Natural Personal Care Ingredients Market Forecasts to 2030 - Global Analysis By Product Type, Ingredient Type, Distribution Channel, Application, End User and By Geography

According to Stratistics MRC, the Global Natural Personal Care Ingredients Market is accounted for $5.3 billion in 2023 and is expected to reach $10.5 billion by 2030 growing at a CAGR of 10.3% during the forecast period. Natural personal care ingredients refer to substances derived from natural sources such as plants, minerals, or animals that are used in the formulation of personal care products like skincare, haircare, and oral care items. These ingredients are typically obtained through processes that preserve their natural properties and are often chosen for their perceived safety, sustainability, and potential benefits for the skin, hair, or overall health. Examples of natural personal care ingredients include botanical extracts, essential oils, fruit and vegetable oils, herbal infusions, clays, and natural waxes.

Market Dynamics:

Driver:

Increasing online purchase of personal care products

The market has witnessed a significant uptick in online purchases of personal care products. This surge can be attributed to consumers' growing preference for organic and sustainable ingredients in their skincare, haircare, and hygiene products. With the convenience and accessibility of e-commerce platforms, customers are exploring a wide range of natural options, driving the market's online sales to new heights. This trend reflects a broader shift towards conscious consumption and wellness-oriented choices.

Restraint:

Lack of consistency

In the market, inconsistency remains a notable challenge. Suppliers often struggle to maintain consistent quality and availability due to factors like weather conditions affecting crop yields, limited sourcing regions, and fluctuations in demand. This inconsistency can lead to challenges for product manufacturers in maintaining stable formulations and meeting consumer expectations for natural and sustainable ingredients. Despite efforts to address these issues, the market continues to grapple with variability in ingredient sourcing and supply chains.

Opportunity:

Mounting popularity of natural products

The market is witnessing a mounting popularity of natural products, driven by increasing consumer awareness and demand for sustainable and eco-friendly alternatives. Natural ingredients like plant extracts, essential oils, and organic compounds are gaining traction due to their perceived safety and effectiveness. Consumers are prioritizing products free from synthetic chemicals, parabens, and artificial fragrances, leading to a surge in the adoption of natural personal care ingredients across various beauty and skincare segments.

Threat:

Limited shelf life

The market faces a challenge due to the limited shelf life of its products. While consumers increasingly prefer natural ingredients, such components often have shorter shelf lives compared to synthetic alternatives. This limitation impacts product stability and can lead to issues with product efficacy over time. To address this, companies in the market must invest in research and development to improve preservation techniques and extend the shelf life of natural ingredients, ensuring product quality and consumer satisfaction.

Covid-19 Impact:

The COVID-19 pandemic significantly influenced the Natural Personal Care Ingredients Market. Increased awareness of hygiene and health drove demand for natural ingredients, boosting market growth. However, disruptions in supply chains and manufacturing processes initially posed challenges. Despite these obstacles, the market adapted with innovative solutions like digital platforms for sales and distribution. Overall, the pandemic accelerated trends favoring natural, sustainable ingredients in personal care products, fostering long-term growth in the sector.

The emollients segment is expected to be the largest during the forecast period

The emollients segment is expected to be the largest during the forecast period. Derived from plant-based sources such as oils, butters, and waxes, these emollients offer natural solutions without synthetic additives or harsh chemicals. Consumers increasingly seek such ingredients for their moisturizing properties, making them a key focus for companies developing natural and sustainable personal care products. This trend is driving innovation and growth within the market segment.

The oral care segment is expected to have the highest CAGR during the forecast period

The oral care segment is expected to have the highest CAGR during the forecast period. Consumers are increasingly opting for natural alternatives in their oral hygiene products, driven by concerns over synthetic ingredients. Key ingredients such as xylitol, neem, and peppermint oil are gaining popularity for their antibacterial properties and ability to freshen breath. This trend reflects a broader shift toward holistic and eco-friendly approaches to personal care routines.

Region with largest share:

North America is projected to hold the largest market share during the forecast period driven by increasing consumer awareness and demand for clean, sustainable, and non-toxic products. There has been a notable shift in consumer preferences towards natural and organic products, driven by concerns about synthetic chemicals and their potential health and environmental impacts. This trend has led to increased demand for natural ingredients in skincare, haircare, oral care, and other personal care products.

Region with highest CAGR:

Asia Pacific is projected to hold the highest CAGR over the forecast period. There is a growing demand for organic and eco-friendly personal care products. Consumers are looking for products that are not only good for their skin but also environmentally sustainable. The rising disposable income in many countries has led to increased spending on premium personal care products, including those with natural ingredients.

Key players in the market

Some of the key players in Natural Personal Care Ingredients market include BASF SE, Dow Inc., Croda International Plc, Ashland Global Holdings Inc., Clariant AG, Evonik Industries AG, Lonza Group Ltd., Cargill, Incorporated, DSM Nutritional Products AG, Merck KGaA, Akzo Nobel N.V., Solvay S.A., Corbion N.V., Wacker Chemie AG and Symrise AG.

Key Developments:

In May 2023, BASF SE partnered with BEAUTYSTREAMS to further expand its D'lite digital service for the personal care industry.

In July 2023, Croda International Plc has completed the acquisition of Solus Biotech, a global leader in biotechnology-derived active ingredients for beauty care and pharmaceuticals.

Product Types Covered:

• Emollients
• Preservatives
• Surfactants
• Sugar Polymers
• Rheology Modifiers
• Active Ingredients
• Other Product Types

Ingredient Types Covered:

• Plant-Based
• Animal-Based
• Mineral-Based
• Synthetic-Free Preservatives
• Certified Organic Ingredients
• Other Ingredient Types

Distribution Channels Covered:

• Online Retail
• Offline Retail
• Direct Sales

Applications Covered:

• Skin Care
• Hair Care
• Oral Care
• Cosmetics
• Baby Care
• Other Applications

End Users Covered:

• Individual Consumers
• Commercial
• Institutional
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances