by Organic cosmetics refer to personal care products that are produced using certified organic ingredients. These cosmetics do not contain any petrochemicals, parabens, synthetic fragrances, dyes or other harmful chemicals. The major organic ingredients used in cosmetics include organic herbs, oils, eco-certified preservatives, and plant-based collagen. Organic cosmetics provide several advantages such as no bad chemical absorption, moisturizing and healing benefits of natural ingredients, protection from pollutants and sustainability. With growing consciousness about the harmful effects of synthetic cosmetics, the use of natural and organic skincare and beauty products is increasing in the ASEAN region.
The ASEAN Organic Cosmetics Market Size is estimated to be valued at US$ 5280.59 Bn in 2024 and is expected to exhibit a CAGR of 8.0% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the ASEAN Organic Cosmetics are Garda World, Brinks, Securitas, G4s, and Loomis. The key opportunities in the market include rising penetration of e-commerce, increasing demand from millennials and continuous launch of innovative products by key players. Some of the technological advancements in the market include development of lightweight and organic HD packaging, multi-functional organic formulations and organic preservatives for natural shelf life extension.
Market drivers:
The rising awareness regarding the harmful effects of synthetic and chemical-based cosmetics is a major driver for the ASEAN organic cosmetics market. With increasing knowledge about green chemistry and natural ingredients, consumers are shifting towards organic personal care products. Moreover, growing disposable income and changing lifestyles are also supporting the demand for premium organic cosmetics. The market players are investing heavily in research and development to develop innovative packaging solutions and products catering to new segments, which is further fueling the market growth.
Current Challenges in ASEAN Organic Cosmetics Market
The ASEAN organic cosmetics market is currently facing major challenges due to the ongoing Covid-19 pandemic. The temporary closure of manufacturing facilities and retail stores across the region during the lockdowns has disrupted the supply chain and logistics network of organic cosmetic brands. This has negatively impacted their sales and cashflows. Additionally, the declining consumer spending on non-essential products is also affecting the market demand. However, with trade restrictions being lifted gradually and economic activities resuming, the market is expected to bounce back in the coming years.
SWOT Analysis
Strength: Growing health and environmental consciousness among consumers is driving the demand for organic and natural personal care products in the region.
Weakness: High production and marketing costs associated with organic products which leads to their premium pricing and restricted access.
Opportunity: Increasing internet and smartphone penetration provides an opportunity for organic brands to tap the e-commerce potential.
Threats: Stiff competition from mass-market conventional cosmetic brands poses pricing challenges for organic products.
Geographical Regions
Vietnam and Indonesia currently account for over 50% share of the ASEAN organic cosmetics market in terms of value. This is attributed to presence of leading domestic organic brands, growing middle-class population and rising expenditure on personal care products in these countries.
Fastest Growing Region
The organic cosmetics market in Thailand is expected to witness strongest growth during the forecast period. Rising awareness about toxic chemicals in conventional cosmetics among Thai consumers is driving the demand for natural and organic alternatives. Favorable regulations and support from government is also boosting investments in organic personal care sector of Thailand.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
