Innovation and portfolio expansion leading to product premiumisation and rising product awareness, especially among millennials, is accelerating demand in the organic skincare market.
This is according to a new report by analysts at Technavio*, which expects the market to register an incremental growth of $1.91 billion between 2021 and 2026. To calculate this figure, Technavio tracked recent trends and developments in the market, taking into consideration various factors such as the consumer base, adoption rate, average selling price and revenue generated by vendors, among others.
However, the growth forecast could be negatively affected by the availability of counterfeit products and the short shelf life of organic skincare products.
Says the Technavio report: “Organic skincare products are made of natural ingredients such as plant extracts and natural oils. These products effectively work on wrinkles, scars, stretch marks and other skin problems. They also adhere to high standards of purity set by regulatory bodies in various countries. Such benefits are encouraging consumers to shift their preference from synthetic skincare products to organic skincare products.”
The report notes that the global organic skincare products market is fragmented with the presence of several global and regional vendors. It states: “Vendors are making significant investments in terms of procuring high-quality raw materials and are focusing on product-related R&D to manufacture advanced organic skincare products.
“Vendors also focus on building their brands and brand equity to differentiate themselves from their competitors and differentiate themselves in the market based on product quality and innovations. They also offer products with different features. We expect to see a minimal increase in the number of suppliers during the forecast period.”
*Technavio: “Organic Skincare Products Market by Product and Geography - Forecast and Analysis 2022-2026”