The global organic cosmetics market is expected to account for U$66.1bn by 2020, registering a CAGR of 10.4 percent during the forecast period, according to a report.
The Future Markets Insights (FMI) report entitled ASEAN Organic Cosmetics Market Analysis and Opportunity Assessment 2014-2020, has projected the ASEAN organic cosmetics market to reach US$4,410.9m at a CAGR of 9.5 percent over the forecast period.
Key countries considered in the report include Thailand, Singapore, Malaysia, Indonesia, Philippines and Vietnam.
Singapore represents the most lucrative market and is expected to contribute 8.2 percent market share to the overall ASEAN organic cosmetics market in the near future.
Growth of the market in Singapore is supported by the robust travel and tourism industry, and increasing consumer awareness of products with natural ingredients through various media channels.
The ASEAN organic cosmetics market is driven by factors such as robust cross-border supply of labour and capital, increased organic components harvesting and consumer demand for specialised products.
Health awareness programmes by regional governments have been attributed to an increasing consumer inclination to spend money on personal hygiene.
The report mainly covers three segments such as application, distribution channel and countries in ASEAN region.
On the basis of application, the market is further sub-segmented into skin care, hair care, makeup, fragrances, toiletries and others. Hair care is expected to account for 28.2 percent share by 2020 and the skin care market is anticipated to witness healthy CAGR of around 9.7 percent during the forecast period.
On the basis of distribution channel, the sub-segmentation comprises department stores, franchise outlets, beauty specialist salons, direct sales, chemist/pharmacies/drugstores, online selling and others.
The beauty specialist salons sub-segment is expected to dominate the market, accounting for 23 percent of the total revenue by 2020. However, franchise outlets is anticipated to demonstrate the fastest CAGR of 10.3 percent compared to other distribution channels during the forecast period.
Additionally, influx of new entrants is predicted to fuel growth of department stores as a favourable distribution channel for organic cosmetics, accounting for 18.7 percent market share by 2020.