ASEAN organic cosmetics market is estimated to witness high growth, owing to increasing health consciousness and growing demand for natural products
ASEAN organic cosmetics market is estimated to be valued at USD 1.20 Bn in 2024, exhibiting a CAGR of 8.6% over the forecast period (2024-2031). The market growth is driven by rising health awareness among consumers and increasing preference for natural and organic personal care products. Furthermore, rising adoption of organic lifestyle and focus on self-care also boosts the sales of organic cosmetics across Southeast Asian countries.
Growing Health Consciousness
Consumers are increasingly becoming aware about the harmful effects of chemical ingredients used in conventional cosmetics and shifting towards natural alternatives to avoid side-effects. This has boosted demand for organic cosmetics formulated using plant-derived ingredients without toxins.
Rising Demand for Natural Products
People are more inclined towards products that are environment-friendly and cause no harm. This has translated into robust uptake of natural and organic personal care brands. ASEAN organic cosmetics market growth is driven by increasing availability of these products through online and offline retail channels catering to rising demand.
Growing consumer concern over the use of chemicals in conventional cosmetics can boost demand for organic alternatives
There has been rising consumer awareness about the potential health hazards of chemicals used in conventional cosmetics such as parabens, phenoxyethanol, and sodium laureth sulfate in ASEAN countries. Many consumers are becoming increasingly concerned about the long-term effects of these chemicals on the skin and overall health. This boosts demand for organic and natural personal care products that does not contain harmful chemicals. The clean and natural positioning of organic cosmetics allows brands to charge a premium and appeal to health-conscious middle-class consumers who can pay more for perceived safety and natural benefits.
Increased promotion and marketing by organic beauty brands can raise awareness about natural options
Major organic and natural beauty brands such as Korres, Farmacy and Paula's Choice have increased their marketing expenditure and promotions in the ASEAN region. These are educating consumers about toxic chemicals in mass-market products and promoting the benefits of natural ingredients through influencer marketing and digital campaigns. International brands are also collaborating with local celebrities and KOLs (Key Opinion Leaders) to establish organic brands as a viable alternative to mainstream chemical-laden cosmetics. The amplified marketing push translates into greater shelf visibility for organic brands and trial by curious consumers. It positively impacts the purchase decisions of those people concerned about toxic ingredients and seeking natural solutions for their beauty and skincare needs.
High prices of organic products as compared to mainstream brands
While health and safety concerns boost demand for organic cosmetics, the high price of these cosmetics can pose challenges for ASEAN consumers. Organic cosmetic products tend to be 30-50% more expensive than their synthetic counterparts as natural ingredients and formulations are costly to produce. For example, a 100ml organic body lotion sells at around US$ 20 versus US$ 12-US$ 15 for a mainstream brand's product. Many consumers are hesitant to pay higher costs unless these see substantial benefits after repeated use of organic products. This discourages curious buyers and promotes the idea that organic is only for the affluent, hampering trial and widespread adoption of these cosmetics.
Lack of standardized regulations results in questionable product quality and safety
Unlike developed markets, regulations defining organic certification standards are still evolving across ASEAN nations. This allows some brands to make fake or exaggerated claims without proper substantiation of organic status. Incidents of contaminated or below-par quality control from some producer’s damage consumer confidence in the categories. With no oversight on usage of terms such as “natural”, “organic” or “chemical-free”, shoppers struggle to differentiate authentic products from greenwashing ones. This uncertainty over real benefits and safety dilutes the appeal of going organic for risk-averse consumers. Stringent regulations and certification processes are needed to ensure truthful labeling and raise confidence in the efficacy of premium organic brands.
Growing health and wellness trend prompts exploration of gentler personal care options
Rising disposable incomes in Southeast Asia have boosted spending on self-care therapies and activities that enhance emotional and physical well-being. This has brought health, nutrition and wellness to the mainstream. As part of their holistic lifestyles, consumers are increasingly adopting cleaner diets and switching to natural alternatives for personal care that contain fewer synthetic chemicals and additives. Spas and organic stores stocking toxin-free cosmetics have become popular weekend hangouts, exposing shoppers to organic ranges addressing multiple beauty concerns. The proliferating wellness ecosystem creates organic sampling opportunities and positive word-of-mouth, translating interest into actual purchases over time.
E-commerce bolsters organic beauty category awareness and conversions
The COVID-19 pandemic accelerated online and digital adoption in ASEAN. Major e-tailers and D2C brands have upgraded their websites and social presence with organic sub-sections to lure new customers. Virtual shopping makes organic discovery convenient, while elaborate filters help buyers shortlist products by key attributes like for sensitive skin or vegan. Live streams and tutorials provide brand stories a personal touch replicating offline interactions, thereby driving micro conversions. This digital-first approach compensates for lack of large physical distribution and has emerged as a critical new growth driver for organic brands still building omnichannel presence across the region. Leveraging e-commerce promise is key to bringing more
Link: https://www.coherentmarketinsights.com/market-insight/asean-organic-cosmetics-market-3152
Key Developments:
- In July 2024, Kylie Cosmetics made its grand entrance into Singapore with a lively, cosmic-themed pop-up event in vibrant pink at Orchard. This launch not only highlights the brand's signature products but also provides fans with an immersive experience into the captivating world of Kylie Cosmetics.
- In January 2021, Innisfree, South Korea-based brand, announced the launch of its new anti-aging line, Black Tea Youth Enhancing, in Singapore. This innovative product range is designed to combat signs of aging and promote youthful-looking skin, reflecting Innisfree's commitment to harnessing the power of natural ingredients.
Key Players:
Estée Lauder Inc., L’Oréal Group, WELEDA Inc., Groupe L’OCCITANE, KORRES Group, The Body Shop, Innisfree, Biolife, Skin Food, Althea, Aesop, Tarte Cosmetics, 100% Pure, Herbivore Botanicals, Dr. Hauschka, Kiehl's, Lush, RMS Beauty, Sappho New Paradigm, Tata Harper
