Organic Hair Care Market

Organic Hair Care Market Outlook (2023 to 2033)

The global organic hair care market stands at US$ 10.32 billion in 2023. Worldwide demand for organic hair care products is predicted to rise at a CAGR of 7.1% and reach a market value of US$ 20.5 billion by the end of 2033.

Rising demand for organic hair care products is attributed to the increasing awareness about safer, simpler, and latest natural hair care products around the world. A large population base of health-conscious people is also predicted to contribute to market growth opportunities.

Organic hair care ingredients are effective solutions to nourish the scalp without causing any adverse effects. Various organic hair care vendors provide solutions according to specifications, which are specially made for different hair types, including oily scalps and dry scalps.

• Demand for shampoos is predicted to advance at a CAGR of 7.2% and reach a market valuation of US$ 4.94 billion by 2033-end.
• The Japanese market is forecasted to evolve at a CAGR of 7.7% and reach US$ 1.09 billion by the end of 2033.

The organic hair care market is driven primarily due to rising demand for natural ingredients owing to their healthy nature. A transition from chemical to natural products is pivotal because of their refreshing properties and post-use advantages.

Demand for sulfate-free hair products, including shampoos, etc. is estimated to increase. One of the key trends in the organic hair care market is the increasing use of various biological science ingredients by manufacturers. Production of organic hair care products is a comparatively expensive affair. One of the factors that could increase the prices of organic hair care products is the high production costs associated with extracting organic or herbal oils.

The hair care industry is expected to exhibit growth opportunities in the next decade due to the flourishing personal care industry. Governments are implementing strict regulations on certain chemicals in hair care products, such as ammonia in hair color, creating opportunities for manufacturers who use herbal ingredients. The shift towards water-based hair care products with minimal side effects is predicted to drive growth in the target market over the next 10 years.

Report Attributes	Details
Organic Hair Care Market Size (2023)	US$ 10.32 Billion
Forecasted Market Value (2033)	US$ 20.5 Billion
Global Market Growth Rate (2023 to 2033)	7.1% CAGR
China Market Growth Rate (2023 to 2033)	7.9% CAGR
United States Market Value (2033)	US$ 4.65 Billion
Japan Market Growth Rate (2023 to 2033)	7.7% CAGR
Sales Growth of Online Stores (2023 to 2033)	7.3% CAGR
Key Companies Profiled	Estee Lauder Amway L’Oreal SA Revlon Khadi Natural The Body Shop The Hain Celestial Group Kiehl’s Kao Corporation Nautra Cosmeticos S.A. Johnsons and Johnsons Consumer In

What are the Factors Influencing the Demand for Organic Hair Care Products?

“High Demand for Organic Hair Care Products Due to Stringent Regulations Governing Use of Chemicals in Regula Products”

Governments in different countries, around the world, have restricted the use of some specific chemicals in the production of hair care products, including ammonia in hair color. These initiatives are expected to provide opportunities for manufacturers of organic hair care products and thus strengthen their position.

A majority of consumers, in recent years, are inclined towards using herbal hair care products. There is a significant decline in the demand for synthetic products, which is estimated to have a positive impact on the target market.

Manufacturers of organic hair care products are seeking support from salons and beauty parlors to promote their products while providing heavy discounts. Such initiatives from manufacturers are projected to open up lucrative opportunities in the target industry in the longer run.

“Rising Demand for Water-based Organic Hair Care Products Due to Their Minimal Side-effects”

Personal care brands are constantly making efforts to offer products with natural ingredients through innovation. This trend is underpinned by the rising demand for numerous hair care products, which include organic botanicals. They are free from any sort of artificial enhancements. The target industry is also getting benefits from manufacturing processes and a transparent list of ingredients.

Manufacturers are adopting water-based hair care products instead of solvent-based hair care products due to their minimal side effects. Demand for various types of organic shampoos made from pure plant ingredients is growing to fulfill specific requirements for hair care, including maintaining the health of a dry scalp and oily hair. Advancements in natural botanical-based formulations are also predicted to contribute to market expansion.

What are the Key Challenges Encountered by Suppliers of Organic Hair Care Products?

“High Cost of Production and Complexity of Oil-extraction Process”

Organic hair care products are expensive compared to chemical products due to high manufacturing costs. The extraction costs of organic or herbal oils are also higher. This increases the final cost of the product and hinders its adoption.

What are New Market Entrants Doing to Enhance Their Profit Margins?

“Focus on Innovative Technologies to Reduce Production Costs”

Manufacturing organic hair care products is comparatively costly. New entrants are taking the initiative to develop technologies that can help them reduce the costs of production. Product innovations can also be adopted as a noteworthy strategy by these players.

Country-wise Insights

How is Demand for Organic Hair Care Products Shaping Up in the United States?

“Strong and Well-organized Sales Channels Ensuring Constant Availability of Hair Care Products”

The United States has various distributors and manufacturers of organic hair care products. Demand for organic hair products in the country is anticipated to advance at a CAGR of 7.1% and reach a market value of US$ 4.65 billion by the end of 2033. The country holds a significant position as a provider of organic hair care products in regional as well as global markets.

Manufacturers of organic hair care products are launching new products at a significant rate, which are based on natural ingredients. The United States has strong and well-organized sales channels, which can ensure the availability of consumer-centric products to target end users.

Why is the United Kingdom a Lucrative Market for Organic Hair Care Product Manufacturers?

“Increased Concerns about Sensitive Scalp and Dandruff”

The United Kingdom market is predicted to progress at a CAGR of 7.4% and reach a value of US$ 2.93 billion by the end of 2033.

Demand for organic hair care products is increasing due to growing consumer concerns about scalp health, including issues related to hair loss, sensitive scalp, and dandruff. Market growth is further fueled by the introduction of new hair care products targeting specific consumer groups and the rise in per capita income, which has led to increased spending capacity.

How is the South Korean Market Anticipated to Perform through the Forecast Period?

“High Demand for Effective Chemical-free Hair Care Products”

Sales of organic hair care products in South Korea are forecasted to expand at a CAGR of 7.3% and reach US$ 3.65 billion by 2033-end.

Growth opportunities in the South Korean market are attributed to the increasing awareness among health-conscious people about the benefits of organic hair care products. The majority of women in South Korea are looking for effective alternatives to chemical hair care treatment, which is predicted to impact market growth.

What is the Demand Outlook for Hair Care Products in Japan?

“High Awareness of Hazards Associated with Chemical Formulations”

The Japanese market is projected to progress at a CAGR of 7.7% and reach a valuation of US$ 1.09 billion by the end of 2033. The majority of Japanese are well-informed about chemical formulations in different hair products. Organic formulations and natural ingredients are experiencing a significant increase in demand, which is further predicted to open up lucrative opportunities for industry players.

Category-wise Insights

Which Type of Organic Hair Care Product is Predicted to Exhibit Demand?

“Organic Shampoo Sales Increasing at Significant Rate”

The organic hair care market comprises various product types, including shampoos, hair oil, styling agents, conditioners, hair colorants, and others. Of these, shampoos are expected to remain a crucial component of consumers' hair care regimes.

Demand for shampoos is forecasted to progress at a CAGR of 7.2% and reach a market value of US$ 4.94 billion by the end of the forecast period in 2033.

Which Sales Channel Accounts for High Sales of Organic Hair Care Products?

“High Sales of Organic Hair Care Products through e-Commerce Platforms Due to Ease of Accessibility and Convenience”

Professional salons, modern trade, specialty stores, online stores, and drug stores are typically used for the delivery of organic hair care products. Online stores are expected to hold a significant share of the global market revenue. Recently, there has been a shift in consumer behavior towards purchasing personal care products, including organic hair care products and premium personal care products, through e-commerce websites rather than traditional brick-and-mortar stores.

Sales of organic hair care products through online stores are projected to advance at a CAGR of 7.3% and reach US$ 10.88 billion by 2033-end. Manufacturers, including Unilever, L’Oréal, Body Shop, and others sell their products through Flipkart, Amazon, and their personalized e-Commerce websites.

Key Market Players

This recently published research report by Fact.MR, a provider of market research and competitive intelligence, detailed companies that are actively involved in the production of hair care products. Key players are involved in the development of new products while ensuring product standards and product quality.

The report on organic hair care products indicates that the majority of companies are focusing on product launches and expanding their production units in developing regions. To achieve this, companies are taking various initiatives such as collaborations with key players, strategic alliances, partnerships, innovations, and strengthening of global and local distribution networks.

For example:

• In 2020, Kao Corporation introduced a new product under the PYUAN brand name, which was previously known as Merit PYUAN in 2015. PYUAN is a shampoo line that targets individuals with sticky hair and dry ends.
• LG Household & Health Care acquired Avon Company in 2019 in partnership with Farouk System. The new Avon company launched a hair care product line named Avon Chi.

Key companies manufacturing organic hair care products are Estee Lauder, Amway, L’Oreal SA, Revlon, Khadi Natural, The Body Shop, The Hain Celestial Group, Kiehl’s, Kao Corporation, Natura Cosmeticos S.A., and Johnsons and Johnsons.

Key Segments of Organic Hair Care Industry

• By Product :

  • Shampoos
  • Conditioners
  • Hair Oils
  • Hair Colorants
  • Styling Agents
  • Others

• By Sales Channel :

  • Professional Salons
  • Specialty Stores
  • Modern Trade
  • Drug Stores
  • Online Stores
  • Others

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa