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Organic Personal Care Market in India 2021

Market insights:
Consumers have become inclined toward organic personal care products because they are made of plant-based ingredients, which are not toxic, cruelty-free, non-GMO, and non-comedogenic. This is because of the growing awareness of the harmful effects of parabens, sulphates, and synthetic chemicals such as propylparaben, formaldehyde, phthalates, and butylparaben used in traditional products. The market was valued at INR 43.51 Bn in FY 2020. It is estimated to reach INR 160.61 Bn by FY 2027, expanding at a compound annual growth rate (CAGR) of ~22.32% during the FY 2022 - FY 2027 period.
Segment insights:
The market is categorized into five segments - skincare, haircare, oral care, colour cosmetics, and other organic personal care products. As of FY 2021, the organic skincare segment dominated the organic personal care market. The hair care and oral care segment have also shown notable growth. The skincare segment is anticipated to dominate the market for the coming because of its popularity among consumers of both tier-I and tier-II cities. The sales volume of organic colour cosmetics is anticipated to grow by 60% in the coming years. This significant rise in sale can be attributed to Indian skin types such as combination-oily, oily-sensitive skin, which are highly sensitive to artificial non-organic cosmetic products due to humid climate changes

Impact of COVID-19:
The COVID-19 pandemic has both, benefited and affected the market. Since all retail outlets, spas, beauty salons, and shopping malls were closed for a prolonged duration during the second wave, key players witnessed a huge dip in their sales volume. The industry experienced disruption, particularly with production, supply chain, and e-commerce delivery.
However, the demand for organic products, as a safe alternative to traditional personal care products full of harsh chemicals, has surged. Organic sheet masks have been ruling the market since May 2021, owing to their effective nature and short-term application process. The demand for essential oils, skincare, and oral hygiene products has also picked up. The demand/sale of organic hand sanitizers has grown by 14% between 2020 and 2021 because of improved awareness of natural ingredients used in these products. These are also the safe alternative to harsh alcohol-based hand sanitizers.

Competitive insights:
Owing to customers' preference toward personal care products with natural ingredients, major players such as Dabur India Limited and Forrest Essentials Private Limited have generated substantially high net revenues. Start-ups such as Plum, McAffeine, Kama Ayurveda, and SkinKraft have also shown noteworthy performances.
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Organic Personal Care Market in India 2021
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