10%+ Growth in Global Organic Cosmetics Market
The global organic cosmetics market is set to grow by 10.4% to $66.1 billion by 2020. Once a phenomenon of the West, growth in the travel and tourism industry is increasing awareness of products with natural ingredients particularly in China and the ASEAN markets (Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam and Cambodia) according to a new report by Future Market Insights.
Demand for organic cosmetics are set to grow in hair care (28.2% share) and skin care (CAGR of around 9.7%) during the forecast period, driven by “health awareness programs by regional governments,” and branding surrounding “natural nourishment.”
Leading distribution channels include beauty salons (23% of total sales by 2020), franchise outlets and department stores (18.7% market share by 2020), the latter driven by new entrants to the category.
The report authors note, “Increasing consumer awareness regarding benefits of greener products, rising disposable income and increasing investments by local companies are expected to fuel the demand for organic cosmetics in ASEAN.”
The finding of the report reflect our own experience here at Cosmiko. We already exports to China via Hong Kong and international enquiries are growing, particularly from the Middle East and Africa.