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Natural personal care market defies gloomier picture in developed markets

By Simon Pitman+

11-Dec-2013

Natural personal care is continuing to grow at healthy rates worldwide even in the United States and Europe, where other categories have been less dynamic, according to new data from Kline.

The latest data from the market researchers Natural Personal Care: Global Market Brief, the global market for natural personal care is currently valued at $28.5bn at the manufacturers’ level in 2013.

Brazil and China continue to lead the truly dynamic gains, with China ahead thanks to a market for natural personal care which grew by a spectacular 24% during the course of the year.

Europe and the US still record strong growth

Equally dynamic are the figures for the developing markets, where strong gains have also been recorded despite the fact that other categories have shown to be either in decline or stagnant.

This is reflected by the fact that in Europe, the market grew by 6%, despite the southern part of that region suffering from very poor retail conditions, and the market in the United States also grew by 7 %.

However, reflecting the massive growth in the China market, the industry activity in that region has been most pronounced with a real battle between local and international natural personal care brands starting to unfold.

Of the international brands that have entered the natural market in China, Kline singles out Jurlique and Kiehl’s, which both hit the market in 2009, together with Estee Lauder brand Origins, which entered the market in 2010.

Likewise, in Brazil, the market is being led by two brands – Natura and O Boticario, which are said to have an 85% share of the market.

Only six companies have a 3%+ share of the market

The report also singles out the six companies which have a more than 3% share of the market, including Chando and Inoher in China, Saishunkan in Japan, together with Bare Escentual and Aveeno in the U.S. and Yves Rocher and Oriflame in Europe.

But the report also suggests that the global market could be hotting up in the future, as many companies are seeking to reformulate their existing product lines to remove synthetic ingredients.

This is being driven by a combination of consumer demand, and the fact that improved technologies and a growing group of natural alternatives to the preservative problem is making reformulation less challenging.

“Although growth numbers have settled, many factors, including a focus on new natural ingredients, the opening of new channels of distribution, and consumer movement demanding greater transparency in labeling, are stimulating the industry,” said Carrie Mellage, vice president of Kline’s Consumer Products practice.

“Moreover, marketers are offering products specifically designed for specific demographic groups like men and babies, thereby opening up greater opportunities." 

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