Pacific people have been using coconut and other natural produce as beauty products for centuries. Traditionally, coconut has been used for food and cooking products as well as for handmade oils, highly valued for its restorative properties. Now, the same traditional-based processes, for both coconut as well as other popular cosmetic oils such as monoi and tamanu, are providing an opportunity to create luxurious soaps, scrubs, elixirs, and lotions for national and international markets. From the village to the factory – opportunity is booming.
Across the Blue Pacific, there is immense opportunity for businesses to work with small-scale farmers and local communities to develop world-class natural beauty products for sale in the regional tourist sector, as well as for export to international markets.
In 2018, the global cosmetic oil market was valued at US$50.58 billion and is expected to register a compound annual growth rate of 5.2% from 2019 to 2025. The various beneficial properties of cosmetic oils, such as being antimicrobial, moisturising and anti-inflammatory, are projected to fuel demand over coming years and ultimately drive market growth.
As people become increasingly health conscious, consumers are also moving towards more organic products. This has driven, and continues to drive, increased demand for organic oils as part of people’s diets, and a growing preference for organic over synthetic oils in beauty products.
A 2019 analysis of the organic oil market by Persistence Market Research described the Asia-Pacific region as the fastest growing exporter in this market, with China and India highlighted as large consumers. This demand appears to be driven by consumers’ preference for organic, raw and natural dietary products as well as an increasing focus on personal health. With consumers also beginning to demand products that use less resources while contributing to the circular economy, Pacific businesses stand to be in a uniquely advantageous position, able to leverage these consumer ideals with their promise of raw, pristine and sustainable products, fresh from the islands.
Another more recent market-force driver has been the ongoing impacts of COVID-19 pandemic, which has vastly increased demand for organic oils and cosmetic products over the past two-years. According to management consultancy firm McKinsey & Company, while the global beauty and cosmetics industry has been hit hard by the COVID-19 pandemic, sales of skincare, haircare and body care products have benefited. This aligns with the ‘lipstick effect’: an economic theory that suggests consumers will seek comfort and indulgence during times of economic downturn by purchasing small luxuries such as cosmetics and self-care products.
The Pacific is lush with raw and organic products, particularly those within the cosmetic oil space. Coconut, a superfood that is central to the lives of those in the Pacific, not only holds high value in cosmetic export markets which was valued at US$4.5 billion in 2020, but also produces feed for local livestock as a by-product of its oil extraction. This is a simple example of a circular economy providing positive and sustainable sociological and economic outcomes.
Similarly, oil from the tamanu fruit has been used in Pacific cultures both medicinally and aesthetically for centuries. Known for its nutrient-filled, antioxidant, anti-inflammatory and anti-bacterial properties, it is a valuable ingredient in pharmaceutical, cosmetic, and personal care products. In 2019, the global market for tamanu oil was valued at US$84.9 million and is projected to reach US$137.2 million by 2027, as people become more aware of its health benefits and seek out more natural remedies for skin and personal care.
Lastly, monoi oil, the gem of French Polynesia, is made by infusing petals of the tiaré flower in pure coconut oil, and for this reason it possesses many of the same benefits as coconut oil, containing hypoallergenic and noncomedogenic properties that support its use in skin and haircare products. Much like champagne, it is particular to a region and as such, products can only be labelled as ‘monoi’ if made in French Polynesia.
With a market primed for entry, Pacific businesses and the communities behind them have much to gain from the success of Pacific-based cosmetic oils and organic beauty products. Economic growth, improvement in living standards and further employment opportunities all present optimistic prospects, only serving to encourage those interested into the fast-growing industry.
PTI Australia works with a range of cosmetic oil and skincare producers throughout the Pacific. If you’d like to learn more, get in touch with PTI Australia General Manager – Exports, Jeremy Grennell, at jeremy.grennell@pacifictradeinvest.com.
