The report values the existing market for natural and organic products in America at $ 4.3 billion and predicts that this could rise to $6.6 billion in 2010. This would be a growth of 50 percent in two years.
This data underlines the belief that the natural and organics market is a sure investment and reflects the keen interest large cosmetics companies have shown in expanding in the organic direction.
Organic explosion in mass retail
The report, which was issued in June, finds that the key areas of product growth have been in non-chemical based toothpastes, deodorants, anti-aging products, shampoo and make-up.
Organic Monitor has previously noted the massive surge in consumer interest for organic oral care in the US, estimating the sector’s value at $160m in 2008. The research body then estimated that the sector could grow annually at 20-25 percent in the next few years.
Whilst organic and natural shampoos and make-up have become commonplace in the mass retail environment, there has also been recent moves to bring natural hair dyes onto the market, both in the US and in the UK.
This rapid expansion in the organic and natural markets is explained by the Packaged Facts report as a consumer reaction to concerns about the health and safety of chemicals used. The report also states that this increase in consumer awareness has been spearheaded by the “Baby Boomers and Generation Xers”.
“Alternative” becomes “second mainstream”
In fact, the report suggests that the growth of the natural personal care industry has been so rapid that what used to be known as the “alternative” market in cosmetics could now be referred to as the “second mainstream”. This would back up previous Mintel research, reported by Cosmetics Design, which noted the emergence of the “extreme ethical” as a trend in the cosmetics industry.
The report draws attention to brands such as Estee Lauder and Burts Bees, which have made significant movements towards the organic and natural path.
Burts Bees in particular, has adopted a strong marketing strategy to make consumers aware of its natural credentials, setting up a website called The Greater Good, to highlight the importance of tight regulation and labelling standards in the industry.
The report is based on primary research, which draws upon information from both retail and the marketing industry. Government bodies and trade organizations were also consulted and the Market Research Bureau was consulted to gather consumer information.