Growing demand among common people for natural skin/hair
care and cosmetic products is widening scope of the organic personal care market to 2020, and is expected to touch USD 15.98 billion in the forecast
period. Several technological innovations are being targeted at developing
affordable product lines from firms such as Amway, Aveda Corporation, Estee
Lauder, and The Body Shop. Consumer perceptions towards such products are
positive, as they desire environmentally sustainable cosmetics.
Focus of manufacturing organic cosmetics is not only
deriving natural products, but reducing pollution via lessening use of
petroleum based materials. The approval from FDA and U.S. Department of
Agriculture, and several other human safety, and health regulatory bodies have
given a boost to production of personal care products industry. Now, people
wish to utilize hair and skin care items that are free of chemicals. The
consumers have changed their lifestyle to a more health conscious way.
Advantages of Non-Chemical Skin Add-On
For the past few years, consumers’ disposable income has
also increased, which is another reason for major developments in organic and
natural cosmetics demand. As per industry analysis, the organic skin care
products segment can witness 9.8% CAGR rise in 2014 to 2020.
The natural ingredients in cosmetics not only protect skin
but also offer anti-oxidation facilities, which help enhance skin immunity. One
of the challenges to producing such sustainable products is the high
manufacturing cost.
Global Market Expands for Natural Beauty Products
In 2013, the natural cosmetics had USD 1.80 billion as
revenue, with major users from Brazil, India, and China. A rise of awareness
about harmful chemical substances effects have declined the demand for chemical
products, and fueled the replacement by organic care items instead.
Key manufacturers are based at U.K, France, and Germany.
North America is powering the global market. Other accelerating factors are
Kyoto and Montreal Protocol in the Canada and U.S. which restrictions emissions
of greenhouse gases.
Acquisition of Organic Cosmetic Firms
Some aspects promoting production and use of natural
cosmetics are both small and large scaled organizations concentrating on
providing organic cosmetics, especially with such strong domestic markets in
North America and Europe.
Major companies are undertaking mergers and acquisitions to
increase their dominance in FMCG sectors such as The Body Shop and Kiehl’s
being acquired by L’Oreal in October 2013, and 2000 respectively. Additionally,
Burt’s Bees was acquired by Clorox in October 2007.
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