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Global Organic Personal Care Products Market


2012 2018

Organic Personal Care Products Market:


Global Industry Analysis, Size, Share,
Growth, Trends and Forecast,
2012 - 2018

Transparency Market Research 1


Global Organic Personal Care Products Market
2012 2018

Table of Content

Chapter 1 Preface .............................................................................. 13


1.1 Report Description ....................................................................................................... 13

1.2 Market segmentation .................................................................................................. 14

1.2.1 Global organic personal care products market segmentation, type and
geography .......................................................................................................... 14

1.3 Research scope ............................................................................................................ 14

1.4 Research Methodology ................................................................................................ 15

Chapter 2 Executive Summary ......................................................... 18


2.1 Global organic personal care product market revenue, 2011 - 2018 (USD Million) ........ 18

2.2 Global Organic Personal Care Products Market Snapshot ............................................. 19

Chapter 3 Organic Personal Care Products Industry


Analysis ............................................................................ 21
3.1 Introduction................................................................................................................. 21

3.1.1 Classification of organic personal care product ................................................... 22

3.2 Value chain analysis ..................................................................................................... 23

3.2.1 Value chain analysis of global organic personal care market ............................... 23

3.3 Market Drivers ............................................................................................................. 24

3.3.1 Drivers for organic personal care market: Impact analysis ................................... 24

3.3.2 Increasing consumer health awareness ............................................................... 24

3.3.3 Widening distribution channels .......................................................................... 25

3.3.3.1 Global organic personal care market, distribution


channel share, 2011 .................................................. 25

3.3.4 New product launches ........................................................................................ 26

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3.3.4.1 Natural & organic personal care products - new


product launches, 2011 & 2012 ................................... 27

3.4 Restraints .................................................................................................................... 28

3.4.1 Restraints for organic personal care products market: Impact analysis ................ 28

3.4.2 Short shelf life .................................................................................................... 28

3.4.3 Costing issues compared to synthetic products ................................................... 28

3.5 Opportunities .............................................................................................................. 29

3.5.1 Evolving regulations supporting the organic way of life ....................................... 29

3.5.2 Increasing purchasing power of Asia Pacific ........................................................ 29

3.5.2.1 Per capita income of India and China, 2009-2012.......... 29

3.6 Porters five forces analysis .......................................................................................... 31

3.6.1 Bargaining power of suppliers............................................................................. 31

3.6.2 Bargaining power of buyers ................................................................................ 32

3.6.3 Threat of new entrants ....................................................................................... 32

3.6.4 Threat of substitutes........................................................................................... 32

3.6.5 Degree of competition ........................................................................................ 33

3.7 Market Attractiveness Analysis .................................................................................... 34

3.8 Organic personal care market: Company market share analysis ................................... 36

Chapter 4 Organic Personal Care Products- Product


Segment Analysis ............................................................ 38
4.1 Global organic personal care products market, by product type: Overview .................. 38

4.1.1 Global organic personal care products market revenues share, by product
type, 2011 and 2018 ........................................................................................... 38

4.1.2 Organic skin care products .................................................................................. 39

4.1.2.1 Global organic skin care products market, 2011


2018 (USD million) .................................................... 39

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4.1.3 Organic hair care products .................................................................................. 40

4.1.3.1 Global organic hair care products market, 2011


2018 (USD million) .................................................... 40

4.1.4 Organic oral care products .................................................................................. 41

4.1.4.1 Global organic oral care products market, 2011


2018 (USD million) .................................................... 41

4.1.5 Organic cosmetics ............................................................................................... 41

4.1.5.1 Global organic cosmetics market, 2011 2018 (USD


million) .................................................................... 42

4.1.6 Other organic personal care products ................................................................. 42

4.1.6.1 Global other organic personal care products market,


2011 2018(USD million) .......................................... 42

Chapter 5 Organic Personal Care Products Market- Regional


Analysis ............................................................................ 44
5.1 Global Organic personal care products market: geographical overview ........................ 44

5.1.1 Global organic personal care products market, revenue share by


geography, 2011 and 2018 .................................................................................. 44

5.1.2 North America organic personal care products market revenue, by type,
2011 - 2018 (USD million).................................................................................... 45

5.1.3 North America organic personal care products market, revenue share by
country, 2011 - 2018 (USD million) ...................................................................... 46

5.1.3.1 U.S. organic personal care products market, 2011


2018(USD million) ..................................................... 46

5.1.3.2 Mexico organic personal care products market


revenue, 2011 2018(USD million) ............................. 47

5.1.3.3 Canada organic personal care products market


revenue, 2011 2018(USD million) ............................. 48

5.2 Europe ......................................................................................................................... 49

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5.2.1 Europe organic personal care products market revenue, by type, 2011 -
2018 (USD million) .............................................................................................. 49

5.2.2 Europe organic personal care products market, revenue share by country,
2011 - 2018 (USD million).................................................................................... 50

5.2.2.1 Germany organic personal care products market


revenue, 2011 2018(USD million) ............................. 51

5.2.2.2 France organic personal care products market


revenue, 2011 2018(USD million) ............................. 52

5.2.2.3 United Kingdom organic personal care products


market revenue, 2011 2018(USD million)................... 52

5.2.2.4 Russia organic personal care products market


revenue, 2011 2018(USD million) ............................. 53

5.2.2.5 Italy organic personal care products market


revenue, 2011 2018 (USD million) ............................ 54

5.2.2.6 Spain organic personal care products market


revenue, 2011 2018(USD million) ............................. 55

5.2.2.7 Rest of Europe organic personal care products


market revenue, 2011 2018(USD million)................... 57

5.3 Asia Pacific ................................................................................................................... 57

5.3.1 Asia Pacific organic personal care products market revenue, by type, 2011
- 2018 (USD million) ............................................................................................ 57

5.3.2 Asia Pacific organic personal care products market revenue, by country,
2011 - 2018 (USD million).................................................................................... 58

5.3.2.1 Japan organic personal care products market


revenue, 2011 2018(USD million) ............................. 59

5.3.2.2 China organic personal care products market


revenue, 2011 2018(USD million) ............................. 60

5.3.2.3 India organic personal care products market


revenue, 2011 2018(USD million) ............................. 61

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5.3.2.4 South Korea organic personal care products market


revenue, 2011 2018(USD million) ............................. 62

5.3.2.5 Thailand organic personal care products market


revenue, 2011 2018(USD million) ............................. 63

5.3.2.6 Taiwan organic personal care products market


revenue, 2011 2018(USD million) ............................. 64

5.3.2.7 Rest of Asia-Pacific organic personal care products


market revenue, 2011 2018(USD million)................... 65

5.4 Rest of World ............................................................................................................... 66

5.4.1 Rest of World organic personal care products market revenue, by type,
2011 - 2018 (USD million).................................................................................... 66

5.4.2 RoW organic personal care products market revenue, by country, 2011 -
2018 (USD million) .............................................................................................. 67

5.4.2.1 Brazil organic personal care products market


revenue, 2011 2018(USD million) ............................. 67

5.4.2.2 Rest of World organic personal care products market


revenue, 2011 2018(USD million) ............................. 68

Chapter 6 Company Profiles............................................................. 70


6.1 Aveda Corporation ....................................................................................................... 70

6.1.1 Company overview ............................................................................................. 70

6.1.2 Financial overview .............................................................................................. 70

6.1.3 Business strategy ................................................................................................ 70

6.1.4 SWOT analysis .................................................................................................... 71

6.1.5 Recent developments ......................................................................................... 71

6.2 Amway ........................................................................................................................ 71

6.2.1 Company overview ............................................................................................. 71

6.2.2 Financial overview .............................................................................................. 72

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6.2.3 Business strategy ................................................................................................ 72

6.2.4 SWOT analysis .................................................................................................... 72

6.2.5 Recent developments ......................................................................................... 72

6.3 Burts Bee .................................................................................................................... 73

6.3.1 Company overview ............................................................................................. 73

6.3.2 Financial overview .............................................................................................. 73

6.3.3 Business strategy ................................................................................................ 74

6.3.4 SWOT analysis .................................................................................................... 74

6.3.5 Recent developments ......................................................................................... 74

6.4 The Body Shop ............................................................................................................. 75

6.4.1 Company overview ............................................................................................. 75

6.4.2 Financial overview .............................................................................................. 75

6.4.3 Business strategy ................................................................................................ 75

6.4.4 SWOT analysis .................................................................................................... 75

6.5 LOccitane en Provence ................................................................................................ 76

1270 Valley Brook, ...................................................................................................................... 76

6.5.1 Company overview ............................................................................................. 76

6.5.2 Financial overview .............................................................................................. 76

6.5.3 Business strategy ................................................................................................ 77

6.5.4 SWOT analysis .................................................................................................... 77

6.5.5 Recent developments ......................................................................................... 77

6.6 Natura Cosmticos S.A. ................................................................................................ 77

6.6.1 Company overview ............................................................................................. 78

6.6.2 Financial overview .............................................................................................. 78

6.6.3 Business strategy ................................................................................................ 78

6.6.4 SWOT analysis .................................................................................................... 78

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6.6.5 Recent developments ......................................................................................... 79

6.7 Kiehls .......................................................................................................................... 79

6.7.1 Company overview ............................................................................................. 79

6.7.2 Financial overview .............................................................................................. 79

6.7.3 Business strategy ................................................................................................ 79

6.7.4 SWOT analysis .................................................................................................... 80

6.7.5 Recent developments ......................................................................................... 80

6.8 The Hain Celestial Group, Inc. ...................................................................................... 80

6.8.1 Company overview ............................................................................................. 80

6.8.2 Financial overview .............................................................................................. 81

6.8.3 Business strategy ................................................................................................ 81

6.8.4 SWOT analysis .................................................................................................... 81

6.9 Arbonne International ................................................................................................. 81

6.9.1 Company overview ............................................................................................. 82

6.9.2 Financial overview .............................................................................................. 82

6.9.3 SWOT Analysis .................................................................................................... 82

6.9.4 Business strategy ................................................................................................ 82

6.10 Bare Escentuals ............................................................................................................ 82

6.10.1 Company overview ............................................................................................. 83

6.10.2 Financial overview .............................................................................................. 83

6.10.3 Business strategies ............................................................................................. 83

6.10.4 SWOT analysis .................................................................................................... 83

6.10.5 Recent developments ......................................................................................... 84

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List of Figures

FIG. 1 Global organic personal care products market segmentation, type and geography 14

FIG. 2 Global organic personal care product market revenue, 2011 - 2018 (USD Million) 18

FIG. 3 Classification of Organic personal care products 22

FIG. 4 Value chain analysis of global organic personal care product market 23

FIG. 5 Global organic personal care market, distribution channel share, 2011 25

FIG. 6 Natural & organic personal care products - new product launches, 2011 & 2012 27

FIG. 7 Per capita income of India and China, 2009-2012 30

FIG. 8 Porters five forces analysis 31

FIG. 9 Organic personal care market, by product 34

FIG. 10 Company market share, 2012 36

FIG. 11 Global organic personal care products market, revenue share by product type,
2011 and 2018 38

FIG. 12 Global organic skin care products market, 2011 2018 (USD million) 39

FIG. 13 Global organic hair care products market, 2011 2018 (Kilo Tons) (USD million) 40

FIG. 14 Global organic oral care products market, 2011 2018 (USD million) 41

FIG. 15 Global organic cosmetics market, 2011 2018 (USD million) 42

FIG. 16 Global other organic personal care products market, 2011 2018 (USD million) 43

FIG. 17 Global organic personal care products market, revenue share by geography, 2011
and 2018 44

FIG. 18 North America organic personal care products market, revenue share by country,
2011 and 2018 46

FIG. 19 U.S. organic personal care products market revenue, 2011 2018 (USD million) 47

FIG. 20 Mexico organic personal care products market revenue, 2011 2018 (USD million) 48

FIG. 21 Canada organic personal care products market revenue, 2011 2018 (USD
million) 48

FIG. 22 Europe organic personal care products market, revenue share by country, 2011
and 2018 50

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FIG. 23 Germany organic personal care products market revenue, 2011 2018 (USD
million) 51

FIG. 24 France organic personal care products market revenue, 2011 2018 (USD million) 52

FIG. 25 United Kingdom organic personal care products market revenue, 2011 2018
(USD million) 53

FIG. 26 Russia organic personal care products market revenue, 2011 2018 (USD million) 53

FIG. 27 Italy organic personal care products market revenue, 2011 2018 (USD million) 54

FIG. 28 Spain organic personal care products market revenue, 2011 2018 (USD million) 55

FIG. 29 Rest of Europe organic personal care products market revenue, 2011 2018
(USD million) 57

FIG. 30 Asia Pacific organic personal care products market, revenue share by country,
2011 and 2018 58

FIG. 31 Japan organic personal care products market revenue, 2011 2018 (USD million) 59

FIG. 32 China organic personal care products market revenue, 2011 2018 (USD million) 60

FIG. 33 India organic personal care products market revenue, 2011 2018 (USD million) 61

FIG. 34 South Korea organic personal care products market revenue, 2011 2018 (USD
million) 62

FIG. 35 Thailand organic personal care products market revenue, 2011 2018 (USD
million) 63

FIG. 36 Taiwan organic personal care products market revenue, 2011 2018 (USD
million) 64

FIG. 37 Rest of Asia-Pacific organic personal care products market revenue, 2011 2018
(USD million) 65

FIG. 38 RoW organic personal care products market, revenue share by country, 2011 and
2018 67

FIG. 39 Brazil organic personal care products market revenue, 2011 2018 (USD million) 68

FIG. 40 Rest of World organic personal care products market revenue, 2011 2018 (USD
million) 69

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List of Tables

TABLE 1 Global Organic Personal Care Products Market Snapshot 19

TABLE 2 Drivers for organic personal care market: Impact analysis 24

TABLE 3 Restraints for organic personal care products market: Impact analysis 28

TABLE 4 North America organic personal care products market revenue, by type, 2011 -
2018 (USD millions) 45

TABLE 5 Europe organic personal care products market revenue, by type, 2011 - 2018
(USD millions) 49

TABLE 6 Asia Pacific organic personal care products market revenue, by type, 2011 - 2018
(USD millions) 57

TABLE 7 Rest of World organic personal care products market revenue, by type, 2011 -
2018 (USD millions) 66

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About Us

Transparency Market Research (TMR) is a market intelligence company, providing global


business information reports and services. Our exclusive blend of quantitative forecasting and
trends analysis provides forward-looking insight for thoU.S.nds of decision makers. TMRs
experienced team of Analysts, Researchers, and Consultants, use proprietary data sources and
various tools and techniques to gather, and analyze information. Our business offerings
represent the latest and the most reliable information indispensable for businesses to sustain a
competitive edge.

Each TMR syndicated research report covers a different sector such as pharmaceuticals,
chemical, energy, food & beverages, semiconductors, med-devices, consumer goods and
technology. These reports provide in-depth analysis and deep segmentation to possible micro
levels. With wider scope and stratified research methodology, our syndicated reports thrive to
provide clients to serve their overall research requirement.

Copyright 2013 Transparency Market Research


All Rights Reserved. This document contains highly confidential information and is the sole
property of TMR. No part of it may be circulated, copied, quoted, or otherwise reproduced
without the approval of TMR.

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Chapter 1 Preface

1.1 Report Description

To define and measure the global organic personal care products market with
respect to products available

Detailed analysis of the market structure by identifying various sub-segments of the


global organic personal care products market

Forecast trends of the global organic personal care products market and its various
sub-segments, with respect to major geographies of the world

Identify the market trends and drivers of the global organic personal care products
market along with risk and opportunities available for growth of the industry

Strategically analyze each submarket with respect to individual growth trends and
contribution to the overall global personal care products market

This report categorizes the organic personal care market into the following product types:
Skin care
Hair care
Oral care
Cosmetic
Others (deodorants, feminine hygiene products, etc)

The geographies covered in this report include North America, Europe, Asia Pacific and Rest of
the World (RoW).

Apart from these geographies, the report also covers organic personal care products market
analysis in countries such as U.S., Mexico, Canada, Germany, France, U.K., Russia, Italy,
Spain, Japan, China, India, South Korea, Thailand, Taiwan, and Brazil.

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1.2 Market segmentation


1.2.1 Global organic personal care products market segmentation, type
and geography

FIG. 1 Global organic personal care products market segmentation, type and
geography

Organic personal
Care products

Type Geography

Skin care
Hair care
Oral care North America Europe Asia Pacific RoW
Cosmetics
Others

Germany
Japan
France
China
United
U.S. India
Kingdom Brazil
Mexico South Korea
Russia Others
Canada Thailand
Italy
Taiwan
Spain
Others
Others

Source: Transparency Market Research

1.3 Research scope

This report provides a strategic analysis of the global market for organic personal care products,
and growth forecast for the period from 2012 to 2018. The scope of the report includes
competitive analysis of market segment based on product for different regional market. The
report also strives to compile together a broad view of the characteristics of organic personal

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care products market by providing historical data from 2011 and a forecast of up to 2018 along
with detailed analyses in terms of revenues.

The report also identifies various factors, affecting the market growth, which includes market
drivers, restraints, and opportunities. These factors determine various trends which exist in the
market and their impact on the growth. Inflation is not a part of pricing in this report. The global
organic personal care products market size is provided in terms of revenue. Market revenue are
defined in USD million. Market size and forecast for each product type is provided in the context
of global as well as regional markets.

1.4 Research Methodology

For the research report, we conducted in-depth interviews and discussions with a wide range of
key industry participants and opinion leaders. Primary research represents the bulk of research
efforts, supplemented by extensive secondary research. We reviewed the key players product
literature, annual reports, press releases and relevant documents for competitive analysis and
market understanding. Secondary research also includes a search of recent trade, technical
writing, internet sources and statistical data from government websites, trade associations and
agencies. This approach has proven to be the most reliable, effective and successful approach
for obtaining precise market data, capturing industry participants insights, and recognizing
business opportunities.

Secondary Research
The secondary research sources that were referred to include, but are not limited to:

Company websites, annual reports, financial reports, broker reports, investor


presentations and SEC filings

Industry trade journals, scientific journals and other technical literature

Internal and external proprietary databases, relevant patent and regulatory


databases

National government documents, statistical databases and market reports

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News articles, press releases and web-casts specific to the companies operating in
the market

The sources for secondary research include but are not limited to:

Nutraceuticals magazine

NSF international

USDA organic skincare

Company annual reports

IFOAM

ECOCERT (France)

Certech (Canada)

Primary Research
We conducted primary interviews on an ongoing basis with industry participants and
commentators in order to validate data and analysis. A typical research interview fulfills the
following functions:

It provides first-hand information on the market size, growth trends, competitive


landscape, future outlook, etc.

Helps in validating and strengthening the secondary research findings

Further develops the Analysis Teams expertise and market understanding

Primary research involves E-mail interactions, telephonic interviews as well as


face-to-face interviews for each market, category, segment and sub-segment
across geographies

The participants who took part in this process included, but were not limited to:

Industry participants: CEOs, VPs, marketing/product managers, market intelligence


managers and national sales managers

Purchasing managers, technical personnel, distributors and resellers

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Outside experts: Investment bankers, valuation experts, research analysts


specializing in specific markets

Key opinion leaders specializing in different areas corresponding to different


industry verticals

List of companies contacted during primary research include but are not limited to:

Estee Lauder

Bare Escentuals

L'Oreal

Colgate - Palmolive

Models
Where no hard data was available, we used modeling and estimates in order to produce
comprehensive data sets. A rigorous methodology was adopted in which the available hard data
was cross referenced with the following data types to produce estimates:

Demographic data: Population split by segment

Macro-economic indicators: GDP, etc

Industry indicators: Expenditure, technology stage & infrastructure, sector growth


and facilities

Data was then cross checked by the expert panel

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Chapter 2 Executive Summary

The global market for organic personal care products was worth USD 6,915.8 million in 2011
and is expected to reach USD XX million in 2018, growing at a CAGR of XX% from 2012 to
2018.

2.1 Global organic personal care product market revenue, 2011 - 2018 (USD
Million)

FIG. 2 Global organic personal care product market revenue, 2011 - 2018 (USD
Million)

14,000.0

12,000.0
Revenue (USD Million)

10,000.0

8,000.0

6,000.0

4,000.0
6,915.8

7,607.4

2,000.0

-
2011 2012 2013 2014 2015 2016 2017 2018

Source: Nutraceuticals magazines, NSF international, USDA organic skincare, Primary interview, Transparency Market Research

The major factor driving the growth of the market is increasing consumer health awareness. In
addition, widening distribution channels and launch of new products are some of the other
factors contributing to the market growth. But due to shorter shelf life of the organic products
and high prices of the raw materials are the major growth barriers of the market.

The skin care segment dominated the global organic personal care products market and
occupied 32.1% of the total market in 2011, followed by the hair care and cosmetic segment
that occupied 25.4% and 21.6% of the market share, respectively.

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North America is expected to maintain its lead position in terms of demand and is expected to
command 35.2% of the global organic personal care products market revenue share in 2018,
followed by Europe. Europe is expected to occupy 28.6% of the global market in 2018.

2.2 Global Organic Personal Care Products Market Snapshot

TABLE 1 Global Organic Personal Care Products Market Snapshot

Parameter 2011 2018

Global Market Revenue (USD


6,915.8 XX
Million)

CAGR (%) 2012 - 2018 Revenue: XX%

North America: 34.8% North America: XX%


Geographic share (%), by Europe: 29.0% Europe: XX%
revenue Asia-Pacific: 24.0% Asia-Pacific: XX%
RoW: 12.1% RoW: XX%

Skin care: 32.1% Skin care: XX%


Hair care: 25.4% Hair care: XX%
Key product type share (%), by
Oral care: 13.8% Oral care: XX%
revenue
Cosmetic: 21.6% Cosmetic: XX%
Others: 6.9% Others: XX%

Bare Escentuals: XX%


Estee Lauder: XX%
Key player share (%), 2011
Burt's Bee: XX%
Others: XX%

Source: Transparency Market Research

High growth is expected to raise the market share of the organic personal care products in the
overall personal care industry. Launches of new products are stimulating the market growth.
Moreover, the entries of large multinationals are making organic products more visible and
accessible to the consumers. With many new and different organic products marketed in the
market consumer confusion is a major concern for the industry. As many new companies are
entering the market tends to be more fragmented. Moreover, as the market matures,
opportunities are tends to become scarcer.

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There are many brands available in the market, however very few have a significant market
share. The market for organic personal care products are highly fragmented as the top nine
companies occupied more than 50% of the market share in 2011. The rest of the market is
occupied by various small and private players. Some of the major players of the market are
Bare Escentuals, Aveda, Origins (Estee Lauder), Burt's Bee (The Clorox Company) and The
Body Shop, kiehls (L'Oreal).

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Chapter 3 Organic Personal Care Products Industry


Analysis

3.1 Introduction
The organic personal care products are manufactured from natural ingredients of plants
extraction under eco-friendly conditions. They include the products such as body care, facial
care, sun care products, conditioners, shampoos, hair colors, mouthwash, toothpaste, mascara,
lipstick, foundations, feminine hygiene products, deodorants etc. These products do not contain
the synthetic chemicals such as parabens, phthalates, petrochemical and aluminum salts.
Ecocert, Soil Association, Cosmebio, ICEA, BDIH, OASIS, NPA, NSF are the various standards
available in Europe, Asia-Pacific, North America, and other regions in order to regulate and
certify the organic products in the regions. In addition to this international and regional initiatives
such as Cosmos and NaTrue also came into existence to standardize the organic personal care
industry.

The organic personal care products market is segmented into different types including skin care,
hair care, oral care, cosmetic and others. Skin care products include facial care products such as
moisturizers, cleansers etc; body care products such as foam bath, lotions, etc.; sun care
products such as lotions, sun screen, etc. Organic hair care products include shampoos,
conditioners, hair colors and styling products. Organic oral care products includes toothpastes,
mouthwashes etc. Organic cosmetics include foundation, mascara, lipstick, etc. And the others
segment includes deodorants, toiletries, and feminine hygiene products etc. Organic skin care
products dominate the global organic personal care market which is followed by organic hair care
products.

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3.1.1 Classification of o rganic personal care product

FIG. 3 Classification of Organic personal care products

Organic personal
care products

Skin Care products Hair care product Oral care products Cosmetics Others

Shampoos, Foundation Deodorants


Facial care
Conditioners Toothpastes Mascara Toiletries
Body care
Hair color Mouthwashes Lipstick Feminine hygiene
Sun care
Styling products Color cosmetics products

Source: Transparency Market Research

Organics are the fastest growing segment of global personal care industry. Rising concerns for
health safety, increasing green consciousness and growing consumers awareness of hazards of
synthetic chemicals have fueled the demand for organic personal care products. With the high
growth of the industry many major personal care manufacturing companies are entering into the
manufacturing of organic personal care products. Low consumer understanding of organic
personal care products, curbing pseudo-organic products competing with organic products
multiple standards creating consumer confusion are few of the factors dampening demand the
demand of organic personal care products

North America is the major and well developed market for organic personal care and the other
major personal care products manufacturing nations include Germany, France, Italy, United
Kingdom, Spain, Russia and Brazil. U.S. is the most attractive market in North America where as
Japan is experiencing an organic boom and dominates the organic personal care market in
whole Asia Pacific.

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3.2 Value chain analysis


3.2.1 Value chain analysis of global organic personal care market

FIG. 4 Value chain analysis of global organic personal care product market

Direct online marketing

Raw material R & D and design Manufacturers Distribution Consumers


suppliers

Earth Supplied LOccitane en Aveda Retailers Men


Products LLC Provence Burt's Bee Marketing Women
Actives Kiehls Jason Natural agreements Beauty Salons
International Arbonne Products Collaborations Health Spas
BioChemica Intl, Body Shop Online stores
Inc. Natura Cosmticos Wholesalers
Bio-Botanica Inc S.A.

Moderate level of vertical integration

Source: Transparency Market Research

The basic raw materials used in the making of organic personal care products include essential
oils, herbs, herbal extract, vitamins and preservatives. Raw material distributors and suppliers
such as Earth Supplied Products LLC, Actives International , BioChemica Intl, Inc., Bio-
Botanica Inc supply various raw materials and ingredients to the manufacturers of the organic
personal care products for R&D and manufacturing of organic personal care products. The R&D
activities help to remove the harmful effects of the raw materials which is followed by the
process of product manufacturing.

The manufacturing process includes in-house production of goods through owners brand or
through contract manufacturers. Finished goods completes the manufacturing process including
the packaging of products. The finished organic personal care products are then distributed to
consumers through various distribution networks. Premium organic personal care products have
been sold through department stores in most of the major markets. In recent years, the slow
market growth rates and rising competition are pushing brands towards new other distribution
channels such as direct sales, specialty retail stores, drug stores, pharmacies, mass
merchandisers such as Wal-Mart and target, supermarkets such as Loblaws and Safeway,

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hyper market, and the online stores such as Walgreens, Amazon.com, Drugstore.com,
Sephora.com, Vitacosthave developed, offering consumers other opportunities to purchase
premium products. The Body Shop, LOccitane en Provence and other such companies carry
out direct marketing and have developed their own distribution network, while some are
engaged in third party distribution agreements. For instance, in December 2012, Eastman
Chemical Company extended its exclusive sustainable personal care products distribution
agreement with Ross Organic that allows Eastman Chemical Company to distribute its organic
personal care products in U.S. Many companies are aiming at strengthening their distribution to
increase their market penetration. Direct online marketing is also one of the popular distribution
channel used by the manufacturers of organic personal care products such as LOccitane en
Provence, Kiehls, Avalon Organics, etc.

The organic personal care industry is characterized by moderate level of forward vertical
integration. Manufacturers of organic personal care products such as Bath & Body Works, Yves
Rocher, Clarins, Kiss My Face, etc. are also involved in the distribution of products to the end
users through various distribution channels such as specialty stores, online marketing, retail
stores, etc. Typical end users for organic personal care products include men, women, beauty
salons and health spas, etc.

3.3 Market Drivers


3.3.1 Drivers for organic personal care market: Impact analysis
TABLE 2 Drivers for organic personal care market: Impact analysis
2012 14 2014- 16 2016 -018
Market Drivers
Impact

Increasing consumer health awareness XX XX XX

Widening distribution channels XX XX XX

New product launches XX XX XX

Source: Transparency Market Research

3.3.2 Increasing consumer health awareness


Many health risks are associated with the use of synthetic personal care products due to the
presence of chemicals, such as phthalates, petroleum based chemicals, parabens, aluminum

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salts etc. This has resulted into the shift of consumer preference towards organic personal care
products which are sustainable and non toxic. More over the consumers look for safety
assurance of the products they buy and aim to use organic personal care products which not
only protects their health but also the environment. Organic personal care products are growing
in popularity among the end users due to their eco-friendly nature. Thus the increase in
consumer health awareness will continue to drive the growth of organic personal care market
during the forecasted period.

3.3.3 Widening distribution channels


In personal care industry product availability and retail shelf space plays a very important role in
creating the demand of the product. Distribution is a key success factor in current organic
personal care industry. Rising competition and comparatively slow market growth rate of organic
personal care market has made the companies to focus on increasing product penetration in
global market. Supermarkets, drugstores, mass merchandisers, club stores etc plays vital role in
distribution of organic personal care products. Rising consumer demands for green products is
driving the shift from niche distribution channels to mainstream mass retailers. Mass
merchandisers such as Wal-Mart and target are introducing organic personal care products.
Moreover, supermarkets such as Loblaws and Safeway are also expanding product ranges.
This has resulted into the sharp increase in sales of organic personal care products. At present
even if the organic personal care products are making inroads in drug stores, beauty retailers,
pharmacies and mass market retailers the specialist retail outlet still constitute the major share
in the market. Moreover salons, spas and beauty centres were also found to be increasingly
useful to reach end users.

3.3.3.1 Global organic personal care market, distribution channel


share, 2011

FIG. 5 Global organic personal care market, distribution channel share, 2011

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3.4 Restraints
3.4.1 Restraints for organic personal care products market: Impact
analysis
TABLE 3 Restraints for organic personal care products market: Impact analysis
2012 14 2014- 16 2016 -18
Market Restraints
Impact

Short shelf life XX XX XX

Cost constraints XX XX XX

Source: Transparency Market Research

3.4.2 Short shelf life


Since personal care products are expected to have a longer shelf life, shorter shelf life of
organic personal care products is the another factor which is holding back the demand of
consumers. Synthetic products are loaded with large amount of preservatives in order to
preserve their attributes. However, organic personal care product manufacturers have a hard
time to find the organic ingredients as an alternative to synthetic preservatives. The organic
products with no preservatives or one with all natural preservatives have a short shelf life, or
need to be refrigerated. As companies seek alternative to synthetic preservative, the organic
personal care industry as whole is moving forward on this challenging issue. For instance,
Aubrey Organic has developed a preservative with grape seed extract and vitamins which helps
to extend the shelf life of organic personal care product.

With the further development in this field manufacturers can overcome the hurdle of short shelf
life of organic personal care products. Thus impact of these restraints is expected to shift from
medium to low in the years to come.

3.4.3 Costing issues compared to synthetic products


Organic personal care products are generally sold at premium prices and their prices ranges
from 3 to 5 times from that of synthetic personal care products. Cost constraints has been
remained the major restraint holding back the growth of organic personal care market. Key
factors affecting prices of organic personal care products includes, cost intensive product
certification process, high and volatile prices of key raw materials, and labour intensive

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3.6 Porters five forces analysis

FIG. 8 Porters five forces analysis

Supplier Power Threat from substitutes


High High Low Low

High cost of switching suppliers Focus on research and development


Volatile raw materials to develop cost effective organic
Creditable threat of forward integration personal care products
Pseudo labeled organic products
Degree of Competition
High High

Frequent mergers and acquisition


Focus on product innovation to reduce
product pricing and capture market
share
Large and fragmented group of
companies are present in the market
Intense competition at domestic level
Buyer Power
Threat from New Entrants
Low Medium
Medium High

Highly unorganized end users Capital Intensive technology


Well established brands Favourable regulatory policies
As product quality and origin are of Branding plays a critical role in the
importance, buyers may not choose to organic personal care market
Rapid growth in demand
switch between established brands

Source: Transparency Market Research

3.6.1 Bargaining power of suppliers


The suppliers of raw material to the personal care product market include suppliers of plants
oils, vitamins, or a range of herbs and many more. Raw materials account for more than 50% of
organic personal care products costs in general. Cost competitiveness remains key for large
marketers, while niche markets can support the inclusion of high-end specialty ingredients. Also,
there is significant threat of forward integration from raw material suppliers getting into the
manufacturing space to develop products.

In addition, cost of switching raw material vendors is high owing to the strict regulatory
compliance required while sourcing raw materials. With increasing demand for natural

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Escentuals, Aveda and Burt's Bee are the market leaders making market penetration highly
complex for new entrants.

Thus, competition in the market is expected to remain high over the next six years.

3.7 Market Attractiveness Analysis

FIG. 9 Organic personal care market, by product

10.5%

10.0%
Market Growth Rate (CAGR)

9.5%

9.0%

8.5%

8.0%

7.5%

Skin care Hair care Oral care Cosmetic Others

Source: Nutraceuticals magazines, NSF international, USDA organic skincare, Primary interview, Transparency Market Research

Skin care products are the largest segment in terms of revenue and will continue to dominate
the organic personal care product market in future growing at a rate of XX% with the highest
market attractiveness. The market is witnessing growth owing to increasing consumer
awareness towards personal health and hygiene and rising concerns regarding skin care.
Second lead is occupied by hair care segment which is expected to grow at a rate of XX% is
also a highly attractive market. The major factors contributing to the growth of this segment are
launch of new products and widening distribution channels.

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3.8 Organic personal care market: Company market share analysis

FIG. 10 Company market share, 2012

Bare Escentuals Estee Lauder Burt's Bee The Hain Celestial Group

Harvest Partners L'Oreal L'Occitane Tom's of Maine

Yves Rocher Others

Source: Nutraceuticals magazines, NSF international, USDA organic skincare, Primary interview, Transparency Market Research

The organic personal care products market are the highly fragmented market with the top nine
players occupied more than XX% of the market in 2012. Bare Escentuals occupied XX% of the
market share in 2012. Companies such Estee Lauder (Aveda, Origins), Clorox (Burt's Bee),
Hain Celestial Group (Jason Natural Products, Avalon, Alba) and Harvest Partners (Arbonne,
Nature's Gate) occupied similar market share ranging from XX% to XX%. Premium brands are
targeting high end retailers. While, others brands are targeting supermarkets, drugstores,
pharmacies and department stores. Retailers private labels are becoming prominent and are
most successful in the organic personal care products markets.

Large cosmetics companies such as Loreal (The Body Shop, kiehls) and Colgate Palmolive
(Tom's of Maine) has adopted the acquisition strategy to enter the organic personal care
products markets and occupied XX% and XX% of the market share in 2012. While companies

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Chapter 4 Organic Personal Care Products- Product Segment


Analysis

4.1 Global organic personal care products market, by product type: Overview

Organics is the fastest growing sector in the global personal care industry. The organic personal
care products are replacing synthetic personal care products. The demand for chemically clean
personal care products has grown considerably in recent years due to the rising consumer
awareness about the possible dangers of harmful chemical used in synthetic personal care
products. The personal care products made with agricultural ingredients that meets handling,
processing and labeling standards of regulatory authorities such as Ecocert, USDA, Cosmebio,
ICEA, BDIH, OASIS, NPA, NSF are mainly termed as organic products. The organic personal
care products include skin care, hair care, oral care, cosmetics, toiletries, female personal
hygiene and deodorants. Organic skin care products are the most widely used organic personal
care products globally.
4.1.1 Global organic personal care products market revenues share, by
product type, 2011 and 2018

FIG. 11 Global organic personal care products market, revenue share by product
type, 2011 and 2018
2011 2018
6.8%

32.2%
21.5%

13.9%

25.5%
Skin care Hair care Oral care Skin care Hair care Oral care

Cosmetic Others Cosmetic Others

Source: Nutraceuticals magazines, NSF international, USDA organic skincare, Primary interview, Transparency Market Research

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Chapter 5 Organic Personal Care Products Market- Regional


Analysis

5.1 Global Organic personal care products market: geographical overview

The global organic personal care industry is spread around the world, with many countries
currently producing and exporting organic personal care product. Traditionally, Europe and
North America are the major markets for organic personal care products. In recent times,
increase in the demand for organic personal care products in Brazil, Mexico, China, India, and
South Korea have gained the attention of manufacturers for the expansion in these countries.
5.1.1 Global organic personal care products market, revenue share by
geography, 2011 and 2018

FIG. 17 Global organic personal care products market, revenue share by geography,
2011 and 2018
2011 2018
12.1%

34.8%

24.0%

29.0%

North America Europe Asia Pacific RoW North America Europe Asia Pacific RoW

Source: Nutraceuticals magazines, NSF international, USDA organic skincare, Primary interview, Transparency Market Research

The awareness of organic personal care products has increased to almost all regions but North
America and Europe is the major contributor of the growth. In 2011, the organic personal care
products markets was dominated by North America which occupied 34.8% of the market share
and is expected to maintain its dominance for the next five years. The market is witnessing
growth partly due to increased awareness about the organic principle and mainly due to entry of

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new multinationals which are making organic products more easily accessible and visible for the
consumer. Europe which occupied 29.0% of the market in 2011 is expected to lose out its
market share in future. The Asia Pacific market is expected to increase its share in the global
organic personal care products market by XX% from 2011 to capture XX% of the global market
in 2018. The growth in the market is driven due to rising green consciousness and growing
awareness and affinity for organic ingredients. Rest of the World (RoW) is also expected to lose
market share from 12.1% in 2011 to XX% in 2018.
5.1.2 North America organic personal care products market revenue, by
type, 2011 - 2018 (USD million)
TABLE 4 North America organic personal care products market revenue, by type,
2011 - 2018 (USD millions)
CAGR
%
Segment 2011 2012 2013 2014 2015 2016 2017 2018
(2012
2018)

Skin care XX XX XX XX XX XX XX XX XX

Hair care XX XX XX XX XX XX XX XX XX

Oral care XX XX XX XX XX XX XX XX XX

Cosmetic XX XX XX XX XX XX XX XX XX

Others XX XX XX XX XX XX XX XX XX

Total XX XX XX XX XX XX XX XX XX

Source: Nutraceuticals magazines, NSF international, USDA organic skincare, Primary interview, Transparency Market Research

The North America organic personal care product market by revenue in 2011 was valued at
USD XX million. It is expected to reach USD XX million in 2018, growing at a CAGR of XX%
from 2012 to 2018. The revenue generated by skin care segment in North America is expected
to grow at a CAGR of XX% from 2012 to 2018. Hair Care is the largest product segment in
terms of revenue and has the highest expected growth. The total revenue generated by hair
care segment in 2011 was USD X million and is expected to reach USD XX million in 2018. The
revenue generated by oral care segment is expected to reach USD XX million in 2018, growing
at a CAGR of XX% from 2012 to 2018, whereas the revenue generated by cosmetic segment is
expected to grow at a CAGR of XX% from 2012 to 2018.

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5.1.3 North America organic personal care products market, revenue


share by country, 2011 - 2018 (USD million)

FIG. 18 North America organic personal care products market, revenue share by
country, 2011 and 2018
2011 2018

US Mexico Canada US Mexico Canada

Source: Nutraceuticals magazines, NSF international, USDA organic skincare, Primary interview, Transparency Market Research

As seen above, U.S. is the region with the largest market share in organic personal care
products market. In 2018, revenue of U.S. is expected to account for XX% of the total organic
personal care products market, up XX% from its 2011 share. Mexico which occupied XX% of
the market in 2011 is expected to lose out its market share in future.

5.1.3.1 U.S. organic personal care products market, 2011


2018(USD million)

Due to the strong awareness of organic principles in North America, the U.S. market offers the
greatest potential for organic personal care products. Moreover, launch of new products is
stimulating the market growth. The entry of large multinationals is making organic products
more accessible to the consumers. Most of the leading manufacturers of organic- personal
products includind Bare Escentuals, Aveda, Origins, The Hain Celestial Group, L'Occitane etc
are based in U.S.

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FIG. 19 U.S. organic personal care products market revenue, 2011 2018 (USD
million)

4,500.0
4,000.0
Revenue (USD Million)

3,500.0
3,000.0
2,500.0
2,000.0
1,500.0
1,000.0
500.0
-
2011 2012 2013 2014 2015 2016 2017 2018

Source: Nutraceuticals magazines, NSF international, USDA organic skincare, Primary interview, Transparency Market Research

The U.S. organic personal care products market generated revenue of USD XX million in 2011.
By the end of 2018, the revenue is expected to reach up to USD XX million, growing at a CAGR
of XX% from 2012 to 2018.

5.1.3.2 Mexico organic personal care products market revenue,


2011 2018(USD million)

Mexico is another biggest market in North America for organic personal care products. The
market is witnessing growth due to the rise in purchasing power of the consumer owing to the
increased access to various types of credit which have permitted the Mexican consumer to
access the better quality products which have increased the demand for organic personal care
products.

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Chapter 6 Company Profiles

6.1 Aveda Corporation

4000 Pheasant Ridge Drive


Blaine, Minnesota 55449
U.S.
Tel: 1-612-783-4000
Website: www.aveda.com
6.1.1 Company overview
Aveda Corporation is a Minnesota, U.S. based company headquartered in Blaine. It was founded
in the year 1978. Aveda has manufacturing plants producing skin care products, perfumes, life
style products, cosmetic products & hair care products. The company's skincare products consist
of treat/correct, cleanse/tone, and moisturize/protect. Its styling products encompass curls/waves
hair sprays, gels, and shines. The company's body care products include moisturize, exfoliate,
cleanse, shave, and sun care products. It also provides makeup products for eyes, lips, cheeks,
and face. The company also operates chain of salons/spas and stores. They operates in various
locations including Canada, U.S., the United Kingdom, Austria, Australia, Denmark, Belgium,
France, Hong Kong, Germany, Iceland, Italy, Ireland, Jamaica, South Korea, Japan, Malaysia,
Luxemburg, Switzerland, the Netherlands, Norway, New Zealand, Spain, the Puerto Rico, and
Taiwan. It operates as a subsidiary of Estee Lauder Companies, Inc. The company had about
500 employees at the end of December 2011.

6.1.2 Financial overview


The company reported annual sales of about USD 9.71 billion for the financial year ended 2012
with a rise of 10% from 2011.

6.1.3 Business strategy


Este Lauder Companies Inc strategy is to primarily focus on cosmetic market from mass beauty
product to prestige beauty product. The company focuses on launch of new prestige beauty
products and supports the launch of its new product by means of dynamic advertising on both
social & commercial media, increasing the spending on advertising in some select countries

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which has resulted in an increase in its customer base. The company also focuses attention on
expanding its operations by geographic expansion in existing as well as other untapped growing
economies of the world

6.1.4 SWOT analysis

Strengths Weaknesses

Strong presence in almost all of the major


Premium price products
markets for personal care products
Large working capital required
Growing credibility

Opportunities Threats

To become entirely organic certified company


Financial instability
to increase the brand value
Competition from similar products
Influencing worldwide consumers

6.1.5 Recent developments


In 2012 Aveda launched its newest hair care product line called Invati which was well received
by the customers & lifted Estee lauders overall hair care product sales.

6.2 Amway

Amway
7575 Fulton Street East
Ada, MI 49355-0001
U.S.
Tel: 1-800-253-6500
Website: www.amway.com

6.2.1 Company overview


Amway is one of the worlds largest direct selling companies, headquartered in Ada, Michigan,
U.S. It was founded by Jay Van Andel and Rich DeVos, in the year 1959. Amway offers a wide

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