Herbal Beauty Products Market – Insights
The products, which possess the desirable physiological properties such as smoothing appearance, healing and conditioning properties are referred as herbal beauty products. Herbal beauty products are formulated using plant extracts, plant roots, and leaves and are free of chemicals. Demand for herbal beauty products is increasing due to its low or no side effects and this is expected to fuel growth of the herbal beauty products market. Furthermore, increasing expenditure on beauty and personal care products is also expected to boost growth of the market. According to United States of America, Department of Commerce, the per capita spending on cosmetics products in Japan was valued at US$ 223, US$ 171 in France, and US$ 139 in the U.S. in 2014.
Skin care segment is expected to account for the highest revenue share over the forecast period, due to increasing consumer preference towards maintaining esthetic appeal. Additionally, increasing skin related problems such as acne and eczema owing to use of synthetic beauty products propels growth of the market. According to Centers for Disease Control and Prevention (CDC), eczema and skin problems in U.S. was 7.2% in 2012 and was increased up to 11.6% in 2014.
Asia Pacific is the dominant region in the global herbal beauty products market and was valued at US$ 32.56 Bn in 2016. Increasing awareness related to herbal beauty products and growing inclination of population towards maintaining aesthetic are expected to be factors driving growth of the beauty herbal beauty products market in this region. According to India Brand Equity Foundation (IBEF)—a trust established by the Department of Commerce, Ministry of Commerce and Industry, India —the herbal cosmetic industry is expected to grow at a CAGR of 12% in India during the forecast period. Government of India established a board, Indian System of Medicine and Homeopathy, to encourage production of herbal products in the country.
Europe is expected to show a significant growth in global herbal beauty products market. The increasing trend of using natural and organic cosmetics for anti-aging, hair care, and others, in Europe is driving growth of the herbal beauty market in this region. According to the Centre for the Promotion of Imports, Europe accounted for nearly 35% of global organic cosmetics market in 2016. Also, stringent regulations by government bodies on cosmetic ingredients is also another factor fueling the market growth. For instance, according to European Union, cosmetic ingredients are regulated under The Cosmetic Regulation, 76/768/EEC, with an objective to provide safe cosmetic products for human use.
The herbal beauty products market was valued at US$ 91.99 billion in 2016 and is expected to expand at a CAGR of 4.71% in terms of revenue, over the forecast period (2017 – 2025).
Figure 1. Global Herbal Beauty Products Market Share (%), by Region, 2016
Source: Coherent Market Insights (2018)
North America market accounted for revenue share of 22.05% in the global herbal beauty products market in 2016. Government regulatory bodies in the region have implemented stringent regulation on restricting use of harmful chemicals in cosmetic products. For instance, United States, Food and Drug Administration (FDA) under regulation 21 Code of Federal Regulations (CFR) 701.3, 21, CFR 721 and others are subjected to a strict approval of color additives in cosmetics.
Key market players are focusing on mergers & acquisitions and new product launches, to cater to growing demand of consumers for herbal beauty products. For instance, in August 2015, InnoVision Healthcare Ltd. launched a wide range of beauty care products such as neem and aloe vera face wash, to cater to increasing demand for herbal beauty products.
Major Players in Global Herbal Beauty Products Market:
Some of the key players operating in the global herbal beauty products market are Weleda AG, Bio Veda Action Research Co., Arbonne International, LLC, Vasa Global Cosmetics, Klienz Herbal Pvt. Ltd., The Himalaya Drug Company, Shahnaz Ayurveda Pvt. Ltd, Lotus Herbals Limited, and Hemas Holdings PLC.