North America organic cosmetics drive booming global market
According to a new market report published by Transparency Market Research the global demand for organic personal care products was over $7.6 billion in 2012 is expected to reach $13.2 billion by 2018, growing at a CAGR of 9.6 percent in this time.
According to the report, the US is the largest market for organic personal care products followed by Japan and Germany.
Demand from the States is estimated to grow at a CAGR of 10.2 percent from 2012 to 2018 as strong awareness about the efficacy of organic personal care products and lifestyle changes drive the market.
Rising concern, rising demand
Elsewhere, India, China, Brazil and Mexico offer huge market opportunities for organic personal care products, says TMR.
“Organic personal care products market is growing at rapid pace across the world. Rising concerns for health safety, increasing green consciousness and growing consumer's awareness about the hazards in synthetic chemicals have fueled the demand for organic personal care products,” says the report.
“In addition, widening distribution channels and new product development are the other factors that contribute to the market growth. However, limited shelf-life, raw material supply and a stringent regulatory scenario are expected to be key challenges to market growth over the next five years.”
Skin care is still the leading category in the organic sector ahead of hair, which then leads color cosmetics; but all are expected to perform strongly in the coming years.
North America accounted for over a third of the global demand and is expected to chart the largest growth at a CAGR of 9.8 percent from 2012 to 2018.
Europe and Asia Pacific followed North America in terms of organic personal care product consumption, driven by new product launches and widening distribution channels.
Asia Pacific in particular, is expected to be one of the fastest growing regions due to rising consumer incomes, changing lifestyles and increasing awareness and demand for organic personal care products.