The global demand for organic personal care products was over USD 7.6 billion in 2012 is expected to reach USD 13.2 billion by 2018, growing at a CAGR of 9.6% from 2012 to 2018.

This is according to a new market report published by Transparency Market Research titled:
“Organic Personal Care Products Market for Skin Care, Hair Care, Oral Care and Cosmetics – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2012-2018. ”

The market research company says that the global organic personal care products market has witnessed steady growth in recent years, due to increasing consumer concerns regarding personal health and hygiene. Also, widening distribution channels and new product development are other contributing factors.

However, limited shelf-life, raw material supply and a stringent regulatory scenario are expected to be key challenges to market growth over the next five years.

Which products dominated?

Skin care products, in 2011, with a 32.1% share, followed by hair care and cosmetics segments. These three segments are also expected to continue to dominate the market.

In terms of revenue, the market for organic skin care products is expected to grow at a rate of 9.9% from 2012 to 2018.

And, in what parts of the world?

North America…
This region accounted for 34.8% of the global demand in 2011 and is expected to grow at a CAGR of 9.8% from 2012 to 2018.

Europe and Asia Pacific followed North America I terms of organic personal care product consumption. This dominance is driven by new product launches and widening distribution channels.

Asia Pacific…
This region is expected to be the fastest growing region at an estimated CAGR of 9.7% from 2012 to 2018, due to rising consumer incomes, changing lifestyles and increasing awareness and demand for organic personal care products.

Japan and China dominated the Asia Pacific market, together accounting for over 64% market revenue in 2011.

At the country level…
The U.S. was the largest market for organic personal care products followed by Japan and Germany. The U.S. demand for organic products is estimated to grow at a CAGR of 10.2% from 2012 to 2018.

Strong awareness about the efficacy of organic personal care products and lifestyle changes are key drivers in this region.

Countries such as India, China, Brazil and Mexico offer huge market opportunities for organic personal care products.

What are the leading brands?

Some of the leading brands in the organic personal care products market include Bare Escentuals, Aveda, Burt’s Bee, Origins, Kiehls, The Body Shop, and others.