The ASEAN organic cosmetics market is rising steadily owing to increased consumer awareness regarding the harmful effects of synthetic and chemical ingredients present in conventional cosmetic products. Organic cosmetic products contain ingredients that are derived from naturally occurring plants and minerals without any synthetic preservatives, colors, or fragrances. The organic ingredients such as plant extracts, essential oils, and vitamins offer several anti-aging properties and help maintain the skin's pH balance. Moreover, the organic certification and labelling assure consumers about the authenticity of the organic claims made by brands.
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 players are focusing on expanding their regional presence through strategic partnerships and acquisitions. For instance, in 2022, G4S acquired cash automation technology company CASH Monitoring to expand its cash automation solutions.
The demand for organic cosmetic products is increasing among millennials and generation Z due to rising environmental and health concerns. According to a report, the millennial population accounted for nearly 60% of the organic personal care buyers in 2020. The millennials are willing to pay extra for organic products that are natural and sustainably sourced.
Technological advancements such as advanced packaging solutions are helping brands enhance the consumer experience. For example, smart packaging solutions equipped with Near Field Communication (NFC) allow consumers to check the authenticity and ingredients used in the products. Some packs are embedded with radio-frequency identification (RFID) tags to enable anti-counterfeiting and track-and-trace capabilities.
Market Trends
Natural and Vegan ingredients trend - Brands are increasingly focusing on natural and vegan ingredients derived from plants to make products more sustainable and ethically sourced.
Multi-benefit products - Consumers expect organic cosmetic products to deliver multiple skincare and haircare benefits in a single product. This has boosted the development of multi-benefit organic serums, creams, and oils.
Digital-first approach - Organic brands are leveraging digital platforms like social media, influencer marketing, and content to build an engaged community and drive sales. The digital marketing strategies are helping to increase the reach and visibility of organic brands.
Market Opportunities
Rising Male Grooming Segment - With growing male obsession over looks, several organic brands have started targeting the organic male grooming category with products like organic face washes, moisturizers, and beard oils.
Innovation in Formulations - Continuous innovations in organic formulations to deliver spa-like experiences through ingredients like hyaluronic acid, peptides, and ceramides offer significant opportunities.
Covid-19 Impact on ASEAN Organic Cosmetics Market
The ASEAN organic cosmetics market witnessed a substantial slowdown in 2020 due to the coronavirus pandemic. Cosmetics sales and new product launches reduced significantly as customers prioritized essential spending amid economic uncertainty. Factory and retail store shutdowns across the region hampered production and disrupted supply chains. International trade was impacted by strict border controls imposing challenges in sourcing raw materials ly. The demand for anti-bacterial and sanitizing cosmetic products increased temporarily. However, overall market demand contracted in 2020 with consumers cutting back on non-essential purchases.
Despite short-term headwinds, the post-pandemic outlook for the ASEAN organic cosmetics market remains positive on account of rising health-consciousness. The pandemic accentuated the importance of consuming chemical-free personal care products. More customers are expected to opt for organic brands that endorse natural and sustainable ingredients. Manufacturers are innovating with immunity-boosting formulations containing essential oils, vitamins and minerals. E-commerce platforms are facilitating increased accessibility of organic brands online. Companies will focus on affordability through competitive pricing and accessible stock-keeping units to revive demand recovery. Rekindled economic growth and increased discretionary spending are likely to propel the regional organic cosmetics industry towards its long-term growth trajectory post-pandemic.
Geographical Regions With Highest Market Share
The organic cosmetics market in Indonesia contributes the largest share in ASEAN by value owing to its large population and increasing incomes leading to higher spend on personal care products. The Indonesian middle class is growing at a fast pace which is expanding the customer base for premium organic brands.
The Philippines organic cosmetics market is considered the fastest growing region within ASEAN in terms of sales value. Young Filipino consumers are highly influenced by wellness trends and have greater affordability relative to incomes. Beauty retailers are widening their organic products portfolio which is driving further market penetration across the country.
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