According to a new research by Organic Monitor, few Nordic companies would be interested in natural and organic cosmetic products although the regional market is expanding by about 15% a year.

Success of the Nordic Swan

Organic foods are well-established in the Nordic region, with the market share reaching 5% of total food sales in Sweden and Denmark. However, natural and organic cosmetics have much lower adoption rates with below 2% market share,” explains Organic Monitor. According to the market research company a major factor behind this low interest is the success of the Nordic Swan eco-labelling system. Perceived as the official eco-label of the region, the Nordic Swan is present on a wide range of cosmetics and toiletries.

With Nordic companies focusing on the Nordic Swan eco-label, consumers are turning to imported brands from North America, Australasia or other European countries when seeking ‘chemically-clean’ cosmetics. As a consequence, imported brands comprise up to 95% of natural cosmetic sales in countries such as Finland, claims Organic Monitor.

Market entry strategies

A growing number of companies are adopting a segmentation approach to market entry, targeting specific channels and / or consumer groups. For instance, the UK firm REN Skincare has made inroads by focusing on beauty retailers and department stores. Aveda, the leading American brand, is concentrating on hair salons and spas,” says Organic Monitor.

REN Skincare’s Moroccan Rose

Promising market

According to Organic Monitor’s report The Nordic market for natural & organic personal care products, healthy market growth rates are forecast to continue, with growth driven by new product launches and increasing distribution. As has happened in other European countries such as France and Germany, retailer private labels are expected to have a major impact in the development of the market.

Marketing and distribution strategies in the natural cosmetics industry will also be discussed at the upcoming Sustainable Cosmetics Summit that Organic Monitor is organising in Paris on 18-20 October 2010.