Market Overview

Based on the shipment values of brand manufacturers, the size of the natural and organic cosmetics market was estimated at 183.5 billion yen in FY2024, representing a 3.1% increase from the previous fiscal year.

This growth stemmed from increased awareness and understanding of natural and organic cosmetic products, driven by heightened interest in activities and lifestyles aligned with the SDGs, sustainability, and other environmental conservation concepts.
The market has also been boosted by the development of functional products that address specific skin concerns, indicating that the appeal of these products is not limited to their natural origin. 
Additionally, purchases driven are sometimes driven by shared values and empathy toward brand philosophies. Demand has been further stimulated by through brand communications that resonate with consumer lifestyles, as well as by simple yet elegantly designed containers and packages. Consequently, the natural and organic cosmetics market continues to demonstrate significant growth potential.  

Noteworthy Topics

Product Developments in Natural and Organic Cosmetics

In recent years, natural and organic cosmetic products have been expected to be as effective as traditional cosmetics. As a result, anti-aging, whitening, and UV protection products have been actively developed. These developments align with premium brand lines, new categories, and product renewals.

Many manufacturers are enhancing dry-skin and sensitive-skin lines. Since emphasizing natural and/or organic origins is insufficient to appeal, manufacturers value more on impression from use and improved functionality. As a result of these improvements, the border between these cosmetics and general ones has become vague. Some users use these cosmetics in parallel with general ones.

As more consumers embrace activities and lifestyles aligned with environmental conservation concepts, including the SDGs and sustainability, companies have refocused on emphasizing their brand appeal, including their brand concept, stories behind product development, and product development processes. Through these efforts, companies aim to earn deeper understanding and empathy to attract both new and repeated customers.

Future Outlook

The natural and organic cosmetics market is forecast to reach 188.0 billion yen in FY2025, marking a 2.5% increase from the previous fiscal year.

Greater interests in the SDGs and sustainability in society are a tailwind for the market.
Meanwhile, not a few brands are experiencing declining sales revenues, representing a more severe market environment. Additionally, the market continues to rely heavily on domestic consumers, with relatively low demand from foreign tourists.

In this context, market players are strengthening functionality and emphasizing naturally derived formulation appeal, while increasing brand communications toward consumers. Due to these efforts, the natural and organic cosmetics market has significant growth potential: If these efforts achieve results, the market is certain to maintain its growth trend.

Research Outline