Herbal Beauty Products Market Estimated To Witness High Growth Owing To Growing Preference For Plant and Herbal Based Products, Increasing Consumer Awareness on Benefits of Herbal Ingredients
The Herbal Beauty Products Market is estimated to be valued at USD 100.57 billion in 2024 and with CAGR of 5.2% over the forecast period 2024-2031. With increasing preference for natural and organic products, the demand for plant and herbal based beauty and personal care products is on rising. Consumers are more inclined towards ingredients that are natural and do not contain any harsh chemicals. Furthermore, increasing awareness about various health and skin benefits of herbal ingredients is also contributing to the growth of the market.
Rising health consciousness and preference for natural ingredients among consumers stands as a key driver aiding the growth of global herbal beauty products market. Consumers are willingness to pay premium prices for product perceived to offer natural composition without adverse effects. Additionally, growth in e-commerce and online business has provided manufacturers to tap customers globally, thereby supporting market revenues. However, availability of alternatives from chemical-based products continues to limit market scope to a certain level. Further, compliance with regulatory standards pertaining to herbal products also adds to overall production cost.
Increasing Consumer Preference for Natural and Organic Products
Consumers are increasingly becoming aware of the harmful chemicals present in synthetic beauty products and are seeking natural and organic alternatives. Herbal beauty products are seen as safer and healthier options as they contain natural ingredients derived from plants, herbs and essential oils. They are free from toxic chemicals like parabens, sulfates, phthalates etc. This rising consumer demand for chemical-free products is a major driver boosting the sales of herbal beauty products.
Growing Popularity of Ayurveda and Natural Remedies
Ayurveda, the ancient Indian system of medicine which uses herbs and plants for treatment and wellness, is gaining worldwide acceptance. People are embracing natural and herbal remedies to take care of their skin, hair and overall health. Herbal beauty brands are leveraging this trend by developing products containing Ayurvedic herbs and ingredients backed by ancient Ayurvedic principles and formulations. The increasing interest of global consumers in traditional Indian remedies is significantly contributing to the growth of the herbal beauty products industry.
High Production Costs
Manufacturing herbal beauty products involves extensive use of natural ingredients which are generally more expensive than synthetic chemicals. The costs of sourcing, processing and formulating products using premium herbal and organic ingredients without compromising on quality and efficacy are significantly high. This makes herbal beauty products relatively more expensive than conventional chemical-based products, limiting their mass appeal.
Lack of Standardization
There are no set industry standards or guidelines regarding the testing, quality control and labeling of herbal ingredients in beauty products. Different brands may source ingredients from varied sources and use their own proprietary formulations, making it difficult for consumers to ascertain product quality and efficacy. This lack of standardization also poses marketing challenges for brands in terms of building trust and credibility in a competitive market dominated by established players.
Growing Online Sales
The rapid growth of e-commerce has opened up new opportunities for herbal beauty brands to reach a wider audience. Online platforms help smaller brands advertise and build awareness about their natural products at lower costs compared to traditional retail models. Digital marketing initiatives customized for different target segments can help drive higher online sales.
Innovation in Formulations and Delivery Systems
Consumers expect natural products to also offer modern cosmetic attributes like convenience and superior performance. Brands can capitalize on this by investing in R&D to develop innovative herbal formulations and delivery systems like serums, gels, foams etc. that are on par with synthetic product standards. Positioning herbal items as tech-driven cosmetic solutions versus traditional remedies can help expand the user base.
Link - https://www.coherentmarketinsights.com/market-insight/herbal-beauty-products-market-1402
Key Developments
- In February 2023, Hemas launched Prasara, a new Ayurveda product range made with natural ingredients, including herbs. The new product line includes face cream, face wash, soap, and an ayurvedic tonic.
- In 2022 Himalaya launched a new equity campaign that encourages customers of all ages to prioritize health and wellness.
- In 2021 In association with the Delhi-based AIMIL Pharma, the Fragrance and Flavour Development Centre in Kannauj came up with beauty products in line with the Union government's push to apply Ayurveda in food and beauty products.
- March 2021: Lotus Herbals entered the clean beauty category with Lotus Botanicals, which has a range of chemical-free skin and hair care products.
Key Players
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., Khadi Natural, Biotique, Dabur, Shahnaz Husain, Kama Ayurveda, VCos Cosmetics Pvt Ltd, Forest Essentials, North India Life Sciences Pvt Ltd, Herrco Cosmetics Ltd, Natural Skincare Solutions Ltd
