ASEAN Organic Cosmetics Market to Expand to US$ 4,419 Mn by 2020, Driven by Increasing Demand for Organic and Natural Products

As consumers display heightened awareness for a well-groomed and pleasing appearance, the cosmetics market has been a key beneficiary of this trend. At the same time, they are wary about the chemicals contained in cosmetics and the resultant detrimental effects of such ingredients. It is this white space that natural and organic cosmetic products address. This growing demand for cosmetics that are proven to be safe has forced manufacturers to offer organic and natural products to differentiate their offerings in an extremely stiff competitive environment.

The global organic cosmetics market is driven by factors that include consumer inclination towards personal hygiene due to health awareness programmes by regional governments and aggressive campaigns for natural nourishment products. Therefore, the demand for organic cosmetics products is rising across regions such as North America, ASEAN, GCC, and Asia Pacific. The ASEAN market has exhibited significant growth in the recent past.

According to FMI report, the global organic cosmetics market accounted for US$ 34 Bn in 2014, and is expected to reach US$ 66.1 Bn by 2020, exhibiting a CAGR of 10.4% between 2014 and 2020. The ASEAN organic cosmetics market, on the other hand, was valued at US$ 2,415 Mn in 2014. This market is anticipated to account for US$ 4,419 Mn by 2020, reflecting a CAGR of 9.5% during the forecast period.

Browse Full: "ASEAN Organic Cosmetics Market Analysis & Opportunity Assessment, 2014 - 2020" Report at http://www.futuremarketinsights.com/reports/details/asean-organic-cosmetics-market

FDI Support for Retail Industry in ASEAN Will Drive the ASEAN Organic Cosmetics Market

Some of the factors driving the ASEAN organic cosmetics market are: Increasing investments in retail industry by international players, FDI support in ASEAN retail market, increased organic ingredients harvesting, growing demand for specialized products, and cross-border supply of capital and labour. Moreover, increasing health and skin problems resulting from the tropical climate and pollution in this region will drive the ASEAN organic cosmetics market in the near future.

However, high prices of specialized products will potentially restrict the acceptance of organic cosmetic products among the medium class population. Nevertheless, availability of natural ingredients and cheap cost of labor in ASEAN will entice international players to set up their manufacturing plants in countries such as Thailand and Philippines. This will help to offer organic cosmetics at an affordable price.

The ASEAN organic cosmetics market is mainly segmented on three fronts: Application, distribution channels, and countries.

On the basis of application, the ASEAN organic cosmetics market is segmented as: Hair care, skin care, makeup, toiletries, fragrances, and others. Among all the aforementioned segments, hair care segment is projected to hold a 28.2% revenue share of the market by 2020. However, the skin care segment is expected to exhibit a significant growth rate of 9.7% during the forecast period.

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Beauty salons to dominate the ASEAN organic cosmetics market with a 23% share

By distribution type, the ASEAN organic cosmetics market is segmented as franchise outlets, department stores, beauty specialist salons, chemist/pharmacies/drugstores, direct sales, online selling, and others. The beauty salons segment is expected to dominate the market, accounting for 23% of the total revenue share by 2020. However, the franchise outlets segment is anticipated to exhibit the fastest growth rate of 10.3% as compared to other distribution channels, between 2014 and 2020. Moreover, department stores are anticipated to represent 18.7% market share by 2020 due to the influx of new entrants.

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