by The ASEAN Organic Cosmetics Market is estimated to be valued at US$ 4,583.84 Mn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The ASEAN organic cosmetics market consists of personal care products such as skin care, hair care, cosmetic kits/bags, fragrances, and others which are manufactured using organic or natural ingredients. Organic cosmetic products are believed to have less severe impact on the environment as compared to conventional cosmetic products. Organic cosmetic products contain extracts of natural ingredients sourced from plants, herbs, fruits, vegetables and other natural sources.
Market Dynamics:
The rising health consciousness among consumers regarding the ingredients used in cosmetic products is the major driver for the growth of ASEAN organic cosmetics market. According to a survey, over 70% consumers pay close attention to the ingredients and are willing to pay more for organic products believing they are safer for both skin and environment. Additionally, increasing disposable incomes in developing countries of ASEAN has also fueled the demand for premium organic cosmetic products. Furthermore, growing awareness about toxic chemical ingredients and their side effects through social media campaigns by beauty and skincare bloggers is positively impacting the market growth. However, high cost of organic certified raw materials and price-sensitivity of consumers in some ASEAN countries remains a challenge for widespread adoption of organic cosmetic products in the region.
Segment Analysis
The ASEAN organic cosmetics market is dominated by the skin care segment which accounts for over 40% share of the market. The growing awareness about harmful chemicals present in synthetic personal care products and their side effects is driving the demand for organic and natural skin care products in the region. Organic skin care products not only protect skin from damaging UV rays and free radicals but also help solve various skin problems like acne, aging, and dark spots in a natural way without any side effects.
PEST Analysis
Political: Countries in ASEAN are supporting the organic farming and products industry by providing subsidies and certification programs. This is promoting growth of organic cosmetics market.
Economic: Rising disposable incomes, growing middle class, and increasing spending on personal care are fueling market expansion. The region is emerging as lucrative market for foreign brands.
Social: Increasing health consciousness among people regarding harmful chemicals is driving preference for organic and natural cosmetic products with no side effects.
Technological: Innovation in organic ingredient extraction processes and product formulations is helping companies to come up with innovative organic cosmetic lines.
Key Takeaways
The Global ASEAN organic cosmetics market Size is expected to witness high growth, exhibiting CAGR of 7.8% over the forecast period, due to increasing preference for natural and chemical-free personal care products in the region.
Regional analysis:
Vietnam is the fastest growing market for organic cosmetics in ASEAN region. Supported by favorable regulations and certification programs, the organic farming sector is booming in the country. This is positively impacting growth of organic personal care industry. Thailand is currently the dominant market for organic cosmetics where organic skin care products have maximum demand.
Key players:
Key players operating in the ASEAN organic cosmetics market are Estée Lauder Inc., Lâ€TMOréal Group, WELEDA Inc., Groupe Lâ€TMOCCITANE, and KORRES Group. Estée Lauder owns several organic brands like Aveda and launched its first ASEAN organic skincare range Origins in 2018 to tap the market potential. Lâ€TMOréal acquired organic makeup pioneer Logocos Naturkosmetik AG in 2016 to strengthen its portfolio.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
