Growing on the back of a continuous high rise in sales of cosmetic and personal care products, the organic personal care ingredients industry has been posting a healthy growth year on year. A report
The worldwide organic personal care ingredients (OPCI) market is expected to touch $11.1 billion by 2025, mentions a fresh report released by Grand View Research. The OPCI market is likely to demonstrate a year-on-year growth rate of 5.5 per cent between 2018 and 2025. The ever-increasing consumer-demand for organic and natural products for skincare and hair-care has been driving sales for OPCI goods, the research report mentions.
The market analysis
Multiple factors can be seen at work leading to a healthy growth of ingredients. For starters, consumers are becoming more aware today of their personal health and safety aspects than ever before. The increasing disposable incomes and the changing lifestyles of the employed class, especially the middle-income group women and men from the developing countries such as India, Brazil, Mexico, etc., have been providing a boost to the sales of cosmetics and personal care products which use natural and organic ingredients. This, in turn, is leading to higher sales for the suppliers of these raw materials.
Amongst regions, while North America was observed as being the largest market for organic personal care ingredients in the year 2017, the growth in the region is expected to continue till 2025. The US organic personal care ingredients market is projected to cross 2,249 kilotonnes by 2025, due to aggressive marketing carried out by manufacturers and suppliers of organic ingredients.
The demand drivers
The ever-increasing consumer consciousness about grooming has been providing a boost to the overall cosmetics and personal care segment, resulting in higher sales of ingredients. Commenting on this trend, Murli Narayan, Proprietor, Cosmic International says: “There has been a growing awareness about self-grooming. Looking good provides them with a sense of self-esteem and respect in the eyes of others.” Cosmic International is a Mumbai-based export marketing house that promotes and sells a range of skin care, hair care, and aroma-based cosmetic products.
With easy access to information, consumers are becoming aware of the ill-effects of chemical and synthetic substances used in skincare and other cosmetic products. With the steadily rising consumer-concerns about health and safety, even the cosmetic manufacturers can be seen opting for environment-friendly and ecologically viable alternatives to chemicals. As the net effect of these developments, there has been a remarkable growth in sales of organic and natural ingredients used in cosmetic products. This trend is prediected to continue over the coming years, as per the study.
Amongst products, the popular organic ingredients used in skin care and other cosmetic and personal care products include Natural surfactants, Emollients, Active ingredients, Sugar polymers, and Natural preservatives, to name a few. Amongst these, emollients controlled a major share in the segment in 2017. This trend is expected to continue, according to the Grand View Research study. Some of the popular emollients (organic as well as non-organic) include Shea butter, Cocoa butter, Mineral oil, Lanolin, Petrolatum, Paraffin, Beeswax, and Squalene. As the sales outlook of cosmetics, skin care, and hair care segments remains positive, even the emollients, the ingredient used in these product categories are likely to show a strong sales growth, over the next few years.
Another segment, sugar polymer, is expected to exceed $5 billion in sales by 2025, growing at 7.7 per cent annual growth from 2018 to 2025. The active ingredients segment is forecasted to grow by 6.7 per cent rate during this period.
Trends in India
The growth of organic and natural ingredients in the Indian market has bee equally fast, if not faster than the global average. Commenting on the growth of organic personal care ingredients industry in India, Rishabh Kothari, Vice President, Fragrances and Flavours Association of India (FAFAI) observes that there has been a steady increase in awareness of ecologically sustainable products. “There is a niche audience for organic, natural and cleaner fragrances. Natural, organic and eco-friendly are the latest buzzwords. The changing mental makeup of the consumer is the biggest trendsetter. Consumers are much more adventurous now and willing to experiment,” he says. Rishabh is also the CEO of CKC Fragrances, a leading ingredients manufacturer from Kolkata.
Multiple cosmeceuticals, cosmetic and personal care heavyweights have their organic and natural ingredient based products available in the marketplace. But besides these large, multinational brands, India also has hundreds of indigenous brands that make use of organic ingredients. Some of the popular brands include Himalaya Herbals (face washes, body lotions), Biotique (tan removal scrubs, body wash), Lotus Herbals (face wash, body lotion), VLCC (Slimming oil, Papaya and Apricot face scrubs), Khadi Natural (face washes, moisturisers), Vaadi Naturals (Aloe vera and Chamomile sunscreen lotion, shower gels, massage gels), Kama Ayurveda (Brigandi intensive treatment oil), Ayur (natural shampoos), to name a few.