Report: Organic personal care market to reach $15.98B

SAN FRANCISCO — Grand View Research is estimating that the global organic personal care market will reach $15.98 billion by 2020, according to a report released on Thursday.

Product approval from the Department of Agriculture and Food and Drug Administration is expected to fuel market growth, while technological innovations designed to develop cost-effective products are expected to remain integral to industry growth, the report said.

Changing consumer perception towards organic products, in addition to the use of environmentally sustainable products has fueled growth of naturally derived products, according to the report. Increasing disposable income and the rising demand for chemical-free skin and hair products have also contributed to this growth.

The organic skincare product segment is expected to grow at a compound annual growth rate of 9.8% from 2014 to 2020, the report said. Although high manufacturing cost could hinder the market, consumers will continue to seek products with anti-oxidation properties and that improve skin immunity.

North America, which dominated the global market, is expected to grow at a CAGR of 9.8% from 2014 to 2020, according to the report. 

Aware of this trend, many companies have made a push to enter the organic cosmetics market. L'Oreal acquired Kiehl's in 2000 and The Body Shop in 2013, while Clorox acquired Burt's Bees in 2007.