The major factors driving market growth include rapid urbanisation and rising disposable income
The global organic cosmetics market is estimated to grow at a double-digit CAGR of 10.4% by 2020, says a recent report by Future Market Insights, ASEAN Organic Cosmetics – Market Analysis and Opportunity Assessment 2014-2020.
The ASEAN organic cosmetics market accounted for US$2.56m in 2014, and is expected to reach $4.41m by 2020. The countries covered in the report are Thailand, Malaysia, Indonesia, Singapore, Philippines and Vietnam. In terms of individual countries’ contribution, Thailand represents the biggest market potential followed by Indonesia and Philippines.
A boom in engagement with digital marketing techniques for distribution, building awareness through websites and blogs, and high product visibility coupled with easy reach out for consumers are expected to fuel market demand.
According to the report, the major factors driving market growth include rapid urbanisation, rising disposable income and the growing preference of consumers towards health and hygiene products. It also cites increasing awareness about natural products and the growing male consumer segment as expected to fuel the demand for organic cosmetic products in the region.
It highlights that the organic hair care segment is expected to contribute $1,243m in terms of revenue to the overall ASEAN organic cosmetics market, accounting for 28.2% of the total market by 2020. Key companies included in the report are Estée Lauder, L'Oreal and Weleda.