CAGR: 5.5%Current Market Size: USD 80 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2023-2030Base Year: 2022
The global herbal beauty products market is expected to grow from USD 80 billion in 2022 to USD 122.7 billion by 2030, at a CAGR of 5.5% during the Projection period 2023-2030. The demand for inexpensive, natural beauty products is likely to increase among both men and women over the course of the Projection period, driving the market for herbal beauty products.
Herbal beauty products are those goods that have the desired physiological qualities, such as smoothing appearance, healing properties, and conditioning properties. Natural plant extracts, plant roots, and plant leaves are used to create chemical-free herbal beauty products. The market for herbal beauty products is anticipated to expand as a result of rising demand and their low or nonexistent adverse effects. Additionally, rising consumer spending on cosmetics and personal care items is anticipated to fuel market expansion. Increasing emphasis on appearance and good looks, together with rising consumer acceptance of herbal products, are some of the factors that are anticipated to support market growth globally. The market is expanding as a result of rising demand for beauty products devoid of chemicals and rising consumer awareness of cruelty-free cosmetics. The sales of herbal beauty products are anticipated to be impacted by the huge rise in the influence of social media and beauty blogs that promote the advantages of herbal beauty products. In addition, herbal beauty products are appropriate for all skin tones and come in a variety of items like foundation, eye shadow, and lipstick. Before the coronavirus pandemic broke out, the main market movers were alterations in people's lifestyles, increases in disposable income, and escalating concerns about physical appearance. The market has, however, seen a fall in the first-quarter growth rate since the start of 2020. Consumer demand for beauty products has substantially decreased as a result of the global financial crisis, and many cosmetic businesses have shut down their production facilities because of a labor shortage.
Sample Request: - Global Herbal Beauty Products Market
Market Dynamics:
Drivers:
The demand for herbal beauty products is rising as a result of rising disposable income and changing lifestyles of people around the world. The use of natural and organic cosmetics for anti-aging, hair care, and other purposes is becoming increasingly popular in Europe, which is fueling the expansion of the herbal beauty industry there. The Center for the Promotion of Imports estimates that in 2021, Europe will account for close to 31% of the worldwide market for organic cosmetics. Another element driving the market's expansion is the government's strict rules on the materials used in cosmetics. For instance, The Cosmetic Regulation, 76/768/EEC, according to the European Union, regulates cosmetic components with the goal of producing safe cosmetic products for human consumption.
Restraints:
Herbal products are comparatively more expensive and premium priced than synthetic beauty products are herbal alternatives. This aspect is restricting the market for natural beauty products. High and unstable pricing of essential raw materials, labor-intensive production procedures, and expensive product certification procedures are some of the major factors that influence the cost of herbal beauty products. The leading producers of herbal beauty products see their gross margins drop as a result of the high cost of raw materials. A significant amount of upfront investment is also required for the pricey product certification procedure. Additionally, big producers of herbal beauty products have substantial labour costs. This overall issue serves as a market restraint for herbal beauty products.
Opportunities:
One of the primary growth drivers is expected to continue to be the increasing availability of a wide range of herbal beauty products in retail establishments. Major firms in the herbal beauty industry are more likely to produce new products and provide them at competitive prices as a result of the intense competition. Beauty brands are using cutting-edge strategies to obtain an advantage over competitors. Budget-friendly goods are being introduced by certain luxury companies, while innovative beauty products made with exotic herbal elements are being introduced by more modest names in the market. For instance, the Indian natural beauty company Lotus Botanicals introduced a new premium clean beauty brand in 2021 as part of the growth of its business portfolio.
Challenges:
The availability of fake beauty goods is another issue that big businesses in herbal beauty products deal with. Many consumers can't tell the difference between natural beauty products and deceptive advertising claims. Due to market restrictions, a sizable portion of consumers chooses pseudo-products as a result, which is a factor impeding the market's acceptance of herbal beauty products masquerading as herbal beauty products.
Segmentation Analysis:
The global herbal beauty products market has been segmented based on product, end-user, distribution channel and region.
By Product
The product segment is fragrance, skin care, hair care, and others. The skin care segment led the largest share of the herbal beauty products market with a market share of around 39% in 2022. The development is linked to a greater understanding of the health benefits of herbal beauty products, such as improved skin, a reduction in acne, and the removal of fine lines to delay the aging process. Segment expansion is anticipated to be fueled by rising consumer demand for skincare and hair care products. A line of 15 herbal/natural actives-based sun protection products for various skin types was introduced in 2017 by VLCC, a major wellness player in South Asia and the Middle East.
By End-User
The end-user segment is women and men The women segment led the largest share of the herbal beauty products market with a market share of around 55% in 2022. The market has been driven by women's increasing awareness of personal hygiene throughout time. Women in the United States spend about USD 300,000 on skincare over the course of their lives, which is much more than men do, according to a 2017 SkinStore survey of women. This has prompted numerous manufacturers to introduce new items to the market. For instance, the upscale women's brand Just Herbs offered 70 stock-keeping units of skincare, bath, and body goods at their retail locations throughout the world in December 2019. Women's selection of herb-enriched skin tint, light-coverage tinted moisturizer, and Sapta Jal, a herbal water makeup remover, were all included in the inventory.
By Distribution Channel
The distribution channel segment is pharmacy & drug stores, hypermarkets, e-commerce, and others. The hypermarkets segment led the largest share of the herbal beauty products market with a market share of around 40% in 2022. These stores have trained staff members who are generally knowledgeable and work extremely creatively to offer the consumer high-quality services that ultimately have a beneficial impact on the salability of the goods. To reach the widest possible client base, major market players like Walmart, Aldi, Target, and SPAR are expanding the number of their shop locations in attractive regions like Germany, the United Kingdom, China, and the United States.
Global Herbal Beauty Products Market - Sales Analysis.
The sale of the herbal beauty products market expanded at a CAGR of 4.4% from 2016 to 2022.
The products used on the face or body to change or improve the appearance of the face or the texture of the body are referred to as cosmetics. Natural substances that influence skin functions and supply nutrients for healthy skin and hair can be found in products known as herbal cosmetics. These substances are derived from a range of natural sources. These goods don't include any artificial ingredients that are bad for your health. One of the main drivers of market expansion throughout the projection period is the population's rising expenditure on lifestyle and appearance. The growing emphasis on aesthetics and expanding consumer acceptance of herbal products are also anticipated to support market expansion during the Projection period.
The popularity of international brands, preferences for chemical-free cosmetics, and rising consumer awareness of cruelty-free beauty products all contribute to the need for herbal cosmetics. Additionally, the market is anticipated to gain from the huge rise in the popularity of social media and beauty blogs that promote the advantages of herbal beauty products. But it's anticipated that changing customer choices would limit market expansion. A significant obstacle to the market's expansion over the Projection period is the lack of raw materials and the high cost of herbal goods, which are more expensive and premium-priced than synthetic beauty products.
Thus, owing to the aforementioned factors, the global herbal beauty products market is expected to grow at a CAGR of 5.5% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analysed for the herbal beauty products market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North America region dominated the herbal beauty products market and held a 38.2% share of the market revenue in 2022.
Global Herbal Beauty Products Market - Country Analysis:
Germany's herbal beauty products market size was valued at USD 5.8 billion in 2022 and is expected to reach USD 8.9 billion by 2030, at a CAGR of 5.6% from 2023 to 2030. The demand for herbal beauty products is anticipated to increase with growing awareness of organic cosmetics. Opportunities for herbal beauty products are being created by the rising demand for them.
China’s herbal beauty products market size was valued at USD 6.24 billion in 2022 and is expected to reach USD 9.7 billion by 2030, at a CAGR of 5.8% from 2023 to 2030.
Traditional Chinese components are becoming more and more popular in skincare products, which is helping the market expand among domestic customers. In China, using natural ingredients has taken precedence over all other considerations. Players are creating items with unusual components in response to the rising popularity of organic goods. For instance, Chinese face masks using snail cream are becoming extremely popular. Increasingly popular are face masks with organic components like argan oil serum, green tea extract, and vitamin C that have healing and anti-aging benefits.
India's herbal beauty products market size was valued at USD 4.8 billion in 2022 and is expected to reach USD 7.4 billion by 2030, at a CAGR of 5.7% from 2023 to 2030.
Favorable economic measures such as direct tax exemptions and an increase in foreign direct investment (FDI) in retail e-Commerce are anticipated to motivate a number of MNCs to raise their investments in the fast-moving consumer goods (FMCG) industry. The market for herbal beauty products is anticipated to benefit from this as well. To draw foreign investment and legitimate the current operations of e-Commerce enterprises in the nation, the Indian government approved 100% FDI in retail e-Commerce for goods and services under the marketplace model.
Key Industry Players Analysis:
To increase their market position in the global herbal beauty products market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
5.5% |
Market Size |
80 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Product, By End-User, By Distribution Channel, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Weleda AG, Arbonne International, LLC, Bio Veda Action Research Co., Klienz Herbal Pvt. Ltd., Vasa Global Cosmetics, Shahnaz Ayurveda Pvt. Ltd, The Himalaya Drug Company, Marc Anthony Cosmetics, Inc., Lotus Herbals Limited, and Hemas Holdings PLC. |
By Product |
|
By End-User |
|
By Distribution Channel |
|
Regional scope |
|
Scope of the Report
Global Herbal Beauty Products Market By Product:
Global Herbal Beauty Products Market By End-User:
Global Herbal Beauty Products Market By Distribution Channel:
Global Herbal Beauty Products Market By Region:
Global herbal beauty products market is expected to reach USD 122.7 billion by 2030.
Leading market players active in the global herbal beauty products market are Arbonne International, LLC, Hemas Holdings PLC, Klienz Herbal Pvt. Ltd., Bio Veda Action Research Co., The Himalaya Drug Company, Lotus Herbals Limited, Marc Anthony Cosmetics, Inc., Shahnaz Ayurveda Pvt. Ltd, Vasa Global Cosmetics, and Weleda AG among other
The herbal beauty products market is projected to have a CAGR of 5.5%.
The demand for herbal beauty products is rising as a result of rising disposable income and changing lifestyles of people around the world. The use of natural and organic cosmetics for anti-aging, hair care, and other purposes is becoming increasingly popular in Europe, which is fueling the expansion of the herbal beauty industry there. The Center for the Promotion of Imports estimates that in 2021, Europe will account for close to 31% of the worldwide market for organic cosmetics. Another element driving the market's expansion is the government's strict rules on the materials used in cosmetics. For instance, The Cosmetic Regulation, 76/768/EEC, according to the European Union, regulates cosmetic components with the goal of producing safe cosmetic products for human consumption.
The segments covered in the herbal beauty products market are; product, end-user, distribution channel and regions.
Political Factors- The foundation of the current form of government, which supports the activities of the herbal beauty products market, is democracy. The democratic political system, which promotes initiative and free trade, offers financial freedom that the herbal beauty products market can take advantage of. Pressure groups can alter the business environment by forming strong media alliances. These organisations are under pressure from these groups, which arrange protests and coordinate marketing campaigns. The herbal beauty products market needs to keep a watch on these pressure organisations because they have the ability to influence government legislation, which could ultimately have an effect on the broader business climate. The herbal beauty products market should collaborate closely with these groups in order to earn their trust.
Economic Factors- The economic growth rates of the various countries should be taken into account when selecting whether or not to expand abroad for the herbal beauty products market. In countries with strong rates of economic growth, there are more possibilities for pursuing long-term growth objectives. When the economy is expanding slowly, consumer purchasing becomes more circumspect, which directly affects the revenue growth of the herbal beauty products market. Rising inflation may negatively affect the ability of the herbal beauty products market to increase its income since it lowers the purchasing power of money and discourages consumers from making purchases of products and services.
Social factors- Every country has unique cultural norms, values, and traditions that shape how people behave in everyday life, including as customers. Lack of adaptability to change product/service offerings in line with local cultural practices could have a negative impact on the business. To understand local consumers, the herbal beauty products market needs to conduct extensive research. The fact that the management of medical waste management market is an international company with a culturally diverse home market may make it difficult for them to understand the subtle cultural distinctions. To do this, the herbal beauty products market can forge business ties with regional market players that may be able to share an in-depth understanding of the cultural norms and values that influence how consumers perceive and engage with the brand.
Technological Factors- Since these countries make it easier for enterprises to achieve objectives like cost reduction, innovation, and value creation, the herbal beauty products market should favour those countries with superior technology infrastructure. Because it can be simple for competitors to copy, a technologically advanced infrastructure also indicates that it will be more challenging for the herbal beauty products market to leverage technology to create a sustained competitive advantage. The market and industry as a whole may be affected by the speed and advancement of technological innovation. By studying the upcoming technological innovation trends, the herbal beauty products market will be able to comprehend the rate of new product development, the length of the product life cycle, and the distinctive features that consumers prefer.
Environmental Factors- Due to stringent environmental legislation in many different nations, businesses are under pressure to reduce environmental impact. In order to avoid harsh, reputation-damaging criticism from relevant stakeholders, the herbal beauty products market should adopt ethical production practices, encourage ethical consumption among its target market, work to improve its brand's sustainability reputation, and ensure full compliance with local and international environmental laws.
Legal Factors- Strict adherence to intellectual property laws benefits businesses like the herbal beauty products market since it protects their patents from infringement and gives them a long-lasting competitive advantage. In many countries, there are numerous federal and state laws in place to protect consumers from potential economic exploitation. In the era of information technology, laws have become considerably stricter to safeguard consumer privacy. In order to avoid lawsuits, the herbal beauty products market must rigorously adhere to the data privacy rules when conducting online transactions. Before entering new markets, herbal beauty products market management must examine regional laws governing returns, discounts, credit terms, quality, deceptive advertising, and maximum pricing (particularly in the case of basic essential goods).
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