Organic Bar Soap Industry ESG Thematic Report, 2023

Environmental, Social, and Governance (ESG) in the Organic Bar Soap Industry

The organic soap industry has grown substantially in comparison to traditional soap and consists of key factors that will be discussed further in this report as the market has a clear impact on health and the environment.

Traditional soaps contain chemicals that also have a harmful impact on the health and environment. Comparatively to organic soap, it has far more advantages because organic soap is produced from natural sources and does not contain any chemicals, making it more biodegradable and beneficial for the environment, as it can be easily disposed of and has a smaller environmental impact. Moreover, organic soap certainly has several benefits which are most beneficial to the environment. Since organic soaps don't contain chemicals, they are easy to dispose of in nature.

Impact of Organic Soap in terms of ESG

Organic Soap has several impacts associated with the environment, health, and economy which are mostly favorable. Some of the benefits include being cruelty-free, toxic-free, boosting the local community, and many others. All these have both environmental and social relevance in terms of ESG.

Benefits of organic bar soap market in terms of ESG.

Organic products are cruelty-free since organic refers to their authenticity and the sources from which they are derived are plant-based, which is highly beneficial. Additionally, the absence of toxicity aids the environment since it can be broken down more easily after use. In our further evaluation of this topic, it was observed that organic products have a shorter shelf life when compared to non-organic products that use preservatives that adversely affect the environment. This process does not harm wildlife that shares the water in rivers, lakes, and oceans.

A great aspect of organic soaps is their health benefits, not only on the consumer's end but also on the producer's end. Towards the consumer's end, it's a beneficial factor that these products are free of harmful chemicals, pesticides, and fertilizers. The ingredients are natural, and each plant and herb that is used in production is entirely free of pesticides and harmful chemicals. Further, organic soap makers operate in the local community or local market, which helps to circulate money within the local community. Additionally, consumers can directly access producers at a local store or farm market.  The economy thus benefits from them.

Transition towards organic soap

The transition of consumers towards organic soap brands has significantly increased. The main reason is that traditional or commercial soaps contain chemicals that have a negative impact on the environment. When compared to natural ones, the natural ones have much better transparency. Organic soap as a brand is more biodegradable and has a less harmful impact on the environment. Since the market consists of small and local businesses producing organic products, transparency is demonstrated in their business practices. Which ultimately allows consumers to identify the ingredients used within the product. Moreover, organic products are less harmful to the environment and health, so they automatically stand out as a better option for consumers.

Innovative methods in delivering organic bar soaps – green packaging

Green packaging has been used by leading brands across the globe when it comes to organic soap products. This is evident from the use of eco-friendly materials such as kraft paper, which decomposes on its own. In addition to being 100% biodegradable, it is also non-toxic and manufactured from recycled materials. Many brands in this organic bar soap industry are adopting this eco-friendly option to reduce packaging waste on the environment. The molded pulp is another packaging method used, which is a highly effective green packaging solution, while soap boxes are made from either virgin or recycled paper fibers. In addition to plastic-free packaging that is 100% recyclable and made from recycled cardboard, tissue paper made from recycled materials is also an excellent sustainable option.

Growth Of the Organic Bar Soap Market

During the period 2022 to 2030, the global organic bar soap market is expected to grow at an annual compound growth rate of 8.2%. Growing consumer inclinations toward well-being determine the market's growth. Further, global consumer behavior is changing because of changes in beauty and personal care products. The research also highlights critical aspects of the market.

Key Companies in this Theme

    • Neal’s Yard (Natural Remedies) Limited

    • Khadi Natural

    • Dr. Bronners’s Magic Soaps

    • The Body Shop International Limited

    • Forest Essentials

Scope of the Organic Bar Soap Industry Thematic Report: 

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits of the Organic Bar Soap Industry Thematic Report:

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the market, globally

    • Key insights into Infrastructure developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities to business among leading players in the organic bar soap industry

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment