Herbal Cosmetics Market To Grow by $36.6 Billion by 2028

The global herbal cosmetics market size is estimated to grow by $36.6 billion from 2024-2028, according to Technavio.

The market is estimated to grow at a CAGR of 6.79% during the forecast period. Analysts say consumer awareness about synthetic chemicals is driving market growth. However, the high cost of herbal cosmetic products poses a challenge.

Organic Skincare Solutions

The herbal cosmetics market is on the rise, with a growing trend towards traditional remedies and organic skincare solutions. Middle-class consumers are increasingly seeking herbal beauty products for skincare health, using essential oils, face masks and body scrubs. Botanical heritage is a key selling point, with quality ingredients sourced from local suppliers. Luxury and sophistication meet sustainability initiatives, as beauty companies offer herbal compounds for acne, hair issues, UV rays protection and pollution defense. Social media and beauty blogs fuel demand, with consumers shunning chemical-based alternatives. Ayurvedic products, skin tone concerns and animal cruelty-free practices are also important factors. Exports of herbal cosmetics are increasing, making these products accessible to a global audience. Packaging remains a focus, with eco-friendly options a priority.

Key market players: Alna Vedic, Apcos Naturals PVT. Ltd., Emami Ltd, Group Fourteen holdings Pty Ltd., HCP Wellness, Herbline, Himalaya Holdings Ltd., Jovees Herbal Care India Ltd., Khadi Natural, L’Oreal SA, Lotus Herbals Pvt. Ltd., MyChelle Dermaceuticals LLC, Nykaa Fashion Pvt. Ltd., Patanjali Ayurved Ltd., RDM Care India Pvt. Ltd., The Hain Celestial Group Inc., Procter and Gamble., Vaadi Herbals Pvt. Ltd., Wala Stiftung, Weleda Group and Yves Rocher Amerique du Nord Inc.

Online Shopping Portals Drive Market

Online distribution channels, including e-retailers, company portals and third-party marketplaces are key drivers in the growing popularity of herbal cosmetics sales. Major retailers like eBay and Amazon offer a vast selection of brands and products, enabling consumers to compare and purchase herbal cosmetics conveniently. The rise of smartphones and the increasing number of online shopping portals have expanded the reach of vendors in the global herbal cosmetics market, analysts say. Brands like Alba Botanica on Amazon and Himalaya’s own web portal are examples of this trend, according to Technavio. These factors are expected to boost the growth of the herbal cosmetics market during the forecast period.

Market Challenges

Analysts say these premium and luxury offerings, however, are often inaccessible to the lower and middle classes due to their elevated prices. Production costs for herbal cosmetics are higher than conventional alternatives due to the expensive raw materials and labor-intensive manufacturing process.

Regulations, such as Health Canada’s prohibition of hazardous ingredients and the EU’s REACH regulation, necessitate the use of high-quality raw materials and rigorous registration processes, contributing to the increased costs. Consequently, manufacturers are compelled to set high prices, potentially hindering the expansion of the global herbal cosmetics market, per Technavio.