Natural and organic products have gained significant popularity in the ASEAN region owing to rising health consciousness among consumers. Organic cosmetic products including skin care and hair care products are manufactured using plant-based ingredients and natural extracts without the addition of chemicals and synthetic preservatives. They help hydrate and nourish the skin without causing any side effects. Given the awareness regarding usage of chemical-based personal care products, consumers are opting for organic variants which are natural, sustainable and environment friendly. The ASEAN organic cosmetics market offers a wide variety of skincare, haircare, makeup and other personal care products including essential oils, herbal extracts, phenolic compounds and vitamins suitable for all skin and hair types.
The global ASEAN Organic Cosmetics Market is estimated to be valued at US$ 4583.84 Mn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends: One of the major trends gaining traction in the ASEAN organic cosmetics market is the rising popularity of natural and botanical ingredients. Manufacturers are focusing on formulating organic skincare and hair care products with botanical ingredients including aloe vera, chamomile, jojoba oil, coconut oil and argan oil known for their healing, anti-aging and moisturizing properties. Furthermore, the launch of organic premium and niche products targeted at millennials is another trend. Consumers belonging to younger demographics are willing to pay extra for high quality, results-driven natural cosmetic products which do not contain harmful chemicals. The growing demand for multifunctional organic products with anti-aging, depigmenting and brightening benefits is also shaping the market trends.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is medium as the ASEAN organic cosmetics market is a niche market and requires high capital investment and R&D to develop organic products. However, support from growing consumer demand and regulations encourages new players.
Bargaining power of buyers: The bargaining power of buyers is high given the availability of multiple brands and private label options at varying price points in the market. Buyers can easily switch to alternatives if not satisfied.
Bargaining power of suppliers: The bargaining power of suppliers is medium due to the presence of many raw material suppliers and contract manufacturers providing economies of scale. However, suppliers of key certified organic ingredients hold some bargaining power.
Threat of new substitutes: The threat of new substitutes is low as organic cosmetics fulfil a distinct consumer need of natural and toxin-free products. However, natural and chemical-free claims by non-organic brands pose a medium threat.
Competitive rivalry: The competitive rivalry is high amongst major international and regional players to gain market share in the fast-growing ASEAN market through product innovation, branding and promotions.
Key Takeaways
The ASEAN Organic Cosmetics Market Growth is expected to witness high supported by growing health awareness, expanding middle-class and stringent regulations against toxic ingredients. The market size is projected to reach US$ 4583.84 Mn by 2023 growing at a CAGR of 8%.
Regional analysis: ASEAN countries like Indonesia, Thailand and Vietnam offer high growth potential owing to changing lifestyles, rising disposable incomes and internet penetration boosting organic awareness. Indonesia accounted for over 35% market share in 2023 led by surging women workforce and influence of beauty bloggers and digital media.
Key players: Key players operating in the ASEAN organic cosmetics market are Garda World, Brinks, Securitas, G4s, and Loomis. Garda World and Brinks dominate the industry with highest number of facilities and logistics in major ASEAN countries.
Securitas is also growing fast by expanding services from security guards to integrated security solutions. Smaller regional players like G4s focus on niche services and verticals. Innovation in delivery methods, loyalty programs and sustainability initiatives will help companies boost market share.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it