In an upcoming report on the Global Market for Natural & Organic Personal Care Products, Organic Monitor predicts sales to reach 9 billion US dollars this year and 14 billion in 2015.
Organic Monitor estimates that natural and organic products have 2% share of the global personal care product market. “Demand for natural and organic products has spread to every region, however sales remain concentrated in Europe and North America,” the company reports. “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 and organic products.”
Product availability
Availability is a major driver of market growth, explains Organic Monitor. While their distribution was initially limited to specialized organic food retailers, in many countries now natural and organic personal care products have reached all mainstream retail channels, including pharmacies, drugstores, supermarkets and department stores and high-end retailers. Companies like ADA Cosmetics and Panpuri are developing natural lines for hotels and the spa channel.
Furthermore, the production of natural and organic cosmetics is no longer limited to specialized brands. “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,” adds Organic Monitor. Eventually, retailer private labels are also becoming prominent for natural personal care products, in particular in Germany and many other European countries.
Increasing competition
However, the rising number of competitors is now coinciding with slower market growth rates. In this environment, Organic Monitor finds successful brands are those that focus on marketing and distribution to differentiate their products. “Concept stores have become en vogue, with leading brands like Aveda, Melvita and Korres opening international retail networks.”
Latest findings from Organic Monitor’s new report as well as future growth projections will be given in dedicated workshops at the Asia-Pacific (November 7-8th in Hong Kong) and European (November 28-30th, in Paris) editions of the Sustainable Cosmetics Summit.
