The organic personal-care products market, which accounts for 35 percent of all category sales, is expected to reach $16 billion by 2020, according to a new report by market intelligence firm Zion Research.
Direct selling brands Amway, Arbonne International and Natura Cosmeticos SA are key players in the market, alongside traditional retail brands such as The Body Shop, Burt’s Bees and Aveda Corp.
In 2014, sales of organic moisturizers, shampoos and other products topped $9.2 billion, putting the expected compound annual growth rate (CAGR) at 9.5 percent through 2020. Currently, organic skincare is the most popular segment, accounting for 32 percent of market sales in 2014.
North America dominates global sales of organic personal-care products, trailed by Europe and Asia Pacific; however, demand for organic products is increasing in emerging markets such as China and India.
As a growing number of consumers eschew synthetic products in favor of organic offerings, manufacturers face a new set of challenges in bringing their products to market, the research found. Among them are the short shelf life and higher prices associated with organic products, which consist of natural ingredients obtained from plants.