More and more people are developing an environmental awareness that goes hand in hand with concern for their own health and the future of the planet, leading to changes in consumer behaviour.
“Organic and natural cosmetics fit in very well with this new awareness of meaning and responsibility,” says market analyst Elfriede Dambacher, owner of the company naturkosmetik konzepte in Dortmund. The expert can substantiate this statement with figures: “Holistic beauty products continue to grow. According to international market research institutes, the global cosmetics and toiletries industry recorded growth of 6 % in this segment in 2018 – the highest level during the last decade”. According to Statista, even higher growth rates are expected leading up to 2023 in the largest markets for natural cosmetics, the USA and China. According to the forecast, sales in the natural cosmetics segment in the United States will thus increase from the predicted € 1,243 billion for 2020 to about € 1,529 billion, which corresponds to an annual sales growth of 7.1 %.
The largest market for natural cosmetics is expected to be the People’s Republic of China in 2020, with sales of approximately € 1,886 billion. According to Statista’s prognosis, this will rise to € 2,878 billion by 2023 – an annual growth rate of 15.1 %. This market development is not only favored by the changes in consumer values and the increasing purchasing power of the Chinese middle class, but also by relaxed import regulations that allow exemptions from the animal testing obligation – an important step for an industry that mostly relies on vegan production methods.
Above-average growth in Germany
Statista also predicts above-average growth for the German natural cosmetics market: By 2023, annual sales are expected to rise to € 348 million. Based on estimated sales for 2020 of € 271 million, this corresponds to an increase of 8.6 %.