecast period. Companies are introducing the latest products that are herbal, chemical-free, cruelty-free and organic to cater to consumer needs.

Impact of Covid-19

Following the World Health Organization (WHO) guidelines regarding maintaining proper hygiene, the demand for soap and sanitizer products have increased considerably. Organic soap helps in killing germs and bacteria and lower the risk of contamination. Additionally, public spending on personal hygiene products has increased considerably. Public spending has been largely influenced by increasing awareness and several initiatives by government bodies to ensure easy availability. Thus, it is expected that the demand for organic soap would increase over the forecast years.

Organic Soaps Market Share Insights

The market is highly fragmented due to the existence of a large number of participants like Lush Retail Ltd.,Osmia Organics, LLC, Beauty & the Bees, SUNDIAL BRANDS LLC, and EO Products. Manufacturers are focusing on campaigns and collaborations with retail outlets to expand their customer base. For example, Lush Retail Ltd., in November 2018, introduced its unique concept retail outlet in Tokyo. The outlet sells the bath bombwith no packaging or labels. For information relating to the brand and products, customers can access its mobile app named, ‘LushLab’.

Manufacturers aim at increasing product visibility across the globe through various product launches in countries like France, U.K., Germany, and Italy. Furthermore, companies have received funds from investor firms to increase their inventory, thus, paving way for new opportunities for the organic products’ market.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2015 - 2017

Forecast period

2019 - 2025

Market representation

Revenue in USD Million & CAGR from 2019 to 2025

Regional scope

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

Country Scope           

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

Report coverage

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

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments Covered in the Report
 

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

• Product Outlook (Revenue, USD Million, 2015 - 2025)
    • Bar
    • Liquid

• Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)
    • Online
    • Offline

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

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