Herbal Beauty Products Market Size, Share & Trends Analysis Report By Product (Skin Care, Hair Care, Fragrance), By End use (Men, Women), By Distribution Channel, By Region, And Segment Forecasts, 2020 - 2027

Report 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 and are available in a variety of products such as foundation, eye shadow, andlipstickregardless of skin tone.

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. In June 2019, Lotus Herbal announced its plan to acquire natural and herbal beauty product manufacturing company as a part of its expansion strategy. The company is in talk with investment bankers to identify national or international potential targets for the same.

One of the prominent factors restraining market growth is the failure to comply with international standards. Many of herbal beauty products failed when tested for international standards. Some of the reasons for the failure are poor quality of raw material and lack of standardization of processes within the industry that makes it difficult to comply with certain rules, especially in developed markets.

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

护肤品市场占最大的收入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, VLCC, a leading Wellness player in South Asia and Middle East, introduced a range of 15 herbal/natural actives-based sun protection products for all skin types.

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皮肤护理产品, 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.

E-commercehas 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 andnatural cosmeticsalso 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 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 withartificial intelligenceand 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. Some of the prominent players in the herbal beauty products market include:

• Weleda AG

• 生物吠陀行动研究有限公司

• Arbonne International, LLC

• Vasa Global Cosmetics

• Klienz Herbal Pvt. Ltd.

• The Himalaya Drug Company

• Shahnaz Ayurveda Pvt. Ltd

• Lotus Herbals Limited

• Marc Anthony Cosmetics, Inc.

• Hemas Holdings PLC.

Herbal Beauty Products MarketReport 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
Base year for estimation	2019
Historical data	2016 - 2018
Forecast period	2020 - 2027
Quantitative units	Revenue in USD Million and CAGR from 2020 to 2027
Report coverage	Revenue forecast, company share, competitive landscape, growth factors and trends
Segments covered	Product, end-use, distribution channel, region
Regional scope	North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
Country Scope	U.S.; Germany; France; U.K.; China; Japan; Brazil
Key companies profiled	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; Marc Anthony Cosmetics, Inc.; Hemas Holdings PLC
Customization scope	Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope
Pricing and purchase options	Avail customized purchase options to meet your exact research needs.Explore purchase options

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global herbal beauty products market report based on product, end use, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2016 - 2027)

  • Skin care

  • Hair care

  • Fragrance

  • Others

• End-use Outlook (Revenue, USD Million, 2016 - 2027)

  • Men

  • Women

• Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)

  • Hypermarkets

  • Pharmacy & Drug stores

  • E-commerce

  • Others

• Regional Outlook (Revenue, USD Million, 2016 -2027)

  • North America

    • The U.S.

  • Europe

    • Germany

    • The U.K.

    • France

  • Asia Pacific

    • China

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa (MEA)