According to a new report from Future Market Insights, the global organic cosmetics market will be valued at $66.1 billion by 2020, with a compound annual growth rate (CAGR) of 10.4%, while the ASEAN organic cosmetics market will be valued at $4,410.9 million during the same period, with a CAGR of 9.5%.
Top ASEAN markets include Singapore (8.2% market share by 2020), "supported by the robust travel and tourism industry, and increasing consumer awareness of products with natural ingredients," and Malaysia.
Growth will be led by health and hygiene product demand spurred by "health awareness programs by regional governments," and branding surrounding "natural nourishment."
Leading distribution channels include beauty specialist salons (23% of total revenue by 2020), franchise outlets (CAGR of 10.3% for forecast period) and department stores (18.7% market share by 2020), the latter driven by new entrants to the category.
The ASEAN organic cosmetics market will be "driven by factors such as robust cross-border supply of labor and capital, increased organic components harvesting and consumer demand for specialized products," according to the analysis.
The report authors note, “Increasing consumer awareness regarding benefits of greener products, rising disposable income and increasing investments by local companies are expected to fuel the demand for organic cosmetics in ASEAN.”