Overview
The global #herbal #beauty products market size was valued at USD 78.5 billion in 2019 and is anticipated to grow at a compound annual growth rate (CAGR) of 5.2% from 2020 to 2027. Rising focus on appearance and looks coupled with increased acceptance of herbal products among consumers are some of the factors that are expected to help the expansion of the market worldwide. The increased demand for chemical-free beauty products along with growing awareness about cruelty-free cosmetics is supporting market growth. The significant increase in the influence of social media and beauty blogs that communicate the benefits of herbal beauty products is likely to impact the sales of herbal beauty products. Moreover, herbal beauty products are suitable for all skin types
The prominent factors that were driving the market before the outbreak of coronavirus pandemic consisted of improvements in the lifestyle of the people, growth in disposable income, and rising concerns related to appearance. However, since the beginning of 2020, the market has shown decline in the growth rate in the first quarter. The lockdown situation imposed across the globe has significantly reduced the demand for beauty products among consumers and many cosmetic manufacturers have closed down their production facilities owing to the shortage of laborers.
Growing preference for herbal ingredients that acts as a natural remedy for acne skin and hair related problems has been enhancing market growth. Established market players have been focusing on acquiring firms, dealing in natural beauty and personal care segment to widen the customer base by attracting people who are increasingly passionate about healthy, herbal, and natural products.
Lately, increased social media visibility has led to healthy demand for herbal beauty products. Consumers are becoming ever more conscious of the need for body confidence, health, and self-grooming in this area. In addition, beauty brands are increasingly targeting shoppers through the online marketplace and giving them easy access to a rapidly growing range of products.
Product Insights
The skincare segment accounted for largest revenue share of 36.6% in 2019 and is expected to maintain dominance over the forecast period. The growth is attributed to increasing awareness of the benefits of herbal beauty products on the body such as skin improvement, acne reduction, removal of fine lines to slow down aging processes. Growing demand for skincare and hair care products is expected to drive segment growth. In 2017.
On the other hand, the market revenue from the hair care segment is expected to foresee a CAGR of 5.4% in the herbal beauty products market from 2020 to 2027. Herbal hair care products have been witnessing significant growth particularly shampoos and conditioners, which are expected to drive the overall growth of the market. These products are made with natural pure plant extracts which helps in accelerating healthy hair growth. In additions, these products significantly reduce hair loss, cleans scalp naturally, and are suitable for all hair types.
End-use Insights
The women segment accounted for the largest revenue share of 72.4% in 2019. Over the years, growing awareness among women about personal hygiene is driving the market. In 2017, SkinStore surveyed women in the U.S. and founded that, women spend around USD 300,000 on their skincare during their lifetime which is significantly high compared with men. This has led many manufactures to launch new products in markets. For instance, in December 2019, luxury women’s brand Just Herbs offered 70 stock-keeping units of skin care products, bath and body items at their stores worldwide. The stock included women’s collection for herb-enriched skin tint, light-coverage tinted moisturizer, and Sapta Jal, herbal water makeup remover.
The men segment is expected to witness a CAGR of 5.6% from 2020 to 2027. The growth is attributed to rising preference for herbal beauty products among men. Herbal products such as conditioners with plant-based ingredients such as virgin coconut and avocado oil helps to rejuvenate weak, thin, and damaged hair follicles. In addition demand for anti-aging products by manufacturers such as Ren, and Prada Lab has been gaining popularity among men.
Distribution Channel Insights
Compared with the different distribution networks, hypermarkets are expected to emerge as the most lucrative source of sales with a revenue share of 40.3% in 2019. These stores offer trained representatives that work very creatively and are generally competent to provide the customer with a high quality of services that eventually impacts the salability of the products positively. Key players in the market including Walmart, Aldi, Target, and SPAR are increasing their store location across the lucrative markets including Germany, U.K. China, India, and the U.S., to gain the maximum customer penetration.
Global herbal beauty products market share
E-commerce has significantly changed the shopping habits of people as it offers benefits such as door-step delivery, substantial discounts, and availability of a wide range of products through one platform. High internet penetration coupled with mobile shopping trends is expected to have a positive impact on segment growth. According to the Japan Brand Equity Foundation, online retail revenue in Japan was USD 15.0 billion in 2016 and is projected to reach USD 60.0 billion by 2020.
Regional Insights
North America accounted for the largest revenue share of 34.7% in the market in 2019 and is expected to continue its dominance over the forecast period. Growing demand for green label products and willingness of the consumers to pay premium prices for the natural ingredients based product has been driving the market in the region.
Asia Pacific is anticipated to be the fastest growing market, with a CAGR of 6.2% from 2020 to 2027. Market growth is expected to shoot up due to demand for green label skincare cosmetics among health conscious people. Increasing customer inclination towards herbal and natural cosmetics also provides an enormous opportunity for key players to cater to the market by launching new herbal products. For example, to meet growing demand cosmetics in Japan, various companies are launching herbal products. For instance, Shahnaz Husain , Indian brand launched a variant of moisturizing cream containing natural herbal formula enriched with dates, honey, and rose water distillate, which provides maximum nourishment. The rose water helps in the healing process of the skin and holds the moisture intact.
Key Companies & Market Share Insights
The market houses both international and domestic market participants. Key market players focus on organic and inorganic strategies such as innovation and new product launches to enhance their portfolio in the market. For example, in 2019, Shahnaz Husain suggested combining herbal inheritance with artificial intelligence and formulate customized products for the consumer. Through this, the consumer will get recommendations to eventually find a personal skin or hair profile and buy personalized herbal products online.
Herbal Beauty Products Market Report Scope
Report Attribute
Details
Market size value in 2020 ;USD 64.7 billion
Revenue forecast in 2027; USD 117.3 billion
Growth rate; CAGR of 5.2% from 2020 to 2027
Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)
Hypermarkets
Pharmacy & Drug stores
E-commerce
Others
TEA BASED COSMETICS AND SKIN CARE PRODUCTS:
The global tea-based skincare market size was valued at USD 168.2 million in 2018 and is anticipated to expand at a CAGR of 7.5% during the forecast period. Rising awareness regarding the antioxidant, anti-inflammatory, and anti-aging properties of tea extract are expected to drive its application in cosmetics and skincare products. This factor is projected to fuel market growth. Moreover, rising awareness regarding vegan beauty products in light of growing socio-economic concerns over animal will further drive the growth.
Tea contains a high concentration of antioxidants, vitamin B, vitamin E, caffeine, tannin, folate, potassium, manganese, and magnesium. These ingredients prevent and delay the signs of aging and improve the appearance of the skin. Vitamin E promotes cell regeneration, hydration, and nourishment. Tannins control sebum production and help treat oily skin. As a result, tea extract is used as an active ingredient in various skin care formulations. All these factors are anticipated to drive the demand for tea-based skincare products in near future.
Different types of tea including white, spearmint, oolong, hibiscus, and green are majorly used for tea-based skincare products. White tea extract helps retain moisture and prevent damage caused by sun exposure. Spearmint, oolong, and hibiscus tea help reduce skin problems, such as acne, eczema, and clogged pores. Green tea is the most popular ingredient used in the cosmetics industry owing to its antioxidant, anti-inflammatory, and antibacterial properties.
Rising consumer preference for natural or organic beauty products is expected to bode well for the tea-based skincare market. The demand is driven by rising environmental awareness and concerns about the harmful effects of synthetic cosmetics. Furthermore, factors such as rapid urbanization and increasing purchasing power of the middle-class population in emerging economies like China, India, and Brazil, are anticipated to fuel the demand for tea-based skincare products in near future.
Product Insights
The facial skincare product segment held the largest market share of more than 65% in 2018. Face cream, moisturizer, cleanser, toner, mask, serum, sun care, and mist are among the popular products in this category. Rising demand for tea-based facemasks is anticipated to bode well for the segment growth. These facemasks are rich with antioxidants and vitamin B-2 that help reduce signs of aging and maintain collagen levels and firmness of the skin.
Rising demand for natural and organic products is anticipated to fuel the demand for tea-based skincare products. Manufacturers focus on expanding their product portfolio by introducing products such as body soap, body wash, lotion, and oil. For instance, in July 2018, Schmidt's Naturals, a U.S. based body care brand, launched its Jasmine Tea Body Wash.
Distribution Channel Insights
The offline distribution channel held the largest market share of over 75% in 2018. Supermarkets and specialty stores contributed to the majority of sales of the offline retail outlets. Consumers prefer brick and mortar stores as they can physically view the products before buying. It also allows product testing and assistance from brand representatives. This factor is anticipated to drive the segment growth over the forecast period.
On the other hand, the online distribution channel segment is projected to witness the fastest CAGR of 6.0% from 2019 to 2025. Convenience is the major driving factor for the segment. These websites offer a wide range of products, easy comparison and selection based on specific customer needs, and attractive discounts. Quick product delivery is also anticipated to bode well for the segment growth. Major e-retailers of tea-based skincare products include Amazon; Sephora; Ulta Beauty, Inc.; Strawberrynet; and Feelunique International Limited.
Regional Insights
The Asia Pacific held the leading market share of more than 30% in terms of revenue in 2018. The use of natural and organic ingredients in beauty products has gained remarkable traction in this region. South Korea, China, Japan, Hong Kong, Singapore, India, Taiwan, and Thailand are the prominent markets in the Asia Pacific. The presence of key manufacturers, including AmorePacific Corporation, Lu Ming Tang, SkinYoga, Organic Tea Cosmetics Holdings Co Ltd., and Soh-cha, has played a crucial role in promoting product visibility in the region. The Asia Pacific has a long history of tea culture, which has boosted the production sector due to the easy availability of raw material. Green tea is the most popular ingredient used in the tea-based skincare products manufactured in the region. More than half of the tea-based skin care products in China contain green tea. White and green tea extracts are gaining significant popularity in Japan.
Tea-Based Skincare Market Share Insights
The tea-based skincare market is fragmented in nature with the presence of a large number of small and local producers and a few large players. Major competitors operating in the market include AmorePacific Corporation; Lu Ming Tang; Organic Tea Cosmetics Holdings Co Ltd.; Natura & Co; L'Oréal S.A.; Avon Products, Inc.; Unilever; 100% PURE; SkinYoga; Schmidt's Naturals; and ArtNaturals. Leading cosmetics companies have been expanding their product portfolio to cater to the rising demand for organic and tea-based skincare products. For instance, in June 2019, Unilever acquired Tatcha LLC, a Japan-based modern skincare brand to expand its natural product segment.
