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Monday, 30 September 2019

Organic Soap Market Is Expected At A CAGR Of 8.1% 2025

The global organic soaps market size is expected to reach USD 383.4 million by 2025, according to a new report by Grand View Research, Inc., registering an 8.1% CAGR during the forecast period. Rising awareness regarding environment conservation and increasing water pollution caused by harmful chemicals present in personal care products, including parabens, triclosan, phthalates, triclocarbon, and aluminum salts, are key factors driving the market.
Over the past few years, governments of several countries have been banning harmful chemicals used in cosmetics and personal care products in order to promote organic, herbal, and all-natural soaps. This is further fueled by growing consumer awareness regarding synthetic chemicals present in toiletries like hand and bathing soaps. In addition, consumer preference for natural ingredients in personal care products is supported by the efforts of various certification bodies such as The International Natural and Organic Cosmetics Association (NATRUE). The association mandated that at least 95.0% of physically processed agro-ingredients in rinse-off products such as soaps and shampoo must be organic. These initiatives, and evolving consumer trends are expected to boost product demand over forecast period.
The landscape of the liquid organic soaps segment is fragmented in nature due to the presence of a large number of players. Liquid soaps are preferred by consumers over bar soaps as they are more hygienic. Customers are becoming more aware regarding family bathing products and are offering a host of organic and natural personal care products. Key manufacturers such as SUNDIAL BRANDS LLC; Lush Retail Ltd.; Osmia Organics, LLC; EO Products; Pangea Organics, Inc.; and Brittanies Thyme are launching new products in order to cater to increasing product demand. For instance, in April 2019, Korkut Oil Soap Industries Inc. introduced a liquid soap made from unique ingredients: goat milk and extra virgin olive oil. The product, called ‘Olivos Goat Milk Liquid Soap’, helps delay signs of aging and removes dead skin.
Europe is expected to emerge as the fastest growing organic soap market over the course of the forecast period, registering a CAGR of 8.7% from 2019 to 2025. Manufacturers are launching new products that are organic, herbal, cruelty-free and chemical-free in order to cater to evolving customer demands. Over the past few years, Germany, France, and U.K. have seen an increase in product launches. For instance, in September 2016, Lush Retail Ltd., a U.K.-based manufacturer of natural personal care products, launched its concept retail store in Milan and Berlin where products are sold in innovative, packaging-free alternatives. Product information is provided by a mobile app and customers can take their products in ethically-sourced regenerative containers made from cork.
U.S. organic soaps market

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Further key findings from the report suggest:
  • Liquid product variants are expected to witness the fastest growth, exhibiting a CAGR of 8.4% from 2019 to 2025. Liquid soaps are preferred by consumers over bar variants as they are more hygienic
  • The online distribution channel is expected to witness the fastest growth by the end of the forecast period, generating a revenue of USD 75.3 million by the end of 2025
  • North America is the dominant market and accounted for more than 30.0% of the global revenue in 2018 owing to high concentration of U.S-based manufacturers
  • Key players in organic soap include SUNDIAL BRANDS LLC; Lush Retail Ltd.; Osmia Organics, LLC; EO Products; Pangea Organics, Inc.; and Brittanies Thyme.
Grand View Research has segmented the global organic soap market on the basis of product, distribution channel, and region:
Organic Soaps Product Outlook (Revenue, USD Million, 2015 - 2025)
  • Bar
  • Liquid
Organic Soaps Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)
  • Online
  • Offline