Organic Personal Care Market in India 2022-2027
Consumers are now inclined toward organic personal care products that are made of plant-based ingredients. These are cruelty-free, not toxic, non-GMO, and non-comedogenic. This inclination is because of the growing awareness of the harmful effects of parabens, sulphates, and synthetic chemicals such as propylparaben, formaldehyde, phthalates, and butylparaben used in traditional products. The organic personal care market was valued at INR 50.67 Bn in FY 2021. It is estimated to reach INR 159.67 Bn by FY 2027, expanding at a compound annual growth rate (CAGR) of ~22.00% during the FY 2022 – FY 2027 period.
The market is categorized into five segments – Skincare, haircare, oral care, color cosmetics, and other products. As of FY 2021, the organic skincare segment dominated the market. The haircare and oral care segment have also shown notable growth. The skincare segment is anticipated to dominate the market for the coming because of its popularity among consumers of both, tier-I and tier-II, cities. The sales volume of organic color cosmetics is expected to grow by 60% in next five years. This potentially significant rise in sale could be attributed to Indian skin types, such as combination-oily and oily-sensitive skin, which are highly sensitive to artificial non-organic cosmetic products due to humidity
Post COVID-19 Impact Analysis:
This year, brands are innovating in accordance with the radical change in customer values and expectations. COVID-19 lead to the following trends in the beauty business:
Sustainability: Consumers are adopting a healthy beauty practice in the wake of access to more information from digital content. The priority now is on having a strong and a healthy body
Clean beauty (chemical-free ingredients): Consumers are following ethical principles in their purchasing behavior. They are moving toward products that not only improve their complexion and health, but also use ingredients that are ethically produced, natural elements, and packaging that is ecologically friendly
Natural appearance: As consumers are aware of holistic wellness that interacts with their environment, they start to feel comfortable in their own skin. They started preferring cosmetic products to improve existing beauty which is inspiring the millennials and GenZ to adopt simplicity
Owing to customers’ preference toward personal care products with natural ingredients, major players such as Dabur India Limited and Forest Essentials Private Limited have generated substantially high net revenues. Start-ups such as Plum, McAffeine, Kama Ayurveda, and SkinKraft have also shown noteworthy performance.
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