Analysis and Main Trends of the World and Ukrainian Organic and Natural Cosmetics Market

Abstract

Organic and natural products are the main modern trend. Organic cosmetics appeared in Europe and the USA about 15–20 years ago. In Ukraine, organic cosmetics began to gain popularity in 2014–2015, in contrast to the market of natural cosmetics, which hit the shelves of Ukrainians in the early 2000s. The main drivers of growth in the use of organic and natural cosmetics: recovery and gradual growth of the cosmetics market (during 2021 – early 2022 under the influence of consumer purchasing power); growing demand for safer and more ecological products; e-commerce sales growth, increasing penetration of the internet etc). In the world and in Ukraine, there are no clear requirements for the terms "organic", "natural" or "eco-cosmetics". All responsibility for the level of quality and naturalness of cosmetics ingredients lies only with the manufacturers and their understanding of "organic", "naturalness". There are 17 companies in the world engaged in the production of organic cosmetics. The leaders are American companies: "Aubrey Organic", "Avon Products Inc", "Esse Organic Skincare" and Japanese companies: "Kao Corporation", "Shiseido". The composition of organic cosmetics does not include dyes, GMOs, ingredients of animal origin. An important criterion for organic cosmetics is certification, which is carried out by one of the certification companies located around the world. If organic cosmetics contain no more than 5% of chemical components, they receive the COSMOS ecocertificate (Weleda, Dr. Hauschka, Melvita, etc.), which confirms their organic origin. Organic and natural cosmetics containing no more than 5% of chemical components must be certified by the COSMOS Eco Certificate (Weleda, Dr. Hauschka, Melvita, etc.). The global market value for organic and natural cosmetics expected a positive increase from almost 41.38 billion dollars in 2023 to roughly 85.47 billion dollars expected for the year 2032. These data are proof of the growing importance of the natural and organic beauty market. The positive trend seen in past years continued into 2023, growing at a CAGR of 9.49% over the period 2022–2032. In fact, consumer awareness of the types of cosmetics they buy has increased over time.