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Summary and extracts
1 Market overview
1.1 Definition and scope of the study
The organic cosmetics market represents a sub segment of the larger market for cosmetics. A cosmetic includes any substance used to clean, moisture or alter a person’s skin, hair, nails or teeth.
Cosmetics can be distinguished in two categories:
- Beauty products: e.g. make-up, perfume, skin cream
- Care products: e.g. shampoo, soap, deodorant
Organic personal care and cosmetic products do not contain chemicals such as parabens, phthalates, aluminum salts and petrochemicals, which are potentially harmful to an individual’s health. There is a legal treatment or distinction between the terms ‘organic’, ‘natural’ or ‘bio’ in the United States, as we will discuss further on. Nevertheless, for a cosmetic to be considered organic, it has to contain at least 95% of the ingredients certified as organic. Public opinion tends to identify them as those products containing ingredients derived from nature and not processed.
The global cosmetics market was worth over €213 billion in 2020 which, however, represented an 8% decrease in value with respect to 2019 mainly due to the effect of the COVID-19 pandemic.
The US market for cosmetics has grown substantially during recent years, with both production and exports experiencing a percentage increase in the last decade. The revenues of the broader cosmetic and beauty industry in the USA reached a value of USD 49.2 billions in 2020.
More specifically, the organic sector is blossoming, with increasing awareness regarding harmful effects of chemical products on the human body. This expansion comes both from demand, with consumers leaning towards natural and biological, and through suppliers, with companies offering each time more possibility of natural products, expanding from alimentation to personal care. Overall, the size of the organic products market in the US reached 40.6 billion in 2020.
1.2 The Global Outlook
The cosmetics market as a whole
The global cosmetics market can be defined a supply-led market mainly driven by innovation and in which new ideas are rewarded by customers.
The global cosmetics market was worth over €*** billion in **** as presented in the L'Oréal annual report. As it is visible from ...
1.3 The US Market
From a value of USD **.* billions in ****, the revenues of the cosmetic and beauty industry in the USA reached a value of USD **.* billions in **** peaking in **** (***). The market thus grew at a CAGR of *.**% in the past ten years.
Revenues of the cosmetic and beauty industry US, ****-**** in billion ...
1.4 International Trade
UN Comtrade provides data on production outcomes. For the category “cosmetics, beauty, make up, skin care preparation, manicure or pedicure preparation ****” in **** exports in the United States amounted to approximately USD *.* billions while imports totaled USD *.* billions.
Imports, Exports and Coverage Rate for cosmetic and toilet preparations US, ****-****, in billion ...
1.5 COVID-19 Impact
The measures of social distancing and lockdowns imposed in the US and in other countries have severely impacted the cosmetics market. Besides the shock in supply, the virus has also possibly impacted demand. This is because shopping for cosmetics may not be considered first priority in the middle of a pandemic. ...
2 Demand Analysis
2.1 Demand Drivers
The American woman spends on average US$ *** thousand on makeup during her lifetime [***]. Moreover, in ****, **% of women in the US claimed to purchase makeup products once every month, and **% more than once every month. Although it is a consolidated market, it is not immune to transformations, such as the growing demand ...
2.2 Product Demand by Category
Biological or organic products are more expensive than traditional products, since they are associated with a perception of higher quality, given the higher cost of natural ingredients which changes year-on-year, the uncontrollable environmental factors, and the manufacturing process that is more labor-intensive if compared to its generic counterparts.
Given the pre ...
2.3 Geographic Distribution of Demand
To better understand the geographic distribution of demand for organic cosmetics products, in the absence of exhaustive statistics on the precise market, it is still useful to look at the expenditures of US citizens of different regions on personal care products and services. Doing so, we will be able to assess ...
2.4 Demand Gap
Although most women seem to be satisfied by the selection of natural beauty products available at the retailers shelves or in their online sites, it seems like the supply has not yet met the demand when it comes to variety and selection range.
In fact, in ****, **% of American women claimed to ...
2.5 A greater Overlap between the Beauty and the Wellness Industry is demanded
According to the already mentioned survey conducted by the Global Web Index, a relevant trend in demand for organic cosmetics products can be found in an increasing desire of consumers for a greater overlap between the beauty and the wellness industry.
The respondents to the survey, namely, beauty buyers in the ...
3 Market structure
3.1 Organization and dynamics of the market
The global biological sector has been developing at a fast pace. In fact, in ****, the world had *.* million organic producers, a growth of *,***% since **** [***].
The Organic Trade Association represents more than *,*** organic business in ** States. Although the country is the biggest market of organic consumption, it isn’t even in the ...
3.2 Transformation of the distribution channels
Considering the whole distribution of cosmetics in the US, we can highlight that store-based retailing (***), while only *% are beauty speciality stores. Normal retailers, which include supermarkets and mass merchandisers, hold, together, ** % of the market. Finally, e-commerce hold ** % of the market as distribution channels, highlighting the importance of the online channels for ...
3.3 E commerce: a double digit yearly growth
The online retail segment has shown an outstanding performance globally within the personal and beauty care market. Indeed, although ecommerce penetration has only increased slightly in recent years, the beauty and personal care online share is predicted to surge to **% in the United States by **** [***].
Purchasing habits are drastically adapting to ...
3.4 Competitive Environment and Main Players
As mentioned before, the cosmetics market in general is indeed highly competitive, and this can be seen when analyzing the revenues of the ** leading cosmetics brands worldwide, none of which makes up more than **% of the global market for cosmetics which in **** was equal to USD***.* billion.
Sales of the main ...
3.5 Mergers and Acquisitions
Between **** and **** L'Oréal acquired * pure players of the natural cosmetics market thus making a clear move towards making its offer portfolio more and more organic [***].
On * August **** L'Oréal announced the signing of an agreement to acquire the German company Logocos Naturkosmetik AG, a pioneer in natural cosmetics with brands ...
4 Analysis of the offer
4.1 Ingredients
According to COSMOS - the international non-profit bio standards organization - organic cosmetics contain five categories of ingredients:
Water Mineral ingredients Agro-ingredients physically transformed Agro-ingredients chemically transformed Other ingredients
Agro-ingredient: “any substance of plant, animal or microbial origin derived from agriculture, aquaculture or harvesting”. [***]
Every category of ingredient has to respect ...
4.2 Pricing Composition
Organic cosmetics are known to be considered a premium product with respect to regular cosmetics, and this is certainly true in terms of their prices. However, the latter can be justified by looking at the costs which must be incurred in when producing these products [***]:
Shelf Life: Organic products generally have ...
4.3 Supply Trends
Anti-aging
There is an increasing demand for multi-functional cosmetic products such as anti-wrinkle creams. Mature women represent the greatest portion of this trend, as they are waiting for the encounter between technological advances and natural remedies to give its favorable outcomes. [***]
Mono portions
A unique packaging that enables the product to ...
5 Regulation
5.1 Ongoing regulation
There is big confusion over the definition and identification of “organic” or “biological” cosmetics.
Natural cosmetics: contain natural derived extracts and/or natural derived ingredients (***) Organic/Biological cosmetics: contain raw natural ingredients (***) derived from organic farming : they must therefore have a valid certificate attesting their organic nature.
At a global level ...
5.1 American Regulation
In the US, cosmetics are regulated by the Food and Drug Administration (***). Nevertheless, neither of those acts give a definition for the term “organic”.
Moreover, the Agricultural Marketing Service of the U.S. Department of Agriculture (***), which sets the definition for the term organic and provides the certification for agricultural ingredients ...
6 Positioning of the players
6.1 Market segmentation
- Estée Lauder
- Unilever Groupe
- Johnson & Johnson
- L’Erbolario
- Davines
- Aveda (Groupe Estée Lauder)
- Lush
- Burt's Bees
- Juice beauty
- Dr. Bronner's
- Herbivore Botanicals
- Well People
- 100% Pure
List of charts presented in this market study
- Evolution des taux de croissance du marché global des cosmétiques
- Répartition du marché mondial des cosmétiques, par zones géographiques
- Répartition du marché mondial des cosmétiques, par catégorie de produit
- Valeur du marché des cosmétiques et produits de soins personnels naturels et biologiques
- Revenus de l'industrie des cosmétiques et de la beauté
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Latest news
Unilever in talks with funds to sell Ben & Jerry's and Magnum for 18 billion euros - 22/07/2024
- overall, ice cream will account for just 13% of sales in 2023 (59.6 billion euros)
Unilever to cut 3,200 jobs by the end of 2025 - 16/07/2024
- Total number of job cuts announced: 7,500 people
- - Number of job cuts in Europe: 3,200 people
- - Percentage of European employees affected: one-third
- - Main locations affected: London and Rotterdam
- - Disposal of ice cream division planned by end 2025: current value around 8 billion euros
- - Offer received for Knorr-branded liquid soups business in France: from the Sill Entreprises group
- - Announced sale of Elida Beauty subsidiary: completion scheduled for 2024
- - Sale of Dollar Shave Club brand: to Nexus Capital Management
Beauty: Estée Lauder cautious about 2024 - 02/05/2024
- - Acquisition of Tom Ford for $2.3 billion
- - Double-digit growth in Clinique sales, across all geographic regions
Estée Lauder unable to keep pace with L'Oréal - 20/08/2023
- Estée Lauder saw sales fall by 10% to $15.9 billion in its offbeat 2022/2023 full year
- Estée Lauder acquired the Tom Ford brand for $2.3 billion.
Johnson & Johnson values its products at over $40 billion - 25/04/2023
- Kenvue: new company resulting from the spin-off of Johnson & Johnson's (J & J) hygiene, beauty and consumer health division
- J & J to own approximately 92% of Kenvue after IPO
- Kenvue sales (fiscal year ending January 1): nearly $15 billion
- Kenvue: over 22,000 employees, 25 manufacturing sites, operations in over 165 countries.
Lush mise sur les magasins - 07/03/2023
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