Organic personal care ingredients market could grow to $11.1 billion by 2025

Organics aren’t just popular in food and beverage — they are also gaining favor in personal care as ingredients for personal and hair care products. The category is subject to reach $11.1 billion in sales by 2025, according to a new report by San Francisco-based Grand View Research, a market research and consulting company, which posted a compound annual growth rate (CAGR) of 5.5 percent during the forecast period.

Substances used in the manufacturing of organic personal care products include aloe vera, soybeans, fish oil, jojoba oil and palm kernel oil. These are used in hair, skin and oral care formulations, and cosmetics. More consumers are aware of personal health and safety, which is expected to provide an impetus to the market over the forecast period, Grand View Research notes.

Reasons for the growth are rising public concerns over the use of chemicals, synthetic colorants, parabens, sodium lauryl, and laureth sulfates and phthalates, the report said. In cosmetics and skin products as well as those regarding health and safety, the lack of synthetic chemicals and the mounting importance given to environmentally viable products should fuel the demand over the coming years.

“This is prompting manufacturers to introduce new products and focus more on research and development. As a result, use of [organic and more natural] ingredients in the cosmetics and wellness sector is becoming mainstream,” an overview of the report explains.

Animal-derived ingredients are witnessing a downward trend because of changing consumer attitudes toward their processing coupled with concerns related to spreading of diseases.

Sugar polymers may dominate the market throughout the forecast period, Grand View Research anticipates. Sugar polymers represented a share of more than 44 percent of the total revenue in North America in 2017. Polyols, monosaccharides and glycogen are some of the sugar polymers used in the preparation of organic products. These polymers are used in the production of toothpaste, mouthwashes, creams, lotions, makeup, and perfumes or deodorants. Honey, which contains a mixture of oligo and monosaccharides, is used in a number of products such as face packs, moisturizers, and shampoos.

North America was the largest market for organic personal care ingredients in 2017, and will continue to dominate the market until 2025, the report stated. Emollients accounted for a significant market share in 2017, which is likely to continue to expand over the forecast period. Demand for emollients is expected to be mainly driven by positive trends in the cosmetic, skin care and hair care industries. Increasing research and development expenditures to introduce improved plant extracts into various personal care products is anticipated to drive the market, the report adds.