Insights into the Natural Products Industry

It’s no secret, consumers today want eco-friendly, chemical-free beauty products. They want products
that they know are good for their health as well as the environment. Luckily, the market delivers. Many
of the major beauty brands today created natural and organic beauty products for the health and
environment-conscious consumer. By the year 2025, the natural products industry is projected to reach
$25.11 billion.

A Trendy Business

New companies enter the natural products industry often based on the latest trends. The projected
year-over-year growth in the industry is 9.7%. The growth in the natural personal products industry is
due to increased consumer spending on natural products, online purchasing capabilities, and enhanced
distribution channels.

Where is the Largest Demand?

Throughout the world, North America has the largest share of the organic skincare market, with 37% of
the organic skincare revenue originating in the United States. Europe holds the second largest demand
with 29% of the market share in the industry. Consumers everywhere, however, want products that
provide healthy skin and hair without exposing them to harsh chemicals and unsafe ingredients.

Skincare – The Top Seller

Skincare has become increasingly more important throughout the world due to the climate changes and
the damages it can cause to both men and women. By the year 2021, the global skincare market will
grow $18.5 billion. A large majority of that growth will originate in Asia.

The total revenue in skincare is forecasted to reach $137 billion by the year 2021. The factors that
bother consumers the most, prompting them to increase spending on organic skincare include:

– Aging
– Acne
– Pigmentation

The rise in demand for men’s skincare products will have the largest effect on the skincare market. The
increased demand for DIY skincare treatments at home also help fuel the industry.

The Online Demand for Natural Skincare Products

According to Internet Retailer data, online beauty sales reached a high of $5 billion in sales. Just who
buys natural skincare and beauty products online?

Almost 35% of the buyers are men and more than half of the buyers are at least 35 years old. A majority
of the buyers (55%) have an annual income of at least $35,000, but not more than $125,000. Many of
the shoppers typically shop online and almost half of them actively search for ways to decrease their
footprint in the environment.

What Consumers Want

Consumers today want chemical-free products, but what do they look for?

– Paraben free products – With just 35% of today’s beauty products containing parabens, it’s
easier for today’s consumer to satisfy their need to limit the use of parabens
– Superfood ingredients – While consumers won’t eat their skincare or cosmetic products, they do
want products with ingredients like coconut oil, avocado oil, and quinoa
– Color options – Consumers today want products with natural ingredients, but they don’t want to
give up their color options, as is relevant in the 22% growth in facial colors available today

Breaking into the natural skincare and beauty industry may be easier today than ever before because
the demand for individuality and healthy cosmetic/skincare products is high. Finding your niche and
targeting the right market could be successful for your business.