Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?

I have 18 years of experience in the personal and home care industries. I hold a Bachelor’s, Master’s, and PhD in cosmetics and a diploma in skin nutrition. Additionally, I have an MBA in HR and Marketing and am a certified counsellor specializing in industrial counselling.

Q2. What is the current market size for natural and organic cosmetics, and what are the projected growth rates for the following years?

The global natural and organic cosmetics market size was worth around USD 25 billion in 2023 and is predicted to grow to around USD 40 billion by 2032 with a compound annual growth rate (CAGR) of roughly 5 to 7 % between 2024 and 2032.

Q3. How is consumer preference shifting, and are consumers willing to pay premium prices for natural and organic cosmetics products?

As consumers are becoming more health conscious, there is growth in health awareness, specifically after COVID-19. The Most common cosmetics trend nowadays are natural, safe, or chemical-free cosmetics. Natural and organic personal care products are considered masstige to the premium range and are still popular in every segment. 

Q4. What are the latest innovations in natural ingredient formulations?

Earlier major claims on natural ingredient space were primarily in herbal extracts like Aloe vera, saffron, Neem, etc, which Ayurveda majorly inspired. Drawing more knowledge from it and the advancement of technology, these herbal extracts are getting converted into “Bio–actives,” These bio-actives are more potent in nature for specific activities such as anti-aging, skin lightening, under-eye, etc.

Other ingredient categories like emulsifiers, emollients, and surfactants are already available from natural sources. Many researchers are working on plant-based alternatives to silicones and acrylic-based polymers to deliver exactly similar sensory and feel. 

Q5. Who are the leading companies in the natural and organic cosmetics space, and how are they adapting to the competitive landscape?

All major companies, be it from the ingredients space or FMCG space, focus on natural and organic cosmetic products. Due to commitment to the environment, sustainability is one of the major strategy drivers—a surge in clean and ethical beauty trends fuelling the growth of natural and organic cosmetics. 

Q6. What are the best growth opportunities in the natural and organic cosmetics market, and why?

Efficacy-driven products like anti-aging, skin lightening, anti-pollution, etc, have potential growth opportunities. There are certain gaps in a few categories where there are fewer options like sunscreens, silicones, and polymers. 

Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?

I would ask the following questions: 

• How do you select a growth category in natural and organic space?
• What is the share of spent in innovation & product development?
• How would you make your product affordable for consumers to reach more consumers and, in turn, will positively impact the environment?