Industry Insights

[218+ Pages Report] According to Facts & Factors, the global organic soap market size was worth around USD 2.1 billion in 2023 and is predicted to grow to around USD 4.3 billion by 2032, with a compound annual growth rate (CAGR) of roughly 8.3% between 2024 and 2032.       

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Market Overview

Organic soap is described as soap produced from components grown without the use of synthetic pesticides, herbicides, and other chemicals. Natural oils, fats, lye, and botanical extracts are used in their production for scent and skin benefits. These ingredients are free from genetically modified organisms (GMOs) and dangerous chemicals, as organic farming methods are used to produce them. They are gentle, less prone to skin irritation, and environmentally friendly compared to conventional soap.

The organic soap market is driven by several factors, such as rising demand for natural & organic products, rising awareness regarding environmental sustainability, increased focus on skin health & wellness, rising disposable income in emerging markets, and a growing e-commerce sector. However, the high production cost and limited shelf-life are a major obstacle to the development of the organic soap industry.

Key Insights

• As per the analysis shared by our research analyst, the global organic soap market is estimated to grow annually at a CAGR of around 8.3% over the forecast period (2024-2032).
• In terms of revenue, the global organic soap market size was valued at around USD 2.1 billion in 2023 and is projected to reach USD 4.3 billion by 2032.
• The growing product launch is expected to drive the organic soap market over the forecast period.
• Based on the product, the bar segment is expected to capture the largest market share over the forecast period.
• Based on the distribution channel, the offline segment is expected to dominate the market over the projected period.
• Based on region, North America is expected to dominate the market during the forecast period.

Growth Drivers

• Rising awareness among consumers regarding the benefit of organic products drives market growth

Consumers are looking for alternatives to traditional soaps loaded with chemicals as health and environmental concerns grow. Since organic soaps are created from natural components without dangerous additives, they are seen to be a safer and more environmentally friendly choice. Numerous educational initiatives, media attention, and information sharing on social media platforms are the main drivers of this increased awareness.

Additionally, customers are now closely examining the components in their personal care goods, such as soaps, due to the increased interest in leading healthier lives. The demand for these products is anticipated to expand steadily as awareness of the advantages of using organic soap increases, which will impact the organic soap market's growth.

Restraints

• Short shelf life of organic soap hinders market growth

One main obstacle influencing the development of the organic soap industry is the smaller shelf life of organic soaps than synthetic soaps. Made only from plant extracts and natural oils, organic soaps are also called natural, environmentally friendly, or green soaps. They are devoid of synthetic additions, so soaps follow sustainability's driving ideas.

Moreover, organic soaps made without preservatives have a natural scent that gradually disappears, therefore restricting their shelf life to roughly 12 to 18 months. By comparison, conventional soaps with synthetic preservatives have a far longer shelf life, more than three years.

Opportunities

• Growing campaign activities by the key players offer a lucrative opportunity for market growth

The increasing campaign activity by the key player is expected to offer a lucrative opportunity for the organic soap market. For instance, in July 2023, with its most recent campaign in Maharashtra, Chandrika, the renowned handcrafted Ayurvedic soap with a tradition spanning more than 80 years from the prestigious Wipro Consumer Care and Lighting company, aimed to expand into new territories and connect with a larger audience.

Laqshya Media Group worked with Wipro Consumer Care and Lighting to create a creative campaign that combined strategic approaches and state-of-the-art technologies. Chandrika's legacy and Ayurvedic goodness were reinforced through a month-long campaign that expanded throughout major Maharashtra cities using strategically placed high-impact locations, improving the company's standing in the state and winning over new customers.

Challenges

• The limited availability of organic ingredients poses a major challenge to market expansion

The limited availability of organic ingredients poses a major challenge for the organic soap industry during the forecast period. Synthetic pesticides, fertilizers, and genetically modified organisms must not be used in the cultivation of organic components, especially oils (like coconut, olive, and shea butter) and essential oils (like lavender and eucalyptus). Despite its growth, the organic farming industry is still small in comparison to conventional farming, which causes supply shortages.

Additionally, only a small number of farms achieve the stringent requirements for organic certification. Manufacturers who source certified organic ingredients must make sure that certain standards are met, which may further limit the sources they can choose from.

Segmentation Analysis

The global organic soap industry is segmented based on product, distribution channel, and region.

Based on product, the global organic soap market is segmented into bar and liquid. The bar segment is expected to capture the largest market share over the forecast period. Its long-term durability, eco-friendly packaging, and affordability are the reasons behind this.

It offers efficient moisturizing and cleansing properties, enhanced by natural components, including shea butter, coconut oil, and essential oils. Bar soaps are preferred by consumers over liquid soaps because of their tactile appeal, traditional appeal, and lower environmental effect.

Based on distribution channels, the global organic soap industry is bifurcated into offline and online. The offline segment is expected to dominate the market over the projected period. The trust and legitimacy that come with offline purchasing and the tangible experience of interacting with products are important drivers propelling market expansion.

Customers can buy things right away without having to wait for shipment or delivery and peruse a variety of brands in one location, which improves their entire shopping experience and helps offline distribution channels maintain their dominance.

Report Scope

Regional Analysis

• North America dominates the market over the projected period

North America is expected to dominate the global organic soap market during the forecast period. Regional dominance can be ascribed to several elements, including reachable distribution networks, established brands, customer awareness, and regulatory frameworks. The area's focus on sustainable practices, organic components, and product efficiency aligns well with consumers' growing preferences for natural products.

However, Europe is expected to grow at the highest CAGR during the forecast period. Consumers in Europe, especially in Germany, France, and the UK, are choosing natural soaps more frequently as a result of growing awareness of environmental sustainability and worries about the harmful side effects of chemical goods. Strict local laws governing cosmetics also increase demand for organic soap products, giving businesses that serve this industry a competitive edge.

Competitive Analysis

The global organic soap market is dominated by players like:

• Auromere Ayurvedic Imports
• Nature’s Gate
• Vermont Soap
• Neal’s Yard Remedies
• Indigo Wild
• Shea Moisture
• Made Natural Products Inc.
• Woods Naturals
• Tom’s of Maine
• Beautycounter
• EO Products
• Seventh Generation
• Bronner’s
• The Honest Company Inc.
• The Seaweed Bath Co.
• Rocky Mountain Soap Company
• Pangea Organics
• Avalon Organics
• Sappo Hill Soapworks
• Nourish Organic

The global organic soap market is segmented as follows:

By Product Segment Analysis

• Bar
• Liquid

By Distribution Channel Segment Analysis

• Offline
• Online

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America