According to CMI, several factors should provide a lift for alcohol-free formulas.
Increase in health consciousness among consumers is one of the major factors driving the demand for alcohol-free cosmetics. Moreover, commonly used alcohols in cosmetic products such as Isopropyl alcohol and phenoxyethanol, have a potential of causing skin-irritations and allergic-reactions in adults as well as affecting the central nervous systems in infants.
Halal cosmetics is the latest trend in cosmetic industry, which is expected to propel the demand for alcohol-free cosmetics in the near future. The term halal cosmetics is marketed by cosmetic companies for the cosmetics that do not use any kind of animal-based products and alcohol as ingredients. Companies are targeting Muslim consumers all over the world and are focused on developing new halal cosmetic products. For instance, in Mar 2019, SimplySiti, a producer of halal cosmetics in Malaysia, partnered with CIMB Islamic Bank, a leading bank in ASEAN region, to expand its halal beauty products market across South-East Asia region.
The Asia Pacific region is expected to witness the fastest growth in the global alcohol-free cosmetics market during the forecast period, owing to the rise of consumer base with growing health-consciousness and a rising demand for chemical-free cosmetics and personal care products. This is due to various factors such as expansion in retail sector, changes in lifestyle, higher youth population, rising total number of working women, changing lifestyles, and increasing demand for men’s cosmetic products.
Although alcohol-free cosmetics is a rising trend, a major share of the population around the world is still unaware of the benefits of these products. New product launches in different segments such as fragrance, skin care, and hair care are expected to increase the awareness of alcohol-free cosmetics as well as provide better choices in product line for consumers. For instance, in January 2019, TreeWear, an India-based company that provides environment-friendly clothing and personal care products, launched its alcohol-free hand sanitizer range.
Leading companies in the global alcohol-free market are focusing on various strategies such as mergers and acquisitions to expand their market presence globally. For instance, in Aug 2019, Shiseido, a Japan-based company that provides personal care products and cosmetics globally, acquired Drunk Elephant, a US-based manufacturer of skin care products.
Key players operating in the global alcohol-free cosmetic market include Ecotrail Personal Care, Martha Tilar Group, Amara Halal Cosmetics, IBA Halal Care, Talent Cosmetics Ltd., Paragon Technology And Innovation, Clara International Beauty Group and Inika Organic.