The organic cosmetics market - United States

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.