The ASEAN organic cosmetics market is expected
to be worth nearly US$ 4.5 billion by 2020. Demand for organic cosmetics in
ASEAN is driven by rising awareness on the benefits of natural ingredients over
artificial variants.
The
global organic cosmetics market was valued at nearly US$ 40 billion in 2015,
and by 2020, it is expected to reach US$ 66 billion, increasing at a CAGR of
over 10%. ASEAN, an emerging market for organic cosmetics, is expected to
witness high demand, driven a number of factors on which information is offered
in the report, “Organic Cosmetics Market: ASEAN Industry Analysis and
Opportunity Assessment, 2014-2020”.
Rising
awareness about the potential side effects of synthetic cosmetics is a key
factor driving increased demand for organic cosmetics. Positive perception
towards organic cosmetics, availability of wide range of organic cosmetics, and
emergence of a strong middle class in ASEAN are the other key regions fuelling
demand. On account of these factors, the organic cosmetics market in ASEAN is
expected to increase at over 9% through 2020 and reach US$ 4.4 billion in
revenues.
High
cost, limited shelf life, and lack of standard certification have been
identified as key challenges to the growth of the ASEAN organic cosmetics
market. There is an urgent need for establishing rigorous certification
standards, so that only those reliable and genuine brands are able to launch
their products in the market.
On the
basis of product type, the ASEAN organic cosmetics market can be broadly
segmented into skin care, hair care, make up, fragrances, and toiletries.
Among
these, organic hair care products accounted for the highest revenue share of
the market in 2015. Valued at US$ 780 million in 2015, demand for organic hair
care products in ASEAN is expected to reach US$ 1.24 billion by the end of
2020.
Skin care
is the second-highest product type on the basis of revenues, valued at US$ 671
million in 2015. This segment is expected to expand at a CAGR of 9.7% through
2020, and surpass US$ 1 billion in revenues by 2020. Organic fragrances and
toiletries are also expected to expand at healthy CAGRs through the forecast
period.
Thailand,
the largest market for organic cosmetics in ASEAN, accounted for nearly 30%
revenue share of the overall market in 2015. Valued at US$ 809 million in 2015,
the Thailand organic cosmetics market is expected to expand at 9.4% CAGR to
reach US$ 1.29 billion in revenues by 2020. Beauty specialist salon and
pharmacy/drugstores are the two largest distribution channels in Thailand,
collectively accounting for nearly 57% of overall sales.
Indonesia
is the second largest market, with total revenues totalling US$ 671 million in
2015. However, the Indonesia organic cosmetics market is expected to expand at
slightly lower CAGR than rest of ASEAN countries. Beauty salon and e-commerce
websites are the two largest distribution channels for organic cosmetics in
Indonesia.
The
Philippines organic cosmetics market was valued at US$ 552 million in 2015.
General merchandise retailers account for a high percentage of total sales of
organic cosmetics in Philippines.
ASEAN Organic Cosmetics Market: Key Players
The
leading players in the ASEAN organic cosmetics market are Estee Lauder Inc., Le
Groupe L’OCCITANE, L’Oreal Group, Weleda Inc., W.S. Badger Company Inc.
By PR Rocket
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