Organic Cosmetics Market to grow at CAGR of 5% in 2031 | Impact of COVID-19

The organic cosmetics market to grow at CAGR of 5.0% throughout the forecast period 2021-2031. Natural claims have sparked the sustainability quotient in addition to being significant product purchase drivers when paired with product efficacy claims and brand identity.

Customers now demand total transparency from cosmetics producers regarding their sourcing practises, goods, ingredients, and environmental practises. As the requirement to prove their social and environmental credentials develops, more cosmetics companies and manufacturers are searching for ways to redefine their own brands through sustainability-focused items, services, and customer experiences.

The packaging trends in the personal care sector have evolved to incorporate more secure, natural formulas, and practical packaging. Natural solutions are being employed more and more in product packaging as a result of the excellent response they are receiving from the product industry. The businesses’ marketing techniques call attention to profitable container designs while also advocating natural solutions.

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Key Takeaways from the Organic Cosmetics Market Study

  • FMI in its latest study has forecast the market to rise at a CAGR of 5.0% between 2021 and 2031
  • The U.S. will emerge as a key market, accounting for nearly 80% of organic cosmetics market in North America
  • Growth in the U.K. will remain moderate. FMI forecasts the market to record nearly 1.9% Y-o-Y growth in 2021
  • While Germany and France too will continue exhibiting demand for organic cosmetics, Italy is expected to emerge as a lucrative pocket in Europe
  • Japan, China, and South Korea will emerge as key markets for organic cosmetics in East Asia. Of these, Japan is likely to dominate

Impact of COVID-19 & 2020 Market Analysis

The current pandemic outbreak has created a variety of challenges for both the supply side and the demand side. The temporary regulation that regional governments adopted to limit mobility has seriously harmed supply chains.

Additionally, the general shift in consumer spending from discretionary to essential goods has had a negative impact on market growth. The way that firms operate globally is changing as a result of e-commerce. In actuality, e-involvement commerce has expanded throughout all industries as a result of the Covid-19 epidemic and lockdown.

The population segment that is not accustomed to online buying has also accepted it because it is the only option. There are many chances for companies and online services to work together to boost customer engagement.

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Who is winning?

Estee Lauder, L’Oréal Group, WELEDA Inc., Groupe L’OCCITANE, and KORRES Group are a few notable companies in the organic cosmetics business. The Himalaya Drug Company, Babylist Inc., The Clorox Company, The Honest Company, Avalon Organics, and KORA Organics are a few examples.

To acquire a competitive advantage over other market participants, players are aggressively investing in order to encourage and support product development. The creation of an innovative product portfolio and portfolio expansion is the most popular strategy among the major businesses. Innovation is the instrument used to entice and persuade consumers to purchase a particular product category. By highlighting a product’s USP, which typically varies from one brand to another, it aids in separating one product from another.

Organic Cosmetics Market by Category

Product Type

  • Skin Care
    • Creams & Lotions
    • Serums
    • Face Packs/ Masks
    • Cleanser
    • Others
  • Hair Care
    • Shampoo
    • Conditioner
    • Hair Oil
    • Hair Dye
    • Others
  • Makeup
    • Facial Products
    • Eye Products
    • Lip Products
    • Nail Products
  • Body Care
    • Soaps
    • Shower Gels
    • Cream
    • Oils
  • Fragrance

End User

Sales Channel

  • Hypermarkets/Supermarkets
  • Convenience Stores
  • Specialty Stores
  • Direct Selling
  • Departmental Stores
  • Online Retailing
  • Other Sales Channel

Price Range

  • Economy
  • Mid-range
  • Premium


  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East and Africa (MEA)

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About FMI

Future Market Insights (ESOMAR certified market research organization and a member of Greater New York Chamber of Commerce) provides in-depth insights into governing factors elevating the demand in the market. It discloses opportunities that will favor the market growth in various segments on the basis of Source, Application, Sales Channel and End Use over the next 10-years.

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