JSPM’s

Bhivrabai Sawant Polytecnic Wagholi,

pune.

Micro project on

“Organic Cosmetics Business plan” Entrepreneurship

Development
(Course Code: 22032)

Submitted By :

Roll no. Name

02 Anjali Akoskar
03 Saniya Khan
04 Bhavika Birajdar
05 Resham Shaikh
09 Suhani Shinde

Under the Guidance of:

Prof. Sanjay Jagtap

 JSPm’S
Bhivrabai sawant polytechnic

Certificate
This is to certify that Micro - Project contains the expected work for
following student of Sixth semester Diploma in Computer Engineering
of Bhivrabai Sawant Polytechnic, Wagholi of semester 2022 - 2023.
They have Completed their Micro - Project report entitled “Organic
Cosmtics” the guidance of Prof. Sanjay Jagtap. This project report is
being submitted to MSBTE, Mumbai in the partial fulfillment for the
Diploma in Engineering

Roll No Name of student Enrollment No

02 Anjali Akoskar 2107100267
03 Saniya Khan 2107100283
04 Bhavika Birjdar 2107100306
05 Resham Shaikh 2107100317
09 Suhani Shinde 2107100321

Subject Incharge
Prof. Sanjay Jagtap

Date -
 BHIVRABAI SAWANT POLYTECHNIC, WAGHOLI,
PUNE
ANEEXURE II
Evaluation Sheet for the Micro Project
Academic Year: 2022-23 Name of the Faculty: Prof. Sanjay Jagtap

Course: EDE Course code : 22032 Semester: VI Title of the

project: Select product and prepare its cost sheet.

COs addressed by Micro Project:

A: …………………………………………………………………………………………………………… B:
…………………………………………………………………………………………………………….
C: ……………………………………………………………………………………………………………..
D: ……………………………………………………………………………………………………………..
Major learning outcomes achieved by students by doing the project

(a) Practical outcome:…………………………………………………………………………………

(b) Unit outcomes in Cognitive domain:…………………………………………………………………

(c) Outcomes in Affective domain:………………………………………………………………………

Comments/suggestions about team work /leadership/inter-personal communication (if any)

………………………………………………………………………………………………………………
Marks out of 6 for Marks out of 4for
performance in performance in
Roll Student Name group activity (D5 oral/ presentation Total
No Col.8) (D5 Col.9) out of
10
(Name and Signature of Faculty)

BHIVRABAI SAWANT POLYTECHNIC,

WAGHOLI, PUNE
Micro Project Plan

Week Sign of the

No. Duration Guide
Date Work or activity Performed
in hours

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Micro Project Report

“Natural Cosmetics”

INTRODUCTION:

Cosmetics or skincare products are the products that people use for their personal purpose
such as cleanliness, fairness, body odour, etc. It includes various types of creams like
moisturizing creams, cold creams, fairness creams, body talc, deodorants, perfumes, mists,
body oils, hair oils, shampoos, conditioners, soaps, body washes and all other beauty care
products. These are the core FMCG products. In other words we can say that the personal
care products or cosmetics are the backbone of FMCG industry. Now, the demand of
personal care products is increasing day by day. Today, not only the working or financially
independent women are skin conscious but also the teenagers, young girls and the
housewives are equally aware and conscious about their skin and beauty. Media and
advertisement has played a major role in changing the perception and preferences of women
towards cosmetics and other skincare products.

Some of the companies started to manufacture the cosmetics which include harmful chemical
ingredients also such as parabens, phthalates, triclosan, xylene etc, which are not harmful to
skin only but also our natural environment as many of these chemicals are non-
biodegradable and they are disturbing the ecological balance of nature to some extent. Now,
the biggest question is it possible to take care of your skin while being ecologically correct?
Here, comes the concept of natural and organic cosmetics, made from almost 100 percent
natural components, their production processes are also totally sustainable, from raw
materials to marketing. This provides the consumer with the certified quality product that is
not harmful to skin. Organic cosmetics are rich in vegetable and essential oils, butters and
various extracts that never harms our body and natural environment. According to
International standards of ECOCERT(Ecological and Organic certification), for a cosmetic
product to be considered organic, it is necessary that 95 percent of its natural raw materials
are organically certified, free from chemical, synthetic or animal substances. Some naturally
produced animal raw materials are allowed for example - Milk. Animal raw materials cannot
hurt endangered species and their harvesting cannot negatively impact ecological balance.
Mineral raw materials are allowed, provided they are used for their intrinsic properties and
that their extraction does not pollute or degrade the environment according to the purity
criteria. The global market of truly natural and organic cosmetics is estimated ataro und 6.5
billion Euros in 2011 dominated mainly by US and Europe.
OUR VISION:

"To become a globally recognized leader in the natural cosmetics industry, inspiring
individuals to embrace and celebrate their natural beauty while promoting sustainability,
wellness, and environmental responsibility."

OUR MISSION:

"Our mission is to craft exceptional natural cosmetics using ethically sourced, organic
ingredients that nourish the skin and respect the planet. We are dedicated to providing our
customers with safe, effective, and luxurious products that enhance their beauty without
compromising their health or the environment. Through innovation, transparency, and
community engagement, we strive to foster a culture of self-care, empowerment, and
environmental stewardship, paving the way towards a more sustainable and conscious future
for beauty."
GOALS AND OBJECTIVES:

Goals and objectives for a natural cosmetics business can vary depending on factors like
market trends, competition, and the specific niche within the cosmetics industry. Here's a
sample set of goals and objectives for such a business:

1. Goal: Establish Brand Recognition and Loyalty

- Objective: Build a strong brand identity centered around natural ingredients,
sustainability, and ethical practices.
- Objective: Increase brand visibility through targeted marketing campaigns, social media
engagement, and collaborations with influencers and beauty bloggers.

2. Goal: Expand Product Line and Offerings

- Objective: Research and develop new natural cosmetics products that align with
consumer trends and preferences.
- Objective: Diversify product range to include skincare, haircare, and other related items
to cater to a wider audience.
- Objective: Incorporate customer feedback and market research to continually innovate
and improve existing product offerings.

3. Goal: Achieve Sustainable and Ethical Sourcing Practices

- Objective: Source ingredients from certified organic and fair-trade suppliers to ensure
quality and ethical standards are met.
- Objective: Implement eco-friendly packaging solutions and reduce the environmental
footprint of the manufacturing process.
- Objective: Educate consumers about the importance of sustainability and transparency in
the cosmetics industry.

4. Goal: Increase Sales and Revenue

- Objective: Expand distribution channels by partnering with retailers, boutiques, and
online platforms to reach a larger customer base.
- Objective: Develop strategic pricing strategies to remain competitive while maintaining
product quality and brand integrity.
- Objective: Implement promotional campaigns and loyalty programs to incentivize repeat
purchases and foster customer loyalty.

5. Goal: Establish a Strong Online Presence

- Objective: Optimize the company website for search engines (SEO) to improve visibility
and attract organic traffic.
- Objective: Leverage social media platforms to engage with customers, showcase
products, and drive sales.
- Objective: Utilize email marketing campaigns to nurture leads, promote new products,
and encourage customer loyalty.

OBJECTIVES OF THE STUDY

• To study the buying behaviour of consumer regarding the natural and organic
cosmetics.

• To study the level of awareness in consumer regarding the natural and organic
cosmetics.

• To identify the factors affecting consumer behaviour in choice of natural and organic
cosmetics.

• To know whether the females prefer to shift from chemical based cosmetics to natural
and organic cosmetics.
PRODUCT / SERVICES DETAILS:
A natural makeup business typically focuses on providing makeup products made from
natural and organic ingredients, as well as offering services that cater to customers
interested in clean beauty. Here's a breakdown of the products and services such a
business might offer:

PRODUCTS:
1.Foundation: Natural foundations formulated with ingredients like minerals, plant
extracts, and oils to provide coverage while nourishing and protecting the skin.

2. Concealer: Concealers made with natural pigments and moisturizing ingredients to

hide imperfections without clogging pores or irritating the skin.

3. Blush and Bronzer: Natural blushes and bronzers containing plant-based pigments
and nourishing oils to add color and dimension to the skin.

4. Eyeshadow: Eyeshadow palettes featuring shades made from mineral pigments,

botanical extracts, and natural oils for vibrant color and smooth application.

5. Eyeliner and Mascara: Natural eyeliners and mascaras formulated with plant-
based waxes, oils, and pigments to define and enhance the eyes without harsh
chemicals.

6. Lipstick and Lip Gloss: Lip products made from natural oils, butters, and pigments
to hydrate and color the lips without synthetic fragrances or preservatives.

7. Setting Spray and Finishing Powder: Natural setting sprays and powders to help
makeup last longer and provide a flawless finish without synthetic ingredients.
8. Makeup Brushes and Tools: High-quality makeup brushes and tools made from
sustainable materials such as bamboo, recycled aluminum, and synthetic bristles.
 NATURAL FOUNDATION:

 Mousse Foundation
A whipped foundation that is light and
gentle on the skin. Mousse foundation
glides on the skin easily and leaves a clean
matte finish to reduce the cakey appearance.
Types:

 Liquid Foundation
Thin and quick enough to be applied with a snap
of your fingers. Best for the experienced
consumer when applying makeup.

 Foundation Sticks
For normal to dry skin. Sticks glide on
easily with a thicker consistency but
blend with ease. With improving
formulations, the easy application just
got easier.

PROCESSING :-
Ingredients depend on the color of your skin.
• Cornstarch or arrowroot powder: this is the base of the foundation and it gives you
that flawless look!
• Cocoa powder: darkens and adds richness. I use a little bit of this even though I am
super pasty white!
• Cinnamon: darkens and adds richness
• Ginger: if you have yellow pigments in your skin like me
• French green clay: this works great for those with more red pigments in the skin.
Green cancels red!
• Bentonite clay: totally optional, but has great benefits for your skin.

Method:- In a small, nonmetallic bowl, add about 1 Tbs

cornstarch.

• Depending on the color of your skin, start mixing in small amounts of the other
ingredients until you get your perfect match.
• To figure out if you matched your skin tone, just dip your finger in the powder, rub on
the back of your hand, and go outside to see if it blends. If it doesn’t, then add more
ingredients and try again. Place in a clean jar.

To use natural foundation:-

Gently tap a foundation brush in loose powder, tap off any extra powder back into the jar,
and apply in a circular motion, just like any loose powder foundation.

SERVICES:
1.Makeup Application: Offering professional makeup application services for special
occasions, events, weddings, or photoshoots using natural makeup products.

2. Makeup Consultations: Personalized consultations with makeup artists to help

customers find the right natural makeup products for their skin type, tone, and
preferences.

3. Makeup Workshops and Classes: Hosting makeup workshops and classes to teach
customers about natural makeup application techniques, product selection, and
skincare tips.

4. Bridal Makeup Services: Specialized bridal makeup services using natural and
longlasting makeup products to create a flawless and radiant look for brides and bridal
parties.

5. Makeup Parties and Events: Organizing makeup parties or events where

customers can gather with friends to learn about natural makeup, try out products, and
receive mini-makeovers.

6. Virtual Makeup Consultations: Offering virtual consultations via video call or chat
to provide personalized makeup advice and product recommendations to customers
unable to visit the store in person.

By offering a range of natural makeup products and services, natural makeup

businesses aim to provide customers with clean, high-quality alternatives to
conventional cosmetics while promoting beauty practices that are healthy for both
people and the planet.

 NATURAL MASCARA
They made your lashes look darker, but didn’t really make the lashes look any thicker. So,
that’s what I tried to do: make an all-natural mascara that adds a bit of fullness to your
lashes! The ingredients labels of mascaras tend to be hard to decipher, most often containing
a plethora of chemical names. To simplify this, we’ve compiled a list of some of the
ingredients that are most commonly found in mascaras: the good, the bad and everything in
between.

PROCESSING:

Ingredients:

• 1 tsp shea butter

• 4 tsp of aloe vera gel
• 1 tsp coconut oil
• 1-2 capsules of activated charcoal

Supplies you may need:

• Clean mascara tube (like this one)

• Small spatula

Method:

STEP1:
In a small saucepan or mini sauce crock pot, place first four ingredients and heat until
completely melted.

STEP2:
Mix in activated charcoal and remove from the heat.
STEP3:
Place mixture in a plastic bag, allow to cool a bit, and move contents to one corner of the
bag.
STEP4:
Cut a small hole at the corner, insert into empty sterilized mascara tube, and gently squeeze
mascara into tube. It will be much easier if you have a second pair of hands to help.

SERVICES:

1. function as traditional mascaras by making lashes appear darker, longer, and more
defined.
2. Ingredient Safety: Natural mascaras prioritize using ingredients that are deemed safer for
both personal health and the Enhanced Appearance: Natural mascaras offer the same
basic
3. environment. They often avoid harsh chemicals like parabens, phthalates, synthetic
fragrances, and petroleum-derived ingredients.
4. Conditioning and Nourishing: Many natural mascaras contain ingredients such as plant
oils (like argan oil, jojoba oil, or coconut oil), shea butter, and vitamin E, which can help
condition and nourish the lashes, promoting their health and strength over time.
5. Gentleness: Natural mascaras are often formulated to be gentle on sensitive eyes and
suitable for those with allergies or contact lens wearers. They typically avoid irritating
ingredients that may cause discomfort or adverse reactions.
6. Water Resistance: While not always as long-lasting as conventional mascaras, some
natural mascaras offer water-resistant formulas, providing some degree of smudge-proof
wear without relying on harsh synthetic ingredients.
7. Cruelty-Free and Vegan Options: Many natural mascaras are cruelty-free, meaning
they're not tested on animals, and some are also vegan, avoiding any animal-derived
ingredients.
8. Sustainability: Some natural mascara brands prioritize sustainability in their packaging,
opting for recyclable materials or minimal packaging to reduce environmental impact.
9. Customizable Look: Natural mascaras come in various formulas and brush designs to
cater to different preferences, whether you prefer a natural, subtle look or more
dramatic, voluminous lashes.
10.Contribution to Overall Wellness: For individuals seeking to minimize their exposure to
synthetic chemicals or adopt a more natural lifestyle, using a natural mascara can
contribute to a sense of overall wellness and peace of mind.

 NATURAL LIPSTICK
Lipstick are essential part of every woman’s makeup bag. Earlier, these lipsticks were made
with chemicals to enhance their colour and texture, however, these nasty chemicals aren’t
safe for the skin and pose a threat to the person wearing it. Interestingly, women of today
have become more aware of what goes on their skin. And with such awareness, the demand
for organic liquid lipsticks or even mattes has increased. These organic lipsticks are
formulated with certified natural ingredients that are safer as compared to their counterparts.
So if you’ve also been on the lookout for organic waterproof lipstick shades.

Types:

 Matte Lipstick
Matte lipsticks are perfect for everyday wear and can also be
dressed up for a night out. They offer excellent coverage and are
long-lasting. Matte lipsticks are also transfer-proof, which
means they don’t leave mark on clothes

 Glossy Lipstick
Glossy lipsticks come in a variety of shades and are ideal for creating a
bold lip look. They have a creamy texture and provide a hydrating
effect.It,s perfect for those with dry lips as they provide moisturization.
They are not transfer-proof, but the high-shine effect makes up for it.

 Satin Lipstick
They have a subtle sheen that makes your lips look healthy and plump.
Satin lipsticks come in a variety of shades, from light pinks to bold reds.
They have a creamy texture and provide good coverage. Satin lipsticks are
 perfect for those who don't like the extreme matte finish but want a slight
sheen.
 Liquid Lipstick
Liquid lipsticks come in a variety of shades, from neutrals to bold colors
like purple and black. They are perfect for those who want their lipstick to
last all day.

PROCESSING:

• Basic Natural Lipstick

Ingredients:

• 1 teaspoon coconut oil

• 1 teaspoon shea butter or cocoa butter
• 1 teaspoon beeswax pastilles
• 1 drop essential oil of choice for scent
• 1 drop red food coloring for a red hue
• ¼ teaspoon organic cocoa powder/cinnamon/turmeric for a brown hue.
 Method:

1. Melt the beeswax, shea or cocoa butter and coconut oil in a glass jar with no lid by placing
the jar in a small pot of simmering water.
2. When the mixture has melted completely, take the jar off the heat and add any combination
of the color and scent ingredients. Mix well.
3. Use a dropper to carefully transfer the mixture to a glass container (it'll expand a bit as it
cools so don't fill it all the way to the top). Store in a cool, dry place. Red based lipstick

Ingredients:

• 1 tablespoon sunflower oil

• Dried beet root, finely grated
• 1 tablespoon beeswax

Method:

1. Melt the sunflower oil and beeswax in a double boiler or in the microwave.
2. Slowly add the beet root until you've achieved the color you want. Stir constantly.
3. Transfer to a clean glass container and allow the mixture to cool.

• All-Natural Lip Balm Ingredients:

• 1 teaspoon beeswax beads

• 3 teaspoons sweet almond or olive oil
• Up to ⅛ of a teaspoon essential oil (cinnamon, peppermint, or lavender)

Method:

1. Melt wax and oil together over low heat while stirring gently.
2. Remove the mixture from heat and allow to cool for several minutes.
3. Add the essential oil and mix well.
4. Pour the mixture into clean containers and let cool completely.

SERVICES:
Safe Ingredients: Natural lipsticks prioritize using ingredients that are considered
safe for personal health and the environment. They often avoid harsh chemicals like
parabens, phthalates, synthetic fragrances, and petroleum-derived ingredients that
may pose risks to health.

Moisturizing and Nourishing: Many natural lipsticks contain ingredients such as

plant oils (like coconut oil, jojoba oil, or argan oil), shea butter, cocoa butter, and
vitamin E, which provide hydration and nourishment to the lips. These ingredients
can help prevent dryness, chapping, and flaking, leaving lips feeling soft and smooth.

Gentle on Lips: Natural lipsticks are often formulated to be gentle on sensitive lips.
They typically avoid irritating ingredients that may cause discomfort or allergic
reactions, making them suitable for individuals with sensitive skin or allergies.

Pigment Rich: Despite being made with natural ingredients, natural lipsticks offer
vibrant, long-lasting color payoff. They contain natural pigments derived from fruits,
vegetables, minerals, or plant extracts, providing rich, intense colors without the
need for synthetic dyes.

Customizable Finishes: Natural lipstick brands offer a variety of finishes, including

matte, satin, glossy, or sheer, allowing individuals to achieve their desired look. These
finishes are achieved using natural ingredients like plant waxes, oils, and butters,
rather than synthetic additives.

Sustainability: Some natural lipstick brands prioritize sustainability in their

packaging, opting for recyclable materials or minimal packaging to reduce
environmental impact. They may also use eco-friendly manufacturing processes and
source ingredients from sustainable ingredients.

MANAGEMENT ROLE OUTLINE:

 Business Manager- Suhani Shinde
Cosmetics or skincare products are the products that people use for their personal purpose
such as cleanliness, fairness, body odour, etc. Some of the companies started to manufacture
the cosmetics which include harmful chemical ingredients also such as parabens, phthalates,
triclosan, xylene etc, which are not harmful to skin only but also our natural environment as
many of these chemicals are non-biodegradable. Here, comes the concept of natural and
organic cosmetics, made from almost 100 percent natural components, their production
processes are also totally sustainable, from raw materials to marketing. This provides the
consumer with the certified quality product that is not harmful to skin.
Certain things that have helped natural and organic cosmetics products in earning the
“special” badge are:
1.No irritants are present: Natural products don’t contain any chemical or ingredients that can
irritate the skin and cause rashes, redness, or even burns. The products are finely prepared
and produced for most sensitive to oily to normal skin into batches.
2.No Carcinogens are present: As per the study conducted by industry experts, what has
discovered is that beauty and skincare products are usually prepared with chemicals that
contain carcinogens. You must know that whatever you put on your skin, it gets absorbed
and these chemicals are powerful enough to cause different types of cancer. Thankfully,
organic products are safe to use as no carcinogens are present in them.
 Production-Anjali Akoskar PRODUCTS:
1.Foundation: Natural foundations formulated with ingredients like minerals, plant extracts,
and oils to provide coverage while nourishing and protecting the skin.
2. Concealer: Concealers made with natural pigments and moisturizing ingredients to hide
imperfections without clogging pores or irritating the skin.
3. Blush and Bronzer: Natural blushes and bronzers containing plant-based pigments and
nourishing oils to add color and dimension to the skin.
4. Eyeshadow: Eyeshadow palettes featuring shades made from mineral pigments, botanical
extracts, and natural oils for vibrant color and smooth application.
5. Eyeliner and Mascara: Natural eyeliners and mascaras formulated with plant-based
waxes, oils, and pigments to define and enhance the eyes without harsh chemicals.
6. Lipstick and Lip Gloss: Lip products made from natural oils, butters, and pigments to
hydrate and color the lips without synthetic fragrances or preservatives.

 Cost Management-Resham Shaikh

For the year 2019, the size of the natural skincare products market globally was valued at Rs.
7,86,41,49,00,000. It also states that the market would grow at a CAGR rate of 5% from
2020 to 2027. So, what’s the major reason for the sudden boom in the organic sector? People
are now more aware of the environment, climate change, and sustainable options to save the
environment. Also, they are worried about the long-term adverse effects beauty products
have on the skin, such as allergies, cancers caused due to carcinogenic ingredients, etc.
Always keep in mind that you are manufacturing products for human skin. So, it is important
that you have a thorough knowledge and understanding of beauty products. Whether it’s the
business sector, manufacturing process or even chemical formulations, you need to study all.
So, research extensively as much as possible before stepping into the industry.

 Market Analysis-Saniya Khan

The natural and organic cosmetics market size was valued at USD 37.8 Billion in 2022. The
natural and organic cosmetics industry is projected to grow from USD 41.38 Billion in 2023
to USD 85.47 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.49%
during the forecast period (2023 - 2032). The growing levels of expenditure on health and
hygiene products and increasing awareness among consumers about the chemicals present in
cosmetics and their impact on skin and cosmetics are the key market drivers enhancing
market growth. Market CAGR for natural and organic cosmetics is being driven by the
growing e-commerce activities of key players. Various players in the market are initiating
digital marketing strategies, preparing interactive advertisements, and making substantial
efforts to broadcast their products via social media, which is likely to foster product demand.
The growing impact of social media and increasing internet penetration attract consumers to
e-commerce to buy personal care products. For instance, in August 2019, Grupo Boticário, a
Brazil-based beauty products company, announced its plans to acquire Beleza na Web, an
ecommerce platform for selling its products. Therefore, manufacturers are focusing on
offering many products through an online channel to meet consumer demand.

 Customer Focus- Bhavika Birajdar

The target markets in the cosmetic business vary, but they often include women and men of
different age groups who are interested in enhancing their appearance. Additionally, specific
products may target demographics based on factors like skin type, concerns (e.g., anti-aging,
acne), and cultural preferences. Interacting with customers requires understanding that they
may not possess the same depth of knowledge about your brand as you do. This reality
necessitates patience as they express their concerns, even when the resolution may seem
apparent to you. Often, they may struggle to grasp an explanation you're providing, which is
where patience truly becomes paramount. Regardless of the number of repetitions required, a
proficient customer service representative will patiently reiterate the solution. In industries
like beauty salons or cosmetics, creating an exceptional customer experience is vital. A
positive experience will build your brand's reliability and foster customer loyalty, essential
factors for your business's growth. Therefore, strive for perfection in addressing customer
queries and resolving issues, ensuring your customers leave content and problem-free.

PROBLEM SOLVING
1. Reduced Exposure to Harsh Chemicals: Many people opt for natural cosmetics to
minimize their exposure to synthetic chemicals commonly found in conventional cosmetics.
Some individuals may experience irritation, allergies, or other adverse reactions to certain
chemicals present in conventional products.

2. Environmental Concerns: Natural cosmetics typically use ingredients sourced from

renewable resources and are produced using environmentally friendly methods. This appeals
to consumers concerned about sustainability and reducing their environmental impact.

3. Animal Welfare: Many natural cosmetic brands are cruelty-free, meaning they do not
test their products on animals. This addresses concerns about animal welfare and supports
the ethical treatment of animals.

4. Skin Sensitivity: Natural cosmetics may be gentler on sensitive skin compared to

products containing synthetic fragrances, preservatives, and other potentially irritating
ingredients.

5. Health Concerns: Some consumers are wary of the long-term health effects of certain
synthetic chemicals used in conventional cosmetics. They may choose natural alternatives to
minimize potential health risks associated with these chemicals.

6. Holistic Health Approach: Natural cosmetics often incorporate botanical extracts,

essential oils, and other natural ingredients believed to offer additional skin benefits beyond
mere cosmetic enhancement. This aligns with a holistic approach to health and beauty.
7. Personal Values and Lifestyle Choices: For many consumers, the decision to use natural
cosmetics is driven by personal values and lifestyle choices, such as a preference for organic,
eco-friendly, or ethically sourced products.

Overall, while natural cosmetics may not completely solve all beauty-related problems, they
offer alternatives that address specific concerns related to ingredients, ethics, and personal
preferences.

INNOVATIVENESS/NOVALITY

a) Zero-Waste Packaging: Design packaging that is completely biodegradable or easily

recyclable. Offer refillable options to reduce single-use plastic waste.

b) Customizable Products: Allow customers to personalize their cosmetics by choosing

ingredients, scents, or packaging, providing a unique and tailored experience.
c) Farm-to-Face Ingredients: Source ingredients directly from local farms or cooperatives,
ensuring freshness, sustainability, and supporting local communities.

d) Tech-Integrated Skincare: Develop skincare tools or apps that analyze skin condition
and provide personalized product recommendations based on individual needs.

e) Edible Cosmetics: Create cosmetics using edible ingredients that are safe for
consumption, promoting a holistic approach to beauty and wellness.

f) CBD-Infused Products: Incorporate cannabidiol (CBD) into skincare and cosmetic

products for its potential anti-inflammatory and calming properties.

g) Beauty Subscription Boxes: Curate monthly subscription boxes featuring a selection of

natural cosmetics, allowing customers to discover new products while reducing decision
fatigue.

h) Community Engagement Initiatives: Organize workshops, events, or online

communities focused on natural beauty, sustainability, and self-care, fostering a sense of
belonging and loyalty among customers.

i) Augmented Reality (AR) Makeup Try-On: Develop an AR app that allows customers
to virtually try on makeup products before purchasing, enhancing the online shopping
experience.

j) Cosmetics with Adaptogens: Incorporate adaptogenic herbs and plants known for their
stress-reducing and balancing properties into skincare and makeup formulations.
k) Gender-Neutral Products: Create a line of cosmetics that are inclusive and suitable for
all genders, challenging traditional beauty standards and promoting diversity.

l) Cosmetics for Specific Skin Conditions: Develop products tailored to individuals with
specific skin conditions such as eczema, rosacea, or acne, providing solutions beyond
general skincare.

m) Carbon-Neutral Production: Offset carbon emissions generated during production and

distribution processes, demonstrating a commitment to environmental responsibility.

MARKET ANALYSIS
 The global organic
Cosmetics
market size
was valued at USD
21.4 Billion in
2022 and is
expected to
reach a value
of USD 44.3 Billion in 2032 and register a revenue CAGR of 9.5% during the forecast
period.

Growing consumer awareness of the negative effects of synthetic cosmetics on the skin
and the environment, which has caused a movement towards organic cosmetics, is one of
the main drivers driving the market revenue growth. The market is expanding due to
rising consumer interest in eco-friendly and sustainable beauty goods and rising demand
for natural and organic skincare products.

The increased incidence of skin conditions and diseases, particularly in the elderly population, is another
factor driving demand for organic cosmetics. Customers are turning to organic cosmetics as a result of the
rising usage of dangerous chemicals in cosmetics that cause skin rashes, allergies, and other skin conditions.
Moreover, the growing popularity of individualized and tailored skincare solutions is fueling the need for
organic cosmetics. Demand for organic cosmetics is rising as consumers look for customized skincare
options that address their unique demands.
Also, the rise of the market's revenue is fueled by the expanding availability of organic cosmetics through
ecommerce channels. Because they are convenient, accessible, and offer many goods, e-commerce
platforms are gaining popularity among consumers. The popularity of smartphones and the internet has
increased, fuelling the development of e-commerce platforms and drive the sales of natural cosmetics.

By Product type, 2018 – 2032

MAKEUP
• Facial Products

• Foundation • Conceale r• Primer

• Face powders

• Others (Blush, Highlighter, Contour, etc.)Eye Products。 Eye Shadow。 Eye Liner,
Mascara (Eye lashes, eye primer, etc.) LIP PRODUCTS:

• Lipstick

• Lip Liner

• Lip Gloss

• Others (Lip Tints, Primer)

BY PACKAGING TYPE, 2018 – 2032:

• Bottles and Jars

• Tubes

• Pencils and Sticks

• Pouches and Sachets

• Others (Roll-ons, etc.)

BY PRICE RANGE, 2018 – 2032

• Premium Range

• Economical Range

BY CONSUMER GROUP, 2018 – 2032

• Male

• Female

•Kids

BY DISTRIBUTION CHANNEL, 2018 – 2032

• Online channels

• E-commerce

• Company websites

• Offline channels

• Specialty Stores

• Mega Retail Stores

• Others (Departmental Stores, Pharmacies, etc.)

Organic Cosmetics Market Report Scope

PARAMETERS DETAILS

The market size value

USD 21.4 Billion
in 2022

CAGR (2022 - 2032) 9.5%

The Revenue forecast in

USD 44.3 Billion
2032

Base year for

2022
estimation

Historical data 2020-2021

2022-2032
Forecast period

• Revenue in USD Billion

Quantitative units
• CAGR from 2022 to 2032

Report coverage Revenue forecast, company ranking, competitive landscape, growth factors, and trends
 Segments covered By Product Type Outlook, Distribution Channel Outlook, Regional Outlook

• Skincare

By Product Type • Haircare

Outlook
• Makeup

• Others

By Distribution • Online
Channel Outlook
• Offline

Regional scope North America; Europe; Asia Pacific; Latin America ; Middle East & Africa

U.S.; Canada; U.K.; Germany; France; BENELUX; China; India; Japan; South Korea; Brazil;
Country scope
Saudi Arabia; UAE; Turkey

L’Oreal SA, Estée Lauder Companies Inc, Shiseido Co. Ltd, The Procter & Gamble
Key companies Company, Revlon Inc, Natura & Co, Korres SA Natural Products, Weleda AG, Dr. Hauschka
profiled Skin Care,
Burt’s Bees

Customization scope 10 hrs of free customization and expert consultation

SWOT ANALYSIS:

Strengths:
• Brand Recognition: Established brands like L’Oréal, Maybelline, and Estée Lauder have
built immense brand loyalty and recognition, giving them a competitive edge.
• Product Innovation: The cosmetics industry thrives on innovation, constantly offering
new formulas, ingredients, and technologies to cater to evolving consumer preferences.
• Distribution Network: Cosmetics are readily available through various channels,
including department stores, drugstores, online retailers, and even social media platforms.
• Diversification: The industry offers a wide range of products for different skin types,
needs, and price points, catering to a diverse consumer base.

Weaknesses:
• High Competition: The market is fiercely competitive, with numerous players vying for
market share, putting pressure on profit margins.
• Price Sensitivity of Consumers: Consumers are increasingly price-conscious, especially
during economic downturns, making them susceptible to switching brands based on price.
• Dependence on Raw Materials: The industry relies on various raw materials, and their
price fluctuations can impact production costs and profitability.
• Negative Perceptions: Some consumers associate cosmetics with harmful chemicals or
unrealistic beauty standards, creating challenges for the industry’s image.

Opportunities:
• Rising Disposable Income: Growing economies and rising disposable income in
developing countries present vast expansion opportunities for the cosmetics industry.
• Growing Demand for Natural and Organic Products: Consumers are increasingly seeking
natural and organic cosmetics, driven by health and environmental concerns.
• Increasing Popularity of E-commerce: The rise of e-commerce platforms like Amazon
and Nykaa makes cosmetics more accessible to a wider audience, boosting sales.
• Personalization: Customization and personalization are gaining traction, with brands
offering products tailored to individual needs and preferences.

• Threats:
• Economic Downturns: Economic downturns can lead to decreased consumer spending on
non-essential items like cosmetics.
• Fluctuating Raw Material Prices: Fluctuations in the prices of raw materials like oils and
pigments can impact production costs and profitability.
• Stringent Regulations: Governments are implementing stricter regulations on the safety
and ingredients of cosmetics, which can increase compliance costs for manufacturers.
• Counterfeit Products: The presence of counterfeit cosmetics can erode consumer trust and
brand reputation, impacting sales and brand image.

BUSINESS MODEL:
UNDERSTANDING THE CUSTOMER’S REQUIREMENT THEN CREATING A
PRODUCT.
The company must preferably work in creating customized cosmetics only.

The customers are given categories from which they choose the product.
After selecting the product, the customer will be asked questions to understand the problem.

Depending on the allergies or reaction, the website selects components to be mixed in the
product base.

The brand with the help of logistic partners will create a customized product and deliver it to
customers.

PROVIDING CUSTOMERS WITH A BASE PRODUCT AND MAKING MINOR

CHANGES ACCORDING TO CUSTOMERS

A company which is already in the cosmetics industry can add a service to increase the
number of customers and engagement.

The customer after choosing the regular product can get the label, fragrance, color, or minor
details changed.

The buyer can modify the selections to further customize the base product.
The elements can be predefined by the brand.
With the help of logistic partners, the brand creates and deliver the final product.

MARKETING & PROMOTIONAL STRATEGIES

Products Strategy: The natural cosmetic products are concerned with the odor,
color, physical appearance of products and penetration characteristic of products. The
strategy for promoting the imported herbal cosmetic products are an introduction of the
products; advertising the products blend of potent herbs that can help effective skin care to
healthy, revitalize skin and natural extract contains active ingredients with high technology
manufacture the cosmetic product that perform a specific action to penetrate to the
deep skin. The smooth odor and color of imported products are the important purchasing
decision factors. Physical appearance of products; non greasy, non oily help absorbs quickly
into skin and help smooth the skin surface texture.
• Packaging: Packaging design, color, size and shape, play a role in purchasing
decisions. Packaging has to possess the strength to make eye-catching packaging
as its helps to make the most window of opportunity in pristine conditions.
• Brand, logo/slogan: Brand as a way to facilitate their purchasing decision, the
image of the brand has all the criteria value, quality reliability trust, intangible and
deliver benefits to the consumers.
• Price Strategy: Price is heavily differentiated due to the branding then imported
herbal cosmetic product offering more lower price by making smaller sizes of some
products, such as 50 ml and 30 ml bottles of products, which is normally sold in 100
ml bottles then smaller bottles are selling better than regular size one.
• Place Strategy: purchasing convenience from the Internet to virtual presence
 e.g. website, direct mail, social media enhance the brand’s image. The site also
uses Face book by constantly updating content photo, videos, information about
events, YouTube, twitter as platforms to keep customers up to date on new episodes
and development.
• Promotion Strategy: Integrated marketing communication for maintaining brand
image. Distribution channel are direct sale with catalog, counter in department
store, beauty showroom, television advertisement, radio advertisement, cabal
advertisement, booth exhibition, build beauty school, website, face to face marketing
and male beauty instructor Advertisement, television advertisement .

OPERATIONS PLANNED:

Launching and operating a natural cosmetics business involves a blend of creative product
development, sustainable practices, and effective business operations. Here's a plan covering
various aspects:

1. Product Development:
- Research: Conduct market research to identify trends, customer preferences, and gaps
in the natural cosmetics market.
- Formulation: Develop formulas using high-quality, natural ingredients that offer
skincare benefits without harmful chemicals.
- Testing: Conduct thorough testing for safety, efficacy, and stability of products,
ensuring they meet regulatory standards.
- Packaging: Choose eco-friendly packaging options such as recyclable or
biodegradable materials to align with the brand's sustainability goals.

2. Supply Chain Management:

- Sourcing: Establish partnerships with reliable suppliers of natural and organic
ingredients, ensuring ethical sourcing practices.
- Manufacturing: Select reputable manufacturers capable of producing products in line
with your brand's standards and scale of operations.
- Inventory Management: Implement inventory tracking systems to manage stock levels
efficiently and minimize waste.

3. Marketing and Branding:

- Brand Identity: Define a brand identity that emphasizes the natural, sustainable, and
ecofriendly aspects of your products.
- Digital Presence: Build a user-friendly website and leverage social media platforms to
showcase products, share educational content, and engage with customers.
- Content Creation: Create compelling content such as blog posts, tutorials, and
usergenerated content to educate and inspire your audience.
- Influencer Partnerships: Collaborate with influencers and beauty enthusiasts who align
with your brand values to expand reach and credibility.

4. Sales and Distribution:

- E-commerce: Set up an online store to sell products directly to consumers, offering a
seamless shopping experience and secure payment options.
- Retail Partnerships: Establish partnerships with natural beauty retailers, spas, and
boutique stores to distribute products offline and reach a wider audience.
- Wholesale: Offer wholesale opportunities for businesses interested in stocking your
natural cosmetics products.

5. Customer Experience:
- Customer Service: Provide excellent customer service by promptly addressing
inquiries, concerns, and feedback through various channels, including email, phone, and
social media.
- Personalization: Tailor product recommendations and offers based on customer
preferences and purchase history to enhance the shopping experience.
- Loyalty Program: Implement a loyalty program to reward repeat customers with
discounts, exclusive offers, and other perks.

6. Regulatory Compliance and Certification:

- Compliance: Ensure products comply with relevant regulations and standards for
cosmetics, labeling, and ingredient safety in target markets.
- Certification: Obtain certifications such as organic, cruelty-free, or vegan to enhance
credibility and appeal to discerning consumers.

7. Sustainability Initiatives:
- Environmental Impact: Minimize environmental impact by adopting sustainable
practices throughout the supply chain, including energy-efficient manufacturing processes
and carbon footprint reduction.
- Social Responsibility: Support ethical sourcing, fair labor practices, and community
initiatives to contribute positively to society and build a responsible brand image.

8. Financial Management:
- Budgeting: Develop a comprehensive budget covering product development,
marketing, operations, and other expenses to ensure financial stability and profitability.
- Pricing Strategy: Set competitive yet sustainable prices that reflect the value
proposition of natural cosmetics and cover production costs while maintaining profitability.
- Financial Tracking: Monitor sales, expenses, and cash flow regularly using accounting
software to make informed decisions and optimize business performance.

9. Continuous Improvement:
- Feedback Loop: Gather feedback from customers, employees, and stakeholders to
identify areas for improvement and innovation in products, services, and operations. -
Adaptation: Stay abreast of market trends, consumer preferences, and industry developments
to adapt strategies and offerings accordingly, ensuring relevance and competitiveness.

By integrating these elements into your natural cosmetics business operations, you can
establish a strong foundation for success while fulfilling your brand's mission of providing
safe, sustainable, and effective beauty solutions.

Financial Plan /Projections-

Forecast

Key assumptions

Our assumptions are detailed in the proceeding tables. We have planned for relatively slow
but stable general economic growth and an interest rate on borrowing of 9.5%. Because our
business is a combination of retail and wholesale our collection days may look somewhat
optimistic. That is caused by our assumption that approximately 70% of our retail sales will
be done on credit cards and debit cards. There is a three-day payment lag on these sales. We
assumed that wholesale customers would pay on an average of 50 days and that in year one
60% of our business would be on terms. As we develop our customer base (at wholesale) this
number is ramped up to 80% by year five. (Our terms will be C.O.D. on all opening orders.)
Our payments to vendors are assumed at 45 days.

REVENUE BY MONTH:
EXPENSES BY MONTH:

Financing
Use of Funds

Start-up costs are shown in three areas. The first is in the start-up table, the second is within
the cash flow assumptions and the third is in the P&L.

1. Start-up expenses: legal (incorporation and trademark registration), stationery

(business cards and office supplies), etc., brochures, consultants (graphic design for
 logo and packaging), research and development (architecture fees for store and trade
fixture design).
2. Start-up costs expressed in year one cash flow: FF&E for first Bluespa retail store.
3. Start-up costs included within year one P&L: brand marketing, management staff,
travel costs to coordinate product development.

FINANCIAL PROJECTIONS

Cost:
The cosmetics industry is highly lucrative, but to succeed you need solid financial planning.
A cosmetics production cost analysis should include cosmetics manufacturing budgeting,
cosmetics production efficiency, cosmetics manufacturing expenses, cosmetics revenue
forecasting, and cosmetics supply chain management. With careful beauty product financial
projections, cosmetics manufacturing ROI, cosmetics industry profitability, beauty product
profit margins, cosmetics manufacturing break-even analysis, cosmetics industry revenue
model, cosmetics production cash flow, and cosmetics manufacturing investment analysis
you will have the information you need to build a successful business.
Capital Expenditure Budget
A crucial aspect of a five-year financial projection plan for the cosmetics industry is capital
expenditure. This budget assists in overseeing investments in fixed assets, like property,
plant, and equipment. It includes depreciation, assets disposal and addition, and is
fundamental in examining return on investment, break-even analysis, production efficiency
optimization, cash flow, supply chain management, and manufacturing expenses. CAPEX
calculations are a part of an excellent investment analysis that informs financial planning and
forecasting, helps in calculating profit margins, and is the cornerstone of the industry's
revenue model Debt Financing
Effective financial planning is crucial for cosmetics companies who need to carefully
manage their production costs and revenue projections. With detailed financial analyses such
as break-even and investment analyses, supply chain management, and production efficiency
evaluations, businesses can monitor and optimize their profitability. A comprehensive
financial model can also map out loan repayment schedules, cash flow analyses, and other
essential metrics that inform decision-making. By using these tools, cosmetics makers can
effectively forecast their revenue and profit margins, while staying focused on growth
opportunities and strategies to achieve long-term financial success.

FUNDING REQUIRED:

Product quality plays a very important role in the cosmetic business. For that, there is
investment needed for product development and finding the best formulations. For out
startup it cost up to 4 to 5 lakhs. Then the overall expense for setting up a business which
was cost up to 2 lakhs. Also, we also need to start marketing and sales that cost initially up to
5o K. This cost always goes up due to many reasons and make it difficult to start a profitable
business for many years.

HOW WE RAISED FUND?

1. Personal savings: Consider using your personal savings or assets to invest in your
cosmetic business. This demonstrates your commitment and may help attract other
investors or lenders.
2. Friends and family: Approach friends and family members who believe in your
business idea and may be willing to provide financial support. Be clear about the
terms of the investment, repayment plans, and potential risks involved.
3. Small Business Loans: Explore loans specifically designed for small businesses, such
as those offered by banks, credit unions, or online lenders. Prepare a comprehensive
business plan, financial projections, and collateral (if required) to increase your
chances of obtaining a loan.
4. Crowdfunding: Utilize crowdfunding platforms like Kickstarter, Indiegogo, or
GoFundMe to raise funds for your cosmetic business. Create an engaging campaign,
highlight the unique aspects of your products, and offer attractive rewards to backers.
5. Angel Investors: Seek investment from angel investors who are willing to provide
capital to early-stage businesses in exchange for equity or convertible debt. Research
angel investor networks, attend industry events, and network to find potential
investors interested in the cosmetics sector.
6. Small Business Grants: Look for grants specifically targeted at small businesses or
entrepreneurs in the cosmetics industry. These grants may be provided by government
organizations, private foundations, or industry associations. Research and apply for
grants that align with your business goals and objectives.
7. Strategic Partnerships: Seek strategic partnerships with established companies or
investors in the cosmetics industry. These partnerships can provide financial backing,
access to distribution channels, marketing support, and industry expertise.
8. Personal or Business Credit Cards: Use credit cards, either personal or specifically
designed for business expenses, to finance initial startup costs. However, exercise
caution and ensure that you can manage the debt and interest payments effectively.