Global natural and organic beauty product sales top US$9bn
However growth rate is slowing due to economic climate
Sales of natural and organic beauty products around the world are to reach US$9bn by the end of this year, according to projections by Organic Monitor. The organisation predicts this figure will rise to US$14bn by 2015 however the growth rate is slowing due to the current economic climate.
Demand for natural and organic products has now spread to every region, although sales still remain concentrated in Europe and North America, says the company.
The natural and organic market now has a 2% share of the global personal care market, with this figure rising to 10% in countries such as the US, Germany and Austria. High consumer awareness and extensive distribution network have helped pushed this figure up, along with a cross over from specialist retailers to mainstream channels. Premium brands, says Organic Monitor, are targeting high-end retailers, while other brands are entering pharmacies, supermarkets and department stores. In addition many brands are targeting the spa and hotel market.
Greater consumer awareness for natural and organic products has also been brought about by large cosmetic companies entering the naturals arena. Beauty giants L’Oréal and Colgate-Palmolive have taken the acquisition route, while other companies have developed their own natural lines. Retailer private labels are another area where there has been some fervent product development. In Germany for instance, they comprise 20% of natural personal care product sales, according to Organic Monitor.
However despite the growing presence of natural and organic beauty products globally, market growth rates will slow and to be successful, brands will need to focus on marketing and distribution to differentiate their product offer in a crowded marketplace.
More information on the natural and organic market will be presented at the Sustainable Cosmetics Summit, organised by Organic Monitor and held in Hong Kong from 7-8 November. For more information visit www.sustainablecosmeticssummit.com