CLEAN BEAUTY MARKET OVERVIEW AND DEFINITION

The global clean beauty market is experiencing rapid growth driven by increasing demand for clean, safe, natural, plant-based and non-toxic products. While clean products have no clear legal or universal definition, they are considered to be free from synthetic and harmful chemicals like parabens, sulphates, phthalates, etc. and are sourced naturally and packaged sustainably.

Clean beauty products are in a popular demand among youth like Gen Z and Millennials, who actively spend time on the internet looking for safer alternatives to chemically processed beauty products, mainly after the COVID-19 pandemic, resulting in a growing sense of self-care and wellness.

This growth is further accelerated by rising social media influence, e-commerce platforms and skincare influencers. North America leads the market due to strong regulatory support and brand awareness, followed by Europe with its strict product standards, and Asia-Pacific, driven by K-beauty trends and increasing urbanisation.

MARKET DYNAMICS

Market Drivers

Social Media & K-Beauty Influence

The rising influence of social media platforms, particularly Instagram, TikTok, and YouTube, has provided a platform for small-scale businesses in the beauty industry to compete with cosmetic giants through their offerings of clean beauty products, which are essentially gaining popularity among Gen Z and millennials. Consumers often use apps like Yuka, INCI Decoder for ingredient information and are now conscious of the products they use and demand transparency from the brands as well. Pro skin influencers have further played a major role in promoting clean beauty trends among the audience.

Moreover, the growing influence of K beauty products, which are known for their minimalistic and natural-based formulations, has shifted the 10-step skincare routine towards skinimalism, forcing the big brands to market safe, effective and sustainable products which are non-toxic. This growing demand has pushed many brands towards manufacturing clean beauty products using simple and harmless ingredients. For instance, Glow Recipe, a US brand, taking its inspiration from Korean brands’ vision, launched its products globally at Sephora, aiming to provide products rooted in care, safety and effectiveness.

E-Commerce & Direct-to-Consumer (DTC) Expansion

The rising trend of online shopping has accelerated the growth of the clean beauty market, particularly since the COVID-19 pandemic. According to a report of the Global Cosmetic Industry, online beauty sales grew by 40% in 2020, reflecting changing purchasing behaviour. Consumers became more informed through their online research of products and relied heavily on digital platforms for their buying needs. E-commerce allowed small-scale brands to sell their unique, clean beauty products, maintain their brand’s identity and uniqueness, rather than relying on the wholesale and retail network. Such brands use Shopify, WooCommerce, etc., to develop websites that tell their story and build a connection with the users through direct control of user feedback. Additionally, brands are also using social media as a platform for increasing their sales, such as Instagram shops or TikTok shops.

Market Restraint

High Production Costs

Clean beauty products use naturally sourced, organic, and non-toxic ingredients, which adds to the overall cost of both small and big businesses, as these ingredients require special techniques to harvest, process, and preserve. Clean beauty products focus on manufacturing products that are free from sulphates, parabens, phthalates, etc., and often use techniques like cold processing, CO2 extraction, etc., which are costlier than processing synthetic materials. Further, the commitment to use sustainable packaging materials that are biodegradable and environmentally friendly costs more than using simple plastic packaging. For instance, airless recyclable pump bottles or PCR (post-consumer recycled) plastic cost more to produce and ship due to weight and fragility.

Greenwashing & Definition Ambiguity

With no clear definition of what “clean” actually means has led to many brands marketing their products deceptively in the name of safe, non-toxic, ethically sourced products without meeting any standardised criteria. Clean beauty has no universal definition or certification, unlike the terms “organic” or “cruelty-free”, which have clear definitions provided by regulatory bodies like the USFDA. For instance, Sephora excludes ingredients like sulphates, parabens, etc., in the name of clean products while using other synthetic chemicals.

Market Opportunity

Men’s Grooming Segment

Men’s grooming segment was initially behind women’s due to reasons including skincare literacy, lack of diverse products, and more focus on the women's segment. However, since 2019, there has been an increased focus on providing beauty products for men driven by changing social norms, the influence of social media and the availability of natural and multifunctional products grabbing the attention. As per a Mintel Report, more than half of US men now use facial skincare, depicting a 68% increase from 2022. Also, according to a report, Global Cosmetic Industry, 40% of men prefer products containing natural and clean ingredients.

Market Trends

Functional & Wellness-Linked Skincare

A major trend transforming the skincare industry is the shift towards functional skincare – skincare that not only enhances outer appearance but also promotes physical, mental and emotional wellbeing. Gen Z and millennials demand products that do more than just hydrate or beautify. They look for products that provide multiple benefits like pollution defence, microbiome repair, sleep support, etc. For instance, CBD is gaining widespread popularity in the clean beauty market for its multifunctional effects, like anti-inflammatory, calming, and sleep promotion, etc., and has been increasingly infused in products of popular brands, one being Kana Skincare.

SEGMENTATION ANALYSIS

By Product Type

The clean beauty is largely segmented into skincare, haircare, and colour cosmetics, out of which skincare holds the dominance, supported by increasing public awareness of clean, safe and non-toxic ingredients. The skincare dominance is fueled by growing skin conditions like acne, sensitivity, and dryness, which are often linked to the use of synthetically formulated products. Among the skincare segment, products like moisturisers, cleansers, serums, toners, etc., are most widely used, driven by scientifically validated and harmless compositions.

Haircare is the second-largest growing segment in the clean beauty as consumers actively seek products for their hair health, like shampoos, conditioners, hair serums, etc. Hair fall becoming common these days is one of the factors towards the rising demand, with people realizing the need to take care of their scalp health.

Colour cosmetics is a slower-growing segment with people preferring makeup products that are long-lasting, for instance, consumers prefer products like lipsticks, and eyeshadows that are highly pigmented or mascaras that are waterproof. This segment is undergoing transformation with the need to have access to makeup products that are free from synthetic chemicals like talc or synthetic dyes.

By Distribution Channel

The distribution channel for the clean beauty market is mainly segmented into classes: online channels, which include DTC sales and e-commerce, and offline channels, which include sales through pharmacies, beauty stores, etc.. The online distribution channel, however is the dominant segment.

Direct-to-customer models in the online channel are the most preferred channel among users as it gives the brand the opportunity to reflect their story and also help provide user feedback for continuous improvements. Users are increasingly searching for products online, comparing brands, and navigating ingredients, which is why the online segment continues to engage more users. Offline channels particularly the high-end beauty stores like Sephora and Ulta Beauty, provide specific sections for these clean beauty products, building brand visibility and trust. In today’s times, pharmacy stores and wellness stores are emerging as a channel for the distribution of clean beauty products.

REGIONAL INSIGHTS

North America holds a dominant share of the clean beauty market, particularly the United States and Canada. This dominance is largely driven by increased customer awareness and preference for cleaner alternatives to harmful chemical ingredients in these regions, supported by an active regulatory and advocacy system, FDA’s MoCRA legislations and popularity of DTC brands like Youth to the People.

Europe is the second-largest growing region in the clean beauty market due to the presence of stricter regulations of EU cosmetics. Regions in Europe like France, Germany are leading hubs in the clean beauty market, with people preferring organic, vegan, cruelty-free products that have trusted clinical efficacy and treatment rather than influencer hype.

The Asia Pacific region, particularly Japan, China, South Korea and India, are seeing rapid growth in the clean beauty market. While the Korean skincare brands dominate the region with products like centella extracts, fermented products, India focuses on providing Ayurvedic versions of clean beauty products like Forest Essentials. This growth is promoted by rapid industrialization and social media influence in these regions.

In the Middle East region, the clean beauty market is shaped by halal-certified, cruelty-free and vegan products driven by religious preferences.

In Latin America, regions like Brazil, Mexico, and Columbia are observing gradual growth in the clean beauty market, with Brazil being the active region with local brands like Natural & Co.

KEY INDUSTRY DEVELOPMENTS

In 2024, Beyoncé launched Cécred, a haircare brand focusing on clean and natural ingredients for scalp health, which expanded to 1400 Ulta Beauty stores in the US by 2025. In addition, investors and private equity firms are beginning to show interest in investing in clean beauty brands, especially those marketed by celebrities. In 2024, there had been an increase of 60% in sales from clean beauty brands compared to the previous year.

As per reports of 2025, L’Oréal plans to buy Medik8, a UK brand that claims to be cruelty-free and known for science-backed products. This reflects how big companies are shifting their focus towards clean beauty products widely accepted among consumers.

CLEAN BEAUTY MARKET REPORT SCOPE & SEGMENTATION

MARKET REGIONAL COVERAGE

North America (United States, Canada)

Europe (France, Germany, United Kingdom)

Asia-Pacific (China, South Korea, India, Japan)

Middle-East & Africa (South Africa, Israel, UAE, Iran, Saudi Arabia, Qatar, Rest of Middle East and Africa)

Latin America (Brazil, Mexico, Colombia)

MARKET ACTIVE PLAYERS

• Shiseido Company, Ltd.
• Drunk Elephant
• The Ordinary (Deciem)
• Beautycounter
• Tata Harper
• Farmacy Beauty
• Biossance
• RMS Beauty
• Herbivore Botanicals
• Ilia Beauty
• Juice Beauty
• Pacifica Beauty
• Kora Organics
• True Botanicals
• Merit Beauty