Maintaining Healthy Growth in the Natural and Organic Personal Care Products Market

By May 1, 2017Uncategorized

 

The global natural and organic personal care market is estimated to reach $15 billion in 2017. According to Grand View Research forecasts, the global organic and natural personal care market will grow by more than 60% over the next eight years to reach $25.1 billion by 2025.

In the U.S. alone, the industry is predicted to double in size, going from almost $4 billion in 2016 to nearly $8 billion by 2025.

Source: Grand View Research http://www.grandviewresearch.com/industry-analysis/organic-personal-care-market

Key factors impacting this accelerated growth in the natural and organic personal care products market:

  1. Growing “green” consciousness—the consumer’s desire for eco-friendly, sustainable products
  2. Awareness for personal health, wellness, safety and appearance, reflecting growing demand for better and natural hygiene, health and beauty products
  3. Rising demand for organic anti-aging and anti-wrinkling products
  4. Demand for products free from chemicals, synthetics and artificial ingredients
  5. Increased accessibility with the broadening of distribution channels and e-commerce
  6. Approval from U.S. Department of Agriculture (USDA) and Federal Drug Administration (FDA) for the use of organic products in personal care products
  7. Technological advancements leading to the development of new and improved herbal and natural extracts and products

Key challenges in maintaining growth:

  1. Short product shelf life, due to no use of chemicals and artificial preservatives
  2. Year-round sourcing of reliable supplies of raw materials
  3. Stringent regulatory guidelines against animal-based raw materials
  4. Strict regulations and demand for proper, accurate and truthful product labeling
  5. Environmentally friendly and recyclable packaging

What are organic and natural personal care products?

Organic and natural personal care products are manufactured from natural, recyclable ingredients found in nature, including minerals and plants extracted in an environmentally safe way. Products include body care, facial care, cosmetics, body lotions, hair care and sunscreens. These products do not contain synthetics and chemicals such as parabens, phthalates, petrochemicals, and aluminum salts.

Global organic and natural personal care market, by category:

www.grandviewresearch.com

 

How to keep your organic and natural personal care products company on the growth curve?

Stay ahead of regulation and labeling issues

The organic and natural personal care market is regulated under various regulatory codes and bodies to help ensure the use of organic and natural ingredients, safety, responsibility, integrity, and sustainability, including the USDA National Organic Program (NOP), National Products Association (NPA) Natural Standard, and European Union (EU) Organic Program, as well as the FDA and Federal Trade Commission (FTC).

Cosmetics are regulated by the Federal Food, Drug and Cosmetic Act (FFDCA) and the Fair Packaging and Labeling Act (FPLA). A cosmetic is defined by the FFDCA as an article “intended to be rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise applied to the human body or any part thereof, for cleansing, beautifying, promoting attractiveness, or altering the appearance.” Cosmetics are not required to obtain FDA approval of labeling prior to product distribution in the marketplace. Cosmetics are also not required to provide any level of substantiation regarding safety. The FDA’s regulatory authority is limited to post-distribution investigations and finds of misbranding or adulteration.

A cosmetic or skincare product is misbranded if its labeling is false or misleading. Some examples of claims include: “assists in skin regeneration”, “treats dark spots and discolorations”, and “stimulates collagen production.” According to the FDA, these types of claims are drug related, indicating that the product affects a structure or function in the human body, or treats, prevents or mitigates a disease. In these cases, the FDA can determine that the products were unapproved new drugs and therefore misbranded or mislabeled.

The FDA is also taking an aggressive approach toward finding adulteration and contamination within the cosmetics industry. Companies active in the industry should take precautions now to ensure compliance with regulations for product integrity and proper, truthful labeling.

For the continued growth of the natural products industry, it’s critical that all market players in the supply chain, from growers and manufacturers to distributors and retailers, maintain high standards for product quality, adhere to Good Manufacturing Practices (GMP), and observe best supply chain practices to help ensure the integrity of products, as well as support and protect the consumers’ goals for better health, safety, wellness, and environmental protection. Companies maintaining high standards and ethical practices will earn consumer trust and build reputable brands.

Innovate and go forward safely

To help your company grow with the organic and natural products industry, and stay ahead of today’s consumer demand for high-quality, sustainable products with peace of mind, Cornerstone Consulting can help you assess where your business operations are today and define new directions and opportunities to keep your company on track. We provide business management software solutions to help inform, track, and guide your business decisions and operations with transparency and clarity.

We are a proven, trusted advisor in the natural products industry, dedicated to helping like-minded companies grow. Please contact us for more information.

 

Sources:

Grand View Research http://www.grandviewresearch.com/industry-analysis/organic-personal-care-market

http://www.grandviewresearch.com/press-release/global-organic-personal-care-market

http://www.persistencemarketresearch.com/mediarelease/natural-organic-personal-care-product-market.asp

https://www.statista.com/topics/3318/natural-and-organic-cosmetics-in-europe/

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