Economic climate stalls natural and organic sales growth but the future looks bright

By Andrew McDougall

- Last updated on GMT

Related tags: Personal care products, Organic monitor, Cosmetics, Personal care

Economic climate stalls natural and organic sales growth but the future looks bright
New research from Organic Monitor has found that the growth rate of global sales of natural and organic beauty products is slowing because of the weak economic climate, although figures are expected to climb by $5bn (€3.7bn) in the next four years.

The latest report on the Global Market for Natural & Organic Personal Care Products says that sales are projected to reach $9bn, and climb further to $14bn by 2015.

However, although consumer demand is holding strong and has spread to every region, the London-based research firm claims that sales in Europe and North America have remained concentrated.

Increased distribution and consumer awareness

According to the report, natural and organic products have a 2 per cent share of global personal care product sales.

In some countries, such as the USA, Germany and Austria, the market share is reaching 10 per cent, which Organic Monitor says is because of high consumer awareness and extensive distribution of these products.

The products are also becoming more widely available and this contributes to growth. Natural and organic products are no longer found just in specialist channels but have crossed to the mainstream.

Here come the big players…

Another factor that Organic Monitor says will contribute to future growth is the introduction of large cosmetic companies into the naturals arena.

Some like L’Oreal and Colgate-Palmolive have taken the acquisition route, whilst others developed their own natural or organic lines.

There are also a string of companies like Garnier, Henkel and Amore Pacific, that have recently joined the party and are launching certified organic products.

Retailer private labels are also becoming prominent for natural personal care products, with the largest success found in Germany where they comprise about 20 per cent of natural personal care product sales.

Organic Monitor states that private labels are most established in Europe, however they are also becoming popular in the US, Russia and other countries.

Related topics: Market Trends

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