Global sales of natural & organic beauty products are projected to reach USD 9 billion this year. Although consumer demand for natural & organic products remains buoyant, new research finds the growth rate is slowing because of the weak economic climate.
In its upcoming report on the Global Market for Natural & Organic Personal Care Products, Organic Monitor (www.organicmonitor.com) predicts revenues to climb to USD 14 billion in 2015. Demand for natural & organic products has spread to every region, however sales remain concentrated in Europe and North America.
Natural & organic products have 2% share of global personal care product sales. In some countries – such as the USA, Germany, Austria – the market share is reaching 10 percent. The large market share is because of high consumer awareness and extensive distribution of natural & organic products.
Widening availability is a major driver of market growth. Natural & organic personal care products are crossing over from specialists to mainstream channels. Premium brands, such as Dr. Hauschka and REN, are targeting high-end retailers. Other brands are entering pharmacies, drugstores, supermarkets and department stores. Companies like ADA Cosmetics and Panpuri are developing natural lines for hotels and the spa channel.
Large cosmetic companies are entering the naturals arena. Some like L’Oreal and Colgate-Palmolive have taken the acquisition route, whilst others have developed natural / organic lines. Recent newcomers, such as Garnier, Henkel and Amore Pacific, are launching certified organic products.
Retailer private labels are also becoming prominent for natural personal care products. They are most successful in Germany where they comprise about 20% of natural personal care product sales. Alverde, the private label of DM drugstores, is leading with over 300 products across categories. Private labels are most established in Europe, however they are also becoming popular in the US, Russia and other countries.
Competitive stakes are rising as new entrants continue whilst market growth rates slow. Organic Monitor finds successful brands are those that focus on marketing and distribution to differentiate their products. Vertical integration is occurring whereby brands are operating at several levels of the supply chain. Concept stores have become en vogue, with leading brands like Aveda, Melvita and Korres opening international retail networks.
Latest findings from this new report as well as future growth projections are given in dedicated workshops at the Sustainable Cosmetics Summit (www.sustainablecosmeticssummit.com). Organic Monitor will be conducting workshops titled ‘Business Opportunities in the Global Market for Natural & Organic Cosmetics’ at the European and Asia-Pacific editions of this summit.
Workshops at Sustainable Cosmetics Summit:
Asia-Pacific edition: Nov 7-8th Hong Kong, www.sustainablecosmeticssummit.com/Asia/
European edition: Nov 28-30th Paris, www.sustainablecosmeticssummit.com/Europe/
Research Publication: #7001-60 The Global Market for Natural & Organic Personal Care Products (Publish date: Dec’11) http://www.organicmonitor.com/700160.htm
Sustainable Cosmetics Summit: Organised by Organic Monitor, the aim of the Sustainable Cosmetics Summit is to encourage sustainability in the beauty industry by bringing together key stake-holders and debate major sustainability issues in a high-level forum. More information is available from www.sustainablecosmeticssummit.com
About Organic Monitor: Organic Monitor is a specialist research, consulting & training company that focuses on the global organic & related product industries. In 2011, we are celebrating 10 years of encouraging sustainable development. Since 2001, we have been providing a range of business services to operators in high-growth ethical & sustainable industries. Our services include market research publications, business & technical consulting, summits, seminars & workshops. Visit us at www.organicmonitor.com
For further information, please contact:
Ms. Marie-Theres Wimmer, PR & Marketing Executive, Organic Monitor
Tel: (44) 20 8567 0788 Fax: (44) 20 8567 7164