Organic Personal Care Ingredients Market

Organic Personal Care Ingredients Market Size:

The global organic personal care ingredients market size reached US$ 10.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 17.2 Billion by 2032, exhibiting a growth rate (CAGR) of 5.5% during 2024-2032. The market is propelled by the launch of cost-effective manufacturing technologies, rising research and development (R&D) expenditures for introducing enhanced plant extracts, and increasing demand for personal care products with anti-aging agents, exfoliators, antioxidants, and antimicrobials.

Organic Personal Care Ingredients Market Analysis:

• Major Market Drivers: The market is growing rapidly due to increased consumer demand for natural and sustainable products. As more consumers become conscious of the benefits involved in using natural ingredients, the market size is expected to grow considerably since more people would shift to organic alternatives.
• Key Market Trends: Currently, the trend is more toward clean beauty and transparency, with consumers looking for products that have fewer ingredients and are easily recognizable. Organic, plant-based, and cruelty-free ingredients are also in higher demand, reflecting broader trends in ethical consumption.
• Geographical Trends: North America and Europe have leading positions in the global organic personal care ingredients market due to the stringent regulatory framework that supports organic products and raises awareness among consumers. Asia Pacific is also emerging as a significant region, owing to increased disposable incomes and growing interest in organic beauty products.
• Competitive Landscape: Some of the major market players in the organic personal care ingredients industry include Ashland Global Holdings Inc., BASF SE, Cargill Incorporated, Clariant AG, Croda International plc, Evonik Industries AG, Galaxy Surfactants Ltd., Huntsman Corporation, International Flavors & Fragrances Inc., Koninklijke DSM N.V., Solvay S.A., The Lubrizol Corporation, Vivimed Labs Limited, among many others.
• Challenges and Opportunities: Key challenges include high ingredient costs in organic formulation and disruption in the supply chain. Besides, there is an opportunity in economic organic alternatives and emergent markets with an increasing organic demand.

Organic Personal Care Ingredients Market Trends:

Expanding E-commerce Industry

The use of the Internet and digital marketing is a key factor propelling the growth of the organic personal care ingredients market. As per Datareportal in 2024, there are 5.35 billion internet users, accounting for 66.2% of the global population. Over the last year, the number of internet users has increased by 1.8%, with 97 million new users expected to join in 2023. Consumers are able to surf the internet and get easy access to a wide assortment of products and information, which enables them to make better decisions on buying products. It also helps smaller brands that normally offer organic and natural products to sell their products without having to spend a lot of cash on outlets. Social networks and influencer marketing have increased the awareness about natural and organic skin care and personal care products targeting tech-savvy and health-oriented consumer base. This has been made possible by the company and consumers’ ability to receive information about benefits of using the products as well as information on ingredients used in products from the internet. As e-commerce continues to grow, it is expected to further accelerate the demand for products with organic personal care ingredients.

Regulatory Support

The increasing adoption of organic ingredients in personal care products is being supported by regulatory bodies worldwide, which is fueling market growth. Certifications like USDA Organic, COSMOS, and Ecocert provide customers with the assurance that the products meet high standards of organics. The COSMOS signature serves as a reliable consumer guarantee for organic and natural cosmetics. COSMOS ORGANIC or COSMOS NATURAL signature is now on over 34,000 items in 78 countries. Over 13,400 raw ingredients bear COSMOS CERTIFIED signature. Moreover, over 9,000 raw ingredients bear COSMOS APPROVED certification. Moreover, consumers are seeking transparency and authenticity in the products they purchase, thus escalating the demand for these certifications. In fact, the clear labeling and certification themselves help ensure that consumers make informed decisions and therefore place their trust in the brand. Furthermore, the regulatory aspect led by the various regions is also developing stringent regulations in concerns related to the synthetic chemical use, which further enforces the companies to reformulate the products with organic alternatives. Thus, regulatory forces become the driver that enforces the market to develop and offer the products that are formulated with organic personal care ingredients.

Technological Advancements

The extraction and formulation of organic ingredients have been advanced by technological developments, which in turn are greatly pushing this market. Improved plant biotechnology, technology in plant stem cells, and sustainable extraction have all equipped the manufacturers to supply high-quality organic ingredients that now can show improved efficacy. Natural properties of ingredients are better preserved through advancements, making them more attractive for consumers looking for potent, natural alternatives. Furthermore, advancements in formulation technologies make organic ingredients easy to be incorporated into a wider range of products that have traditionally incorporated synthetic ingredients. Among the most important driving factors powering the market growth is this capability of enhancing the efficacy and stability of organic ingredients without compromising on their natural characteristics, since this is precisely what consumers expect.

Organic Personal Care Ingredients Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, product, and application.

Breakup by Type:

• Organic
• Natural
   

Organic accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes organic and natural. According to the report, organic represented the largest segment.

As per organic personal care ingredients market overview organic ingredients dominate the market. Most consumers consider organic ingredients to be safer for their skin and health, therefore demanding personal care products made from organic components. As per the US Department of Agriculture, organic is a growing sector, with domestic sales of organic products topping US$ 69.7 Billion in 2023. Organic farming methods, besides being sustainable, also contribute to minimizing the use of chemicals and increasing environmental care. The end consumers, concerned about the environmental footprint, search for products made from organic raw materials and consider such products 'greener', causing less harm to the environment. Besides, many countries have already legislated on organics and created different types of certifications, which ensures a certain degree of confidence and assurance for the end consumers.

Breakup by Product:

• Natural Surfactants
• Emollients
• Active Ingredients
• Sugar Polymers
• Natural Preservatives
• Others
   

A detailed breakup and analysis of the market based on the product have also been provided in the report. This includes natural surfactants, emollients, active ingredients, sugar polymers, natural preservatives, and others.

Natural surfactants are derived from natural sources like plants and are used to help cleanse and emulsify products. They are popular in organic shampoos, soaps, and cleansers because they provide effective cleaning power while being gentle on the skin and hair. Natural surfactants are preferred by consumers looking for safer, eco-friendly alternatives to synthetic surfactants, which can be harsh or irritating.

Emollients are substances that help to soften and moisturize the skin, creating a smooth and hydrated appearance. In organic personal care products, emollients are often derived from plant oils, butters, and waxes. They are a key ingredient in products like lotions, creams, and balms, offering natural hydration without the use of synthetic chemicals.

Active ingredients are bioactive compounds in personal care products that provide specific skin or hair benefits, such as anti-aging, hydration, or acne treatment. In the organic segment, active ingredients are typically extracted from natural sources like botanicals, fruits, and minerals, offering targeted benefits while aligning with consumer preferences for clean and green beauty.

Sugar polymers have moisturizing properties, such as hyaluronic acid, are derived from natural sugar sources. They help retain moisture in the skin, providing hydration and improving skin texture. Sugar polymers are commonly found in organic facial moisturizers and serums, valued for their ability to support skin health naturally.

Natural preservatives are used to extend the shelf life of personal care products by preventing the growth of microbes and bacteria. Natural preservatives include ingredients like essential oils, extracts (such as rosemary or grapefruit seed extract), and plant-based acids (like lactic acid). They are crucial in organic formulations to ensure product safety and longevity without synthetic chemicals.

Breakup by Application:

• Skin Care
• Hair Care
• Oral Care
• Cosmetics
• Others
   

Skin care represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the application. This includes skin care, hair care, oral care, cosmetics, and others. According to the report, skin care represented the largest segment.

The skincare category encompasses a wide range of products, including moisturizers, cleansers, serums, masks, and sunscreens, which are used daily by consumers across various age groups and demographics. This broad application range ensures a steady demand for organic ingredients as brands seek to develop and market products that cater to diverse skin needs and preferences. Besides, certifications, such as USDA Organic, COSMOS, and Ecocert, provide assurance to consumers regarding the authenticity of organic skincare products. Certification in accordance with the international COSMOS standard or the private Ecocert standard facilitates the labelling of natural or organic cosmetics. Moreover, all the products bearing the Ecocert logo have been verified by teams in terms of their composition, processing, and packaging. In return, consumers gain clear information on the presence of natural and organic ingredients, indicated in the products. This regulatory support boosts consumer confidence and encourages the adoption of organic ingredients, thereby reinforcing the market's growth in this segment.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest organic personal care ingredients market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for organic personal care ingredients.

Consumers in North America, particularly in the United States and Canada, are increasingly aware about the benefits of using organic and natural personal care products. A strong demand has emerged for clean beauty items that avoid synthetic chemicals, parabens, sulfates, and other potentially toxic ingredients. This growing awareness is enhanced by easy access to information and the increasing preferences for sustainable, health-conscious living. Besides, consumers in North America usually have higher disposable incomes and are willing to spend more on high-value personal care products that align with their concerns about health, sustainability, and environmental awareness. As per United States Census Bureau, real median household income was $74,580 in 2022. It is this tendency to spend more on higher-priced products that acts as the foundation for growth in the organic personal care ingredients market, since manufacturers can justify higher prices for their higher-quality, certified organic ingredients.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the organic personal care ingredients industry include Ashland Global Holdings Inc., BASF SE, Cargill Incorporated, Clariant AG, Croda International plc, Evonik Industries AG, Galaxy Surfactants Ltd., Huntsman Corporation, International Flavors & Fragrances Inc., Koninklijke DSM N.V., Solvay S.A., The Lubrizol Corporation and Vivimed Labs Limited.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Leading companies are heavily investing in research to develop innovative and high-performance organic ingredients that meet the evolving demands of consumers. This includes creating new formulations that offer better efficacy, stability, and sensory qualities while maintaining natural and organic certifications. By constantly innovating, these companies can introduce unique ingredients that set their products apart in a competitive market. Moreover, to cater to a broader audience and diverse needs, key players are expanding their product portfolios by introducing a wide range of organic personal care ingredients. This includes launching new natural surfactants, emollients, active ingredients, preservatives, and other specialty ingredients. By offering a comprehensive range of products, companies can address various consumer preferences and applications, from skincare to haircare and cosmetics.

Organic Personal Care Ingredients Market News:

• In April 2024, Cargill Beauty launched its latest innovation, Actigum Care, a revolutionary 94.5% naturally derived rheology modifier designed for personal care products. The product stands out as an alternative to traditional petro-based polymers, offering a remarkable 94.5% natural composition.
• In April 2024, through its “Everything is Beauty” campaign, BASF introduced innovative and sustainable solutions for skin, hair and sun care challenges. The company showcased its latest ingredient innovations, including sustainable emulsifiers and dimethicone alternatives and highlighted a new ingredient, Epispot, which is responsibly sourced rosebay willowherb extract.

Organic Personal Care Ingredients Market Report Scope:

Key Questions Answered in This Report:

• How has the global organic personal care ingredients market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global organic personal care ingredients market?
• What is the impact of each driver, restraint, and opportunity on the global organic personal care ingredients market?
• What are the key regional markets?
• Which countries represent the most attractive organic personal care ingredients market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the organic personal care ingredients market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the organic personal care ingredients market?
• What is the breakup of the market based on the product?
• Which is the most attractive product in the organic personal care ingredients market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global organic personal care ingredients market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the organic personal care ingredients market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global organic personal care ingredients market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the organic personal care ingredients industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.