Summary

The global organic cosmetics market is a growing segment within the broader cosmetics industry, distinguished by products that avoid potentially harmful chemicals like parabens and phthalates in favor of natural and certified organic ingredients. Despite experiencing an 8% decline in value in 2020 with a market size of over €213 billion due to the COVID-19 pandemic, the organic sector is experiencing robust growth, driven by increasing consumer awareness about the harmful effects of chemical products and a demand shift toward natural and organic options. Revenues for the cosmetic and beauty industry in the USA reached USD 49.2 billion in 2020, with the US organic products market size reaching 40.6 billion in the same year. The organic cosmetic industry globally was valued at USD 36.3 billion in 2019 and is projected to grow at a CAGR of 4.7% from 2018 to 2027, potentially reaching USD 54.5 billion. Demand for these products is propelled by various consumer segments, including health-conscious, environment-conscious, and risk-conscious individuals avoiding specific substances like sulfates and parabens. Millennials, representing a significant consumer base, exhibit a preference for green products, accelerating market growth. The US remains the largest consumer of organic products, although its position in organic production is relatively lower, suggesting an opportunity for market entry by new producers. The distribution of organic cosmetics is shifting, with conventional retailers capturing a larger share of the organic market and e-commerce showing substantial growth, predicted to account for 48% of the beauty and personal care market in the US by 2023. Regulations vary, with different certifications and labels, such as USDA Organic and NSF "Made with Organic," defining standards for organic content in products..Title: The Green Wave: Surge in Demand for Organic Cosmetics in the American Market Recent years have witnessed a seismic shift in American consumer behavior, with a resolute pivot towards green beauty products glittering at the vanguard of the cosmetics market. The burgeoning awareness of health and environmental repercussions associated with chemical-laden cosmetics has catalyzed a robust surge in demand for organic alternatives. This impetus has led to the organic cosmetics market in the United States flourishing, with its value nestling comfortably between $40 and $45 billion in recent times. The American beauty enthusiast's proclivity for organic makeup and skincare is not just a fleeting trend but a steadfast part of their lifestyle. On average, each woman in the United States is likely to spend between $200 and $400 thousand on makeup over her lifetime. This staggering investment reflects the burgeoning appetite for beauty products that aren't merely skin-deep in their appeal but resonate with a deeper ethos of wellness and sustainability. In tune with this trend, a significant majority of American women are now scrupulously analyzing ingredient labels before beauty purchases, with those reading labels increasing from less than 55% to over 60% in a two-year span. These discerning consumers are especially cautious of ingredients like sulfates, parabens, and synthetic fragrances, which are increasingly being perceived as persona non grata in the landscape of beauty products. The proclivity for organic cosmetics showcases a demographic bias, with millennials, comprising a robust group of over 70 million individuals, leading the charge. It is estimated that approximately 60% of this age group would willingly loosen their purse strings for eco-friendly products, cementing their role as the bulwark of the organic cosmetics market in the United States. While skin and hair care loom large as the centerpiece of organic beauty consumption, accounting for over 65% of the market, the organic beauty industry is not resting on its laurels. Anti-aging products bubble up as a burgeoning niche, appealing primarily to a more mature demographic on the lookout for the elixir of youth in nature's lap. Another pivotal factor reshaping the market is the transformation of distribution channels. Traditional brick-and-mortar stores continue to dominate with over 50% market share, while e-commerce burgeons with a predicted upsurge to nearly 50% market penetration in the near future. The metamorphosis of shopping habits is palpable, with online purchases by consumers in their twenties and thirties accounting for more than half of their total buys. The American regulation.### Key Contenders: Navigating the Competitive Landscape of Organic Cosmetics The organic cosmetics industry is not just a vibrant landscape but also a battleground where well-established players with deep roots in consumer goods engage in a strategic tug-of-war for market dominance. These titans boast formidable distribution networks that span the globe, and the fierce competition between them is characterized by a relentless pursuit of innovation, strategic acquisitions, and beneficial partnerships. By investing in research and development, these companies endeavor to create innovative products that will capture a greater market share. L'Oréal stands as one of the giants in the organic sector. As a leading beauty company with a wide array of brands under its umbrella, L’Oréal has been making strides into the organic market, focusing on sustainable beauty and green formulations to meet consumer demand. The Organic Trade Association plays a different but critical role in the field, acting as an umbrella for over 9,500 organic businesses across the United States. Its influence is substantial, advocating for organic trade to benefit the environment, farmers, the public, and the economy. In the realm of online retail, major e-commerce platforms have been game-changers, reshaping how organic cosmetics are marketed, sold, and distributed. Notable companies leveraging this trend are those that have established robust e-commerce presences, offering direct-to-consumer sales through their websites or through third-party platforms. For instance, beauty brands with a strong e-commerce strategy appeal to consumers seeking the authenticity and exclusivity of organic products. The U.S. Department of Agriculture (USDA) also emerges as a pivotal figure in the market, providing the essential certifications that confer organic status on products and ingredients. Its National Organic Program (NOP) sets the standards for production, handling, processing, and labeling of organic products. The USDA Organic Certification is a seal of approval that assures consumers of a product’s organic integrity. Furthermore, companies like Seqens are exploring innovative technologies such as blockchain to enhance traceability and instill consumer confidence. By enabling a transparent supply chain from ingredient sourcing to finished product delivery, they are addressing the growing consumer demand for accountability and sustainability. While these institutions and corporations are a mere snapshot of the organic cosmetics sector, they are illustrative of the market's dynamics. The ebb and flow of the competitive tides in organic cosmetics is influenced by consumer behaviors, regulatory frameworks, technological advancements, and the overarching pursuit of natural and sustainable beauty solutions.

the organic cosmetics market - United States

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Number of pages : 30 pages
Format : Digital and PDF versions
Last update : 05/06/2021

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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.

2 Demand Analysis

3 Market structure

4 Analysis of the offer

5 Regulation

6 Positioning of the players

6.1 Market segmentation

Estée Lauder
Unilever
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

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
Répartition des femmes américaines concernées par l'achat de cosmétiques verts, par type de produit
Répartition des femmes qui ont déclaré que l'achat de produits verts est important pour elles, par âge
Répartition des produits de beauté naturels et biologiques, par principaux types de produits
Principaux pays avec le plus grand nombres de producteurs biologiques
Nombre total d'hectares certifiés biologiques exploités
Canaux de distribution les plus populaires pour les produits cosmétiques, par canal
Principales catégories de produits achetés en ligne, par produit et par sexe
Attributs que les consommateurs souhaitent voir davantage chez les marques de produits de beauté dans les années à venir
Ventes des principaux acteurs mondiaux
Importations, exportations et taux de couverture pour les cosmétiques et les produits de toilette
Répartition des exportations de produits cosmétiques et de toilette, par destinations
Ventilation des importations de produits cosmétiques et de toilette, par pays fournisseur

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Latest news

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

75 Years of Dr. Bronner's Family Business - 23/02/2023

165 years since the Bronner family began making soap.
A bottle or bar of Dr Bronner's Pure-Castile soap sold, on average, every 0.95 seconds last year.
Founded in 1948
Dr. Bronner has become the country's best-selling natural liquid soap by word of mouth.
In 2022, the brand generated approximately $169 million in revenues.

Unilever steps up its ice cream ambitions - 21/11/2022

with sales of over 1 billion euros, Magnum is one of the world's leading ice cream companies
World leader in ice cream almost everywhere in the world
Ice cream is one of Unilever's five strategic categories, along with beauty (Dove, Sunsilk...), hygiene (Rexona, Signal...), home care (Omo, Cif...) and food (Knorr, Maille, Amora...).
Ice cream division 6.9 billion euros in sales by 2021
35 brands, including Magnum, Ben & Jerry's, and Wall's, each with over €1 billion in sales, and smaller brands (Cornetto and Viennetta, the American Talenti)
Viennetta launched in China
ice cream accounts for 15% of the global snacking market.

Estée Lauder buys a breath of fashion air with Tom Ford - 16/11/2022

Estée Lauder's acquisition of Tom Ford: $2.3 billion.
Foundation of the Tom Ford brand: 2005.
Estée Lauder has owned the Tom Ford Beauty license since: 2006.
Estée Lauder fourth-quarter fragrance sales: $579 million.
Estimated potential of Tom Ford Beauty for Estée Lauder: over one billion euros in two years.
Tom Ford will remain the brand's creator until the end of 2023.

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Estée Lauder

Unilever

Johnson & Johnson

L’Erbolario

Davines

Aveda (Groupe Estée Lauder)

Lush

Burt's Bees

Juice beauty

Dr. Bronner's

Herbivore Botanicals

Well People

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